FCA UK REGULATION SAMPLE EXAM
Which of the following is TRUE for a regulated firm under Money Laundering rules and
regulations? - Answers- Staff must be trained to recognise and deal with suspicious
transactions
Under the Proceeds of Crime Act 2002, criminal property is defined as - Answers- any
benefit derived from criminal behaviour
Under what legislative framework can certain consumer bodies alert the FCA to
supercomplaints? - Answers- Financial Services Act 2012
The FCA`s COBS rules apply to: - Answers- a UK investment management company
managing a pension fund for a Berlin based company
What is the role of the Financial Ombudsman Service? - Answers- Administer and
operate a dispute resolution service for clients of FCA-authorised firms
A firm receives a complaint from a customer relating to MiFID business. What is the
MINIMUM period records should be retained? - Answers- Five years from the date the
complaint was received
Which of the following is TRUE in respect of the Client money rules - Answers- 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? - Answers- Proceeds of Crime Act 2002
The main focus of the FCA`s supervisory approach on which its resources are focused
is to: - Answers- 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? - Answers- 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? - Answers- So that the firm can make recommendations
that are suitable for the client
In order to comply with the Data Protection Act 2018, for how long should personal data
be held? - Answers- No longer than necessary
Which of the following must be disclosed to a retail client when holding designated
investments or client money subject to MiFID? - Answers- Details of any investor
compensation scheme applicable
, Which of the following claimants would warrant compensation by the Financial Services
Compensation Scheme? - Answers- The trustee of a personal pension fund
Which of the following constitutes a regulated activity under the FSMA 2000? -
Answers- 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 investment business? - Answers- Stockbrokers
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: - Answers-
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 - Answers- 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? - Answers- It must have adequate
resources
A client wants to cancel her investment in an authorised UK unit trust. What is the
maximum number of days after her original purchase that she can cancel without
incurring possible charges? - Answers- 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: - Answers-
such recommendations are fairly presented
The general defence of `not expecting any person to deal....` is only available against
an allegation of insider dealing: - Answers- in relation to the offence of disclosure
For retail clients, periodic reports must contain prescribed information, which includes: -
Answers- 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 what circumstances would this cheque be treated as client
money? - Answers- Always
One of the key aims of the Disclosure and Transparency rules is to limit: - Answers- the
number of people accessing inside information
Your role involves dealing with clients of your firm. One client`s dealings make you
suspect money laundering. Who has INITIAL responsibility to report this suspicious
Which of the following is TRUE for a regulated firm under Money Laundering rules and
regulations? - Answers- Staff must be trained to recognise and deal with suspicious
transactions
Under the Proceeds of Crime Act 2002, criminal property is defined as - Answers- any
benefit derived from criminal behaviour
Under what legislative framework can certain consumer bodies alert the FCA to
supercomplaints? - Answers- Financial Services Act 2012
The FCA`s COBS rules apply to: - Answers- a UK investment management company
managing a pension fund for a Berlin based company
What is the role of the Financial Ombudsman Service? - Answers- Administer and
operate a dispute resolution service for clients of FCA-authorised firms
A firm receives a complaint from a customer relating to MiFID business. What is the
MINIMUM period records should be retained? - Answers- Five years from the date the
complaint was received
Which of the following is TRUE in respect of the Client money rules - Answers- 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? - Answers- Proceeds of Crime Act 2002
The main focus of the FCA`s supervisory approach on which its resources are focused
is to: - Answers- 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? - Answers- 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? - Answers- So that the firm can make recommendations
that are suitable for the client
In order to comply with the Data Protection Act 2018, for how long should personal data
be held? - Answers- No longer than necessary
Which of the following must be disclosed to a retail client when holding designated
investments or client money subject to MiFID? - Answers- Details of any investor
compensation scheme applicable
, Which of the following claimants would warrant compensation by the Financial Services
Compensation Scheme? - Answers- The trustee of a personal pension fund
Which of the following constitutes a regulated activity under the FSMA 2000? -
Answers- 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 investment business? - Answers- Stockbrokers
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: - Answers-
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 - Answers- 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? - Answers- It must have adequate
resources
A client wants to cancel her investment in an authorised UK unit trust. What is the
maximum number of days after her original purchase that she can cancel without
incurring possible charges? - Answers- 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: - Answers-
such recommendations are fairly presented
The general defence of `not expecting any person to deal....` is only available against
an allegation of insider dealing: - Answers- in relation to the offence of disclosure
For retail clients, periodic reports must contain prescribed information, which includes: -
Answers- 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 what circumstances would this cheque be treated as client
money? - Answers- Always
One of the key aims of the Disclosure and Transparency rules is to limit: - Answers- the
number of people accessing inside information
Your role involves dealing with clients of your firm. One client`s dealings make you
suspect money laundering. Who has INITIAL responsibility to report this suspicious
