Financial Conduct Authority (FCA) UK Regulation Sample Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare effectively for the FCA UK Regulation Sample Exam. Focus on key concepts with concise multiple choice questions and detailed explanations. Boost your confidence and performance!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

A firm receives a complaint from a customer relating to MiFID business. What is the MINIMUM period records should be retained?

Two years from the date the complaint was received
Three years from the date the complaint was received
Five years from the date the complaint was received
Ten years from the date the complaint was received

The correct answer is: Five years from the date the complaint was received

The correct answer is based on the regulatory requirements set forth by the Financial Conduct Authority (FCA). According to FCA rules, firms are required to retain records of complaints relating to MiFID (Markets in Financial Instruments Directive) business for a minimum period to ensure proper oversight and remediation of issues that may arise with clients. Retaining records for five years allows firms to maintain adequate documentation that can be reviewed in the event of disputes, compliance checks, or regulatory inquiries. This retention period supports accountability and facilitates investigations into complaints, ensuring that firms can provide evidence of how they handled specific issues while also ensuring consumer protection within the financial markets. By adhering to this requirement, firms also promote transparency and foster customer trust, aligning with the FCA’s overarching objectives of promoting competition, protecting consumers, and enhancing the integrity of the UK financial system.