UK Financial Regulation (IOC) Quiz 05

Last Updated: June 2024

Table of Contents

UK Financial Regulation (IOC)
-Disclosure and Transparency rules
On completion, the candidate should:
-know the purpose of the Disclosure and Transparency rules and
the control of information [DTR 2.1.3, 2.6.1]
– know the legal nature and purpose of the UK Takeover Code
(section 2 of the Introduction):
• the six General Principles
• the definitions of:
o “acting in concert”
o “dealings”
o “interest in shares”
o “relevant securities”
3.7.3 understand the principles behind disclosure of interest rules and
why they are required
3.7.4 know the following disclosure of interest rules:
• under the Disclosure and Transparency rules:
o the disclosure thresholds
o to whom disclosure has to be made and within what
timescale
o differing transparency requirements globally
• UK under the Companies Act 2006, Section 793, in relation to
company investigations
-Transaction and Trade Reporting
On completion, the candidate should:
-understand the definition of a reportable transaction (FCA and UK
MiFIR)
– understand the role and purpose of reporting:
• transaction (UK MiFIR)
• trade (UK MiFIR)
• UK EMIR
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• short selling
• UK SFTR
-know which party to a trade is responsible for reporting including
trades carried out by overseas branches
-know the reporting channels and systems
-Data Protection Act 2018
On completion, the candidate should:
-know the six principles of the Data Protection Act 2018; the role,
responsibilities and accountability of data controllers and data
processors and the rights of individuals in respect of the collection
and use of their personal data and record-keeping requirements of
FCA-regulated firms
-know the enforcement powers of the Information Commissioner
and the ability to levy fines
-Prudential Standards
On completion, the candidate should:
-know the purpose of the Capital Adequacy Requirement for certain
types of investment firms
Element 4 The FCA Conduct of Business Sourcebook / Client Assets
-The Application and General Provisions of the FCA Conduct of
Business Sourcebook
On completion, the candidate should:
The Firms Subject to the Conduct of Business Sourcebook COBS 1
-know the firms subject to the FCA Conduct of Business
Sourcebook [COBS 1.1.1-1.1.3, COBS 1 Annex 1 Part 3, section
3]
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Activities Subject to the Conduct of Business Sourcebook COBS 1
-know the activities which are subject to the FCA Conduct of
Business Sourcebook including Eligible Counterparty Business
and transactions between regulated market participants [COBS
1.1.1-1.1.3 Annex 1, Part 1(1) and (4)]
Impact of Location COBS 1
-know the impact of location on firms/activities of the application of
the FCA Conduct of Business Sourcebook: permanent place of
business in UK
[COBS 1.1.1-1.1.3 and Annex 1, Part 1(1) and (4)]
Appointed Representatives COBS 1
-know how the application of the FCA Conduct of Business
Sourcebook applies to appointed representatives [COBS 1.1.1]
including financial promotions and firm’s responsibilities for
appointed representatives [COBS 4.1]
Electronic Media
– know the provisions of the FCA Conduct of Business Sourcebook
regarding electronic media [Glossary definitions of ‘Durable
Medium’ and ‘Website Conditions’]
-Accepting Clients
On completion, the candidate should:
Client Categorisation COBS 3
– understand client status [PRIN 1.2.1/2/3, Glossary, COBS 3]:
• definition of client [COBS 3.2]
• the application of the rules on client categorisation [COBS 3.1]
• retail client [COBS 3.4]; professional client [COBS 3.5] and
eligible counterparty [COBS 3.6]
-understand client status [PRIN 1.2.1/2/3, Glossary, COBS 3]:
• when a person is acting as agent for another person [COBS
2.4.1– 3]
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• the rule on categorising elective professional clients and the
requirements for clients electing to be professional clients
[COBS 3.5.3 – 9, 3.5.3B/C/E]
• the rule on elective eligible counterparties [COBS 3.6.4 – 6,
3.6.4A/B]
• providing clients with a higher level of protection [COBS 3.7]
• the requirement to provide notifications of client categorisation
[COBS 3.3.1A/B]
Client Agreements and Information Provision COBS 2, 6, 7, 8 & 14
-know the requirement for firms to provide client agreements, when
a client agreement is required to be signed and when it is
acceptable to be provided to clients for MiFID business [COBS
8A.1.4 – 8A.1.7, 6.1ZA.5] and Non-MiFID business [COBS 8.1.1 –
8.1.3]

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