UK Regulation & Professional Integrity (Investment Advice Diploma) Quiz 10

Last Updated: June 2024

Table of Contents

UK Regulation & Professional Integrity (Investment Advice Diploma)
Element 6 FCA’s and PRA’s Supervisory Objectives, Principles and
Processes
On completion, the candidate will be able to:
6.1 Approach to Regulation
6.1.1 understand the FCA’s approach to regulation
6.1.2 understand the PRA’s approach to regulation
6.2 Sources of Information
6.2.1 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
6.3 understand the FCA’s main disciplinary and enforcement powers, and
how they are used:
6.3.1 Decision Procedure and Penalties Manual (DEPP)
6.3.2 Perimeter Guidance Manual: Authorisation & Regulated Activities
(PERG 2)
6.3.3 Unauthorised investment business; enforceability of agreements,
penalties and defences
UK Regulation and Professional Integrity
Version 16 © Chartered Institute for Securities & Investment 17
6.3.4 Powers to require information and carry out investigations [FSMA
2000 s.165 and s.166 (as amended)]
6.3.5 Powers of intervention (products and financial promotions)
6.4 Provisions and Guidance
6.4.1 understand the types of provisions used in:
• FCA Handbook
• PRA Rulebook
6.4.2 understand the status of approved industry guidance
6.5 Prudential Standards
6.5.1 understand the purpose and application of Prudential Standards
6.6 Effective Regulation and Good Customer Outcomes
6.6.1 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
6.6.2 understand the appropriate approach to both insistent and
vulnerable clients
6.7 Remuneration Code
6.7.1 know the principles of the remuneration restrictions
6.8 Corporate Governance and Business Risk Management
6.8.1 understand how the FCA’s and PRA’s approaches to supervision
promote effective corporate governance and business risk
management

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