6 - The FCA Handbook Flashcards Preview

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Flashcards in 6 - The FCA Handbook Deck (20)
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1

The Threshold Conditions

(COND) the minimum conditions that a firm must satisfy at all times if the firm is to retain its Part 4A permission to conduct investment business in the UK

2

COND 2.2

location of offices

3

COND 2.3

effective supervision (by the FCA, i.e. no close links that could effect)

4

COND 2.4

appropriate resources

5

COND 2.5

suitability - fit and proper

6

COND 2.7

business model

7

SYSC

Senior Management Arrangements, Systems and Controls

8

SYSC 2

senior management arrangements - individuals should be personally responsible for the senior management functions in the firm - with a record showing this

9

SYSC 3

systems and controls (that are appropriate to their business)

10

SYSC 6

compliance, internal audit & financial crime

11

SYSC 7

risk controls

12

SYSC 18

whistle blowing - awareness of how and where this can be done is a requirement of the Public Interest Disclosure Act (1998)

13

SYSC 19

remuneration code - firms must establish, implement and maintain remuneration policies, procedures and practices that are consistent with an promote effective risk management
- there are 12 remuneration principles

14

FINMAR

Financial Stability and Market Confidence

15

FINMAR 2

rules and guidance in relation to short selling - supporting the FCA's objectives to protect consumers and enhance financial integrity

16

BIPRU

the prudential sourcebook for Banks, Building Societies and Investment firms
- deals with firms subject to the Capital Requirements Directive III (CRD III) and covers specific elements relating to the capital resources calculations

17

General Prohibition (s.19 FSMA)

criminal offence to carry out regulated activities unless the person is authorised or exempt

18

what is required for a firm to qualify for exempt status?

must be contracted to an authorised person responsible for their activities

19

aim of the introduction of stakeholder products?

to improve access to financial services for those on low incomes

20

what is the maximum fine for breaching DPA (2018)?

£17m or 4% of global turn over
DPA implements GDPR in the UK