Advice Matters - Edition 2 - 2021

Complete this short quiz to test your knowledge on the latest edition of Advice Matters.

Answer all the questions and hit the done button to see how you have performed. If you have any wrong it is certainly worth revisiting the relevant article from this edition.

Question Title

* 1. What are the key words missing from the FCA’s definition of vulnerable consumers: “Someone who, due to their ____, is especially susceptible to _”

Debts / financial crime

Health / a low income

Personal circumstances / harm

Expenditure / bankruptcy

Question Title

* 2. Which of these are the four key drivers of vulnerability, as identified by the FCA?

Health, Life events, Resilience, Capability

Health, Income, Intelligence, Awareness

Life events, Engagement, Wealth, Intelligence

Resilience, Independence, Capability, Income

Question Title

* 3. Which of these is a potential harm which a vulnerable consumer may experience?

Receiving leaflets written in large print

Being asked questions to ensure they understand what’s being said

Falling behind on payment of key household bills

Being treated like a close family member or friend

Question Title

* 4. Which of these does the FCA expect a firm to meet in supporting vulnerable customers?

TCF outcomes only

Principles for Businesses only

Products design requirements specifically for vulnerable customers

Principles for Businesses and TCF outcomes

Question Title

* 5. Firms must take action in a variety of ways in order to meet the needs of vulnerable consumers. Which of these actions helps to ensure that the skills and capability of staff are adequate?

Supplying a printed guide listing the characteristics of a vulnerable consumer

Having a one-to-one session with a vulnerable consumer to gain practical experience

Ensuring everyone is involved in designing products for vulnerable consumers

Giving practical and emotional support to frontline staff dealing with vulnerable consumers

Question Title

* 6. Which of these is an example of market abuse?

Acquiring personal information illegitimately via fake emails and websites

Using inside information to deal or attempt to deal in financial instruments

A customer making financial transactions under a fictitious name

Offering lavish hospitality to a wealthy potential customer

Question Title

* 7. Which of the following statements defines ‘market abuse’?

Market abuse is any activity that affects the fair and impartial operation of a financial market

Market abuse is any activity that adversely affects the profitability of a Financial Services firm

Market abuse is any activity that affects the fair and impartial operation of a UK-based financial market only

Market abuse covers any activity that results in a criminal conviction of a perpetrator

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* 8. The FCA can impose fines for market abuse. What is the maximum fine that the FCA can impose on a regulated person?

£100,000

€100,000

£500,000

Unlimited

Question Title

* 9. In what circumstances should a firm submit a Suspicious Transaction and Order Report to the FCA?

When it detects any activity that could be considered to be insider dealing or market manipulation

When it is instructed to do so by the Serious Fraud Office

Only when it has definite evidence of wrong doing

Only when the FCA requests it

Question Title

* 10. What will the maximum prison sentence be for participating in market abuse when UK MAR rules are updated?

7 years

10 years

15 years

20 years

Question Title

* 11. What is “Alpha” or “α”?

The ratio of long to short positions a hedge fund has

The number of profitable trades as a percentage of all trades made in a quarter

Short-hand for the total assets under management

The excess return of the asset or fund

Question Title

* 12. What is the aim of an Objective Relative Value fund?

To evaluate investment opportunities on a stand-alone basis

To evaluate a specific asset by comparing the price and yield with that available from related assets

To provide a standard, or reference, against which the performance of an asset, fund, or fund manager can be measured

To measure its return against the London Interbank Bank Offered Rate (LIBOR)

Question Title

* 13. What is a ‘day trader’?

Someone who buys and sells products on the financial markets for a bank's clients

Someone who takes instructions directly from clients, placing orders and advising them on market developments and new financial ventures

Someone who executes a relatively large volume of trades, both short and long, to capitalise on intraday market price action

Someone who informs all relevant parties of the most relevant trades for the day

Question Title

* 14. The GameStop Corp scenario is an example of a ‘short squeeze’, but what does this mean?

A short squeeze occurs when demand for the stock outstrips due to long sellers having to buy stocks to cover their long positions

A short squeeze occurs when demand for the stock outstrips due to short sellers having to buy stocks to cover their short positions

A short squeeze occurs when a long-only fund manager, foreseeing a market fall, has to realise any capital gain and place the resultant cash on a deposit earning almost nothing

A short squeeze occurs when a fund underperforms in an economy that is receding, where most stocks are declining in value

Question Title

* 15. Please provide your details here to complete the quiz.

Name

Company

City/Town

Email Address

Phone Number

Advice Matters - Edition 2 - 2021

Complete this short quiz to test your knowledge on the latest edition of Advice Matters.

Question Title

* 1. What are the key words missing from the FCA’s definition of vulnerable consumers: “Someone who, due to their ________, is especially susceptible to _____”

Question Title

* 2. Which of these are the four key drivers of vulnerability, as identified by the FCA?

Question Title

* 3. Which of these is a potential harm which a vulnerable consumer may experience?

Question Title

* 4. Which of these does the FCA expect a firm to meet in supporting vulnerable customers?

Question Title

* 5. Firms must take action in a variety of ways in order to meet the needs of vulnerable consumers. Which of these actions helps to ensure that the skills and capability of staff are adequate?

Question Title

* 6. Which of these is an example of market abuse?

Question Title

* 7. Which of the following statements defines ‘market abuse’?

Question Title

* 8. The FCA can impose fines for market abuse. What is the maximum fine that the FCA can impose on a regulated person?

Question Title

* 9. In what circumstances should a firm submit a Suspicious Transaction and Order Report to the FCA?

Question Title

* 10. What will the maximum prison sentence be for participating in market abuse when UK MAR rules are updated?

Question Title

* 11. What is “Alpha” or “α”?

Question Title

* 12. What is the aim of an Objective Relative Value fund?

Question Title

* 13. What is a ‘day trader’?

Question Title

* 14. The GameStop Corp scenario is an example of a ‘short squeeze’, but what does this mean?

Question Title

* 15. Please provide your details here to complete the quiz.

* 1. What are the key words missing from the FCA’s definition of vulnerable consumers: “Someone who, due to their ____, is especially susceptible to _”