UK Financial Regulation (Capital Markets Programme) Quiz 04

Last Updated: June 2024

Table of Contents

UK Financial Regulation (Capital Markets Programme)
4.3.7 know the general rule in connection with communicating with retail
clients [COBS 4.5 and 4.5A.3]
4.3.8 know the restrictions on the promotion of speculative illiquid
securities to retail clients [COBS 4.12A & 4.12B]
Past, Simulated Past and Future Performance COBS 4.6 and 4.5A
4.3.9 know the rules on past, simulated past and future performance
[COBS 4.6 excluding 4.6.4 – 4.6.4B and 4.5A.10, 12 and 14]
Financial Promotions Containing Offers or Invitations COBS 4.7
4.3.10 know the rule on financial promotions containing offers or
invitations [COBS 4.7.1A – 4.7.4]
Cold Calls and Other Promotions that are Not in Writing COBS 4.8
and 4.9
4.3.11 know the rules on unwritten promotions [COBS 4.8.3] and the
restriction on cold calling [COBS 4.8.2]
4.3.12 know the rule on financial promotions for overseas persons [COBS
4.9.3]
Systems and Controls and Approving and Communicating Financial
Promotions COBS 4.10 and SYSC 4
4.3.13 know the requirement for approving financial promotions and the
circumstances of relying on another firm’s confirmation of
compliance [COBS 4.10, SYSC 4 ]
4.4 Suitability
On completion, the candidate should:
4.4.1 understand the assessment of client suitability requirements for
MiFID business [COBS 9A.2.1/4/5/6/7/8/9/10/11/12/13/15] and
Non-MiFID business [COBS 9.1.1-9.1.4, 9.2.1-6, 9.3.1]
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Suitability (including basic advice) COBS 9.1
4.4.2 understand the application of the rules on identifying client needs
and advising [COBS 9.1.1-9.1.4 and COBS 9A.2.1,2 and 3]
Assessing Suitability COBS 9.2, 9A.2, 9.3, 9.4 and 9.5A
4.4.3 understand the purpose of the suitability rules and the requirement
for assessing suitability [COBS 9.2.1 – 3 and COBS 9A.2.1-
9A.2.15]
4.4.4 understand the information which a firm must obtain from a client
in order to make a suitability assessment [COBS 9.2.1–7 and
9A.2.4-11]; and the guidance on assessing suitability [COBS 9.3.1
and COBS 9A.2.20 and 21]
4.4.5 know the application of the assessing suitability rules for
professional clients [COBS 9A.2.5]
4.4.6 understand the application of the rules on churning and switching
for MiFID business [COBS 9A.2.18] and Non-MiFID business
[COBS 9.3.2]
4.4.7 understand the obligation to provide a retail client with a suitability
report for MiFID business [COBS 9A.3.2] and Non-MiFID business
[COBS 9.4.1–3]
4.4.8 know the timing and contents of a suitability report for MiFID
business [COBS 9A.3.2,3] and Non-MiFID business [COBS 9.4.4-
6]
4.4.9 know relevant guidance for dealing with insistent clients [COBS
9.5A]
Appropriateness (Non-Advised Services) COBS 10
4.4.10 understand the application and purpose of the rules on Non-MiFID
non-advised sales [COBS 10.1] and MiFID business [COBS
10A.2.1]
4.4.11 understand the obligations for assessing appropriateness for
MiFID business [COBS 10A.2.3/4] and Non-MiFID business
[COBS 10.2]
4.4.12 know the circumstances in which it is not necessary to assess
appropriateness for MiFID business [COBS 10A.4.1] and NonMiFID business [COBS 10.4–10.6]
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4.5 Product Disclosure and the Client’s Right to Cancel
On completion, the candidate should:
Product Disclosure COBS 13, 14, 15 and MCOB 6A
4.5.1 know the purpose of the rules on the sale of packaged products to
retail clients, the rules requiring the provision of key features to
retail clients and the main features to be explained in the key
features [COBS 13.1.1/3/4, 13.2.1/2/4, 13.3.1/2 (excluding Annex
1R) and 14.1.1, 14.3.1/2], and the information about financial
instruments (MiFID provisions) [COBS 14.3A]
4.5.2 know the purpose and requirements of the cancellation and
withdrawal rights [COBS 15.1.1, 15.2.1, 15.2.3, 15.2.5, 15.3.1,
15.3.2] and the application of reflection periods (MCOB 6A)
4.5.3 know the requirements for a firm making a personal
recommendation to be independent or restricted
4.6 Dealing and Managing
On completion, the candidate should:
Application of the Rules on Dealing and Managing COBS 11.1
4.6.1 know the application of the rules on dealing and managing [COBS
11.1]
Conflicts of interest COBS 12, SYSC 10 and PRIN 2.1
4.6.2 understand the application and purpose of the principles and rules
on conflict of interest; the rules on identifying conflicts and types of
conflicts; the rules on recording and disclosure of conflicts [PRIN
2.1.1 Principle 8, SYSC 10.1.1 – 6 + 10.1.8/9]
4.6.3 know the rule requiring a conflicts policy and the contents of the
policy [SYSC 10.1.10/11/12]
4.6.4 understand the rules on managing conflicts of interest (SYSC
10.1.7) and how to manage conflicts of interest to ensure the fair
treatment of clients (SYSC 10.2) including: information barriers
such as ‘Chinese walls’; reporting lines; remuneration structures;
segregation of duties; policy of independence
4.6.5 know the rules on managing conflict in connection with investment
research and research recommendations [COBS 12.2.14/16/19
and UK MAR 20(1)]
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Inducements and Payment for Research COBS 2.3 and 2.3A
4.6.6 know the rules on inducements relating to MiFID business [COBS
2.3A.5/6/8/9/10]; the provision of independent advice, restricted
advice and portfolio management services to retail clients [COBS
2.3A.15]; the provision of independent advice and portfolio
management services to retail clients outside the UK or to
professional clients [COBS 2.3A.16], acceptable minor nonmonetary benefits [COBS 2.3A.19] and to Non-MiFID business
[COBS 2.3.1/2]
4.6.7 know the regulations in respect of the inducements requirements
in respect of research for MiFID business [COBS 2.3B.1-4] and
Non-MiFID business [COBS 2.3.1/2]
Best Execution COBS 11.2 and 11.2A
4.6.8 understand the requirements of providing best execution for MiFID
business [COBS 11.2A] and Non-MiFID business [COBS 11.2 and
11.2B]

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