CII R01 FCA Regulatory Framework 2

Question 1

What is the FCA Handbook?

Accepted Answer

The complete set of FCA rules and guidance for regulated firms

Answer

The FCA Handbook is the comprehensive collection of rules, guidance, and other provisions made by the FCA that regulated firms must follow.

Question 2

Which FCA sourcebook contains the principles for businesses?

Accepted Answer

PRIN

Answer

PRIN (Principles for Businesses) contains the eleven fundamental Principles for Businesses that all FCA-authorised firms must observe.

Question 3

How many Principles for Businesses does the FCA set out?

Accepted Answer

12

Answer

Following the introduction of the Consumer Duty, the FCA now has 12 Principles for Businesses. The 12th principle (Consumer Duty) was added in 2023 and applies to firms dealing with retail customers.

Question 4

What does the FCA's Senior Managers and Certification Regime (SM&CR) replace?

Accepted Answer

The Approved Persons Regime

Answer

The SM&CR replaced the Approved Persons Regime (APR) to improve individual accountability in financial services by making senior managers personally responsible for the areas they oversee.

Question 5

Under the SM&CR, what is a 'Statement of Responsibilities'?

Accepted Answer

A document setting out what each senior manager is responsible and accountable for

Answer

A Statement of Responsibilities is a document that clearly sets out the areas of the firm's business for which a senior manager is responsible, ensuring clear lines of accountability.

CII R01 Practice Test

CII R01 Practice Test

CII R01 FCA Regulatory Framework 2