UK Regulation & Professional Integrity (Investment Advice Diploma) Quiz 02

Last Updated: June 2024

Table of Contents

UK Regulation & Professional Integrity (Investment Advice Diploma)

-apply behaviours that reflect professional integrity:
-Ability to relate professional values to personally held values
-Ability to give a coherent account of beliefs and actions
-Strength of purpose and ability to act on the values
-Professional Integrity and Ethics
-understand the meaning of professional integrity and ethics within
financial services and how this is typically demonstrated in the
• Operation of financial markets and institutions
• Personal conduct of individuals
• Duties of fiduciaries and agents in financial relationships
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Element 5 The Regulatory Infrastructure of UK Financial Services
On completion, the candidate will be able to:
-understand the wider structure of UK financial regulation including
the responsibilities of the main regulators and bodies and the
relationship between them:
-Financial Services Regulators: The Financial Conduct Authority
(FCA) and the Prudential Regulation Authority (PRA)
-Other regulators and relevant bodies:
• HM Revenue & Customs (HMRC)
• The Financial Ombudsman Scheme (FOS)
• The Financial Services Compensation Scheme (FSCS)
• The Financial Policy Committee (FPC)
• The Upper Tribunal (Tax and Chancery)
• The Bank of England (BoE)
• HM Treasury (HMT)
• The Competition and Markets Authority (CMA)
• The Information Commissioner’s Office (ICO)
• The Pensions Regulator (TPR)
• The Pension Ombudsman (TPO)
-FCA and PRA Regulatory Principles, Statutory Objectives, Structure,
Powers and Activities
-understand the strategic and operational objectives, structure,
powers and activities of the FCA
-understand the strategic and operational objectives, structure,
powers and activities of the PRA
-understand the FCA’s Principles for Businesses and the PRA’s
Fundamental Rules
– understand the FCA’s competition responsibilities
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-understand the scope of authorisation and regulation of the FCA and
the PRA:
-Regulation of UK Financial Markets, Exchanges and Trading Venues
Recognition of Overseas Exchanges, Investment Exchanges and
Clearing Houses
UK Listing of Financial Instruments
Authorisation of Firms, and Collective Investment Schemes
-Principles, rules, guidance and rule-making powers
Supervision, investigations and enforcement
-Support for Regulatory Framework
-understand key internal and external mechanisms within firms that
support the regulatory framework
-International Regulations
-understand how the UK Financial Services is impacted by
overseas:
• Directives
• Regulations
• Law
• Guidance
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Element 6 FCA’s and PRA’s Supervisory Objectives, Principles and
Processes
On completion, the candidate will be able to:
-Approach to Regulation
-understand the FCA’s approach to regulation
– understand the PRA’s approach to regulation
-Sources of Information
-know the sources of information on the FCA’s and the PRA’s
supervisory approach, including:
• the annual report
• annual business plan
• Dear CEO letters
• thematic reviews
• policy statements
• supervisory statements
• enforcement notices
• published speeches
• FCA websites
-understand the FCA’s main disciplinary and enforcement powers, and
how they are used:
– Decision Procedure and Penalties Manual (DEPP)
– Perimeter Guidance Manual: Authorisation & Regulated Activities
(PERG 2)
-Unauthorised investment business; enforceability of agreements,
penalties and defences
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-Powers to require information and carry out investigations [FSMA
2000 s.165 and s.166 (as amended)]
-Powers of intervention (products and financial promotions)
-Provisions and Guidance
-understand the types of provisions used in:
• FCA Handbook
• PRA Rulebook
-understand the status of approved industry guidance
-Prudential Standards
-understand the purpose and application
-Effective Regulation and Good Customer Outcomes
– understand how the FCA’s use of outcomes-based regulation,
including high-level principles (PRIN), corporate governance, Senior
Managers & Certification Regime (SM&CR) and consumer duty
requirements, is intended to promote good outcomes and why this
may not always be achieved
-understand the appropriate approach to both insistent and
vulnerable clients
-Remuneration Code
-know the principles of the remuneration restrictions
-Corporate Governance and Business Risk Management
-understand how the FCA’s and PRA’s approaches to supervision
promote effective corporate governance and business risk
management
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Element 7 FCA and PRA Authorisation of Firms and Individuals
On completion, the candidate will be able to:
Authorisation of Firms
-understand the purpose and application of the FCA’s and PRA’s HighLevel Standards:
-Principles for Businesses (PRIN)

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