UK Financial Regulation (Capital Markets Programme) Quiz 05

Last Updated: June 2024

Table of Contents

UK Financial Regulation (Capital Markets Programme)
Element 4
4.6.9 understand the requirements for an order execution policy, its
disclosures, the requirements for consent and review for MiFID
business [COBS 11.2A] and Non-MiFID business [COBS 11.2.14-
18, 11.2.22-26 and 11.2B]
4.6.10 understand the rules on following specific instructions from a client
[COBS 11.2.19-21]
4.6.11 understand the rules on monitoring the effectiveness of execution
arrangements and policy; demonstrating compliance with the
execution policy; and the duties of portfolio managers and
receivers and transmitters to act in a client’s best interest, and
information provision for MiFID business [COBS 11.2A.31-38] and
Non-MiFID business [COBS 11.2.27, 11.2.29 – 34]
Client Order Handling for MiFID and Non-MiFID Business COBS 11.3
4.6.12 understand the rule on client order handling [COBS 11.3.1] and
the conditions to be satisfied when carrying out client orders
[COBS 11.3.2.2A, 11.3.3–6]
Aggregation and Allocation COBS 11.3
4.6.13 understand the rules on aggregation and allocation of orders
[COBS 11.3.7A-8A] and the rules on aggregation and allocation of
transactions for own account [COBS 11.3.9A-13]
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Client Limit Orders COBS 11.4
4.6.14 know the rules on client limit orders – the obligation to make
unexecuted client limit orders public for MiFID and Non-MiFID
business [COBS 11.4]
PA Dealing COBS 11.7 and 11.7A
4.6.15 understand the purpose and application of the personal account
dealing rule and the restrictions on personal account dealing for
MiFID business [COBS 11.7A] and Non-MiFID business [COBS
11.7.1–3]
4.6.16 know the arrangements required to comply with the personal
account dealing rules including the notification requirements; and
exceptions regarding personal account dealing for MiFID business
[COBS 11.7A] and Non-MiFID business [COBS 11.7.4–7]
4.7 Reporting to Clients
On completion, the candidate should:
Confirmation of Transactions and Periodic Statements COBS 16.1,
16.2, 16.3, 16A.1
4.7.1 know general client reporting and occasional reporting
requirements, the provision of dealing confirmations and periodic
statements to retail and professional customers and the
exceptions to the requirements and the record-keeping
requirements in respect of MiFID business [COBS 16A.2.1,
16A.3.1, 16A.4.1, 16A.4.3 and 16A.5.1] and Non-MiFID business
[COBS 16.1-16.3]
4.8 Client Assets
On completion, the candidate should:
4.8.1 understand the purpose of the client money and custody rules in
CASS including the requirement for segregation and that it is held
in trust [CASS 6.2.1-3; 7.12.1-2; 7.13.2/3/5/12]
4.8.2 know the requirements for reconciling client assets and client
money including the timing and identification of discrepancies
[CASS 6.6.11/13/16/17/19/22/24/27/28/34/37/44/54;
7.15.5/20/22/29/31/32/33]
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4.8.3 know the exemptions from the requirements of the CASS rules
[CASS 1.2.3-4; 6.1.1-6; 6.2.10/13/14/15; 7.10.1-10 and 7.10.12]
4.8.4 know the information needed by the CASS auditor to understand
the business model of the firm (FRC 11, 55), when a limited
assurance Client Assets Report is required (FRC 16, 17) and the
need for a firm’s own risk assessment (FRC 77) – FRC – Client
Asset Assurance Standard (Revised November 2019)
4.8.5 know the two types of arrangement under which a firm is given
rights of use and when the CASS 3 rules apply (CASS 3.1.5,
3.1.7)
4.8.6 understand the purpose of the requirement to have a CASS
Resolution Pack (CASS 10.1.2)
4.8.7 know the required retrieval period (CASS 10.1.7) and the
requirement to keep information up to date (CASS 10.1.11)
4.8.8 know the definition of a mandate (CASS 8.2.1), the forms they can
take (CASS 8.2.2), the importance of the ability to give instructions
to another person (CASS 8.2.4) and the requirement to maintain a
list of mandates (CASS 8.3.2A)

Element 5
Complaints and Redress
5.1 Customer Complaints
On completion, the candidate should:
5.1.1 know the procedures a firm must implement and follow to handle
customer complaints [DISP 1.1.3, 1.1A .1, 1.2.1/3/6, 1.3.3, 1.4.1,
1.6.1/2/5, 1.9.1, 1.10.1]

5.1.2 know the role of the Financial Ombudsman Service (FOS) [DISP
Complaints Sourcebook – Dispute Resolution: Complaints:
Introduction] and the awards which can be made [DISP 3.7.2/4]
5.1.3 know the role of the Pension Ombudsman and the Pension
Protection Fund
5.1.4 know the criteria for a complainant to be eligible to lodge a
complaint [DISP 2.2 and DISP 2.7]
5.1.5 know the circumstances in which the Financial Services
Compensation Scheme will pay compensation [COMP 3.2,
4.2.1/2/3] and the compensation payable in respect of protected
deposits and protected investment business [COMP 10.2.1/3]
5.1.6 know the framework under which the FCA can be alerted to
Super-Complaints and Mass-Detriment References
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Further Reference
While a thorough understanding of the training materials will be sufficient to pass the
examination, candidates may wish to read beyond these materials to gain a better grasp
of the sector in which they have chosen to work. Candidates might find the following
websites of interest for this purpose.
Financial Ombudsman Service at financial-ombudsman.org.uk
Financial Services Compensation Scheme at fscs.org.uk
The Office of Public Sector Information at legislation.gov.uk
(source legislation is available on this site)
HM Treasury at hm-treasury.gov.uk
Joint Money Laundering Steering Group guidance at jmlsg.org.uk
Information Commissioner’s Office at ico.org.uk
Financial Conduct Authority at fca.org.uk
Bank of England at bankofengland.co.uk
PRA Rulebook at prarulebook.co.uk
FCA Handbook at handbook.fca.org.uk
Providing assurance on Client Assets to the FCA (as issued November 2019)
known as Client Asset Assurance Standard at frc.org.uk

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