Free FCA Objectives & High Level Standards Questions and Answers

Question 1

SYSC 10 relates to:

Accepted Answer

Conflicts of interest

Answer

Economic extortion

Answer

Independence

Answer

Ethical lapse

Question 2

Purpose of the Approved persons regime?

Accepted Answer

If an individual breaches one or more of the statements of principle, they are to be disciplined without the whole firm being disciplined

Answer

Hold individuals accountable if a firm breaches a regulatory requirement

Answer

Business Standards: requirements that affect firms on a day-to-day business-Market Conduct-Holding client asset

Answer

Make directors and managers take responsibility for their firms arrangements- To create a common platform of system and controls requirements for all firms

Question 3

Block 7 of FCA Financial Handbook:

Accepted Answer

Listing, Prospectus and Disclosure:- Enforcement guide- Financial Crime Guide

Answer

Regulatory Processes:- Supervision issues and requirements

Answer

Business Standards: requirements that affect firms on a day-to-day business-Market Conduct-Holding client asset

Answer

Redress: deals with the process of handling complaints and compensation- Dispute resolution- Compensation

Question 4

Principles for Businesses are:

Accepted Answer

11 Fundamental obligations of all FCA-Regulated firms

Answer

conflicts of interest

Answer

PRA

Answer

regulatory Processes: - supervision issues And requirements

Question 5

What is common platform in regards to SYSC?

Accepted Answer

SYSC 4-10 is a unified set of organisational requirements

Answer

To be able to achieve their Part 4A (permission from the FCA) they must be in line with these obligations.

Answer

Honesty and integrity- Competence and Capability- Financial soundness

Answer

SYSC is aimed at all FCA-regulated firms, except insurers, managing agents and the Society of Lloyd's.

Question 6

Purpose of the SM Regime is to:

Accepted Answer

Hold individuals accountable if a firm breaches a regulatory requirement

Answer

If an individual breaches one or more of the statements of principle, they are to be disciplined without the whole firm being disciplined

Answer

Redress: deals with the process of handling complaints and compensation- Dispute resolution- Compensation

Answer

Listing, Prospectus and Disclosure:- Enforcement guide- Financial Crime Guide

Question 7

To apply for a Part 4A, firms must:

Accepted Answer

Specify the scope for their permission in terms of what investments are involved in their operations

Answer

Redress: deals with the process of handling complaints and compensation- Dispute resolution- Compensation

Answer

SYSC is aimed at all FCA-regulated firms, except insurers, managing agents and the Society of Lloyd's.

Answer

To be able to achieve their Part 4A (permission from the FCA) they must be in line with these obligations.

Question 8

Dual regulated firms must apply to which organisation to cancel or vary their Part 4A?

Accepted Answer

PRA

Answer

MHA

Answer

NCA

Answer

FCA

Question 9

Senior Management and Certification Regime is aimed at:

Accepted Answer

Individuals who are subject to regulatory approval, which requires firms to allocated a range of responsibilities to these individuals

Answer

If an individual breaches one or more of the statements of principle, they are to be disciplined without the whole firm being disciplined

Answer

(Either a chairman or CFO) - a person carrying out this role should be approved by the regulator- Must be Prescribed responsibilities - must be allocated to SMFs with which the responsibility is most closely associated

Answer

Make directors and managers take responsibility for their firms arrangements-To create a common platform of system and controls requirements for all firms

Question 10

SYSC 18 covers whistleblowers under what act?

Accepted Answer

Public Interest Disclosure Act (PIDA)

Answer

PRA

Answer

Conflicts of interest

Answer

Regulatory processes- supervision issues and requirements