The FCAs Use Of Principles And Outcomes-based Regulation Flashcards Preview

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Flashcards in The FCAs Use Of Principles And Outcomes-based Regulation Deck (25)
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1

What does HLS PRIN1 set out

A firm must conduct its business with integrity

2

What does HLS PRIN2 state

Must conduct business with skill, care and diligence

3

What does HLS PRIN3 state

A firm must take reasonable care to organise and control its affairs responsibly and effectively with adequate risk management systems

4

What is HLS PRIN4

Must maintain adequate resource

5

What is HLS PRIN5

A firm must observe standards of market conduct

6

What is HLS PRIN6

A firm must pay due regard to the interests of customers and treat them fairly

7

What is HLS PRIN8

A firm must manage conflicts of interest fairly between both itself and its clients and between two of its clients

8

What is HLS PRIN9

Must take reasonable care to ensures suitability of advice and discretionary decisions for any customer who is entitled to rely upon its judgement

9

What is HLS PRIN 10

Must arrange protection for client assets when responsible for them

10

What is HLS PRIN11

A firm must deal in an open and cooperative way and disclose anything to the regulator it would reasonably expect to know

11

What are the FCA principles founded in

Ethics

12

What are the key drivers of corporate culture (6)

Leadership
Strategy
Decision making
Controls
Recruitment and training and competence
Reward

13

What are the HLS principles that apply to those carrying out a controlled function

Statement of principle and code of practice for approved persons

14

Which principles under the HLS statements of principle and code of practice for approved persons apply only to accountable higher management functions

5-7

15

What are the 7 statements of principle for approved persons

Integrity
Skill care and due diligence
Market conduct
Open and cooperative when dealing with regs
Business should be organised so it can be controlled effectively
Skill care and due diligence in management
Compliance

16

What is the criteria for approved persons fit and proper test (FIT)

Honesty, integrity and reputation
Competence and capability
Financial soundness

17

Who should own a firms conflict of interest policy

Member of the board or senior management

18

When did senior managers certification regime come into effect

March 2016

19

What are the key features of the senior managers regime under SMCR

Each manager should have a statement of responsibility

20

What are the key features of the certification regime under SMCR

Applies to. Material risk takers and required them to be assessed as fit and proper

21

What conduct rules all,y to almost all staff

COCON

22

How did SMCR affect remuneration

Encourages better risk management

23

How did SMCR affect whistleblowing

Strengthens controls

24

When did the senior insurance managers regime come into effect

7 March 2016

25

What were the 3 key features of senior insurance manager regime

Governance maps
Scopes of responsibility
Conduct rules