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55 Cards in this Set
- Front
- Back
Which organisation is considered to be the 'voice' of the UK Banking System in matters of payment issues such as plastic cards and card fraud?
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The Payments Council
Ch1 B2A |
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The UK financial services industry is subject to regulations impose by whom?
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Both the European Union and the UK Government
Ch1 C |
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Which of the following interventions has led to a SIGNIFICANT reduction in yield on equity-based products and equities in recent years?
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Withdrawal of the right to reclaim tax credit on Uk dividends
Ch1 D1 |
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'Quantitative Easing' has been introduced by the Bank of England (BOE) during the recent Banking crisis. What does this entail?
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The BOE buying back gilts and corporate bonds from the financial sector
Ch1 D2B |
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Which of the following is NOT a mandatory requirement for a suitability report?
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Listing products which were considered but discounted
Ch2 A6 |
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Which of the following is NOT an example of an Interest Rate Option for a Capital Repayment Option?
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Roll Up Rate
Ch2 B2C |
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What would be considered a medium term investment?
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5-15 years
Ch2 B5A |
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BS issue a form of fixed interest investment called a?
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Permanent Interest Bearing Share
Ch2 B6B |
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Which state funded retirement provision was introduced on April 6th 1978?
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State Earnings Related Pension Scheme (SERPS)
Ch2 B8A |
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Steven's brother died in December 2009. It is possible that Steven would qualify for a one off tax-free Bereavement Payment of £2,000. Which of the circumstances listed below is NOT a consideration for Steven to qualify for this benefit?
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Steven must be working over 16 hours per week at the time of death
Ch2 B10I |
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Which body currently administers working tax credit to employees?
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HMRC
Ch2 B10E |
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James and Georgina are partners in a medical practice. There is no partnership agreement in place? What is their individual liability for debts run up by the business and their own tax bills?
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Jointly liable for 100% business debts but only liable for their personal income tax.
Ch3 A1 & A2 |
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What is the difference between the share capital of a private limited company and a public limited company (PLC)?
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The private limited company cannot advertise its shares for sale
Ch3 A4 |
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In which of the following situations would a Trustee NOT a removed from his duties?
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On reaching the age of 80 years
Ch3 H4D |
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Which of the following events will not automatically revoke a Power of Attorney?
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Return from overseas secondment of the donor
Ch3 H4D |
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Which if the following us a key difference between Enduring Power of Attorney and Lasting Powers of Attorney?
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Enduring Powers of Attorney do not cover Health Care Provision.
Ch3 B1 & B1A |
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After reading an advertisement from Consolidated Life for an Income Protection Policy. Norman requested some further policy details He has now received these details and having decided he would like to proceed with the policy, he has completed and returned the proposal form. How is the proposal form classified under contract law?
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Offer
Ch3 C2 |
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Nathan has recently arranged life cover with an insurance company through an IFA. Which of the following us true regarding the Law of agency?
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The IFA owes a duty of care to the client
The IFA owes no duty of care to the insurer The Client is responsible for the acts of the IFA Ch3 D |
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What would be a fundamental reason for a bankruptcy order to be granted against an individual?
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Failure to provide for liabilities such as tax bills.
Ch3 F1 & F2 |
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What best describes the role of the Bank of England?
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Set inflation targets.
Ch4 A1B |
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Which of the following best describes the EU Directive?
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Desired results binding on Member states, but methods to achieve left to national authorities.
Ch4 C Fig 4.1 |
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Passporting rights arise under the EU single market directive, what does this mean?
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Treaties have been agreed allowing advice to be given across EEA States.
Ch4 C |
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Under Capital Requirements Directive (CRD) what do the three pillars of Basel II focus on?
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Risk management to strengthen the stability of the international banking system
Ch4 C3 |
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The Pension Regulator (TPR) took over from OPRA as regulator from 6 April 2005. What types of pensions are covered by TPR?
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Occupational pension schemes and personal pensions for employees
Ch4 D3 |
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Who takes overall responsibility of how a firm is managed?
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Senior management
Ch4 E1 |
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Which of the following non-FSMA legislation acts does the FSA have regulatory powers under?
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Industrial & Provident Societies Act 1965
Friendly Societies Act (1974 & 1992) Data Protection Act 1998 Ch5.1 A1 |
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Which piece of secondary legislation under FSMA sets out the specific activities for which firms receive FSA permission or authorisation?
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Financial Services & Markets Act (Regulated Activities) Order 2001
Ch5.1 A1 |
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The FSA receives many complaints from intermediaries who believe a firm's new equity-release scheme and Key Facts document breach advertising rules. Which non-FSMA legislation designates the FSA the ability to consider and, if necessary, take action against the firm?
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Unfair Terms in Consumer Contracts Regulations 1999
Ch5.1 A1 |
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When a client seeks investment advice, the regulator promotes consideration of the needs consumers may have for information and advice, whilst also differentiating their experiences and varying levels of expertise. This would fall under which of the FSA's statutory objectives?
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Securing the appropriate degree of protection for consumers
Ch5.1 B3 |
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The FSA is deliberating on what sanctions it should take, regarding a senior trader who has been accused of insider dealing. Which statutory objective would the perpetrator's offence fall under?
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Reduce the extent to which it is possible for a regulated business to be used for a purpose connected with financial crime
Ch5.1 B4 & Ch5.2 C5 |
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On 1st September 2006, the FSA replaced the Money Laundering sourcebook with which sourcebook and high level provisions for anti-money laundering?
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Senior Management Arrangements, Systems and Controls
Ch5.1 B4 |
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If a new financial services firms was proposing to conduct regulated activity, which of the FSA's four main functions would their application to do so fall within?
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Authorisation matters
Ch5.1 C1 - Fig 5.2 |
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A firm handling compensation claims claims has received many complaints concerning their poor success rate in obtaining appropriate redress and compensation for their customers. Which of the following statements correctly describes this area of financial services?
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Not currently regulated by the FSA
Ch5.1 C1 |
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What is the Bank of England's statutory objective, which is also shared with HM Treasury and the FSA?
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To contribute to protecting and enhancing the stability of the financial systems of the UK
Ch5.1 E1 |
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The individual occupying oversight function for XYZ IFA retired last year but in these times of austerity they were not replaced by a suitably qualified person. Consequently, the junior compliance administrator had taken on the responsibility for all aspects of the firms compliance monitoring. Following an ad hoc inspection, what can the FSA request the firm provide them with to alleviate their concerns regarding the firms' compliance function?
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Section 166 (Skilled Persons) Report
Ch5.1 C2 |
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In its day to day relationship with authorised firms, how does the FSA prioritise risks in its risk-based approach to supervision?
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Impact and Probability Analysis
Ch5.1 D1 |
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The nature and extent of the FSA's supervisory relationships depends on the extent firms' risks could pose on its statutory objectives. Given the FSA is unable to closely supervise all regulated firms on a day to day basis, it employs a risk-based methodology called?
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Advanced Risk-Responsive Operating Framework
Ch5.1 D1 |
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Authorised firms must comply with FSA Principles at all times. However, if there was ever any conflict between FSA rules and principles, which takes precedence?
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FSA Principles
Ch5.2 A1B & Ch6 A1 & Ch9 A1 |
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The FSA has fined Firm A £250,000 for market abuse and Firm B £120,000 for insider dealing. What does this indicate?
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Neither firms have received the maximum fine or sanction for their respective offences
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What is the maximum penalty for the criminal offence for making misleading statements or engaging in misleading conduct?
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An unlimited fine or a 7-year prison sentence
Ch5.2 C5 |
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To whom can a firm appeal against a decision made by the Financial Services & Markets Tribunal?
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To the Court of Appeal, but only on a point of law
Ch5.2 D1C |
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Life Offices' senior management controls should..?
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be reviewed regularly by way of risk assessments and continual monitoring
Ch5.2 A1C |
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What is the statutory time limit for the FSA to consider complete applications for authorisation?
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Six months
Ch6 A4 |
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Martin has been running an IFA firm in partnership with Jordan for five years. Unfortunately, Jordan has been killed in an accident. What are the requirements for Martin to continue being authorised by the FSA?
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The existing authorisation for the firm will continue.
Ch6 A4 |
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The Thoresen Review recommended that the Money Guidance service should have which of the following characteristics?
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National, impartial and sales free
Ch7 A1B |
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What is the maximum permitted charge in the 11th year for a stakeholder pension and a stakeholder medium term investment product where both have fund values of £8k?
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£200
Ch7 A3 |
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Which of the following is NOT one of the 11 FSA Principles for Businesses (PRIN)?
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Compliance
Ch9 A1 |
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Which of the following FSA Principles for Businesses covers Ethics?
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Integrity
Skill, care and diligence Customers' interests |
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Which of the following is one of the key cultural drivers for Corporate Culture identified by the FSA?
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Decision making
Ch9 B1 |
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Which of the following may be considered a breach of ethical requirements?
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Criticising a colleague in an open office
Ch10 A1 |
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Maggie works for an IFA. She has been called to a disciplinary hearing to discuss a failure to behave ethically. This is because she:
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Made a recommendation for a product which she did not understand
Ch10 C2 |
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Which process did the Walker review 2009 find to be insufficient amongst banks regarding evidencing their ethical behaviour?
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Challenge
Ch10 B4C |
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Which of the following are regulated by the FSA?
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Government securities
Cash deposits Cash deposits Electronic money Rights under insurance contracts Ch6 A2 |
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Guy is an Introducer Appointed Representative (IAR), which of the following activities is he authorised to carry out?
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Providing information on investments
Making introductions to regulated individuals Distributing advertisements Ch6 B1 |
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Which of the following bodies are EXEMPT from FSA authorisation?
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The UK subsidiary of a Swiss bank
Surrey County Council The Institute of Actuaries Ch6 A3 |