UK Regulation & Professional Integrity (Investment Advice Diploma) Quiz 01

Last Updated: June 2024

Table of Contents

UK Regulation & Professional Integrity (Investment Advice Diploma)
Element 1 The UK Financial Services Sector
On completion, the candidate will be able to:
-understand the factors that influence the UK financial services sector
-the role of the government in the economy:
• Policy
• Regulation
• Taxation & social welfare
– the role of financial investment in the economy:
• Primary Markets
• Secondary Markets
• Balance of Payments
• Exchange Rates
-the role and structure of the global financial services sector and its
key participants:
• UK
• Europe
• North America
• Asia
-the role of government and central banks in financial markets:
• Interest rate setting process
• Money market operations and quantitative easing
• Fiscal policy
• Other interventions
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– the main stages of economic, financial and stock market cycles,
including:
• National income
• Global influences
• Long-term growth trends
-the impact of global trends:
• Globalisation of business, finance and markets
• Advances in technology
• Regulatory challenges
Element 2 UK Financial Services and Consumer Relationships
On completion, the candidate will be able to:
-understand the main financial risks, needs and priorities of UK
consumers
-Balancing, budgeting and managing finances; debt acquisition and
accumulation
-Lifestyle changes and their impact on finances. Funding and
safeguarding major investments, including:
• Housing
• Incapacity
• Unemployment and unplanned difficulty in earning income
• Income provision during retirement and old age
• Taxation
– Provision for dependants before and after death
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-UK Consumers
– understand how the main financial risks, needs and priorities of UK
consumers are typically met:
• Financial planning and financial advice
• State benefits
• Credit finance and management
• Mortgages
• Insurance and financial protection
• Retirement and pension funding
• Estate and tax planning
• Savings and investment
-Professional Conduct and Ethical Practice
– understand how professional conduct and ethical practice can
directly affect the experience and perception of consumers
Element 3 UK contract and trust legislation
On completion, the candidate will be able to:
-understand specific legal concepts relevant to financial advice:
-Contract, agency and capacity: legal persons – individuals,
personal representatives, trustees, companies, limited liability
partnerships
– Powers of attorney and managing the grantor’s affairs: wills,
intestacy, and administration of estates
– Real property, personal property and joint ownership
-Insolvency, receivership, and bankruptcy
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-Main Types of Trust
-understand in outline the main types of trust and their purpose
-Creation of Trusts
-apply knowledge of the creation and administration of trusts for life
policies and investments
Element 4 Integrity and Ethics in Professional Practice
On completion, the candidate will be able to:
-Professional Ethics
-understand core ethical theories, principles and values
-understand the differences between ethical values, qualities and
behaviours in professional practice contrasted with unethical or
unprofessional practice
– understand the impact of the following when applying an ethical
approach/acting with integrity within an organisational or team
environment:
• Self-interest
• The role of the agent
• The role of stakeholders
• The role of the group or team
-understand evidence relating to the positive effects of ethical
approaches on corporate profitability and sustainability when
contrasted with the results of unethical or less ethical practices
which lack integrity
-apply processes to:
• Create ethical awareness
• Assess ethical dilemmas
• Implement ethical decisions
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-Codes of Ethics and Codes of Conduct
– understand the relationship between ethical principles, the
development of regulatory standards and professional Codes of
Conduct
-understand how decisions and outcomes for the sector, firms,
advisers and consumers may be limited by reliance on rule-based
compliance, and how ethical behaviours and decision-making can
enhance these outcomes
-apply the Chartered Institute for Securities & Investment’s Code of
Ethics to professional practice
-understand key principles of professional integrity:
-Clear, Impartial, Straightforward and Informed
-Relationship between personal, corporate and societal values
-Commitment to professional ideals and principles extending beyond
professional norms
-apply behaviours that reflect professional integrity:
– Commitment and capacity to work to accepted professional values

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