All 50 exam questions distributed as: Ch 1 · 14Ch 2 · 16Ch 3 · 5Ch 4 · 7Ch 5 · 8. Ch 2 (conduct, financial crime, POATR prospectus regime) and Ch 1 (regulators, company law, MiFID) are 60% of the paper - allocate revision accordingly.
| FSMA 2000 / FSA 2012 | One regulator (FSA) → FPC + FCA + PRA |
| FSA 2021 | IFPR Jan 2022; market abuse max 7 → 10 yrs |
| FSMA 2023 | Secondary growth objective: FCA and PRA |
| FCA objectives | 1 strategic + 3 operational |
| PRA objectives | 3 (safety; policyholders; competition) |
| Temporary product rules | Up to 12 months |
| Principles of Good Regulation | 8 |
| BoE inflation target | 2% CPI (MPC sets base rate) |
| UK RIEs | 5 (ICE Futures Europe, LSE, LME, Aquis, CBOE Europe) |
| ROIEs / DIEs | 32 (Dec 2024) / 29 |
| ROIE vs DIE | ROIE FCA-supervised; DIE not |
| RCH supervisor | Bank of England |
| DPBs | 10 bodies, 5 professions |
| MTF vs OTF | OTF: discretion allowed, no equities |
| MiFID II / MiFIR | Effective 3 Jan 2018; UK MiFIR 1 Jan 2021 |
| General prohibition | FSMA s.19 · 2 yrs and/or unlimited fine |
| Contracts | Unenforceable by the unauthorised person |
| Scheme approval | Majority in number + 75% in value |
| Court order filed | Within 7 days |
| Part 26A | Financial difficulty; value only; cross-class sanction |
| Squeeze-out s.979 | 90% + 90% votes; notice 3m / 6m, earlier |
| Sell-out s.983 | 90% in value; 3 months from later |
| Pre-emption offer period | At least 14 days |
| Disapplication | Special resolution · max 5 yrs |
| Listed guidance | 5% per year / 7.5% rolling 3 yrs |
| Premium-listed discount cap | 10% to middle market price |
| AGM notice | Public 21 days · private 14 days |
| GM notice | 21 days (14 with AGM authority) · others 14 |
| Short notice | 95% public / 90% private (public AGM: all) |
| Requisition s.303 | 5% · call in 21 days · meet within 28 |
| Resolutions | Ordinary >50% · special 75% |
| plc | 2 members · £50,000 · 25% + premium paid |
| COBS 18.3 | MiFID CF: rules OFF list · non-MiFID: ON list |
| Regulated activity | Specified activity + specified investment |
| PRIN | 12 Principles; P12 = Consumer Duty |
| P12 disapplies | Principles 6 and 7 |
| Consumer Duty dates | 31 Jul 2023 open · 31 Jul 2024 closed |
| Cross-cutting rules / outcomes | 3 / 4 |
| Wholesale exclusion | Min denomination £50,000 |
| FTOC | 6 outcomes (out-of-Duty firms) |
| APER SoP | 1-4 all; 5-7 SIFs only |
| SMR | Regulator approves |
| Certification | Firm certifies fit and proper |
| Conduct Rules | 1-3 all; 4-6 FCA only; SM1-SM4 |
| Roll-out | Banks/insurers 2016; 2018; FCA solo firms 2019 |
| SMF absence | 12 weeks (returning) |
| MLRO | SMF17 |
| FSMA s.21 | 2 yrs and/or unlimited fine |
| HNWI (Nov 2023) | £170k income or £430k net assets |
| Sophisticated director | Turnover £1.6m |
| Approval gateway | 7 Feb 2024; 3 exemptions (own, AR, group) |
| Anti-greenwashing | 31 May 2024 |
| POATR | 16 Jan 2026 · PRR → PRM |
| Prospectus needed | On admission (regulated market / primary MTF); offers prohibited unless exempt |
| Secondary issue | 75% (CEIF 100%) · was 20% |
| Offer size / denomination | £5m / £50,000 (POP above £5m) |
| IPO availability | 3 working days (was 6) |
| MTF prospectus | Needed for primary MTF admission; not FCA-approved |
| PFLS | Fraud/recklessness standard |
| Categories | Retail (most) → professional → ECP (least) |
| Large undertaking - MiFID | Any 2 of €20m / €40m / €2m |
| Large undertaking - non-MiFID | £5m capital/net assets; or 2 of €12.5m / €25m / 250 staff |
| Elective (MiFID) | Qualitative + 2 of: 10 trades/qtr; €500k; 1 yr |
| Local authority | £10m portfolio + one further test |
| Records | 5 yrs MiFID · 3 yrs non-MiFID |
| Conflicts | Manage → disclose (last resort) → record |
| Chinese walls | Optional, not mandatory |
| Suitability inputs | Knowledge/experience; finances; objectives |
| Best execution | Price, costs, speed, likelihood, size, nature |
| POCA s.327-329 | All persons · up to 14 yrs |
| POCA s.330-333 | Regulated sector only (failure to disclose; tipping off) |
| s.330 test | Objective - reasonable grounds |
| CDD stages | Identify → verify → understand purpose |
| Occasional transaction | €15,000 |
| PEP | Prominent function now or in preceding year |
| Bribery Act | s.1, 2, 6, 7 · 10 yrs · 6 principles |
| Insider dealing | Criminal · individuals only · 10 yrs |
| Market abuse | Civil · 5 types · balance of probabilities |
| PDMR publication | Within 3 business days |
| FCA penalty steps | 5 steps; levels 0/10/20/30/40% |
| Structure | 5 sections · 18 principles · 41 provisions |
| In effect | 1 January 2025 |
| Status | Not law; UKLR 6.6.6(3) governance report |
| Approach | Comply or explain (annual report) |
| NED minimum | 50% general · 25% UK funds |
| Chair tenure | Not beyond 9 years |
| Re-election | All directors annually |
| Remuneration | No director decides own pay |
| QCA Code | 10 principles · 89% of AIM (22 Aug 2023) |
| Wates | 6 principles · large private (2,000 staff / £200m + £2bn) |
| Stewardship Code 2020 | Investors; voluntary; COBS 2.2.3 statement |
| Stewardship ESG principles | 1 and 7 (owners/managers) · 5 (service providers) |
| s.414CB | NFI statement - PIEs |
| s.414CZA | s.172(1) statement - large companies |
| s.172 | Six factors (a)-(f) |
| ESG sourcebook / TCFD | Report by 30 June · exempt under £5bn (3-yr avg) |
| Panel roles | Advise · monitor · enforce |
| Sanctions | Private warning · censure · cold-shoulder |
| Code structure | 6 principles · 38 rules · 9 appendices |
| Consult | The Executive, in advance (legal advice is no substitute) |
| Scope | Regulated market / MTF (incl. AIM); not OEICs |
| Principle 5 | Cash consideration certain |
| CMA / CAT / TPR | Competition / appeals / pensions |
| PUSU (Rule 2.6) | 17.00 on day 28 |
| No-bid lock-out (2.8) | 6 months |
| Rule 2.9 | By 07.15 next business day |
| Rule 17.1 | 08.00 next business day; day 21 then every 7 |
| Rule 4 | Offeror sales: Panel consent + 24 hrs notice |
| Rule 5 | Cannot pass 30%; 30-50% needs Rule 9 offer |
| Rule 6 | 3 months: highest price paid |
| Rule 11 | 10% cash in 12 months: cash / cash alternative |
| Rule 8 | 12.00 T+1 (15.30 unconnected 1%); 10 business days opening; 1% |
| Rule 9 | 30% · highest price 12 months · cash · open 14 days · >50% condition |
| Offer document | Within 28 days of firm announcement |
| Day 0 | Publication day |
| Day 14 | Defence document (hostile) |
| Day 21 | First closing day |
| Day 37 | Latest timetable suspension (clearances) |
| Day 39 | Last target defence / new information (21 before 60) |
| Day 46 | Last offer revision (14 before 60) |
| Day 53 | Competing bidder firm-offer deadline (7 before 60) |
| Day 60 / Day 74 | All conditions / earliest close |
| Scheme | 21 days notice; 14 for revisions; results 08.00 |
| ACIN / acceleration | 14 days / not less than 14 days |
| Rule 35 | 12 months (new offer) · 6 months (better terms) |
| Rule 21 | No frustrating action from relevant period |
| Competent authority | FCA (FSMA Part VI); Official List |
| AIM regulator | LSE (exchange-regulated; prescribed market) |
| SME Growth Market | At least 50% SME issuers |
| 2024 reform | One ESCC category; standard → UKLR22 |
| Listing Principles | 6 |
| Minimum market value | Shares £30m · debt £200k · funds £700k |
| Class 2 / 1 / RTO | 5% / 25% / 100%; highest ratio |
| Still needs a vote | Reverse takeover only |
| Sponsor | ESCC, funds, shells; guidance/waivers; each sponsor stays liable |
| Inside information | RIS ASAP (DTR 2.2, UK MAR Art. 17); website by next close of business |
| Delay tests | Not misleading · confidentiality duty · issuer can ensure confidentiality |
| Insider list | Kept 5 years; AIM permanent insiders |
| Buy-back purposes | Reduce capital · exchangeable debt · employee schemes |
| Stabilisation | No more than 30 calendar days |
| DTR 5 - UK issuer | 3% then each 1% |
| DTR 5 - non-UK | 5/10/15/20/25/30/50/75% |
| DTR 5.8 | 2 trading days (4 non-UK) |
| DTR 5.6 | Monthly totals; 1% change next business day |
| Admission | plc; no min free float / history / value |
| Pre-admission announcement | 10 business days before |
| Application + document | 3 business days before |
| Effective | LSE dealing notice |
| Admission document | Public for 1 month; nomad approves |
| Quoted applicant | 18 months on a designated market: no document |
| Governance code | Comply or explain since Sept 2018 |
| Nomad tests | Firm · 2 yrs · 3 deals · 4 executives |
| No nomad | Suspension; cancelled after 1 month |
| AIM Rule 11 | Financial condition, sphere, performance, expectation |
| Format | 50 questions · 60 minutes |
| Ch 2 - Managing Regulatory Obligations | 16 Qs (~32%) |
| Ch 1 - Regulatory Environment in the UK | 14 Qs (~28%) |
| Ch 5 - Equity Capital Markets | 8 Qs (~16%) |
| Ch 4 - Takeovers and Mergers | 7 Qs (~14%) |
| Ch 3 - Corporate Governance | 5 Qs (~10%) |
| Ch 1 + 2 combined | 30 of 50 Qs |
| "EXCEPT" questions | Read carefully - find the odd one out |