CISI UK Financial Regulation / UK Financial
Regulation and Compliance: CISI Capital Markets &
FCA Rules Verified Multiple Choice and Conceptual
Actual Emended Exam Questions With Reviewed
100% Correct Detailed Answers
Guaranteed Pass!!Current Update
1. What does EU MiFID become after Brexit? - ANSWER UK MiFID
2. What is the purpose of UK MiFID? - ANSWER To create a common
market with harmonised rules in the financial industry.
3. How does UK MiFID facilitate trading? - ANSWER It facilitates
frictionless cross-border trading within the EEA.
4. What does 'onshoring' refer to in the context of UK MiFID? - ANSWER
Drafting all EU Regulations into UK law.
5. What does UK MiFID preserve? - ANSWER Existing UK laws that
implement EU obligations.
6. What powers does UK MiFID grant regarding legislation? - ANSWER
Powers to amend current UK legislation to ensure rules and laws continue
to function.
,7. What act governs the application of EU legislation and regulation in the UK?
- ANSWER The European Union (Withdrawal) Act 2018.
8. What rights do UK firms currently lack in the EEA post-Brexit? - ANSWER
Passporting rights.
9. What is the FCA Handbook? - ANSWER An example of rules, codes, and
guidance within the legal framework of the UK, enforced by the FCA.
10.What does FSMA 2000 provide to the FCA? - ANSWER The ability to
enforce its rules.
11.What are the types of provisions in the FCA Handbook? - ANSWER Rules
(R), Evidential provisions (E), Guidance (G), Directions (D), Statements of
principle (P), Conduct (C), and UK law text.
12.What is the legal status of confirmed industry guidance compared to
regulator guidance? - ANSWER It has the same legal status.
13.What is principles-based regulation? - ANSWER Regulation that relies on
high-level objectives rather than detailed, prescriptive rules.
,14.What are the advantages of principles-based regulation? - ANSWER
Allows for flexibility, focuses on the purpose of regulation, and is better
suited for today's financial markets.
15.What are the disadvantages of principles-based regulation? - ANSWER
Can be inflexible and lead to a box-ticking culture.
16.What is rule-based regulation? - ANSWER The traditional form of
regulation relying on detailed, prescriptive rules.
17.What is Principle 5 of the FCA's principles for businesses? - ANSWER
Market conduct.
18.What does the FCA principle regarding suitability state? - ANSWER A
firm must take reasonable care to ensure the suitability of its advice and
discretionary decisions for any customer who is entitled to rely upon its
judgment.
19.How does the FCA distinguish between customers and clients? - ANSWER
Customers are retail and professional clients, while clients include retail,
professional, and eligible counterparties.
20.What are the PRA Fundamental Rules? - ANSWER They are paired with
the Principles of Business for PRA firms.
, 21.What is the role of the FCA in enforcing rules? - ANSWER The FCA has
the power to sanction and discipline those who do not follow its rules.
22.What is the significance of the FCA Handbook in relation to the FCA's
statutory objectives? - ANSWER It is a key method used by the FCA to
achieve its statutory objectives as set out in FSA 2012.
23.What is the purpose of evidential provisions in the FCA Handbook? -
ANSWER They are non-binding but show evidence required to
demonstrate compliance with a rule.
24.What does the term 'conduct' refer to in the FCA Handbook? - ANSWER
Behaviour that does not amount to market abuse.
25.What are the three key components of the FCA's approach to firms? -
ANSWER Knowledge, Skills, Conduct.
26.Which principles does the Consumer Duty replace? - ANSWER Principles
6 and 7.
27.What is the first principle of the FCA Principles for Businesses? - ANSWER
Integrity.
28.List three principles from the FCA Principles for Businesses. - ANSWER
Skill, care and diligence; Management and control; Financial prudence.
Regulation and Compliance: CISI Capital Markets &
FCA Rules Verified Multiple Choice and Conceptual
Actual Emended Exam Questions With Reviewed
100% Correct Detailed Answers
Guaranteed Pass!!Current Update
1. What does EU MiFID become after Brexit? - ANSWER UK MiFID
2. What is the purpose of UK MiFID? - ANSWER To create a common
market with harmonised rules in the financial industry.
3. How does UK MiFID facilitate trading? - ANSWER It facilitates
frictionless cross-border trading within the EEA.
4. What does 'onshoring' refer to in the context of UK MiFID? - ANSWER
Drafting all EU Regulations into UK law.
5. What does UK MiFID preserve? - ANSWER Existing UK laws that
implement EU obligations.
6. What powers does UK MiFID grant regarding legislation? - ANSWER
Powers to amend current UK legislation to ensure rules and laws continue
to function.
,7. What act governs the application of EU legislation and regulation in the UK?
- ANSWER The European Union (Withdrawal) Act 2018.
8. What rights do UK firms currently lack in the EEA post-Brexit? - ANSWER
Passporting rights.
9. What is the FCA Handbook? - ANSWER An example of rules, codes, and
guidance within the legal framework of the UK, enforced by the FCA.
10.What does FSMA 2000 provide to the FCA? - ANSWER The ability to
enforce its rules.
11.What are the types of provisions in the FCA Handbook? - ANSWER Rules
(R), Evidential provisions (E), Guidance (G), Directions (D), Statements of
principle (P), Conduct (C), and UK law text.
12.What is the legal status of confirmed industry guidance compared to
regulator guidance? - ANSWER It has the same legal status.
13.What is principles-based regulation? - ANSWER Regulation that relies on
high-level objectives rather than detailed, prescriptive rules.
,14.What are the advantages of principles-based regulation? - ANSWER
Allows for flexibility, focuses on the purpose of regulation, and is better
suited for today's financial markets.
15.What are the disadvantages of principles-based regulation? - ANSWER
Can be inflexible and lead to a box-ticking culture.
16.What is rule-based regulation? - ANSWER The traditional form of
regulation relying on detailed, prescriptive rules.
17.What is Principle 5 of the FCA's principles for businesses? - ANSWER
Market conduct.
18.What does the FCA principle regarding suitability state? - ANSWER A
firm must take reasonable care to ensure the suitability of its advice and
discretionary decisions for any customer who is entitled to rely upon its
judgment.
19.How does the FCA distinguish between customers and clients? - ANSWER
Customers are retail and professional clients, while clients include retail,
professional, and eligible counterparties.
20.What are the PRA Fundamental Rules? - ANSWER They are paired with
the Principles of Business for PRA firms.
, 21.What is the role of the FCA in enforcing rules? - ANSWER The FCA has
the power to sanction and discipline those who do not follow its rules.
22.What is the significance of the FCA Handbook in relation to the FCA's
statutory objectives? - ANSWER It is a key method used by the FCA to
achieve its statutory objectives as set out in FSA 2012.
23.What is the purpose of evidential provisions in the FCA Handbook? -
ANSWER They are non-binding but show evidence required to
demonstrate compliance with a rule.
24.What does the term 'conduct' refer to in the FCA Handbook? - ANSWER
Behaviour that does not amount to market abuse.
25.What are the three key components of the FCA's approach to firms? -
ANSWER Knowledge, Skills, Conduct.
26.Which principles does the Consumer Duty replace? - ANSWER Principles
6 and 7.
27.What is the first principle of the FCA Principles for Businesses? - ANSWER
Integrity.
28.List three principles from the FCA Principles for Businesses. - ANSWER
Skill, care and diligence; Management and control; Financial prudence.
