UK Regulation & Professional Integrity (Investment Advice Diploma) Quiz 03

Last Updated: June 2024

Table of Contents

UK Regulation & Professional Integrity (Investment Advice Diploma)

-Systems and Controls (SYSC)
-Threshold Conditions (COND)
-Senior Managers & Certification Regime (SM&CR) and the Fit and
Proper Test (FIT)
-apply the main concepts, principles and rules relating to Regulated
and Prohibited Activities:
-Regulated and prohibited activities (Part II/III of FSMA 2000,
Regulated Activities Order 2001)
-Investments specified in Part III of the Regulated Activities Order
– apply the main concepts, principles and rules relating to FCA and
PRA Authorisation:
– Related guidance in the Perimeter Guidance Manual (PERG)
– Authorised Persons, Exempt Persons (PERG 2) and exclusions
[FSMA Exemption Order 2001, SI 2001/1201]
-Purpose, provisions, offences and scope of Permission Notices
(SUP)
-The requirement to act honestly, fairly and professionally [COBS 2.1]
-Authorisation: conditions and procedures for firms (COND), and
process and criteria for obtaining approval of Controllers (SUP) and
fitness and propriety [FIT (FCA/PRA)]
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-Record-Keeping and Notifications
-apply the principles and rules relating to record-keeping and
notification for regulatory purposes [SYSC 9.1 (FCA/FRA), PRIN
-(11) (FCA/PRA), SUP (FCA/PRA), DISP 1.9]
Approval of Individuals
-understand the FCA’s and PRA’s main regulatory processes and
provisions relating to the approval of Individuals:
-Senior Managers & Certification Regime (SM&CR)
-The Directory, the public register for key individuals working in
financial services
Training and Competence
-apply the concepts, principles and rules relating to Training &
Competence including appropriate professionalism:
-Systems and controls responsibilities in relation to the competence
of employees [SYSC 5.1.1 (FCA/PRA)]
-The activities and functions to which the T&C regime applies
-Measures to demonstrate competence – including those prior to
assessment, at assessment, FCA or PRA approval and ongoing
through Continuing Professional Development and a need for a
Statement of Professional Standing where appropriate
-Ethical Principles and Professional Conduct
-understand how the FCA’s and PRA’s approach to the authorisation
of firms and individuals subject to the Senior Managers &
Certification Regime (SM&CR) uphold ethical principles and high
standards of professional conduct
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-Corporate Governance and Business Risk Management
-understand how the FCA’s and PRA’s approach to the authorisation
of firms and individuals subject to the Senior Managers Regime
(SMR) support good corporate governance and business risk
management
Element 8 The Regulatory Framework relating to Financial Crime
On completion, the candidate will be able to:
-The FCA’s Approach to Financial Crime Prevention
-understand how the FCA’s approach to financial crime prevention
upholds high standards of professional practice as reflected in the
Financial Crime Guide
-understand how the FCA’s approach to financial crime prevention
supports good corporate governance and risk management
Market Abuse
-apply the main concepts, legal requirements and regulations relating
to the prevention of Market Abuse:
-The scope and application of the UK Market Abuse Regulation [The
Market Abuse (Amendment) (EU Exit) Regulations 2019]
-The distinction between offences under market abuse, insider
dealing [CJA] and under FSA 2012 s.89-95 misleading statements
and impressions
-The enforcement regime for market abuse [UK MAR 1.1.3 &
DEPP6] and a firm’s duty to report suspicious transactions and
orders “STOR” [SUP 15.10.2]
-Ethical considerations and consequences of Market Abuse in
relation to all market participants, clients and the integrity of the
financial system
-The statutory exceptions (safe harbours) to Market abuse [MAR
1.10.1-4 & UK MAR Articles 3-6]
-The requirements and obligations of market soundings [UK MAR
Article 11] and investment recommendations [UK MAR Article 20]
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-The requirements and interpretation for the prevention and detection
of market abuse [UK MAR Article 16]
Insider Dealing
-apply the main concepts, legal requirements and regulations relating
to the prevention of Insider Dealing:
-Definition of inside information [UK MAR Article 7 & 17], insider
dealing [UK MAR Article 8], unlawful disclosure of inside information
[UK MAR Article 10] and insider lists [UK MAR Article 18]
– Offences described in UK legislation and the instruments covered by
the Criminal Justice Act 1993 [CJA s. 52 + Schedule 2]

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