UK REGULATION AND
PROFESSIONAL INTEGRITY
CORRECT 100%
Aggregation - ANSWERmultiple client orders are bulked together and processed as a
single order. customers must be notified of this procedure and its advantages and
disadvantages
allocation - ANSWERthe division of a single aggregated order between 2 or more
investors' accounts
Appointed representative - ANSWERany type of person, they must be a party to a
contract with an authorised person that allows it/him to carry on certain regulated
activities, and the authorised person must have accepted responsibility for the conduct
of these regulated activities in writing
Approved Persons (APER) - ANSWERindividuals who are approved by the FCA and
are required to comply with the FCA's statements of principle for approved persons and
code of practice for approved persons, only applies to a limited number of individuals
best execution - ANSWERfirms take into account not only price factors, but also costs,
speed, likelihood of execution and settlement, and all these in the light of the size and
nature of the deal, in determining the means of obtaining the best outcome for a client
when executing their deal
capital requirements directive formerly known as... - ANSWERcapital adequacy
directive
capital requirements directive - ANSWERsets out the financial rules for financial firms. It
applies to banks, building societies and most investment firms, and is to ensure firms
hold adequate financial resources and have adequate systems and controls to prudently
manage the business and associated risks. The CRD has been implemented in the UK.
certificate Regime - ANSWERpart of SMCR, individuals will not be approved by the
regulators, but given a certificate by their firm to confirm they are 'fit and proper' to
perform their role
FCA and PRA criteria for the certification regime is... - ANSWERdifferent
churning - ANSWERexcessive trading by a broker in order to generate commission,
regardless of the interests of the customer
every customer is either... - ANSWERa client or an eligible counterparty
, client assets/money - ANSWERsecurities or other assets held by a firm on behalf of its
clients. The assets have to be kept separate from the firm's own assets
collective investment scheme (CIS) - ANSWERopen-ended funds such as unit trusts
and OEICs
common platform firm - ANSWERfirms subject to either of the capital requirements
directive or the markets in financial instruments directive (MiFID II)
designated professional body - ANSWERprofessional bodies whose members are able
to carry on limited financial services business without the need for authorisation from
the FCA, providing that the limited financial services offered to clients are incidental to
their main business
directives - ANSWERlegislation issued by EU to its member states requiring them to
enact and implement local legislation
disclosure and transparency rules (DTR) - ANSWERan FCA sourcebook, applying to
issuers of securities on certain markets
disclosure rules aims to... - ANSWERmake provisions to ensure that information relating
to publicly listed securities is properly handled and disseminated
transparency rules aims to... - ANSWERimplement the requirements of the
transparency directive and to ensure there is adequate transparency of an access to
information in the UK financial markets
durable medium - ANSWERpaper or any instrument which enables the recipient to store
information addressed personally to them in a way accessible for future reference for a
period of adequate time
eligible counterparty (ECP) - ANSWERa client that under MifFID II client categorisations
is neither a professional nor a retail client
European Economic Area (EEA) - ANSWERThe 27 member states of the EU plus
Norway, Iceland and Liechstenstein
Exempt Persons - ANSWERfirms exempt from the need to be authorised to carry on
regulated activities- includes bodies such as recognised investment exchanges and
recognised clearing houses
Financial Policy committee (FPC) - ANSWERpart of the BoE, aims to identify, monitor
and take action to remove or reduce systemic risk with a view to protecting and
enhancing resilience of the UK financial system
PROFESSIONAL INTEGRITY
CORRECT 100%
Aggregation - ANSWERmultiple client orders are bulked together and processed as a
single order. customers must be notified of this procedure and its advantages and
disadvantages
allocation - ANSWERthe division of a single aggregated order between 2 or more
investors' accounts
Appointed representative - ANSWERany type of person, they must be a party to a
contract with an authorised person that allows it/him to carry on certain regulated
activities, and the authorised person must have accepted responsibility for the conduct
of these regulated activities in writing
Approved Persons (APER) - ANSWERindividuals who are approved by the FCA and
are required to comply with the FCA's statements of principle for approved persons and
code of practice for approved persons, only applies to a limited number of individuals
best execution - ANSWERfirms take into account not only price factors, but also costs,
speed, likelihood of execution and settlement, and all these in the light of the size and
nature of the deal, in determining the means of obtaining the best outcome for a client
when executing their deal
capital requirements directive formerly known as... - ANSWERcapital adequacy
directive
capital requirements directive - ANSWERsets out the financial rules for financial firms. It
applies to banks, building societies and most investment firms, and is to ensure firms
hold adequate financial resources and have adequate systems and controls to prudently
manage the business and associated risks. The CRD has been implemented in the UK.
certificate Regime - ANSWERpart of SMCR, individuals will not be approved by the
regulators, but given a certificate by their firm to confirm they are 'fit and proper' to
perform their role
FCA and PRA criteria for the certification regime is... - ANSWERdifferent
churning - ANSWERexcessive trading by a broker in order to generate commission,
regardless of the interests of the customer
every customer is either... - ANSWERa client or an eligible counterparty
, client assets/money - ANSWERsecurities or other assets held by a firm on behalf of its
clients. The assets have to be kept separate from the firm's own assets
collective investment scheme (CIS) - ANSWERopen-ended funds such as unit trusts
and OEICs
common platform firm - ANSWERfirms subject to either of the capital requirements
directive or the markets in financial instruments directive (MiFID II)
designated professional body - ANSWERprofessional bodies whose members are able
to carry on limited financial services business without the need for authorisation from
the FCA, providing that the limited financial services offered to clients are incidental to
their main business
directives - ANSWERlegislation issued by EU to its member states requiring them to
enact and implement local legislation
disclosure and transparency rules (DTR) - ANSWERan FCA sourcebook, applying to
issuers of securities on certain markets
disclosure rules aims to... - ANSWERmake provisions to ensure that information relating
to publicly listed securities is properly handled and disseminated
transparency rules aims to... - ANSWERimplement the requirements of the
transparency directive and to ensure there is adequate transparency of an access to
information in the UK financial markets
durable medium - ANSWERpaper or any instrument which enables the recipient to store
information addressed personally to them in a way accessible for future reference for a
period of adequate time
eligible counterparty (ECP) - ANSWERa client that under MifFID II client categorisations
is neither a professional nor a retail client
European Economic Area (EEA) - ANSWERThe 27 member states of the EU plus
Norway, Iceland and Liechstenstein
Exempt Persons - ANSWERfirms exempt from the need to be authorised to carry on
regulated activities- includes bodies such as recognised investment exchanges and
recognised clearing houses
Financial Policy committee (FPC) - ANSWERpart of the BoE, aims to identify, monitor
and take action to remove or reduce systemic risk with a view to protecting and
enhancing resilience of the UK financial system
