FCA Exam Questions - Reformatted for Printing
1. Explain the purpose of the FCA.
2. List and explain the 11 principles of business.
3. Explain the FCA’s principles-based approach to regulation.
4. What is the FCA Handbook?
5. Explain the role of the FCA Handbook in regulating financial services.
6. What are the four main parts of the FCA Handbook?
7. Describe the role of each of the four parts of the FCA Handbook.
8. Explain the relationship between the FCA and other regulatory bodies (e.g., PRA, Bank of England).
9. What are the FCA’s statutory objectives?
10. List and explain the operational objectives of the FCA.
11. Explain the FCA’s strategic objective.
12. Describe the FCA’s approach to supervision and enforcement.
13. What is the difference between thematic reviews and firm-specific supervision?
14. Explain the concept of ‘Treating Customers Fairly’ (TCF).
15. List the six consumer outcomes under TCF.
16. Explain the concept of ‘fit and proper’ requirements.
17. What are the three key elements assessed under the ‘fit and proper’ test?
18. What is the Senior Managers and Certification Regime (SM&CR)?
19. Explain the three parts of SM&CR.
20. What is the purpose of the Conduct Rules under SM&CR?
21. List the five Individual Conduct Rules.
22. What are the Senior Manager Conduct Rules?
23. Explain the approval process for Senior Managers.
24. Describe the responsibilities of firms under the Certification Regime.
25. Explain the difference between approved persons and certified persons.
26. What is the purpose of the Directory of certified and approved persons?
27. What is the role of the Compliance function in a regulated firm?
28. Describe the responsibilities of the Money Laundering Reporting Officer (MLRO).
29. Explain the FCA’s approach to financial crime prevention.
30. What are the key requirements under the Money Laundering Regulations?
31. What is the role of the Financial Ombudsman Service (FOS)?
32. Explain how the Financial Services Compensation Scheme (FSCS) works.
33. What protections does the FSCS provide to consumers?
34. What is the role of the Prudential Regulation Authority (PRA)?
35. Explain the concept of conduct risk.
36. What are the key components of a good risk management framework?
37. Describe the difference between prudential regulation and conduct regulation.
38. What is the role of the Approved Persons Regime?
39. How does the FCA gather intelligence about firms and individuals?
40. What is a section 166 (Skilled Persons) report?
41. Explain the process of FCA enforcement action.
42. Describe the types of disciplinary action the FCA can take.
43. What are the FCA’s powers in relation to unauthorised business?
44. Explain the purpose of the FCA Register.
45. What information can be found on the FCA Register?
46. How does the FCA use data to monitor and assess firms?
47. Describe the role of whistleblowing in the FCA’s regulatory framework.
48. What protections are available for whistleblowers?
49. Explain the concept of ‘reasonable steps’ under SM&CR.
50. What is a Statement of Responsibilities?
51. Describe how the FCA promotes competition in financial services.
52. Explain the role of the FCA’s competition objective.
53. What is the role of the Risk Function in a regulated firm?
54. Explain the responsibilities of the Board in relation to FCA compliance.
55. Describe the importance of governance and culture in financial services regulation.
