FCA UK Regulation Sample Exam Questions
With Correct Answers
Which |of |the |following |is |TRUE |for |a |regulated |firm |under |Money |Laundering |rules |and |regulations? |-
|CORRECT |ANSWER✔✔-Staff |must |be |trained |to |recognise |and |deal |with |suspicious |transactions
Under |the |Proceeds |of |Crime |Act |2002, |criminal |property |is |defined |as |- |CORRECT |ANSWER✔✔-any |
benefit |derived |from |criminal |behaviour
Under |what |legislative |framework |can |certain |consumer |bodies |alert |the |FCA |to |supercomplaints? |- |
CORRECT |ANSWER✔✔-Financial |Services |Act |2012
The |FCA`s |COBS |rules |apply |to: |- |CORRECT |ANSWER✔✔-a |UK |investment |management |company |
managing |a |pension |fund |for |a |Berlin |based |company
What |is |the |role |of |the |Financial |Ombudsman |Service? |- |CORRECT |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 |investments |or |
client |money |subject |to |MiFID? |- |CORRECT |ANSWER✔✔-Details |of |any |investor |compensation |scheme
|applicable
Which |of |the |following |claimants |would |warrant |compensation |by |the |Financial |Services |
Compensation |Scheme? |- |CORRECT |ANSWER✔✔-The |trustee |of |a |personal |pension |fund
Which |of |the |following |constitutes |a |regulated |activity |under |the |FSMA |2000? |- |CORRECT |
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 |investment |business? |- |CORRECT |ANSWER✔✔-Stockbrokers
, A |firm |receives |a |complaint |from |a |customer |relating |to |MiFID |business. |What |is |the |MINIMUM |
period |records |should |be |retained? |- |CORRECT |ANSWER✔✔-Five |years |from |the |date |the |complaint |
was |received
Which |of |the |following |is |TRUE |in |respect |of |the |Client |money |rules |- |CORRECT |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? |- |CORRECT |ANSWER✔✔-Proceeds |of |Crime |Act |2002
The |main |focus |of |the |FCA`s |supervisory |approach |on |which |its |resources |are |focused |is |to: |- |
CORRECT |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? |- |CORRECT |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? |- |
CORRECT |ANSWER✔✔-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? |- |
CORRECT |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: |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-The |rules |on |
`appropriateness` |for |`non-advised` |sales |must |be |considered
With Correct Answers
Which |of |the |following |is |TRUE |for |a |regulated |firm |under |Money |Laundering |rules |and |regulations? |-
|CORRECT |ANSWER✔✔-Staff |must |be |trained |to |recognise |and |deal |with |suspicious |transactions
Under |the |Proceeds |of |Crime |Act |2002, |criminal |property |is |defined |as |- |CORRECT |ANSWER✔✔-any |
benefit |derived |from |criminal |behaviour
Under |what |legislative |framework |can |certain |consumer |bodies |alert |the |FCA |to |supercomplaints? |- |
CORRECT |ANSWER✔✔-Financial |Services |Act |2012
The |FCA`s |COBS |rules |apply |to: |- |CORRECT |ANSWER✔✔-a |UK |investment |management |company |
managing |a |pension |fund |for |a |Berlin |based |company
What |is |the |role |of |the |Financial |Ombudsman |Service? |- |CORRECT |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 |investments |or |
client |money |subject |to |MiFID? |- |CORRECT |ANSWER✔✔-Details |of |any |investor |compensation |scheme
|applicable
Which |of |the |following |claimants |would |warrant |compensation |by |the |Financial |Services |
Compensation |Scheme? |- |CORRECT |ANSWER✔✔-The |trustee |of |a |personal |pension |fund
Which |of |the |following |constitutes |a |regulated |activity |under |the |FSMA |2000? |- |CORRECT |
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 |investment |business? |- |CORRECT |ANSWER✔✔-Stockbrokers
, A |firm |receives |a |complaint |from |a |customer |relating |to |MiFID |business. |What |is |the |MINIMUM |
period |records |should |be |retained? |- |CORRECT |ANSWER✔✔-Five |years |from |the |date |the |complaint |
was |received
Which |of |the |following |is |TRUE |in |respect |of |the |Client |money |rules |- |CORRECT |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? |- |CORRECT |ANSWER✔✔-Proceeds |of |Crime |Act |2002
The |main |focus |of |the |FCA`s |supervisory |approach |on |which |its |resources |are |focused |is |to: |- |
CORRECT |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? |- |CORRECT |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? |- |
CORRECT |ANSWER✔✔-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? |- |
CORRECT |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: |- |CORRECT |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 |- |CORRECT |ANSWER✔✔-The |rules |on |
`appropriateness` |for |`non-advised` |sales |must |be |considered
