CII R01 FCA Regulatory Framework 3

Question 1

What is the FCA's approach to regulation often described as?

Accepted Answer

Principles-based and outcomes-focused

Answer

The FCA uses a principles-based, outcomes-focused approach to regulation, setting high-level principles and expected outcomes rather than prescribing detailed rules for every situation.

Question 2

What is the purpose of the FCA's Perimeter Guidance Manual (PERG)?

Accepted Answer

To help firms determine whether their activities are regulated

Answer

PERG helps firms and individuals understand whether their activities fall within the regulatory perimeter and therefore require FCA authorisation.

Question 3

What power does the FCA have under section 166 of FSMA 2000?

Accepted Answer

Power to commission skilled persons reports

Answer

Section 166 gives the FCA the power to require a firm to appoint a skilled person to produce a report on any matter relevant to the firm's compliance. This is a key supervisory tool.

Question 4

What is the FCA Register?

Accepted Answer

A public record of firms and individuals authorised or registered by the FCA

Answer

The FCA Register is a public database that contains details of firms, individuals, and other bodies that are, or have been, regulated by the FCA or PRA. Consumers can use it to check authorisation status.

Question 5

What is a 'Part 4A permission' in FCA regulation?

Accepted Answer

Permission granted by the FCA to carry on regulated activities

Answer

Part 4A of FSMA 2000 sets out the framework for granting permissions to firms to carry on one or more regulated activities. This is the core authorisation that firms need.

CII R01 Practice Test

CII R01 Practice Test

CII R01 FCA Regulatory Framework 3