FSRE – Free Mock

Following The Retail Distribution Review (RDR) financial advisers are required to obtain and hold an annual Statement of Professional Standing as evidence that they are meeting the standards, which will be issued by an accredited body. The FCA will monitor the bodies with a list in the FCA handbook. The accredited bodies have an obligation to ensure that advisers maintain the required standards.  An accredited body is The London Institute of Banking and Finance (LIBF).

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.

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

Market manipulation is when a person creates a false rumour for their own financial gain. Insider dealing is when a person knows the truth and uses that information for their own financial gain. Both are considered criminal offences and will invoke an FCA investigation.

As a building society is a mutual organisation it is legally constrained from raising any more that 50% of it's liabilities from the wholesale money markets.

The FCA defines a ‘personal recommendation’ as advice on investments, conversion or transfer of pension benefits or on a home finance transaction that is presented as suitable for the client. Advice involves a recommendation to take a course of action based on an analysis of the clients circumstances, needs and goals. The advice has been influenced by the adviser. Generic advice provides generic information only and/or options to narrow down the consumers’ choices, without making an explicit recommendation, so is treated as unregulated.

Values can be defined as standards of behaviour and what a person considers important in life and what motivates them. They are the beliefs that guide a person’s actions and the type of person they are. There are personal and cultural values that apply and may differ from each person.

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.

The FCA "Fit and Proper" test is designed to set minimum standards in relation to those working in a controlled function. It covers honesty and integrity, competence and capability and financial soundness. Adverse credit will be detrimental in respect to meeting these standards.

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.