R01 Regulatory processes, redress and guides: free practice questions

1. Question 1 of 5

   Which part of the FCA Handbook sets out the FCA's procedures for statutory notice decisions and its policy on penalties?

   Option A: DEPPOption B: COMPOption C: DISPOption D: SUP

   Show answer

   The answer is A: DEPP

   DEPP (Decision Procedure and Penalties) covers statutory notice decisions, penalty policy and interviews. SUP covers supervision and reporting.

   Why the other options are wrong

   B

   COMP covers the FSCS.

   C

   DISP covers complaints handling.

   D

   SUP covers supervision and reporting requirements.

2. Question 2 of 5

   In which case may the FCA NOT have to notify a person that they're under investigation at the outset?

   Option A: A complaint about a firm's chargesOption B: Possible insider dealing or market abuseOption C: A failure to submit regulatory returnsOption D: A breach of the client money rules

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   The answer is B: Possible insider dealing or market abuse

   The FCA must normally notify the person being investigated, but exceptions include insider dealing, market abuse, misleading statements and breaches of financial promotion restrictions, where the perpetrator may not be known.

   Why the other options are wrong

   A

   Charges complaints aren't among the exceptions.

   C

   Late returns aren't among the exceptions.

   D

   Client money breaches aren't among the exceptions.

3. Question 3 of 5

   Which part of the Handbook covers consumer redress schemes, such as for the British Steel Pension Scheme?

   Option A: CONCOption B: COLLOption C: CONREDOption D: COCON

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   The answer is C: CONRED

   CONRED covers consumer redress schemes requiring firms to investigate failures and pay redress; CONRED 2 covers Arch Cru and CONRED 3 and 4 cover British Steel.

   Why the other options are wrong

   A

   CONC is the consumer credit sourcebook.

   B

   COLL covers collective investment schemes.

   D

   COCON is the Code of Conduct for individuals.

4. Question 4 of 5

   A complainant is unhappy with the FCA's response to their complaint about the FCA. Where can they go next?

   Option A: The Financial Ombudsman Service, as for firmsOption B: The Financial Regulators Complaints CommissionerOption C: The Prudential Regulation CommitteeOption D: The Financial Services Compensation Scheme

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   The answer is B: The Financial Regulators Complaints Commissioner

   The Complaints Commissioner independently reviews complaints about the FCA, PRA, Bank of England (in some respects) and PSR. It can recommend an ex gratia payment, but the FCA decides.

   Why the other options are wrong

   A

   The FOS handles complaints about firms, not regulators.

   C

   The PRC governs the PRA.

   D

   The FSCS pays compensation when firms fail.

5. Question 5 of 5

   What is the status of the FCA's 'Financial Crime: a guide for firms' (FCG)?

   Option A: It gives guidance and examples, but imposes no rulesOption B: It applies only to banks and building societiesOption C: It contains binding rules that firms must comply withOption D: It replaces the Money Laundering Regulations

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   The answer is A: It gives guidance and examples, but imposes no rules

   The FCG gives self-assessment questions and good and poor practice examples. It contains no rules and imposes no extra requirements, though firms should use it to improve controls.

   Why the other options are wrong

   B

   It's relevant to all financial services firms.

   C

   It contains no binding rules.

   D

   It doesn't replace legal obligations under the MLR.

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