FCA Authorization and Permissions Flashcards
6 cards from real FCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 FCA Authorization and Permissions flashcards as text
What is a 'Directly Authorized' firm in FCA terminology?
Answer: A firm that holds its own FCA Part 4A permission rather than operating under another firm's authorization
A directly authorized firm has applied for and received its own Part 4A permission from the FCA, making it fully responsible for its regulatory compliance rather than relying on a principal's authorization.
Under SM&CR, what is a 'Certification Function'?
Answer: A role that could cause significant harm to customers or the firm, requiring the firm (not FCA) to certify the individual's fitness annually
Certification Functions cover roles that could cause harm, and firms must themselves assess and certify that holders are fit and proper at least annually, without seeking FCA pre-approval.
What is the FCA's 'Financial Services Register'?
Answer: A publicly accessible database of all FCA-authorized firms, individuals, and their permitted activities
The FCA's Financial Services Register is a public record showing which firms and individuals are authorized or registered, what activities they are permitted to carry on, and any relevant restrictions.
Which regulatory body shares dual authorization responsibility with the FCA for certain large deposit-taking institutions in the UK?
Answer: The Prudential Regulation Authority (PRA)
Banks, building societies, credit unions, insurers, and major investment firms are 'dual-regulated,' supervised by both the FCA (for conduct) and the PRA (for prudential safety and soundness).
What is the purpose of the FCA's 'Temporary Permissions Regime' (TPR)?
Answer: To allow EEA firms previously passporting into the UK to continue operating temporarily after Brexit while seeking full FCA authorization
The Temporary Permissions Regime was introduced at Brexit to let EEA-passported firms continue business in the UK while they applied for full FCA or PRA authorization under the new post-Brexit framework.
What obligation does the FCA's 'Principles for Businesses' PRIN 11 impose on authorized firms?
Answer: Firms must deal with regulators openly and cooperatively and disclose anything the FCA would reasonably expect
PRIN 11 (Relations with Regulators) requires authorized firms to deal with the FCA and other regulators in an open and cooperative manner and proactively disclose anything the regulator would reasonably expect to know.