Principles And Rules Set Out In The Regulatory Framework Flashcards Preview

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Flashcards in Principles And Rules Set Out In The Regulatory Framework Deck (34)
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What is general prohibition

Offence to carry out regulated activity unless a person is exempt or authorised


To whom can you. Appeal if authorisation is rejected by the FCA

The upper tribunal


Who is exempt from authorisation

If an authorised person has accepted responsibility in writing (ARs)
Professional firms which are members of a professional body when carrying out activities which are incidental to sit professional services


If a firm requires authorisation from both PRA and FCA, how do they apply

Apply to PRA and it is then assessed jointly by FCA


What is the statutory time,I it for the FCA to decide on granting approval

6 months for a complete application or 12 months for an incomplete application


What do you get from the FCA when they grant permission

Scope of permission notice


What are controlled functions

Significant influence on authorised persons affairs
Dealing with customers in connection with regulated activities
Dealing with the property of customers in connection with regulated activities


What are the 4 significant influence functions

Governing functions
Required functions
Systems and controls functions
Significant management functions


What is the 5th control function that isn't a significant influence function

Customer function


What are the responsibilities of regulated firms

Conduct of employees, agents and ARs

Must have systems in place to manage risks

Ensure those carrying out controlled functions are approved

Advice given by representatives

Nominated compliance officer


What are the 2 categories of PRA senior management functions

Executive functions
Oversight functions


What activities can appointed representatives undertake

Advising on investments
Arranging deals in investments


How. Any principles can an AR carrying out investment business have



How many principals can a mortgage business AR have

1 for for each class of business


How many principals can an insurance AR have

Any number but need to all enter into a multi-principal agreement


In a multi-principal agreement for insurance ARs, what must the lead principal handle

All complaints


Which records must be kept indefinitely

Pension transfers, pension opt outs and FSAVCs


How long must life policy records and pension contracts be kept for

5 years


Which system is used for regular reporting to the FCA



What must firms report annually to the FCA

Detailed info on capital


How often must firms report complaints data

Twice a year


What does guidance on notifications give in terms of its expectations

Significant fraud crime
Major breach
Changes of name, status, address etc
If accidentally given the wrong info to FCA


How long must training records be kept for mifid, non mifid and pensions specialists

5 years, 3 years and indefinitely after the cessation of employment


What are the 3 steps in money laundering and briefly describe each

Placement - through banks, travellers cheques, life insurance policies to turn illicit cash into cheques from a financial institution

Layering- transactions to conceal origin

Integration - converted into the proceeds of a legitimate business or investment portfolio


Name 4 criminal offences under the proceeds of crime act 2002

Conceal, disguise convert or transfer criminal property
To be involved in arrangement to facilitate. The squishy ion, retention, use or control of criminal property
To acquire use or possess criminal property
Failure to disclose


What uk regulations implemented the 4MLD from the EU

Money laundering regulations 2016 and JMLSG guidance


When must customer due diligence be carried out according to the money laundering regulations 2016

When the business establishes a relationship
Carries out an occasional transaction
Suspects money laundering or terrorist financing
Doubts about previously collected information


When is identification not needed according to the money laundering regs 2016

On a life policy where annual premium is less than £1000 or single premium is less than £2500
A pension contract with no surrender value
A pension contract where members can't assign their rights


What is needed to identify non-individuals for anti money laundering purposes

Company registration number


What are the powers of enforcement for suspected money laundering

Enter premises, take copies, impose appropriate civil penalties
Personally accountable directors or partners could face 2 years in prison and a. Fine