Quiz

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10 general financial crime questions. Select a number from the menu bar, or select a question from the headings below.  No tracking or scoring is built into the quiz. If you want to keep a record of your progress please do so separately.  You can return to the quiz index by clicking 'H' in the menu bar.


Question 6
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Q6 - Fraud and Regulatory Reporting

A key regulatory principle is that a firm must deal with the Financial Conduct Authority (FCA) in an open and cooperative way, and must disclose to the FCA appropriately anything relating to the firm of which that regulator would reasonably expect notice.

Consequently, when an FCA supervised firm encounters fraud, error or other irregularity in its operations, the firm must notify the FCA immediately if certain events arise and the event is significant.

Question - Which of the following does the FCA Handbook identify as factors when determining whether a matter is significant?

  1. The fraudster's location, or the location to which misappropriated funds have been transferred, regardless of whether the recipient is a UK regulated entity.
  2. The size of any monetary loss or potential monetary loss to [a firm] itself or its customers (either in terms of a single incident or group of similar or related incidents).
  3. Whether the firm has received a court order, or other communication indicating a fraud has been committed against the firm, or a customer of the firm.
  4. The risk of reputational loss to the firm.
  5. Whether the incident or a pattern of incidents reflects weaknesses in the firm's internal controls.

You selected '1, 2 & 4'

Incorrect!

FCA Principle 11 (Relations with regulators) states - 'A firm must deal with its regulators in an open and cooperative way, and must disclose to the FCA appropriately anything relating to the firm of which that regulator would reasonably expect notice.'

FCA Handbook SUP 15.3.18 identifies factors to consider when determining whether a matter is significant - see: SUP

SUP 15.3.18 does not mention the fraudster's location, or the location of misappropriated funds.

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You selected '2, 3 & 5'

Incorrect!

FCA Principle 11 (Relations with regulators) states - 'A firm must deal with its regulators in an open and cooperative way, and must disclose to the FCA appropriately anything relating to the firm of which that regulator would reasonably expect notice.'

FCA Handbook SUP 15.3.18 identifies factors to consider when determining whether a matter is significant - see: SUP

SUP 15.3.18 does not mention considering whether the firm has received a court order or other communication.

To reset the question - 'Click here'

You selected '2, 4 & 5'

Correct!

FCA Principle 11 (Relations with regulators) states - 'A firm must deal with its regulators in an open and cooperative way, and must disclose to the FCA appropriately anything relating to the firm of which that regulator would reasonably expect notice.'

FCA Handbook SUP 15.3.18 identifies factors to consider when determining whether a matter is significant - see: SUP

To reset the question - 'Click here'

You selected 'All 5'

Incorrect!

FCA Principle 11 (Relations with regulators) states - 'A firm must deal with its regulators in an open and cooperative way, and must disclose to the FCA appropriately anything relating to the firm of which that regulator would reasonably expect notice.'

FCA Handbook SUP 15.3.18 identifies factors to consider when determining whether a matter is significant - see: SUP

SUP 15.3.18 does not mention considering the fraudster's location, the location of misappropriated funds, or whether the firm has received a court order or other communication.

To reset the question - 'Click here'

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