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.

Which of the following does not require authorisation by the FCA in relation to specified investments?

Trustees of an estate
Investment firms
Financial advisers
Portfolio managers

The correct answer is: Trustees of an estate

Trustees of an estate do not require authorization by the Financial Conduct Authority (FCA) in relation to specified investments because their role primarily involves managing assets on behalf of a trust or a deceased person's estate, rather than engaging in regulated investment activities themselves. Their responsibilities are governed more by fiduciary duties and trust law rather than the regulatory framework established for investment firms and financial activities. Investment firms, financial advisers, and portfolio managers, on the other hand, are directly involved in providing investment services and managing client funds, which fall under the FCA's regulation. They must meet specific requirements, including qualifications, competency, and operational standards to ensure consumer protection and the integrity of the financial market. Therefore, it is essential for these entities to be authorized by the FCA to perform their functions legally and comply with relevant regulatory standards.