Platforms Wealth Management and Service Providers – Quiz 10

Last Updated: June 2024

Table of Contents

CISI – Platforms, Wealth Management and Service Providers Quiz 10 is Covered :-
Asset Valuation
know how the value of platform assets is updated
know the control processes that platforms may apply in relation to investment pricing
understand the impact of pricing errors on client investments
understand how platforms value “legacy” or off-platform assets

Regulatory Framework
FCA Regulations
know the key regulations applying to platforms: • COBS – 2.2 and 2.2A Information disclosure before providing services,
Compensation arrangements, 16 and 16A Reporting information to clients, 11 and 11A – best execution
• CASS – 6 Custody, 7 Client money • SYSC – Systems and Controls, Record Keeping, Treatment of shortfall, Business Continuity Planning, Disaster Recovery, Risk Assessment
know the regulatory risks associated with the above
know a firm’s obligations in relation to the recording of breaches
understand client categorisation (retail vs professional) and the implications of those designations
know the reporting obligations of platforms in relation to their clients, particularly those set out in COBS 16 and 16A: • durable medium • content and timeliness for occasional reporting • content and timeliness of periodic statements
understand the purpose of target market information
Disclosure and Illustrations
know the key disclosure information available to investors and their relevance to the type of wrappers and assets • PRIPS Key Information Document • Key Investor Information Document • Pre-investment Disclosure Document
understand the purpose of illustrations and: • how growth rates are set • why growth rates vary by wrapper and by asset • ex ante costs and charges
understand how the effect of charges is different from the level of charges
Regulatory Reporting
know the types of regulatory reporting required: • complaints • Payment Services Regulations • client money and asset reporting • transaction reporting • FCA return
understand transaction reporting: • reportable assets • reportable fields
understand the data requirements for client money and asset reporting
Conduct Risk and Treating Customers Fairly
know the outcomes arising from the FCA’s approach to managing conduct risk within firms
understand the particular implications for platforms of FCA Consumer Outcomes 3, 5 and 6
Know the key principles of consumer duty
Know what constitutes a vulnerable customer
Know what a value assessment is
Understand a firm’s obligation with respect to its value assessment
Data Protection and Information Security
know the key principles of the Data Protection Act 2018 and information security
know the key elements of an information security policy: • physical • logical • encryption
understand how the Data Protection Act 2018 and information security risks are managed by platforms
Three Lines of Defence
understand the principles of the 3 lines of defence model
Complaints
know the regulatory requirements in relation to complaint handling: • timescales required • role of the Financial Ombudsman Service
Marketing and Financial Promotions
know the requirements for financial promotion
Investor Protection
know which investors are covered by the Financial Services Compensation Scheme (FSCS)
know which investments are covered by FSCS and the protection limits
Regulatory Issues when Onboarding Investors
know the importance of the following to investor onboarding • anti-money laundering checks • know your customer • sanctions
Taxation
Taxation and Wrappers
know which taxes apply to specific investments: • income • capital gains • inheritance
• transaction
understand the tax advantages of the following wrapper types: • ISAs • pensions • insurance bonds
understand how investment bonds are used within tax planning
understand the content of tax vouchers
understand the tax treatment of offshore funds with Reporting Fund status
know the range of additional services that platforms can offer advisers / investors • tax reporting • tax planning • trust and estate administration services

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