Business Management Principles Quiz

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?

The effect of the principles for businesses (B) Signup and view all the answers

What is the topic of section 7.1?

Training and Competence (TC) (C) Signup and view all the answers

What is the topic of section 6.1?

Senior Managers’ and Certification Regime (SMCR) (D) Signup and view all the answers

What is the topic of section 5.2?

The principles for businesses (A) Signup and view all the answers

What is the main purpose of financial markets?

To raise and trade capital (D) Signup and view all the answers

What happens in the financial markets?

Lenders and borrowers are matched up (A) Signup and view all the answers

How do individuals lend in a conscious manner?

By depositing cash in a bank account (D) Signup and view all the answers

What is the role of fund managers in unconscious saving?

To create a portfolio of financial assets (C) Signup and view all the answers

What is the characteristic of complex transactions in financial markets?

They require sophisticated deal-making procedures (D) Signup and view all the answers

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

To enable the trading of capital (C) Signup and view all the answers

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

Lenders and borrowers are matched up (A) Signup and view all the answers

What can ESMA do if it identifies a concern?

Launch an investigation and address a relevant national competent authority within two months (D) Signup and view all the answers

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

To monitor the entire financial sector for potential problems (B) Signup and view all the answers

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

To create a single EU wholesale market, to achieve open and secure retail markets, and to create state of the art prudential rules (D) Signup and view all the answers

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

EU regulations are binding on all Member States, while EU directives are addressed to national authorities (D) Signup and view all the answers

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

To harmonize financial regulations across the EU (A) Signup and view all the answers

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

Financial regulators (B) Signup and view all the answers

What is the result of EU regulations being passed?

They have binding legal force throughout every Member State (D) Signup and view all the answers

What was the initial implementation date of the directive?

1 November 2007 (C) Signup and view all the answers

When did significant revisions to the directive take place?

January 2018 (C) Signup and view all the answers

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

Financial Services and Markets Act 2000 (C) Signup and view all the answers

What was the single regulator created by FSMA 2000?

Financial Services Authority (FSA) (A) Signup and view all the answers

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

Taking too much of a micro-prudential view (D) Signup and view all the answers

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

Individual firms (C) Signup and view all the answers

What act amended FSMA 2000?

Financial Services Act 2012 (C) Signup and view all the answers

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

Focus on individual firms versus focus on the overall financial system (A) Signup and view all the answers

Who drafted the Financial Services and Markets Act 2000?

The Treasury (A) Signup and view all the answers

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

It is still law, but has been significantly amended (C) Signup and view all the answers

What is the primary mission of ESMA?

To enhance investor protection and promote stable and orderly financial markets (D) Signup and view all the answers

What are the three main objectives of ESMA?

Investor protection, orderly markets, and financial stability (D) Signup and view all the answers

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

To give technical advice to the European Commission when developing legislative proposals (B) Signup and view all the answers

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

To draft subordinate acts, such as delegating and implementing acts (A) Signup and view all the answers

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

Delegating acts set out details needed to comply with the laws, while implementing acts set out processes required to implement the laws (C) Signup and view all the answers

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

To oversee a consistent approach to the implementation and enforcement of EU legislation (C) Signup and view all the answers

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

A more proactive approach to ensure compliance (B) Signup and view all the answers