CISI UNIT 1 - UK REGULATION
QUESTIONS & ANSWERS
Who does the FCA report too? - ANSWERHMT
Who does the PRA report too? - ANSWERThe BOE
Who did the PRA and FCA replace? - ANSWERThe FSA, as of the FSA2012
FCA's Strategic Objective - ANSWERMake sure relevant markets function well
FCA's Operational Objectives - ANSWERAppropriate protection, integrity of financial
system, effective competition
PRA Objectives - ANSWERPromote safety and soundness of financial system, avoid
instability, minimize adverse effect of failure, secure an appropriate degree of protection
for policy holders
4 Tools of supervision - ANSWERDiagnostic, monitoring, preventative, remedial
6 Outcomes of Fair Treatment - ANSWERFair treatment, need of identified customers,
clear information, suitable advice, perform as expected, no unreasonable post-sale
carries
Principles for Business - ANSWERI See Many Fair Maiden's at the 5C's Regatta
-Integrity
-skill/care/diligence
-management and control
-financial prudence
-market conduct
-5C's (customers' interests, communication with clients, conflicts of interest, customers'
relationship of trust, client assets)
-relationships with regulators
Specified activities - ANSWERdealing, arranging, managing, advising, operating a
MLTF or OTF
Excluded investments - ANSWERProperty, tangible assets (oil, metal, antiques),
currencies, premium bonds, national savings certificates
Appeals - ANSWERWithin 28 days to Upper Tribunal to decision or supervisory notices
QUESTIONS & ANSWERS
Who does the FCA report too? - ANSWERHMT
Who does the PRA report too? - ANSWERThe BOE
Who did the PRA and FCA replace? - ANSWERThe FSA, as of the FSA2012
FCA's Strategic Objective - ANSWERMake sure relevant markets function well
FCA's Operational Objectives - ANSWERAppropriate protection, integrity of financial
system, effective competition
PRA Objectives - ANSWERPromote safety and soundness of financial system, avoid
instability, minimize adverse effect of failure, secure an appropriate degree of protection
for policy holders
4 Tools of supervision - ANSWERDiagnostic, monitoring, preventative, remedial
6 Outcomes of Fair Treatment - ANSWERFair treatment, need of identified customers,
clear information, suitable advice, perform as expected, no unreasonable post-sale
carries
Principles for Business - ANSWERI See Many Fair Maiden's at the 5C's Regatta
-Integrity
-skill/care/diligence
-management and control
-financial prudence
-market conduct
-5C's (customers' interests, communication with clients, conflicts of interest, customers'
relationship of trust, client assets)
-relationships with regulators
Specified activities - ANSWERdealing, arranging, managing, advising, operating a
MLTF or OTF
Excluded investments - ANSWERProperty, tangible assets (oil, metal, antiques),
currencies, premium bonds, national savings certificates
Appeals - ANSWERWithin 28 days to Upper Tribunal to decision or supervisory notices
