jautājums  |
atbilde |
It is an offence for a person to communicate a financial promotion unless...? sākt mācīties
|
|
the person is an authorised firm. Or the promotion has been approved by an authorised firm.
|
|
|
Communicating financial promotion exclusion example (Islamc finance): sākt mācīties
|
|
Home purchase plan (Islamic finance). other: home reversion plan (Islamic finance), | non-investment insurance contract | qualifying credit.
|
|
|
The purpose of the financial promotion rules is to ensure that promotions are identified...? sākt mācīties
|
|
promotions are identified as such. and that they are fair not misleading.
|
|
|
Principle 6 – a firm must pay due regard to the... The financial promotion rules are consistent with Principles 6 and 7 sākt mācīties
|
|
... the interests of its customers and treat them fairly. FCA's Principles for Businesses (PRIN)
|
|
|
Principle 7 – a firm must pay due regard to the...? The financial promotion rules are consistent with Principles 6 and 7 sākt mācīties
|
|
... information needs of its clients FCA's Principles for Businesses (PRIN)
|
|
|
The FCA can remove financial promotions immediately from the market without ...? sākt mācīties
|
|
without FCA’s enforcement process.
|
|
|
Financial promotion FCA’s Enforcement Process essence: sākt mācīties
|
|
FCA can require withdrawal of a financial promotion (a ban). Firms MAY CHALLENGE the decision before it is confirmed, amended, or revoked.
|
|
|
Financial promotion, firms should make clear which product and services that involve... sākt mācīties
|
|
... a risk of capital loss. also: If some activities are not regulated by the FCA, this must be made clear.| Packaged or stakeholder products not produced by the firm must be indicated.
|
|
|
Real-time communication examples: Promotions, what Methods of communication is it? sākt mācīties
|
|
Face-to-face meetings, | telephone conversations.
|
|
|
|
Promotions, what Methods of communication is it? sākt mācīties
|
|
unsolicited real time communications.
|
|
|
emails, letters or websites Promotions, what Methods of communication is it? sākt mācīties
|
|
non-real-time communications.
|
|
|
promotions with the specified manner of responding are direct... Promotions, what Methods of communication is it? sākt mācīties
|
|
... direct financial promotion offers.
|
|
|
Anti-Greenwashing rule and guidance came into effect in 2024. They apply to...? sākt mācīties
|
|
... to all regulated firms; when undertaking client communication, marketing. It covers all types of communication.
|
|
|
Anti-Green washing. FCA notes that Sustainability references should be...? sākt mācīties
|
|
complete, correct and capable of being substantiated.
|
|
|
Communication exclusion. Article 48 of FPO relates to...? financial promotion order (FPO). sākt mācīties
|
|
high-net-worth individuals
|
|
|
Communication exclusion. Article 50 and 50A of FPO relate to...? sākt mācīties
|
|
|
|
|
Communications from outside the UK that would qualify for an exemption under the FPO if the overseas office were treated as...? sākt mācīties
|
|
as a separate unauthorised person.
|
|
|
FPO. Communication is excluded for one-off promotions that are not... Financial Promotion Order (FPO). (soliciting communication method) sākt mācīties
|
|
|
|
|
FPO. Communication is excluded for the Takeover... Financial Promotion Order sākt mācīties
|
|
|
|
|
FPO. the exemption for excluded communications does NOT generally apply in relation to...? (business legal category) sākt mācīties
|
|
|
|
|
In 2023 Treasury published its consultation response to financial promotion exemptions for high net worth individual and sophisticated investors. The changes can be summarised as follows: sākt mācīties
|
|
Requiring businesses to provide details of themselves in any communications made using the exemptions. Updating the title by removing ‘certified’. | Updating the high net worth individual statements. | Applying these changes to collective investment schemes.
|
|
|
The section of the COBS rules which deals with communications to clients, COBS 4, does not apply where the... apply. (... Rules) sākt mācīties
|
|
Prospectus Regulation Rules apply. PRR 3.3
|
|
|
Prospectus Regulation Rules PRR 3.3 applies to offers of transferable securities in respect of which a prospectus is required under,...? 2 (FSMA sections) sākt mācīties
|
|
|
|
|
Prospectus ADVERTISEMENT must not be issued, unless: any type of communication (eg, TV, press, email, letter, text and brochure) sākt mācīties
|
|
it states that a prospectus has been published. and it is clearly recognisable as an advertisement. | the information is not inaccurate. | it is consistent with the prospectus.
|
|
|
Any written advertisement falling under Prospectus Regulation Rules PRR 3.3 must contain statement that it is not itself a prospectus, but... sākt mācīties
|
|
... but an advertisement.
|
|
|
Influencers who promote a financial product without approval from an FCA-authorised firm, could be undertaking a...? sākt mācīties
|
|
|
|
|
It is an offence for an unauthorised person to communicate a financial promotion, unless the promotion is exempt or... sākt mācīties
|
|
or an authorised firm has approved it.
|
|
|
The COBS rules on approval of financial promotions complement requirements under SYSC 3 and SYSC 4. They require a firm which communicates with a client, in relation to designated investment business or financial promotion, to puts in place... sākt mācīties
|
|
in order to comply with the rules on financial promotions.
|
|
|
In 2023 a ‘gateway’ was introduced for firms that wished to be able to approve promotions for third parties. Firms needed a permission from...? (regulator name) sākt mācīties
|
|
... permission from FCA to do so. Therefore, firms that did not obtain permission will no longer be permitted to approve financial promotions other than their own.
|
|
|
Before a firm approves a financial promotion for communication by an unauthorised person (using the ‘gateway’), it must confirm that it complies with... sākt mācīties
|
|
... Financial Promotion rules. If, later, it becomes aware that it no longer complies, it must withdraw its approval.
|
|
|
Firms may NOT approve __-time financial promotions, sākt mācīties
|
|
personal visits, telephone conversations or other interactive dialogue. Firms may NOT approve real-time financial promotions.
|
|
|
Authorised firms are restricted in the promotion of unregulated collective schemes, unless... sākt mācīties
|
|
... unless they would have been able to legitimately promote it for themselves.
|
|
|
In relation to non-MiFID business, a firm is not in breach if it communicates a financial promotion that has been produced by another party and takes reasonable care to establish that... sākt mācīties
|
|
... another authorised firm has confirmed that the promotion complies with the rules. also: it communicates it only to the type of recipient that was intended. | As far as it is aware, the promotion is fair, clear and not misleading.
|
|
|
Communicating with Retail Clients. One of the COBS rule is that information is accurate and does not emphasise potential benefits without... sākt mācīties
|
|
... without prominent indication of relevant risks also: firm’s name, | information is sufficient and likely to be understood. | Information does not disguise, diminish, or obscure important items.
|
|
|
Communicating with Retail Clients. For MiFID business, the data sources for the comparisons must be cited. Details must also be provided regarding... (simple) sākt mācīties
|
|
key facts and assumptions.
|
|
|
Retail clients. In 2020, the FCA implemented temporary rules regarding the promotion of...? sākt mācīties
|
|
of speculative illiquid securities SIS
|
|
|
Retail clients. In 2020, the FCA implemented temporary rules regarding the promotion of speculative illiquid securities, such as...? 2 sākt mācīties
|
|
of mini-bonds | and preference shares
|
|
|
Specific rules related to risk warnings for financial promotions of high-risk investments. Promotion of what product was BANNED for retail clients? sākt mācīties
|
|
Non-Mass Market Investments' (NMMI).
|
|
|
Specific rules related to risk warnings for financial promotions of high-risk investments. Promotion of what product was RESTRICTED for retail clients? sākt mācīties
|
|
Restricted Mass Market Investments' (RMMI) ie, not permitted to non-readily realisable securities and peer-to-peer agreements.
|
|
|
Risk warnings must include statement that...? sākt mācīties
|
|
... that investors could lose all of their money invested. also: Prescribed risk summaries – should take no more than two minutes to read.
|
|
|
Retail clients. What type of incentive is banned? 2cz sākt mācīties
|
|
ban of monetary | or non-monetary benefits (ie, refer a friend or new joiner bonuses).
|
|
|
Retail clients. What is the minimum Cooling off period for financial promotion? sākt mācīties
|
|
Minimum 24 hour cooling off period for first time investors.
|
|
|
Retail clients. A risk warning must be p__. sākt mācīties
|
|
(ie, it must include the client’s name).
|
|
|
Promotions. Retail clients must self-certify they meet the criteria to receive... (__-__ investments) sākt mācīties
|
|
... high-risk investments...
|
|
|
Promotions. Retail clients must provide evidence, why they believe they... sākt mācīties
|
|
... meet the relevant criteria.
|
|
|
Promotions for Retail clients. Appropriate TEST - firm must not... sākt mācīties
|
|
... coaching investors to pass the test.
|
|
|
Promotions for Retail clients. Firms must display the name of the...? sākt mācīties
|
|
|
|
|
Promotions for Retail clients. 'Approvers' must take an active role in ensuring that the promotion remains compliant through... sākt mācīties
|
|
... the life of the promotion. Approvers' must have appropriate levels of competence and expertise. | They must to ensure compliance with appropriateness.
|
|
|
Approvers' must undertake preliminary __ __ before NMMIs are promoted to retail investors. Non-Mass Market Investments sākt mācīties
|
|
... suitability assessments
|
|
|
When the FCA did publish 'final' rules in relation to the financial promotion of Crypto-assets? sākt mācīties
|
|
|
|
|
A ‘qualifying crypto-asset’ is any ‘cryptographically’ secured digital representation of value that is transferable and fungible, but does not include crypto-assets which meet the definition of...? 2 sākt mācīties
|
|
of electronic money | or an existing controlled investment. (ECI)
|
|
|
HM Treasury included qualifying crypto-assets within scope of the financial promotions regime. Provide an activity example: dealing in... 2 (easy) sākt mācīties
|
|
contractually based investments arranging deals investments, | managing investments, | advising on investments
|
|
|
What is the bespoke exemption in the FPO for crypto-asset businesses registered with the FCA under the Money Laundering Regulation 2017? sākt mācīties
|
|
This exemption enables crypto-asset businesses which are not authorised persons, to communicate their own crypto-asset financial promotions.
|
|
|
Crypto-assets. The promotion is communicated by... (person) Four routes to legally promoting cryptoassets to consumers. 1 of 4 sākt mācīties
|
|
... by an authorised person.
|
|
|
The promotion is made by an unauthorised person but...? Four routes to legally promoting cryptoassets to consumers. 2 of 4 sākt mācīties
|
|
... but approved by an authorised person.
|
|
|
The promotion is communicated by a crypto-asset business registered with the FCA under... (regulations) Four routes to legally promoting cryptoassets to consumers. 3 of 4 sākt mācīties
|
|
... under the MLRs in reliance on the exemption of the FPO. Money Laundering Regulations 2017. | Financial Promotion Order
|
|
|
The promotion is otherwise communicated in compliance with an exemption in... (statutory instrument - rozpoządzenie) Four routes to legally promoting cryptoassets to consumers. 4 of 4 sākt mācīties
|
|
Financial Promotion Order (FPO)
|
|
|
The FCA consulted on the approach that crypto-assets will be classified as... (product type) sākt mācīties
|
|
Restricted Mass Market Investments (RMMI) meaning that they would be permitted to be mass marketed to UK consumers subject to certain restrictions.
|
|
|
Crypto-assets. Restricted Mass Market Investment. A what warning is required? sākt mācīties
|
|
|
|
|
Crypto-assets. Restricted Mass Market Investment. What incentive is banned? sākt mācīties
|
|
|
|
|
Crypto-assets. Restricted Mass Market Investment. Positive friction example: Positive frictions = regulatory "speed bumps" designed to reduce impulsive investing. sākt mācīties
|
|
cooling off period (24 hours) also: Direct offer financial promotion rules. | Self-certified sophisticated investor category will not be applied.
|
|
|
Firms must ensure that information including indications of PAST PERFORMANCE is not... sākt mācīties
|
|
... not the most prominent feature.
|
|
|
Past performance information. The period provided covers at least the immediately preceding...? sākt mācīties
|
|
Or the whole period for which the investment has been offered. | In any event, it must show complete 12-month periods.
|
|
|
Past Performance information example: sākt mācīties
|
|
*if other than sterling | currency fluctuation warning
|
|
|
What information must be provided if the Past Performance is cited gross? sākt mācīties
|
|
Commissions, fees and taxes.
|
|
|
When firms give figures based on simulated (notional) past performance because the product or service does not have a track record, a firm must ensure that the simulated past performance figures relate to invest or...? sākt mācīties
|
|
And contain a prominent warning that they relate to simulated past performance.
|
|
|
Simulated Performance figures are based on, the __ past performance of one or more investments or indices. (adj.) sākt mācīties
|
|
|
|
|
Firms must ensure that information containing an indication of the product possible FUTURE PERFORMANCE contains a...? sākt mācīties
|
|
that such forecasts are not reliable indicators of future performance.
|
|
|
Firms must ensure that information containing an indication of the product possible FUTURE PERFORMANCE is based on...? sākt mācīties
|
|
... reasonable assumptions supported by objective data. and not based on simulated past performance. | In case of gross performance - it must disclose the commissions, fees, tax, etc.
|
|
|
Direct offer promotions, for example - in a newspaper or direct mail - likely to be received by a retail client must contain prescribed information about...? sākt mācīties
|
|
... the safekeeping of client investments and money. also about: about the investment management, costs and charges, nature and risks, taxation. | And third-party guarantee, if relevant.
|
|
|
Direct offer promotions, for example - in a newspaper or direct mail - must contain a statement that...? (document-related) sākt mācīties
|
|
prospectus has been published. in accordance with the Prospectus Regulation. | Also: statement that the client should seek a personal recommendation if are unsure about decision.
|
|
|
Direct offer promotions, for example - in a newspaper or direct mail - if a designated investment combines two or more investments - it must contain information about...? sākt mācīties
|
|
... greater risk than those risks associated with a single component,
|
|
|
A firm must not initiate an UNWRITTEN PROMOTION to a particular person outside its premises, unless the individual does so...? sākt mācīties
|
|
does so at an appropriate time of day identifies themselves and their firm at the outset and makes the reason for the contact clear. | Gives the client a contact point. | Clarification of whether the client would like continue.
|
|
|
Cold calling' refers to the practice of authorised persons contacting people without a prior appointment with a view to communicating...? sākt mācīties
|
|
|
|
|
Firms must not cold call unless the recipient has an existing client relationship with the firm and would...? sākt mācīties
|
|
would envisage or would expect to receive such a call also: the call relates to a generally marketable packaged product.| It relates to a controlled activity
|
|
|
Firms are not permitted to communicate or approve financial promotions for overseas firms, unless... sākt mācīties
|
|
unless the promotion sets out which firm has communicated the promotion. and: protection rules. | extent to of UK compensation scheme. | Details of any overseas compensation if any.
|
|
|
ELEMENTS of FCA Consumer Duty are: 3 sākt mācīties
|
|
3 cross-cutting rules. | 4 outcomes. | Consumer principle* 34Cp *good outcomes for retail customers.
|
|
|
|
3 One of Consumer Duty elements sākt mācīties
|
|
Good faith acting towards customers. | Foreseeable harm avoiding. | Customers financial objectives enabling.
|
|
|
4 OUTCOMES of Consumer Duty are: 4 sākt mācīties
|
|
Product governance. | Price and value. | Customer understanding. | Customer support. PP CuCs
|
|
|
Appointed Representative can be ___? (person) sākt mācīties
|
|
(ie, a natural person or any other legal person)
|
|
|
