Business Management Principles Quiz
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Questions and Answers

What is the topic of section 5.3?

  • Senior management arrangements, systems and controls (SYSC) (correct)
  • The Retail Distribution Review (RDR)
  • Training and Competence (TC)
  • Principles for businesses

    • What is the topic of section 7.2?

  • Senior Managers’ and Certification Regime (SMCR)
  • Training and Competence (TC)
  • FCA Recognised Industry Codes
  • The Retail Distribution Review (RDR) (correct)

    • What is the topic of section 6.2?

  • The Retail Distribution Review (RDR)
  • Training and Competence (TC)
  • FCA Recognised Industry Codes (correct)
  • Senior Managers’ and Certification Regime (SMCR)

    • What is the topic of section 5.1?

    <p>The effect of the principles for businesses</p> Signup and view all the answers

    What is the topic of section 7.1?

    <p>Training and Competence (TC)</p> Signup and view all the answers

    What is the topic of section 6.1?

    <p>Senior Managers’ and Certification Regime (SMCR)</p> Signup and view all the answers

    What is the topic of section 5.2?

    <p>The principles for businesses</p> Signup and view all the answers

    What is the main purpose of financial markets?

    <p>To raise and trade capital</p> Signup and view all the answers

    What happens in the financial markets?

    <p>Lenders and borrowers are matched up</p> Signup and view all the answers

    How do individuals lend in a conscious manner?

    <p>By depositing cash in a bank account</p> Signup and view all the answers

    What is the role of fund managers in unconscious saving?

    <p>To create a portfolio of financial assets</p> Signup and view all the answers

    What is the characteristic of complex transactions in financial markets?

    <p>They require sophisticated deal-making procedures</p> Signup and view all the answers

    What is the primary function of the London Stock Exchange and ICE Futures?

    <p>To enable the trading of capital</p> Signup and view all the answers

    What is the outcome of the matching process in financial markets?

    <p>Lenders and borrowers are matched up</p> Signup and view all the answers

    What can ESMA do if it identifies a concern?

    <p>Launch an investigation and address a relevant national competent authority within two months</p> Signup and view all the answers

    What is the main objective of the European Systemic Risk Board (ESRB)?

    <p>To monitor the entire financial sector for potential problems</p> Signup and view all the answers

    What are the three specific objectives of the Financial Services Action Plan (FSAP)?

    <p>To create a single EU wholesale market, to achieve open and secure retail markets, and to create state of the art prudential rules</p> Signup and view all the answers

    What is the key difference between EU regulations and EU directives?

    <p>EU regulations are binding on all Member States, while EU directives are addressed to national authorities</p> Signup and view all the answers

    What is the main purpose of the Markets in Financial Instruments Directive (MiFID)?

    <p>To harmonize financial regulations across the EU</p> Signup and view all the answers

    Who is required to impose harmonized rules on their member state firms according to MiFID?

    <p>Financial regulators</p> Signup and view all the answers

    What is the result of EU regulations being passed?

    <p>They have binding legal force throughout every Member State</p> Signup and view all the answers

    What was the initial implementation date of the directive?

    <p>1 November 2007</p> Signup and view all the answers

    When did significant revisions to the directive take place?

    <p>January 2018</p> Signup and view all the answers

    What act created the framework for regulation in the UK financial services industry?

    <p>Financial Services and Markets Act 2000</p> Signup and view all the answers

    What was the single regulator created by FSMA 2000?

    <p>Financial Services Authority (FSA)</p> Signup and view all the answers

    What was the criticism of the FSA after the 2008/9 financial crisis?

    <p>Taking too much of a micro-prudential view</p> Signup and view all the answers

    What was the focus of the FSA's micro-prudential view?

    <p>Individual firms</p> Signup and view all the answers

    What act amended FSMA 2000?

    <p>Financial Services Act 2012</p> Signup and view all the answers

    What is the main difference between a micro-prudential and macro-prudential view?

    <p>Focus on individual firms versus focus on the overall financial system</p> Signup and view all the answers

    Who drafted the Financial Services and Markets Act 2000?

    <p>The Treasury</p> Signup and view all the answers

    What is the current status of the Financial Services and Markets Act 2000?

    <p>It is still law, but has been significantly amended</p> Signup and view all the answers

    What is the primary mission of ESMA?

    <p>To enhance investor protection and promote stable and orderly financial markets</p> Signup and view all the answers

    What are the three main objectives of ESMA?

    <p>Investor protection, orderly markets, and financial stability</p> Signup and view all the answers

    What is the purpose of ESMA's Level 1 activities?

    <p>To give technical advice to the European Commission when developing legislative proposals</p> Signup and view all the answers

    What is the primary purpose of ESMA's Level 2 activities?

    <p>To draft subordinate acts, such as delegating and implementing acts</p> Signup and view all the answers

    What is the main difference between ESMA's delegating acts and implementing acts?

    <p>Delegating acts set out details needed to comply with the laws, while implementing acts set out processes required to implement the laws</p> Signup and view all the answers

    What is the main purpose of ESMA's Level 3 activities?

    <p>To oversee a consistent approach to the implementation and enforcement of EU legislation</p> Signup and view all the answers

    What is the main characteristic of ESMA's Level 4 activities?

    <p>A more proactive approach to ensure compliance</p> Signup and view all the answers

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