Chapter 9

Question 1

Under money laundering regulations, for what period of time must records of client verification be kept?

Answer 1

5 Years

Question 2

In relation to capital adequacy, the PRA requires qualitative reports to be submitted:

Answer 2

Annually

Question 3

With regard to the consequences of the Deregulation Act 2015 what statement is false

Answer 3

Insurance certificates no longer need to be delivered to policyholders.

Question 4

What penalties can be imposed on directors who are personally responsible for failure to comply with the Money Laundering Regulations 2017?

Answer 4

Imprisonment for up to 2 years.

Question 5

The concept of ‘privity of contract’ means that:

Answer 5

a person can only enforce a contract if they are party to it.

Question 6

Which body is currently responsible for recovering the proceeds of criminal activity?

Answer 6

The National Crime Agency [NCA].

Question 7

The ultimate power of the PRA where an insurance company fails to meet its regulatory requirements is to:

Answer 7

wind up the insurance company.

Question 8

Which body is responsible for regulating market issues for insurers?

Answer 8

The FCA.

Question 9

Public liability insurance for riding establishments will cover each of the following, with the exception of?

Answer 9

The insured, against a downturn in custom due to particularly cold winter.

Question 10

In respect of commission disclosure to a commercial customer, an intermediary:

Answer 10

must disclose the commission received if a commercial customer requests it.

Question 11

Insurance intermediaries authorised by the FCA must have:

Answer 11

professional indemnity insurance.

Question 12

Under money laundering regulations, proof of identity should be obtained:

Answer 12

before any transactions are complete.

Question 13

In the event of a regulatory failure due to the FCA’s actions, the FCA is required to make a report to the:

Answer 13

Treasury

Question 14

The minimum required limit of indemnity under compulsory employers’ liability insurance currently stands at?

Answer 14

£5m

Question 15

How is public liability insurance made compulsory as a result of the Dangerous Dogs Act 1991?

Answer 15

Dangerous dogs must be licensed by the local authority, which must be satisfied as to the adequacy of insurance.

Question 16

Which of the following statements regarding the evidence firms must record in relation to the fair treatment of customers is false?

Answer 16

It must be structured around the six positive consumer outcomes.

Question 17

The intensity of regulation by the PRA will depend on a firm’s:

Answer 17

riskiness

Question 18

Under the guidelines issued by the Joint Money Laundering Steering Group [JMLSG], which of the following documents is acceptable for client verification purposes?

Answer 18

A firearms certificate.

Question 19

Of the four criminal offences under the Bribery Act 2010, which has been the main cause for concern?

Answer 19

Failure by a commercial organisation to prevent bribery.

Question 20

In relation to capital adequacy, the PRA requires qualitative reports to be submitted:

Answer 20

annually

Question 21

Brown and Green is a large firm of solicitors which employs 15 staff. It operates from city centre premises and provides all of the partners with company cars so that they can visit clients in their homes. Which of the following types of insurance is it NOT compulsory for Brown and Green to have by law?

Answer 21

Public liability.

Question 22

Which section of the FCA’s Handbook contains rules that must be met with regard to close links with other organisations?

Answer 22

Threshold conditions.

Question 23

The requirement for insurance certificates to be displayed by the insured at each place of business was amended by the Employers’ Liability [Compulsory Insurance] [Amendment] Regulations 2008. In respect of this, which of the following statements is correct?

Answer 23

An electronic copy of the certificate must be reasonably accessible to all employees.