Mindmaps 2

Question 1

What is “Treating Clients Fairly”

Answer 1

Part of how the FCA supervise firms, to ensure a good culture exists in financial services companies

Question 2

What are the 4 key aims of TCF?

Answer 2

1) Culture
2) Suitability and performance of products
3) Clear, Fair and not misleading communications
4) No post sale barriers (info, switching, complaining etc)

Question 3

What are the 6 key outcomes of TCF?

Answer 3

1) Customer fair treatment is central to Culture
2) Suitability of products (takes into account their needs)
3) Performance of products (performs as led to expect)
4) Regular, clear and fair communication (pre/post sale)
5) Communication which allows a consumer to be informed and make decisions
6) No post sale barriers (complaints, switching)

Question 4

How much can an individual contribute to a pension?

assume no tapering

Answer 4

£220,000

25/26 - £60k
24/25 - £60k
23/24 - £60k
22/23 - £40k

Question 5

How is “Threshold Income” calculated

for pension allowance tapering

Answer 5

Total Income less Pension Contributions

1) don’t include employer contributions
2) gross up net contributions

Question 6

How is “Net Income” calculated

for pension tapering

Answer 6

Total Income less employer contributions

taper by £1 for every £2 above £260,000

Question 7

What is the consumer duty

Answer 7

2023 regulation that applies to all firms providing financial services to retail investors

Question 8

What are the 4 outcomes the FCA want from consumer duty

Answer 8

1) Fairness
2) Understanding (of products)
3) Choice
4) Protection

FUCP

Question 9

What are the 5 things firms need to do, in order to comply with the consumer duty?

Answer 9

1) Understanding
2) Design
3) Communicate clearly
4) Provide excellent support
5) Monitor and review

UDCPM