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CeMap 1 Unit 2 Flashcards | StudBud
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CeMap 1 Unit 2
CeMap 1 Unit 2
28 terms
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Flashcards
28 cards
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Practice quiz
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Questions
28
Answers
1
What are the 3 objectives of the FCA
1) Protect Consumers 2)Protect market 3) Promote Competition
Protect Client Promote safety Promote quality
2
What is the 3 categories of customers defined by the FCA?
(1)Professional Client (2) Retail Client (3)An eligible counterparty
(1) Commercial Client (2) Retail Client (3) Personal Client
3
What risk warming must appear on all advertising material containing past performance?
Is not necessarily better than future performance
It’s only a general guide to the future
It’s not a reliable indicator of future performance
4
Jason is applying for a mortgage and received a tariff of charges form. What point of the process has he reached?
Competition date
Pre-application
Issue of initial disclosure documents
Offer stage
5
The FCA requires that a firm’s systems and Controls MUST:
Meet industry Standard
Be agreed by the FCA before implementing
Be Notified to customers
Be regularly reviewed
6
Which body should a firm report significant breach of handling personal data?
PRA
FOS
FCA
The information commissioner
7
How many years does bankruptcy stay on your credit report?
4 years
7 years
5 years
6 years
8
Under the definition ‘market abuse’ which of the following is covered?
Money laundering
Dishonesty
Insider dealings
Pricing
9
What age do you need to be to write a will?
21
18
16
55
10
What is soft facts?
Facts and figures
Figure, results and information
Results and hard facts
Feelings, aspirations, thoughts and goals
11
Prison Time for Reckless misconduct (SM)
3
4
9
7
12
What does the FCA ‘MCOB’ sourcebook stand for?
Money Conduct of Business
Mortgages Calculation of Business
Mortgages Call of Business
Mortgages Conduct of Business
13
Who’s responsibility as per FCA for TCF?
Everyone
Compliance
CEO
Senior management
14
Under the EU fourth Money Laundering directive, beneficial owners of legal entities control a minimum of _ legal entity
5%
50%
25%
10%
15
How long do firms have to report breaches made by Senior Management and Staff members?
1) 7 days 2) Annual
7 days each
16
Which of the following is most likely to be classed as an eligible counter-party?
A firm acting on behalf of a retail client
A private individual
A small business
Another authorised firm
17
Who’s responsible for FOS and Money Advice Service?
PRA
FCA
TCF
18
What’s the main reason a firm must obtain an annual report from its Money Laundering Report Officer (MLRO)
To monitor activity and report suspicions
To review problems and Strengthen Controls
19
What’s the cancellation period for life policies and pensions?
7
60
14
30
20
What does MiFID stand for?
Making in Financial Instruments Directive
Markets in Finance Instruments Direction
Markets in Financial Instruments Directive
Making in Financial Instruments Direction
21
Christo undertakes a certified role for the bank. To undertake this role he MUST have:
Obtained approval from Prudential regulation authority
Passed FCA conduct and ethics test
Confirmed his personal financial status to the FCA
Been deemed fit and proper by his firm
22
When undertaking investment business, the charges made to the client should reflect:
The type of product recommended
The service provided
The status of the adviser
The provider recommended
23
What is the prudential regulation authority (PRA)?
Regulation of personal finance
responsible for the prudential regulation and supervision of banks etc
24
FPC? ‘Look at risks that threaten the economy’
Finance property commission
Financial Policy Committee
Financial protection Committee
25
What is the term used for two professional firms dealing with each other?
Joint Firm
Eligible Counterparty
Teamwork
Partnership
26
Who’s responsible for financial service compensation Scheme (FSCS)
FCA and PRA
FCB and VAT
FCA and OAP
FCA and TCF
27
Individuals performing which of the following roles will be individually Vetted and approved by the FCA
In Certified Functions and those performing Senior management functions
In certified functions only
Performing Senior Management functions only
Performing an ancillary role
28
Which of the following can an independent financial advisor receive commission from the product provider
Unit Trust
Stocks and shares ISA
Income protection
Investment bonds
