Advice Matters Vol. 8

Complete this short quiz to test your knowledge on the 8th volume of Advice Matters.
Answer all the questions and hit the done button to see how you have performed. If you have any wrong it is certainly worth revisiting the relevant article from this edition.

Question Title

* What is the main theme of the first article on financial promotions and what you should be taking away after reading it?

Advice on how to create financial promotions using various channels – brochures, your firm’s website, Facebook posts and tweets on Twitter.

How financial promotions have been affected by the introduction of the Senior Managers and Certification Regime.

The FCA has been concerned about firms issuing financial promotions which imply all the activities the firms undertake are regulated, when in fact they are not.

The FCA has launched a website with revised advice on financial promotions.

Question Title

* Under the FSMA it is unlawful for a person in the course of business to communicate a financial promotion unless which certain conditions are met? Select all that apply.

that person has a recognised financial services qualification

that person is an authorised person

the content of the communication is approved by an authorised person

the content of the communication is approved by the FCA

Question Title

* According to the article, which two of the FCA’s Principles for Businesses underpin the regulation around financial promotions?

Principle 2 – Skill, care and diligence

Principle 3 – Management and control

Principle 6 – Customers' interests

Principle 7 – Communications with clients

Question Title

* Select all that apply. All financial promotions must be:

clear

fair

less than 200 words in length

not misleading

Question Title

* What is the correcting wording for the FCA’s regulation on financial promotions for firms that undertake both regulated and unregulated business?

A firm must not indicate or imply that it is regulated or otherwise supervised by the FCA in respect of business for which it is not regulated by the FCA.

A firm must not intentionally or unintentionally mislead customers or potential customers by implying its activities, products or services are OK with the FCA when they are not.

A firm must not state or imply in writing that it has the approval of the FCA to conduct business which it is not authorised by the FCA to undertake.

A firm must state on its financial promotions which activities, products or services are regulated and supervised by the FCA.

Question Title

* If the FCA is aware of a financial promotion that doesn’t meet its standards, what can it do?

Ask that the financial promotion be reviewed by an independent panel.

Ask that the financial promotion is withdrawn from the market immediately.

Issue its own version of the financial promotion with corrections.

It can do nothing – the financial promotion is already out there in the market.

Question Title

* What is the main thrust of the second article on pension beliefs and what you should be taking away after reading it?

The article provides a comprehensive look at pensions across the world and how the different cultures, religions and genders have an impact on how pensions are considered and whether financial stability for the aged is seen as a public or a private responsibility.

The article provides a humorous look at pensions and children’s beliefs, misconceptions and knowledge on pensions within different age ranges (3-5 years, 6-10 years, 11 to 15 years, etc.).

The pension market is about to undergo simplification and the impact of these changes is analysed for different age ranges.

Whilst many, though not all, people have a pension, there is a widespread lack of confidence and knowledge about pensions and often there is confusion about how much to contribute, what the different types are and what to do with a pension when retirement approaches.

Question Title

* According to second article on pension beliefs, how many UK adults say they have a DC pension, have received and read their annual statement in the last year, and did not understand it very well or at all?

200,000

2 million

12 million

22 million

Question Title

* In the article on pension beliefs, which age range is identified as the least confident and knowledgeable about financial matters?

18-24

25-34

35-44

45-54

55-64

Question Title

* According to the article on pension beliefs, what recent change to pensions is becoming more evident within the 25-34 age range?

Auto-enrolment

Pension simplification

Pensions freedom

Question Title

* The pension beliefs article gives a number of possible reasons why just under 30% of 35-44-year-olds have no private pension provision in place. What are the potential reasons given?

38% have three or more financially dependent children

41% are in mortgage arears

51% are in financial difficulty

57% are self-employed

Question Title

* In the pension beliefs article, for the 45-54 age range, there is a profile of those 63% of people who have not given much, or any, thought as to what retirement might look like. How are these people described? Select all that apply.

far less likely to have any form of pension provision

less likely to be in work

more likely to be female

more likely to be single

more likely to have lower incomes

Question Title

* The article on pension beliefs describes a report from the Pensions Policy Institute which identifies a number of types of pension savers. Which of these were listed?

Market investors

Protectionist savers

Reluctant contributors

Sceptical speculators

Question Title

* Which one of the four pension saver categories from the Pension Policy Institute report is being described here? These savers are looking for an active choice, but with straightforward options that are easy to understand, along with tools to help them make a decision. This group have high levels of overall savings, and will only invest in pensions once all other savings options have been utilised.

Market investors

Protectionist savers

Sceptical speculators

Threshold adults

Question Title

* What is the main message of the third article on the Certification Regime and what you should be taking away after reading it?

There should be effective supervision in relation to each of the key elements relating to Certification.

Who is exempt from the Certification Regime.

Differences between the Senior Managers Regime and the Certification Regime.

Preparing firms for dual-regulation ahead of the 9 December 2019 deadline.

Question Title

* The third article on supervision and the Certification Regime states the criteria which determine whether an employee has a Certification Function within their role. What are the criteria?

Everyone in a role that is not already covered by the Conduct Rules.

Anyone who is performing a role that includes face-to-face or remote contact with customers or supervises people who have contact with customers.

Anyone who is performing a role that may have a significant impact on, or pose a risk of significant harm to, the firm, its clients and/or market integrity.

Everyone in a role that is not already covered by the Senior Managers Regime.

Question Title

* According to the article, which of these roles fall within the scope of the Certification Regime? Select all that apply.

Any non-senior manager, who supervises or manages anyone performing a role that falls within the scope of the Certification Regime

CASS oversight function

Client dealing function

Proprietary traders

Security guards

Question Title

* When should effective supervision of people performing a Certification Function start?

Once the person has completed their probationary period.

Right from the moment that the person has been recruited to the role.

This will vary from role to role, function to function. The FCA will be able to advise on the timeline for each Certification Function.

When the person has completed all the training and demonstrated competency in the role.

Question Title

* Which of the following are factors that must be taken into account when assessing s person’s fitness and propriety for a Certification Function? Select all that apply.

Competence and capability

Education and qualifications

Financial soundness

Honesty, integrity and reputation

Question Title

* What is the situation with regard to risk and an individual’s competence?

Generally, the risks associated with competence, or lack of it, should diminish as an employee’s level of knowledge and experience increases in the role they are performing.

The risks associated with competence, or lack of it, may increase as an employee’s level of familiarity and confidence increases in the role they are performing.

The risks associated with competence, or lack of it, remain constant throughout the period of the role they are performing.

Trainees and new joiners are regularly supervised and therefore there is a lower risk associated with this group.

Question Title

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