FCA - Regs Wrong Exam Questions With
Correct Answers
All |of |the |following |are |true |of |the |FCA, |except:
A
The |guarantor |of |the |FCA |is |the |Treasury
B
The |FCA |board |is |made |up |of |executive |and |non-executive |directors |appointed |by |the |Crown
C
It |has |statutory |objectives |set |out |in |the |Financial |Services |Act |2012
D
It |is |responsible |for |conduct |regulation |for |all |authorised |firms |- |CORRECT |ANSWER✔✔-B
Who |regulates |UK |banks?
A
Her |Majesty's |Treasury
B
The |Prudential |Regulation |Authority
C
The |London |Stock |Exchange
D
The |European |Central |Bank |- |CORRECT |ANSWER✔✔-B, |PRA |is |part |of |BOE
What |is |the |purpose |of |the |Pension |Protection |Fund?
A
To |ensure |pension |companies |do |not |become |insolvent
,B
To |invest |funds |for |auto-enrolment |into |work-based |schemes
C
To |ensure |annuities |are |seen |as |viable |post-pension-freedom |legislation
D
To |compensate |members |of |insolvent |final |salary |pension |schemes |- |CORRECT |ANSWER✔✔-D, |PPF |
compensates |if |people |become |insolvent |and |pension |scheme |cannot |afford |to |pay |people |promised |
pensions
Who |is |responsible |for |reducing |risks |to |the |financial |system |as |a |whole?
A
Financial |Policy |Committee
B
National |Crime |Agency
C
Financial |Conduct |Authority
D
Her |Majesty's |Treasury |- |CORRECT |ANSWER✔✔-A, |PRA |takes |instructions |from |FPC, |which |is |part |of |
BOE
Which |one |of |the |following |statements |concerning |the |Financial |Policy |Committee |(FPC) |is |correct? |
The |FPC |meets
A
Annually |and |produces |an |annual |Financial |Stability |Report
B
Annually |and |produces |a |biannual |Financial |Stability |Report
C
Quarterly |and |produces |a |biannual |Financial |Stability |Report
D
,Quarterly |and |produces |an |annual |Financial |Stability |Report |- |CORRECT |ANSWER✔✔-C, |FPC |meets |4 |
times |a |year |but |MPC |meets |monthly
According |to |the |provisions |under |Senior |Management |Arrangements, |Systems |and |Controls |in |the |
Regulator's |Handbook, |the |responsibilities |of |directors |must |be:
A
Clearly |and |appropriately |apportioned
B
Reviewed |by |external |auditors |on |an |annual |basis
C
Recorded |and |the |records |kept |for |three |years |from |when |the |responsibilities |change
D
Clear, |fair |and |not |misleading |- |CORRECT |ANSWER✔✔-A, |records |kept |for |6 |years
Which |of |the |following |bodies |oversees |the |macro-economic |and |financial |issues |that |could |cause |
instability |in |the |UK?
A
Competition |and |Markets |Authority
B
Prudential |Regulation |Authority
C
Financial |Conduct |Authority
D
Financial |Policy |Committee |- |CORRECT |ANSWER✔✔-D, |aim |of |FPC |is |to |gain |a |bigger |picture |of |the |
financial |services |and |markets |in |order |to |better |predict |problems |that |may |occur
Who |is |responsible |for |the |regulation |of |individual |savings |accounts |(ISAs)?
A
Department |of |Business |Innovation |and |Skills
B
, HM |Revenue |and |Customs
C
The |Prudential |Regulation |Authority
D
The |Stock |Exchange |- |CORRECT |ANSWER✔✔-B, |ISA's |are |tax |efficient |savings |and |investments
Which |of |the |following |statements |are |correct?
I
The |FCA |is |responsible |for |ensuring |consumers |get |a |fair |deal
II
The |FCA |is |responsible |for |stability |of |the |markets
III
The |PRA |is |responsible |for |ensuring |consumers |get |a |fair |deal
IV
The |PRA |is |responsible |for |stability |of |the |markets
A
I |and |III
B
I |and |IV
C
II |and |III
D
II |and |IV |- |CORRECT |ANSWER✔✔-B, |The |FCA |is |responsible |for |ensuring |that |financial |markets |work |
well |so |that |consumers |get |a |fair |deal, |whilst |the |focus |of |the |PRA |is |on |stability |- |the |safety |and |
soundness |of |deposit |taking |firms, |insurers |and |systematically |important |investment |firms.
Which |statement |is |the |correct |aim |of |the |FCA's |Consumer |Duty?
A
To |ensure |that |professional |clients |receive |good |outcomes |when |they |purchase |products |or |services
Correct Answers
All |of |the |following |are |true |of |the |FCA, |except:
A
The |guarantor |of |the |FCA |is |the |Treasury
B
The |FCA |board |is |made |up |of |executive |and |non-executive |directors |appointed |by |the |Crown
C
It |has |statutory |objectives |set |out |in |the |Financial |Services |Act |2012
D
It |is |responsible |for |conduct |regulation |for |all |authorised |firms |- |CORRECT |ANSWER✔✔-B
Who |regulates |UK |banks?
A
Her |Majesty's |Treasury
B
The |Prudential |Regulation |Authority
C
The |London |Stock |Exchange
D
The |European |Central |Bank |- |CORRECT |ANSWER✔✔-B, |PRA |is |part |of |BOE
What |is |the |purpose |of |the |Pension |Protection |Fund?
A
To |ensure |pension |companies |do |not |become |insolvent
,B
To |invest |funds |for |auto-enrolment |into |work-based |schemes
C
To |ensure |annuities |are |seen |as |viable |post-pension-freedom |legislation
D
To |compensate |members |of |insolvent |final |salary |pension |schemes |- |CORRECT |ANSWER✔✔-D, |PPF |
compensates |if |people |become |insolvent |and |pension |scheme |cannot |afford |to |pay |people |promised |
pensions
Who |is |responsible |for |reducing |risks |to |the |financial |system |as |a |whole?
A
Financial |Policy |Committee
B
National |Crime |Agency
C
Financial |Conduct |Authority
D
Her |Majesty's |Treasury |- |CORRECT |ANSWER✔✔-A, |PRA |takes |instructions |from |FPC, |which |is |part |of |
BOE
Which |one |of |the |following |statements |concerning |the |Financial |Policy |Committee |(FPC) |is |correct? |
The |FPC |meets
A
Annually |and |produces |an |annual |Financial |Stability |Report
B
Annually |and |produces |a |biannual |Financial |Stability |Report
C
Quarterly |and |produces |a |biannual |Financial |Stability |Report
D
,Quarterly |and |produces |an |annual |Financial |Stability |Report |- |CORRECT |ANSWER✔✔-C, |FPC |meets |4 |
times |a |year |but |MPC |meets |monthly
According |to |the |provisions |under |Senior |Management |Arrangements, |Systems |and |Controls |in |the |
Regulator's |Handbook, |the |responsibilities |of |directors |must |be:
A
Clearly |and |appropriately |apportioned
B
Reviewed |by |external |auditors |on |an |annual |basis
C
Recorded |and |the |records |kept |for |three |years |from |when |the |responsibilities |change
D
Clear, |fair |and |not |misleading |- |CORRECT |ANSWER✔✔-A, |records |kept |for |6 |years
Which |of |the |following |bodies |oversees |the |macro-economic |and |financial |issues |that |could |cause |
instability |in |the |UK?
A
Competition |and |Markets |Authority
B
Prudential |Regulation |Authority
C
Financial |Conduct |Authority
D
Financial |Policy |Committee |- |CORRECT |ANSWER✔✔-D, |aim |of |FPC |is |to |gain |a |bigger |picture |of |the |
financial |services |and |markets |in |order |to |better |predict |problems |that |may |occur
Who |is |responsible |for |the |regulation |of |individual |savings |accounts |(ISAs)?
A
Department |of |Business |Innovation |and |Skills
B
, HM |Revenue |and |Customs
C
The |Prudential |Regulation |Authority
D
The |Stock |Exchange |- |CORRECT |ANSWER✔✔-B, |ISA's |are |tax |efficient |savings |and |investments
Which |of |the |following |statements |are |correct?
I
The |FCA |is |responsible |for |ensuring |consumers |get |a |fair |deal
II
The |FCA |is |responsible |for |stability |of |the |markets
III
The |PRA |is |responsible |for |ensuring |consumers |get |a |fair |deal
IV
The |PRA |is |responsible |for |stability |of |the |markets
A
I |and |III
B
I |and |IV
C
II |and |III
D
II |and |IV |- |CORRECT |ANSWER✔✔-B, |The |FCA |is |responsible |for |ensuring |that |financial |markets |work |
well |so |that |consumers |get |a |fair |deal, |whilst |the |focus |of |the |PRA |is |on |stability |- |the |safety |and |
soundness |of |deposit |taking |firms, |insurers |and |systematically |important |investment |firms.
Which |statement |is |the |correct |aim |of |the |FCA's |Consumer |Duty?
A
To |ensure |that |professional |clients |receive |good |outcomes |when |they |purchase |products |or |services
