FCA UK Regulation Sample Exam Questions And Answers (Updated And Verified)

FCA UK Regulation Sample Exam Questions And Answers (Updated And Verified) Which of the following is TRUE for a regulated firm under Money Laundering rules and regulations? - answer✔✔Staff must be trained to recognise and deal with suspicious transactions Under the Proceeds of Crime Act 2002, criminal property is defined as - answer✔✔any benefit derived from crimin al behaviour Under what legislative framework can certain consumer bodies alert the FCA to supercomplaints? - answer✔✔Financial Services Act 2012 The FCA`s COBS rules apply to: - answer✔✔a UK investment management company managing a pension fund for a Berl in based company What is the role of the Financial Ombudsman Service? - answer✔✔Administer and operate a dispute resolution service for clients of FCA -authorised firms Which of the following must be disclosed to a retail client when holding designated inve stments or client money subject to MiFID? - answer✔✔Details of any investor compensation scheme applicable Which of the following claimants would warrant compensation by the Financial Services Compensation Scheme? - answer✔✔The trustee of a personal pensio n fund Which of the following constitutes a regulated activity under the FSMA 2000? - answer✔✔Acting as a manager of an authorised unit trust Which of the following UK firms are directly subject to the requirements of MiFID when undertaking designated inve stment business? - answer✔✔Stockbrokers A firm receives a complaint from a customer relating to MiFID business. What is the MINIMUM period records should be retained? - answer✔✔Five years from the date the complaint was received Which of the following is T RUE in respect of the Client money rules - answer✔✔Client money must be separate from the firm's bank accounts Which of the following imposes the anti -money laundering requirements of criminal law on a stockbroker? - answer✔✔Proceeds of Crime Act 2002 The main focus of the FCA`s supervisory approach on which its resources are focused is to: - answer✔✔achieve its statutory objectives Which of the following payments are permitted to a third party on behalf of a client, by an introducer of business? - answer✔✔Fees which are necessary for the provision of the service - such as custody fees When looking for a personal recommendation for a client, why is it necessary to obtain so much information concerning their financial situation, investment objectives, knowledge and experience? - answer✔✔So that the firm can make recommendations that are suitable for the client In order to comply with th e Data Protection Act 2018, for how long should personal data be held? - answer✔✔No longer than necessary A life office is launching a new product in the retail market. In order to satisfy the FCA`s treating customers fairly consumer outcomes, this product must be: - answer✔✔appropriately targeted A client wishes to purchase a significant holding of a `complex` instrument but does not wish to enter in to an advisory or discretionary business relationship - answer✔✔The rules on `appropriateness` for `non -advised` sales must be considered Which of the following statements is TRUE of a firm requesting authorisation to carry out investment business under the FSMA 2000? - answer✔✔It must have adequate resources A client wants to cancel her investment in an author ised UK unit trust. What is the maximum number of days after her original purchase that she can cancel without incurring possible charges? - answer✔✔14 days Financial firms which prepare research recommendations have to comply with detailed standards in relation to presentation and disclosure in order to ensure that: - answer✔✔such recommendations are fairly presented The general defence of `not expecting any person to deal....` is only available against an allegation of insider dealing: - answer✔✔in relati on to the offence of disclosure For retail clients, periodic reports must contain prescribed information, which includes: - answer✔✔the firm`s name Where a £1,000 cheque paid to a firm comprises £900 of client money and £100 to pay the firm`s fees, under w hat circumstances would this cheque be treated as client money? - answer✔✔Always One of the key aims of the Disclosure and Transparency rules is to limit: - answer✔✔the number of people accessing inside information