Client Money & Assets Exam – Quiz 06

Last Updated: June 2024

Table of Contents

CISI Exam Quiz 06 Topics Covers:

know in what circumstances the Financial Services Compensation Scheme will pay compensation, and how much
know the definitions of a primary pooling event and a secondary pooling event
know how client money is treated in a primary pooling event
know how client money is treated in a secondary pooling event
know the contents of and the requirements for updating a CASS resolution pack
understand the timeframes for retrieval of this information and what this means for operational support
know firms’ obligations to notify the FCA of breaches in accordance with CASS 10
know what records and internal controls have to be maintained in respect of mandates
know the obligations regarding reporting and information to clients contained in CASS 9
know the different types of agreement depending on the service provided and the main clauses that impact on the administration of the client account
understand the objectives of the UK CASS regime and the interaction with the FCA’s statutory objectives
know the importance of legal entity separation
understand the importance of client agreements
understand the difference between contractual and actual settlement and the key implications for client assets segregation
know that the UK operates a trust regime and other types of regime (agency and custodial regimes)
understand the fundamental concepts of trust law, including the concept of fiduciary duty, statutory trust and pollution of the trust
know how legal title is registered and recorded
understand the meaning and purpose of the elements of the FCA Handbook that are relevant to client assets protection, including
Senior Management Arrangements, Systems and Controls (organisational arrangements) (SYSC)
understand the scope of regulated activities which could give rise to client assets
know the geographical application of CASS rules
know which permissions could give rise to client money obligations
know how permission to hold client money is granted
know the difference between holding client money and deposit taking
understand the application of the banking exemption
know the roles and responsibilities of the following in relation to client assets protection
know the classifications of authorised firms as per CASS 1A
understand the normal approach to client money segregation
know where, and into which types of account, client money can be deposited
know the definitions of general client bank accounts and designated client bank accounts

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