UK Regulation & Professional Integrity (Investment Advice Diploma) Quiz 04

Last Updated: June 2024

Table of Contents

UK Regulation & Professional Integrity (Investment Advice Diploma)
-General defences relating to insider dealing [CJA s.53]
– Special defences: market makers acting in good faith, market
information and price stabilisation [CJA s. 53 and Schedule 1 paras
1-5], legitimate behaviour [UK MAR Article 9]
-The FCA’s powers to prosecute insider dealing [FSMA s.402 EG
12.7-10]
Market Manipulation
-apply the main concepts, legal requirements and regulations relating
to market manipulation:
-Definition and interpretation of market manipulation [UK MAR
Article 12 & 15], accepted market practices [UK MAR Article 13]
Disclosure and Transparency Rules
-apply the main concepts, legal requirements and regulations relating
to disclosure and transparency rules [DTR 2.1.3, 2.6.1] as they relate
to:
-Disclosure and control of inside information by issuers
-Transactions by persons discharging managerial responsibilities and
their connected persons
-share dealing by directors and other persons discharging
managerial responsibilities, including closed periods; chairman’s
approval; no short-term dealing
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Money Laundering
– apply the main concepts, legal requirements and regulations relating
to the prevention of Money Laundering:
-The terms ‘money laundering’, ‘criminal conduct’ and ‘criminal
property’ 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’
-The three stages of money laundering
-The key provisions, objectives and interaction between the following
legislation and guidance relating to money laundering:
• Proceeds of Crime Act [POCA] 2002, as amended by the
Serious Organised Crime and Police Act [SOCPA] 2005: main
offences, tipping off, reporting suspicious transactions, and
defences
• Criminal Finances Act 2017, including the corporate offence of
the failure to prevent the facilitation of tax evasion
• Money Laundering, Terrorist Financing and Transfer of Funds
(Information on the Payer) Regulations 2017 (MLR 2017) as
amended
• Obligations on firms for adequate training of individuals on
money laundering [MLR 2017 Section 24]
-Know how the Economic Crime (Transparency and Enforcement)
Act enhances the existing AML provisions through the ‘register of
overseas entities’ (Part 1, sections 1 to 44); UK sanctions (Part 2,
sections 54 to 66) and Unexplained Wealth Orders (Part 2, sections
45 to 53)
-The standards expected by the Joint Money Laundering Steering
Group Guidance notes particularly in relation to:
• Risk-based approach
• Requirements for directors and senior managers to be
responsible for money laundering controls
• Need for risk assessment
• Need for enhanced due diligence in relation to politically exposed
persons and other high-risk situations [JMLSG 5.5.1 – 5.5.29]
(MLR 2017)
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• Need for high-level policy statement
• Detailed procedures implementing the firm’s risk-based approach
[JMLSG 1.20, 1.27, 1.40 – 1.43, 4.17 – 4.18]
-The Money Laundering aspects of Know Your Customer (Joint
Money Laundering Steering Groups’ Guidance for the Financial
Sector [Para 5.1.1 – 5.1.14])
– Senior Management Arrangements, Systems and Controls
Sourcebook [SYSC] role of the Money Laundering Reporting
Officer, Nominated Officer and the Compliance Function [SYSC
4.1.1/2, 6.1, 6.3 and the systems and controls that firms are
expected to implement]
-The importance of ongoing monitoring of business relationships and
being able to recognise a suspicious transaction or activity
-understand the duty to report suspicious activities [Section 330, Part
7 of POCA]
Financing of Terrorism
– apply the main concepts, legal requirements and regulations relating
to the prevention of terrorism financing:
-Activities 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
section 7 part 1-7], the Anti-Terrorism Crime & Security Act 2001
Schedule 2 Part 3 [Disclosure of Information] and sanction lists.
-Preventative measures in respect of terrorist financing, the essential
differences between laundering the proceeds of crime and the
financing of terrorist acts [JMLSG Guidance 2020 para 1.28], and
the interaction between the rules of the FCA (The Financial Crime
Guide), the PRA and the Terrorism Act 2000 and the JMLSG
Guidance regarding terrorism [JMLSG Guidance 2020]
Bribery Act 2010
– apply the main concepts, legal requirements and guidance relating to
the prevention of bribery and corruption
-The offences of bribery contrary to the Bribery Act 2010
-The role of ‘adequate procedures’ in affording a defence to the
offence of a commercial organisation failing to prevent bribery
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-Guidance on adequate procedures issued by the Ministry of Justice
(sections 7 & 9 Bribery Act 2010)
Data Protection
-understand the main concepts, legal requirements and regulations
relating to Data Protection:
-The six principles of the Data Protection Act 2018
-The role, responsibilities and accountability of data controllers and
data processors
-The rights of individuals in respect of the collection and use of their
personal data
-The breach notification and reporting requirements
-Whistleblowing
– understand the legal and regulatory basis for whistleblowing,
including the whistleblower’s champion [SYSC 18]
Element 9 Complaints and Compensation
On completion, the candidate will be able to:
-Complaints and Dispute Resolution
-understand the role of the Financial Ombudsman Service (FOS)
[DISP INTRO 1 Introduction], and the awards and directions that can
be made by the Ombudsman [DISP 3.7.2/4, 3.7.11]
-know the role of The Pensions Ombudsman (TPO)
-understand the framework under which the FCA can be alerted to
Super Complaints and Mass Detriment References [FCA FG13/1
and FG13/2]
-Eligible Complainant
-know the factors that impact on whether the FOS can deal with
complaints [DISP 2.3 – 8]
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– apply the criteria for a complainant to be eligible [DISP 2.7]

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