UK Financial Regulation (Capital Markets Programme) Quiz 09

Last Updated: June 2024

Table of Contents

UK Financial Regulation (Capital Markets Programme)
Element 3
Associated Legislation and Regulation
-Market Abuse
On completion, the candidate should:
-understand the scope and status of the UK Market Abuse
Regulation [The Market Abuse (Amendment) (EU Exit)
Regulations 2019
-understand the civil [FCA MAR 1.1.3 & DEPP 6] and criminal [CJA
1993 Part V and Financial Services Act 2012 Sections 89-92,
FSMA s.402, EG 12.3] regime for market abuse and insider
dealing
-understand the requirement to prevent and detect market abuse
including the obligation on firms to make suspicious transaction
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and order reports [UK MAR Article 16]
-Insider Dealing
On completion, the candidate should:
– know the prohibition for insider dealing [UK MAR Article 14]
-understand the definition of inside information [UK MAR Article 7],
insider dealing [UK MAR Article 8] and unlawful disclosure of
inside information [UK MAR Article 10]
-understand market soundings [UK MAR Article 11] and market
manipulation [UK MAR Article 12]
-understand the disclosure requirements for inside information [UK
MAR Article 17] and the requirement for insider lists [UK MAR
Article 18]
-understand the meaning of ‘inside information’ and ‘insider’; the
offences and the instruments covered by the legislation [CJA 1993
s.52/56/57/58 + Schedule 2]
-know the general defences available with regard to insider dealing
[CJA 1993 s.53]
-know the special defences: market makers acting in good faith,
market information and price stabilisation [CJA 1993 s.53 and
Schedule 1 paras 1-5]

-Market Manipulation
On completion, the candidate should:
-know the prohibition for market manipulation [UK MAR Article 15]
-understand the four forms of market manipulation: Manipulating
transactions; Manipulating devices; Dissemination; and
Benchmark manipulation. [UK MAR Article 12]
-understand legitimate behaviour [UK MAR Article 9] and the
concept of accepted market practices [UK MAR Article 13]
-understand the obligation on Persons discharging managerial
responsibilities [UK MAR Article 19]
-understand the obligations where providing investment
recommendations [UK MAR Article 20]
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-Money Laundering and Financial Crime
On completion, the candidate should:
-understand the terms ‘money laundering’, ‘criminal conduct’ and
‘criminal property’ and the application of money laundering to all
crimes [Proceeds of Crime Act 2002 s.340] and the power of the
Secretary of State to determine what is ‘relevant criminal conduct’
-understand that the UK legislation on money laundering is found in
the Proceeds of Crime Act 2002 [POCA], as amended by the
Serious Organised Crime and Police Act 2005 [SOCPA], the
Money Laundering, Terrorist Financing and Transfer of Funds
(Information on the Payer) Regulations 2017 (MLR 2017), the
Senior Management Arrangements, Systems and Controls
Sourcebook [SYSC] and that guidance to these provisions is found
in the Joint Money Laundering Steering Group Guidance and
Financial Crime Guide and understand the interaction between
them
-understand the obligations on firms for adequate training of
individuals on money laundering (MLR 2017 Section 24)
-understand the three stages of money laundering
-understand the main offences set out in POCA Part 7 Sections
327, 328, 329, 330, 333A, 342 [assistance i.e. concealing,
arrangements, acquisition, use and possession; failure to disclose;
tipping off in the regulated sector] and the implications of Part 7
regarding the objective test in relation to reporting suspicious
transactions; that appropriate disclosure [internal for staff and to
the National Crime Agency for the firm] is a defence
– understand the approach covered by the Senior Management
Arrangements, Systems and Controls Sourcebook [SYSC], in
particular, the systems and controls that the FCA and PRA expect
firms to have adopted, the role of the Money Laundering Reporting
Officer and Nominated Officer. [SYSC 3.2.6, 3.2.6 (A)-(J), SYSC
6.3 (FCA)]
-understand the standards expected by the JMLSG Guidance
particularly in relation to:
• Risk-based approach
• Requirements for directors and senior managers to be
responsible for money laundering precautions
• Need for risk assessment
• Need for enhanced due diligence in relation to politically
exposed persons [JMLSG 5.5.1 – 5.5.36]
• Need for high-level policy statement
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• Detailed procedures implementing the firm’s risk-based
approach [JMLSG 1.1-1.8, 1.53 – 1.59, 2.1-2.21, 4.3 – 4.77]
• Financial Sanctions Regime [JMLSG Part III 5.3.54 – 5.3.62]
-understand the money laundering aspects of know your customer:
• JMLSG 5.1.1 – 5.1.15
• credit reference agencies
-understand the importance of ongoing monitoring of business
relationships and being able to recognise a suspicious transaction
and the requirement for staff to report to the MLRO and for the firm
to report to the National Crime Agency (NCA)
-know the role of the Financial Action Task Force (FATF)
-know what activities are regarded as ‘terrorism’ in the UK
[Terrorism Act 2000 Part 1], the obligations on regulated firms
under the Counter-Terrorism Act 2008 [money laundering of
terrorist funds] [part 5 section 62 and s.7 parts 1-7] and the AntiTerrorism Crime and Security Act 2001 Schedule 2 Part 3
[Disclosure of Information] and where to find the sanction list for
terrorist activities
-understand the importance of preventative measures in respect of
terrorist financing and the essential differences between
laundering the proceeds of crime and the financing of terrorist acts
[JMLSG Preface 9] and the interaction between the rules of the
FCA (The Financial Crime Guide), the PRA, the Terrorism Act
2000 and the JMLSG Guidance regarding terrorism [JMLSG
Preface 27, 28, 29]
– Bribery and Corruption
On completion, the candidate should:
-know the main purpose of the Bribery Act 2010 and the categories
of offences covered in Sections 1 – 7 Bribery Act 2010

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