Financial Services Regulation & Ethics - Week 2
30 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Who directly enters into a contract in the case of a sole trader?

  • The sole trader (correct)
  • The business entity itself
  • A corporate officer
  • A partnership representative

    • What distinguishes a Public Limited Company (PLC) from a sole trader?

  • A PLC operates without regulatory oversight
  • A PLC can be floated on the Stock Exchange (correct)
  • A PLC is owned by a single individual
  • A PLC has no legal entity status

    • What is true about the relationship between a sole trader and their business?

  • The business is legally separate from the sole trader
  • The business is a joint venture with another party
  • The business is inseparable from the individual (correct)
  • The business can own intellectual property independently

    • What is a characteristic of a Public Limited Company?

    <p>It is floated on the Stock Exchange for public investment</p> Signup and view all the answers

    What is NOT a feature of a sole trader's business contracts?

    <p>Contracts can be negotiated by business representatives</p> Signup and view all the answers

    What is one requirement for those managing workplace pensions?

    <p>They need to notify TPR if aware of certain risks.</p> Signup and view all the answers

    What does the principle of proportionality imply in the context of workplace pensions?

    <p>Requirements should be aligned with the level of risks involved.</p> Signup and view all the answers

    Which of the following is NOT a requirement for the running of workplace pensions?

    <p>Adhere to uniform rules regardless of size.</p> Signup and view all the answers

    Which group must notify TPR of risk awareness according to the regulations?

    <p>Those involved in the management of workplace pensions.</p> Signup and view all the answers

    What is the primary focus of regulations regarding workplace pensions?

    <p>Balancing regulatory requirements with risks.</p> Signup and view all the answers

    What significant regulatory change took place in February 2018 regarding financial services in the EU?

    <p>Extension of the single market for financial services</p> Signup and view all the answers

    Which area of insurance did the February 2018 regulatory changes specifically focus on?

    <p>Non-life (general insurance) business</p> Signup and view all the answers

    What is the primary function of the Securities and Exchange Commission mentioned in the content?

    <p>To promote capital markets and protect investors</p> Signup and view all the answers

    What independent agency is referenced in the context of financial oversight?

    <p>Securities and Exchange Commission (SEC)</p> Signup and view all the answers

    Which of the following best describes the impact of the changes in financial regulation in the EU?

    <p>It aimed to facilitate a more integrated financial services market.</p> Signup and view all the answers

    What is the minimum age an individual must be to act as an attorney?

    <p>18 years of age</p> Signup and view all the answers

    Which of the following criteria must be met to act as an attorney?

    <p>Be solvent</p> Signup and view all the answers

    What happens to the Continuing and Welfare Power of Attorney upon the occurrence of certain events?

    <p>It ceases to exist</p> Signup and view all the answers

    Which of the following statements about acting as an attorney is true?

    <p>A person must be both solvent and at least 18 years old</p> Signup and view all the answers

    What is the minimum percentage of leaseholders required to agree for enforcing the sale of the freehold of a building?

    <p>1/2</p> Signup and view all the answers

    What is implied by the term 'solvent' in the context of acting as an attorney?

    <p>Having financial stability</p> Signup and view all the answers

    What is the cap on the enforcement sale of the freehold outside of London?

    <p>£250k</p> Signup and view all the answers

    What is the cap on the enforcement sale of the freehold for properties located in London?

    <p>£420k</p> Signup and view all the answers

    In addition to enforcing the sale, what other action can leaseholders take with regard to the building?

    <p>Take over its management</p> Signup and view all the answers

    What is the primary subject matter of the content provided?

    <p>Property sale regulations</p> Signup and view all the answers

    What is a key limitation of an ordinary Power of Attorney (POA)?

    <p>It is not effective if the principal becomes incapacitated.</p> Signup and view all the answers

    What is the alternative to an ordinary Power of Attorney that addresses its limitations?

    <p>Enduring Power of Attorney</p> Signup and view all the answers

    Why was the Enduring Power of Attorney developed?

    <p>To ensure that the principal's wishes are fulfilled even in incapacity.</p> Signup and view all the answers

    Which aspect of an ordinary POA is considered a shortcoming?

    <p>Its duration limited to the principal's lifetime.</p> Signup and view all the answers

    What does the term 'Enduring' imply in the context of a Power of Attorney?

    <p>It remains in effect even when the principal is mentally incapacitated.</p> Signup and view all the answers

    Study Notes

    R01 Financial Services Regulation & Ethics - Week Two

    • 2024/25 Edition: Exam and study guide valid from September 1st, 2024 to August 31st, 2025.
    • Week Two Topics: Legal concepts relevant to UK financial advice (9 questions) and regulation of financial services (6 questions).
    • Legal Concepts:
      • Legal Persons: Sole trader, partnership, limited liability partnership, limited company (Ltd), public limited company (PLC).
      • Powers of Attorney (POA): Used to give control over affairs to another person.
        • Ordinary POA: Ends when donor loses capacity
        • Enduring POA (EPA): Continues after loss of capacity, but only for financial matters (replaced by Lasting POA).
        • Lasting POA (LPA): Addresses financial AND welfare matters, continues even after donor loses capacity.
    • Contracts and Agency: Specific requirements for valid contracts regarding offer, acceptance, and intention.
    • Property and Ownership:
      • Joint Tenants: Property passes automatically to surviving owner.
      • Tenants in Common: Property share is passed according to will or Intestacy.
    • Will and Intestacy:
      • Wills: Legal documents outlining distribution of assets after death. Must be in writing, signed, and witnessed by two people.
      • Intestacy: Rules for distributing assets when someone dies without a will, varies by jurisdiction in the UK.

    Regulation of UK Financial Services - Week Two

    • Main Regulators: HM Treasury, Bank of England, Prudential Regulation Authority (PRA), Financial Policy Committee (FPC), Financial Conduct Authority (FCA), other regulatory bodies.
    • HM Treasury: Government department overseeing public finance and economic policy.
    • Bank of England: Central Bank of the UK, responsible for monetary and financial stability, controlling interest rates to manage inflation.
    • PRA (Prudential Regulation Authority): Oversees the largest financial institutions (banks, building societies, insurers, etc.).
    • FPC (Financial Policy Committee): Macro-level committee considering the entire financial system and potential risks.
    • FCA (Financial Conduct Authority): Covers sales & marketing conduct; regulates smaller firms.
    • Additional Oversight: Information Commissioner's Office (ICO), Competition and Markets Authority (CMA), other bodies, including international entities such as the European Supervisory Authorities (ESAs).
    • Statutory Framework and Europe: European Union regulations, treaties, legislation, and decisions impacting UK financial services.
    • Specific Regulations: Capital Requirements Directive (CRD), Insurance Distribution Directive (IDD), Money Laundering Directives.

    Key Points for Further Study

    • Legal Implications for Businesses: Different legal structures have various implications.
    • Capacity and Contracts: Legal rules relating to mental capacity for contracts and for trustees in trusts.
    • Regulation for Financial Services: Understand the specific roles, powers, and responsibilities of the various regulatory bodies.
    • Understanding Different Trusts: Trusts, their structure, and the relevant requirements in the law.
    • Bankruptcy and Insolvency: Types of insolvency processes applicable for individuals and businesses.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    R01 Financial Services Regulation & Ethics 2024/25 Study Guide PDF

    Description

    This quiz covers key legal concepts and regulations relevant to financial advice in the UK. Topics include types of legal persons, powers of attorney, and the requirements for valid contracts. Test your understanding of the regulatory framework for financial services in this engaging assessment.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser