Regulating Firms Flashcards
(33 cards)
If a person has benefited from a contravention of a regulation, the FCA can ask the court for ‘redress’, an order requiring that person to forfeit to the FCA any profit made from the activity.
False
Match the following functions within an authorised firm with the appropriate regulatory regime in the FCA Handbook. (Pick only two)
Senior Managers Regime : Compliance oversight function.
Certification Regime : Client dealing function
Basel III requires banks to maintain a minimum solvency ratio of 5 per cent.
False
Where an authorised firm takes disciplinary action against a senior manager for a breach of one or more of the FCA’s conduct rules, the firm must notify the FCA within three days.
False
Match the required level of capital under CRD IV with the type of firm. (Pick only two)
125,000 euros : Investment firms who carry out customers’ orders and hold client money.
730,000 euros : Investment firms that deal on their own account.
Varying a firm’s permissions may involve removing one or more of its regulated activities.
True
If an authorised firm is judged to be guilty of misconduct, the FCA may issue a warning notice, publish a statement of misconduct or impose a financial penalty.
True
The definition of a bank’s capital in the capital adequacy regulations excludes funds deposited by customers.
True
A bank’s solvency ratio describes its capital as a percentage of the risk-adjusted value of its assets.
True
Debt collecting is a regulated activity under the Regulated Activities Order.
True
If a person has benefited from a contravention of a regulation, the FCA can ask the court for ‘redress’, an order requiring that person to forfeit to the FCA any profit made from the activity.
False
The definition of a bank’s capital in the capital adequacy regulations excludes funds deposited by customers.
True
Match each party to the trust to the role that they perform. (Pick only two)
Settlor : The person who creates the trust and who originally owned the assets placed under the trust.
Trustee : The person who has legal ownership of the trust and administers it in accordance with the trust deed.
Where an authorised firm takes disciplinary action against a senior manager for a breach of one or more of the FCA’s conduct rules, the firm must notify the FCA within three days.
False
Debt collecting is a regulated activity under the Regulated Activities Order.
True
The Financial Conduct Authority requires firms to have in place procedures that will enable employees to report serious inappropriate circumstances or behaviour by other employees.
True
It is permissible for an executor to also be a beneficiary under the deceased’s will.
True
. A will written by a person who subsequently marries or re-marries is usually automatically revoked, unless specifically written in contemplation of the change in status.
True
Match the regulator with their responsibility. (Pick only two)
The PRA : Responsible for prudential regulation of systemically important firms.
The FCA : Responsible for conduct regulation of all firms and prudential regulation of non-systemically important firms.
Match the following statements with the appropriate form of joint ownership of property. (Pick only two)
Joint tenancy : On the death of one owner, the property is automatically transferred to the surviving owner.
Tenancy in common : On the death of one owner, their share passes to their own estate.
The responsibility for the Financial Ombudsman Service (FOS) lies with the FCA.
True
Suspicions of insider dealing will be investigated by the PRA.
False
The minimum initial capital requirement for an investment firm that deals only with transactions on behalf of clients and holds client money is 250,000 euros.
False
Match the term used to describe the legal personal representatives of the deceased in the two scenarios given. (Pick only two)
Executor : A valid will exists.
Administrator : No valid will exists.
