FSRE – Free Mock

Within the training and competence rules within the FCA handbook, records of training must be kept for 3 years for investment advisers from when they leave the firm for non MIFID firms, 5 years for MIFID firms and indefinitely for a pension transfer specialist. 

Self-employed people include sole traders and partners. The self-employed must submit their tax return once a year and pay Class 4 National Insurance as well as their income tax on their net profits. They are then required to pay their tax and NIC’s in two equal instalments.

Fiscal policy involves the actions taken by the government to either stimulate or calm the economy using a combination of taxation, spending and borrowing. When the government implements an inflationary budget they are trying to expand (inflate) the economy with lower taxes, borrowing and spending.

The Senior Managers and Certification Regime was Implemented due to the lack of redress for those in charge when things go wrong, highlighted as a result of the credit crisis.  The new framework will help identify individual accountability if things go wrong and will regulate individual conduct and standards in the financial services industry. Senior managers in Enhanced firms will have a Responsibilities Map that identifies which manager is responsible for each area. This will assist the regulators in identifying who is responsible if problems arise.

An unvested personal pension is a pension that has not yet been crystallised. If a person dies before 75 years of age the pension can be paid to any selected beneficiary as either a lump sum or an income based on the nomination of wishes tax free subject to the Lump sum and death benefit allowance (LSDBA) of £1,073,100. Any lump sum payment over the LSDBA is subject to an income tax charge at the beneficiary's marginal income tax rate.

Within FCA minimum record keeping requirements for money laundering purposes ID must be kept for 5 years after the relationship with the client ended.

A Fact find is a detailed questionnaire that is used to establish KYC (Know your customer) in order to provide suitable advice. The questionnaire will include all personal and financial details of the client.

The FOS will deal with complaints in respect to regulated products and advice. The complaint must have been made within 6 years of the event occurring or within 3 years of becoming aware of the reason to complain and not be subject to a court case. If the provider and the FOS has not dealt with the complaint made by the complainant to their satisfaction, they can take their complaint to the courts.

All retired people are expected to have a total income of a specified amount. Pension credit is paid to individuals who reach State Pension Age (SPA) and receive less than the Appropriate Amount. Pension credit comes in two parts: Guaranteed credit and Savings credit.

Guaranteed credit: Brings all income (not just state pension) from all sources to an appropriate level. The appropriate amount for singles is £227.10 p/w and £346.60 p/w if a couple.

Guaranteed credit is Means tested to £10,000. The first £10,000 of savings is ignored, savings above is deemed to generate £1 of income for every £500 (or part of) over £10,000. This reduces the pension credit by £1 for every £500 over £10,000.

This means Simon will be able to claim £67.10 in guaranteed credit. Calculated as follows:

£227.10 (pension credit) less £150.00 earnings less £10 reduction (£14,900 savings less £10,000 exemption = £4,900 (every £500 or part of generates £1 of income) = £10.

In December 2001 the FSA assumed responsibility for almost all of the financial services industry through The Financial Services and Markets Act 2000 (FSMA 2000). The FSMA 2000 was implemented to enable the transfer of regulatory power to be effected as smoothly as possible to the FSA. The FSMA was implemented by Parliament and consolidated all previous Acts under one framework. The FSMA gave effect to a new regulatory regime.