Unit 2 Topic 19

1 / 30

Justin, a financial adviser, hopes to extend his client bank by making unsolicited telephone calls to a list of people he has taken from the telephone directory. As he is aware of the FCA rules, he will only be making contac

2 / 30

Under the ‘know your customer’ requirements, advisers should:

3 / 30

Which of the following will not be included in an initial disclosure document?

4 / 30

Which of the following criteria is NOT one that must be satisfied by an advertisement in order to comply with the FCA’s guidelines on advertising?

5 / 30

When an adviser transacts designated investment business for a client, the basis or amount of the charges would normally be disclosed in which document?

6 / 30

In terms of knowing your customer, what is an eligible counterparty?

7 / 30

Haddon Bank are about to begin an advertising campaign to promote fresh interest in their UK Equity Fund, which was launched ten years ago. Since they intend to show recent performance of the fund, what is the MINIMUM period over which performance figures must be shown

8 / 30

A key function of a client agreement is to set out:

9 / 30

A restricted adviser is one who:

10 / 30

An adviser must issue a key features document or key information document prior to a sale being concluded, for all of the following products except:

11 / 30

Mortgage Advice Ltd has found that their primary method of obtaining new business is NOT permitted under Financial Conduct Authority regulation. This means that they must have been using which of the following methods?

12 / 30

Which of the following risks would be defined as that arising from the way that a business is run and managed?

13 / 30

A bank’s capital as a proportion of its risk weighted assets is referred to as the:

14 / 30

A professional customer is best described as:

15 / 30

What is the latest date, if any, that the suitability letter can be sent to a customer who is considering investing in a personal pension plan?

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What is the minimum period for which customer records, in respect of pension transfer and opt out contracts must be kept?

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Henry invested £1,000 in a unit linked lump sum product and cancelled seven days later and received back £950. What did this reduction most likely represent?

18 / 30

How long should most customer records be kept in relation to pension contracts?

19 / 30

Liquidity is a measure of:

20 / 30

To meet the FCA definition of independent advice, recommendations must be based on:

21 / 30

A £12,000 unit linked single premium investment bond is cancelled by a customer within the cooling-off period. However, during this period, the stock market fell sharply. Consequently, so did the value of the bond. What is the customer likely to receive?

22 / 30

If a client intends to purchase an investment product from an adviser on an execution only basis, then:

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In order to satisfy the Capital Requirements Directive, certain investment firms must have minimum capital of at least €125,000. Under what circumstances are these firms allowed to reduce this to €50,000?

24 / 30

The ‘cooling-off’ period usually starts from the date:

25 / 30

When carrying out a sale on an ‘execution-only’ basis, the responsibility for the transaction rests with the:

26 / 30

What does an execution only transaction require an adviser to do?

27 / 30

For which of these customers is a specific client agreement least likely to be given to a client?

28 / 30

Which compliance health warning MUST appear on all advertising material containing details of past investment performance? Past performance:

29 / 30

Fact Find information for firms covered by MiFID must be kept for how long?

30 / 30

From 2018, a Key Information Document (KID) will be required for all these products except:

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