LM1 – CII COMPREHENSIVE STUDY GUIDE 2026 FULL
QUESTIONS AND SOLUTIONS GRADED A+
● Which three financial services bodies were created by the Financial Services Act
2012. Answer: FCA
● Overarching strategic objective of the FCA. Answer: Ensuring that the relevant markets
function well
● FCA - Operational objectives. Answer: 1. Consumer protection
● FCA focus. Answer: Proposed business model, governance and culture and systems of
control the firm intends to put in place for:
● FCA Three Pillar approach to risk. Answer: 1. The firms systematic framework
● 11 Principles of business. Answer: 1. Integrity
● Which is not applicable to the PRA. Answer: 5, 6, 7, 9, 10
● Elaboration on principle 3 - what does SYSC stand for and require. Answer: Senior
Management arrangements Systems and Controls
● What are the responsibilities of an apportionment and oversight officer. Answer:
Responsible for the allocation and monitoring of regulated activities
● What are the responsibilities of a MLRO. Answer: Responsibility within the firm for the
establishment and maintenance of effective AML systems and controls
● What is whistleblowing. Answer: Making a qualified disclosure
● Define whistleblowing. Answer: The public allegation of a firms concealed misconduct
usually from within the organisation
● Primary objective of PRA. Answer: Promote the safety and soundness of PRA regulated
person
● Secondary objective of the PRA. Answer: 1. Ensure regulated persons behave in a way
that avoids adverse effects on the stability of the UK Financial System & wider
QUESTIONS AND SOLUTIONS GRADED A+
● Which three financial services bodies were created by the Financial Services Act
2012. Answer: FCA
● Overarching strategic objective of the FCA. Answer: Ensuring that the relevant markets
function well
● FCA - Operational objectives. Answer: 1. Consumer protection
● FCA focus. Answer: Proposed business model, governance and culture and systems of
control the firm intends to put in place for:
● FCA Three Pillar approach to risk. Answer: 1. The firms systematic framework
● 11 Principles of business. Answer: 1. Integrity
● Which is not applicable to the PRA. Answer: 5, 6, 7, 9, 10
● Elaboration on principle 3 - what does SYSC stand for and require. Answer: Senior
Management arrangements Systems and Controls
● What are the responsibilities of an apportionment and oversight officer. Answer:
Responsible for the allocation and monitoring of regulated activities
● What are the responsibilities of a MLRO. Answer: Responsibility within the firm for the
establishment and maintenance of effective AML systems and controls
● What is whistleblowing. Answer: Making a qualified disclosure
● Define whistleblowing. Answer: The public allegation of a firms concealed misconduct
usually from within the organisation
● Primary objective of PRA. Answer: Promote the safety and soundness of PRA regulated
person
● Secondary objective of the PRA. Answer: 1. Ensure regulated persons behave in a way
that avoids adverse effects on the stability of the UK Financial System & wider
