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FCA UK Regulation Sample Exam
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FCA UK Regulation Sample Exam
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FCA UK Regulation Sample ExamWhich 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
Which of the following statements is TRUE of a firm requesting authorisation to
carry out investment business under the FSMA 2000? - CORRECT ANSWER-It
must have adequate resources
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