Brand FIn Flashcards
(42 cards)
What is the general rule requirement under capital adequecy?
All businesses must be able to meet their financial obligations as and when they fall due.
How are IFA Businesses affected by the FCA’s Capital Adequacy rules?
Some small IFA firms are exempt from these rules and are not required to undertake such a rigorous assessment.
What is the maximum payout under the Financial Services Compensation Scheme for home finance mediation services?
100% of £85,000
With regard to ARs and the people that work for them, it is true to say that..
An adviser appointed by an AR must be individually approved by the FCA
Directors and senior managers of an AR must be approved persons.
The FCA has launched criminal proceedings against Geoff, a sole trader who falsely claimed to be FCA-authorised. This is most likely to mean that the FCA has
exercised their power to prosecute
With a Lasting Power of Attorney, in order to make gifts, who must give approval?
Approval from the Court of Protection
Which body has an overarching strategic objective to ensure that financial markets work well?
The FCA
Josh has been unable to work due to long term sickness. The benefit cap does NOT apply to Josh because his mother, who he lives with, receives..?
Attendance Allowance
As a result of the Mortgage Credit Directive, firms must now provide a binding mortgage offer and a minimum reflection period of how many days?
7
On what basis, did the Capital Requirements Directive (CRD) divide capital into three tiers?
Three tiers based on loss absorbency and permeance of the capital
Dylan is a pension transfer specialist. He has recently attended an intermediary seminar where he received a number of low-value gifts. Records of these benefits should be kept for how long?
Five years
Kieran’s role specifically requires that he complete at least 15 hours of professional training or development a year. This suggests that he is most likely to be advising customers in relation to?
Insurances
When considering the rules regarding cancellation notices and cancellation rights, it is correct to say that..?
The cancellation notice must be sent by the provider either by post or electronically
The cancellation right id only valid if served on the provider within the time limit
Deborah, is struggling to make her monthly repayments on her numerous debts. Which of the following is a definition of a debt management plan that could help her?
An adviser negotiating with a client’s creditors to consolidate the debt into one affordable payment which is distributed to creditors via the adviser.
How does the Insurance Conduct of Business sourcebook (ICOBS) categorise insurance products?
General insurance, pure protection, payment protection insurance
What scenario might prompt a client review for a middle age couple with no dependants?
Introduction of new tax relief
An increase in interest rates
Changes to tax liabilities
What scenario might prompt a client review for a middle age couple with no dependants?
Introduction of new tax relief
An increase in interest rates
Changes to tax liabilities
Damien is fast approaching retirement and is a little confused by some of the terms in the paperwork he has received. Can you explain to him the difference between a compulsory purchase annuity (CPA) and a purchased life annuity (PLA)?
Only the income element of a PLA is taxable whereas the whole amount of CPA income is taxable
How does ‘leadership’ differ from ‘strategy’ as a key driver for a company?
Leadership sets the tone of the business, drives staff behaviours and quality of decisions, strategy sets priorities and management focus.
Cameron wishes to appeal against a decision of the Pensions Regulator. To which body should her appeal be made to?
The general regulatory chamber of the first tier tribunal
Under the Consumer Rights Act 2015, what is the requirement for expressing significant terms?
The terms must be in plain and intelligible language.
Which regulatory body does not have explicit responsibility for financial stability?
FCA
Which international organisation provides recommendations to the EU on Money Laundering?
Financial Action Task Force
Under anti-money laundering regulations, in which circumstances must a firm complete full customer due diligence?
When a regulated firm suspects ML or TF
When a regulated firm establishes a business relationship
When a regulated firm carries out an ad-hoc transaction
