1. Which body is responsible for regulating financial services firms in the UK?
A. The Bank of England
B. The Financial Conduct Authority (FCA)
C. The Prudential Regulation Authority (PRA)
D. HM Treasury
2. What is the primary legislation governing financial services regulation in the UK?
A. Companies Act 2006
B. Financial Services Act 1986
C. Financial Services and Markets Act 2000 (FSMA 2000)
D. Banking Act 2009
3. Under FSMA 2000, which of the following is a regulated activity?
A. Providing accountancy services
B. Dealing in investments
C. Providing legal advice
D. Managing a non-financial business
4. Which organisation took over the prudential regulation of banks and insurers from the
FSA in 2013?
A. Financial Conduct Authority
B. Bank of England
C. Prudential Regulation Authority
D. Financial Policy Committee
5. What does the FCA's conduct of business objective primarily seek to protect?
A. Systemic financial stability
B. Government tax revenues
C. The interests of consumers
D. International capital flows
6. Which principle from the FCA's Principles for Businesses requires firms to communicate
clearly, fairly and not misleadingly?
A. Principle 3
B. Principle 6
C. Principle 7
D. Principle 9
,7. The FCA's statutory objectives include which of the following?
A. Managing monetary policy
B. Consumer protection, market integrity and competition
C. Setting interest rates
D. Regulating government bonds exclusively
8. What is the term used for the requirement that individuals performing regulated functions
must be approved by the FCA?
A. Fit and Proper Test
B. Senior Managers Regime
C. Approved Persons Regime
D. Controlled Functions Framework
9. Which regime replaced the Approved Persons Regime for senior individuals in banks and
insurers?
A. Conduct Rules Framework
B. Individual Accountability Regime
C. Senior Managers and Certification Regime (SM&CR)
D. Financial Regulation Oversight Regime
10. Under the SM&CR, who is responsible for certifying that individuals performing certain
functions are fit and proper?
A. The FCA
B. The PRA
C. The firm itself
D. HM Treasury
11. Which of the following is NOT one of the FCA's operational objectives?
A. Consumer protection
B. Market integrity
C. Systemic risk reduction
D. Promoting effective competition
12. What does 'treating customers fairly' (TCF) require firms to demonstrate?
A. That all customers receive identical products
B. That fair outcomes are being delivered to consumers
C. That charges are always the lowest in the market
D. That no fees are charged to retail clients
13. Which of the following best describes the concept of 'know your customer' (KYC)?
A. Providing customers with annual statements
B. Verifying a customer's identity and understanding their financial needs
C. Offering customers loyalty rewards
D. Sending promotional material to existing clients
14. The Financial Policy Committee (FPC) is a committee of which institution?
A. HM Treasury
, B. Financial Conduct Authority
C. Bank of England
D. Prudential Regulation Authority
15. What is the primary purpose of the Money Laundering Regulations?
A. To prevent tax evasion only
B. To detect and deter money laundering and terrorist financing
C. To regulate foreign exchange transactions
D. To set capital adequacy requirements for banks
16. Which piece of legislation is the primary UK statute addressing money laundering?
A. Fraud Act 2006
B. Terrorism Act 2000
C. Proceeds of Crime Act 2002 (POCA)
D. Criminal Justice Act 1993
17. What does AML stand for?
A. Asset Management Legislation
B. Anti-Money Laundering
C. Authorised Market Liability
D. Annual Market Levy
18. Which of the following describes 'layering' in the context of money laundering?
A. Placing criminal proceeds into the financial system
B. Concealing the origin of funds through complex transactions
C. Using criminal funds to invest in legitimate businesses
D. Filing false tax returns
19. What is a Suspicious Activity Report (SAR)?
A. A firm's annual compliance report to the FCA
B. A report filed with the National Crime Agency when money laundering is
suspected
C. An internal audit report on financial irregularities
D. A customer complaint escalation form
20. What is 'tipping off' in the context of money laundering legislation?
A. Providing gratuities to employees
B. Disclosing to a suspect that a SAR has been made
C. Informing a client of regulatory changes
D. Alerting management to suspicious trading
21. Under the Data Protection Act 2018 and UK GDPR, what is 'personal data'?
A. Any information held by a firm
B. Information relating to an identified or identifiable living individual
C. Data held solely on corporate clients
D. Publicly available information only
A. The Bank of England
B. The Financial Conduct Authority (FCA)
C. The Prudential Regulation Authority (PRA)
D. HM Treasury
2. What is the primary legislation governing financial services regulation in the UK?
A. Companies Act 2006
B. Financial Services Act 1986
C. Financial Services and Markets Act 2000 (FSMA 2000)
D. Banking Act 2009
3. Under FSMA 2000, which of the following is a regulated activity?
A. Providing accountancy services
B. Dealing in investments
C. Providing legal advice
D. Managing a non-financial business
4. Which organisation took over the prudential regulation of banks and insurers from the
FSA in 2013?
A. Financial Conduct Authority
B. Bank of England
C. Prudential Regulation Authority
D. Financial Policy Committee
5. What does the FCA's conduct of business objective primarily seek to protect?
A. Systemic financial stability
B. Government tax revenues
C. The interests of consumers
D. International capital flows
6. Which principle from the FCA's Principles for Businesses requires firms to communicate
clearly, fairly and not misleadingly?
A. Principle 3
B. Principle 6
C. Principle 7
D. Principle 9
,7. The FCA's statutory objectives include which of the following?
A. Managing monetary policy
B. Consumer protection, market integrity and competition
C. Setting interest rates
D. Regulating government bonds exclusively
8. What is the term used for the requirement that individuals performing regulated functions
must be approved by the FCA?
A. Fit and Proper Test
B. Senior Managers Regime
C. Approved Persons Regime
D. Controlled Functions Framework
9. Which regime replaced the Approved Persons Regime for senior individuals in banks and
insurers?
A. Conduct Rules Framework
B. Individual Accountability Regime
C. Senior Managers and Certification Regime (SM&CR)
D. Financial Regulation Oversight Regime
10. Under the SM&CR, who is responsible for certifying that individuals performing certain
functions are fit and proper?
A. The FCA
B. The PRA
C. The firm itself
D. HM Treasury
11. Which of the following is NOT one of the FCA's operational objectives?
A. Consumer protection
B. Market integrity
C. Systemic risk reduction
D. Promoting effective competition
12. What does 'treating customers fairly' (TCF) require firms to demonstrate?
A. That all customers receive identical products
B. That fair outcomes are being delivered to consumers
C. That charges are always the lowest in the market
D. That no fees are charged to retail clients
13. Which of the following best describes the concept of 'know your customer' (KYC)?
A. Providing customers with annual statements
B. Verifying a customer's identity and understanding their financial needs
C. Offering customers loyalty rewards
D. Sending promotional material to existing clients
14. The Financial Policy Committee (FPC) is a committee of which institution?
A. HM Treasury
, B. Financial Conduct Authority
C. Bank of England
D. Prudential Regulation Authority
15. What is the primary purpose of the Money Laundering Regulations?
A. To prevent tax evasion only
B. To detect and deter money laundering and terrorist financing
C. To regulate foreign exchange transactions
D. To set capital adequacy requirements for banks
16. Which piece of legislation is the primary UK statute addressing money laundering?
A. Fraud Act 2006
B. Terrorism Act 2000
C. Proceeds of Crime Act 2002 (POCA)
D. Criminal Justice Act 1993
17. What does AML stand for?
A. Asset Management Legislation
B. Anti-Money Laundering
C. Authorised Market Liability
D. Annual Market Levy
18. Which of the following describes 'layering' in the context of money laundering?
A. Placing criminal proceeds into the financial system
B. Concealing the origin of funds through complex transactions
C. Using criminal funds to invest in legitimate businesses
D. Filing false tax returns
19. What is a Suspicious Activity Report (SAR)?
A. A firm's annual compliance report to the FCA
B. A report filed with the National Crime Agency when money laundering is
suspected
C. An internal audit report on financial irregularities
D. A customer complaint escalation form
20. What is 'tipping off' in the context of money laundering legislation?
A. Providing gratuities to employees
B. Disclosing to a suspect that a SAR has been made
C. Informing a client of regulatory changes
D. Alerting management to suspicious trading
21. Under the Data Protection Act 2018 and UK GDPR, what is 'personal data'?
A. Any information held by a firm
B. Information relating to an identified or identifiable living individual
C. Data held solely on corporate clients
D. Publicly available information only
