UK SPV Operations & Risk Strategy Assessment

Q1. What is the primary strategic definition of a Special Purpose Vehicle (SPV) in this context?

A. A shell company used solely to hide assets from tax authorities.

B. A fenced organization with limited predefined purposes and a legal personality, designed to isolate the firm from financial risk.

C. A partnership between the Account Manager and the Bank.

D. A marketing entity used to generate leads for the IP Owner.

Q2. To prevent "Connected Entity" flagging by bank compliance departments, what is the critical rule regarding "Strategic Differentiation"?

A. All SPVs must use the same budget office provider to save costs.

B. All SPVs must use the same director to streamline communication.

C. SPVs must be as different as possible from each other (different office providers, registrars, and directors).

D. All SPVs should use the same IT provider and IP address.

Q3. When setting up the IT Pack, how must the domain name be registered?

A. In the name of the Client to ensure they own it.

B. In the name of the SPV, but with Whois set to ANONYMOUS.

C. In the name of the Account Manager.

D. Using the Director's personal home address.

Q4. What is the "Golden Rule" regarding Client Interaction and the "Art of Refusal"?

A. You must accept every request to keep the client happy.

B. You should only refuse if the Legal Department explicitly forbids it.

C. Refusing a client's risky request is not failing them—it is protecting them from personal liability and "piercing the corporate veil."

D. Clients are allowed to be Shadow Directors if they pay a premium fee.

Q5. Immediately after Head Terms are signed, which two agreements are drafted to establish the "Financial Shield"?

A. A Distribution Agreement and a Subcontracting Agreement.

B. A Shareholders Agreement and a Lease Agreement.

C. A Director Service Agreement and a PSP Agreement.

D. A Loan Agreement and a Non-Disclosure Agreement.

Q6. What is the specific purpose of the Subcontracting Agreement between the SPV and Link The World Management (LTWM)?

A. To give LTWM ownership of the SPV's intellectual property.

B. To define LTWM's remuneration, remove the Director's responsibility for daily management, and justify expenses to the Tax Authority.

C. To allow the client to hire their own staff under LTWM's payroll.

D. To ensure the bank knows who is actually running the company.

Q7. Who is responsible for opening the bank accounts, according to the Handbook's division of labor?

A. The Client is solely responsible.

B. CBC is responsible for High Street/App banks, while LTWM handles Online banks (except authentication) and others.

C. LTWM is responsible for all bank openings.

D. The Director must do it alone without assistance.

Q8. What is LTWM's specific responsibility regarding the monthly "Fiduciary Statement"?

A. LTWM must produce a monthly sales report/statement for the distributor to review, which serves as the basis for invoicing the % fee.

B. LTWM must send the bank statement to the tax authorities.

C. LTWM must ask the client to draft the statement.

D. LTWM must hide the statement from the director.

Q9. What is the strict rule regarding the SPV's bank balance?

A. The account must be emptied every week to avoid seizure.

B. The account must show a minimum balance of €10,000 at all times.

C. The balance must never exceed €50,000 to avoid tax.

D. There is no minimum balance required.

Q10. How must the initial €10,000 deposit be justified to the bank?

A. As a "gift" from the client.

B. It does not need justification.

C. Via a 0% Loan Agreement between the IP Owner (or in-house company) and the SPV.

D. As "sales revenue" from the first customer.

Q11. When a client requests a payment be made to a supplier, what is the standard processing time LTWM must communicate?

A. Immediate processing (within 1 hour).

B. Within 48 hours from the time of the email (and within 4 working days).

C. Within 7 working days.

D. At the end of the month.

Q12. If a payment request involves a "Sensitive Jurisdiction," what must the Account Manager/LTWM do?

A. Process it immediately to avoid delays.

B. Ask the client if it is safe, then proceed.

C. MUST seek approval from Fabien (FBS) or Constance, and record the approval details in Act!.

D. Reject the payment immediately without checking.

Q13. What is the consequence of failing to file the "Confirmation Statement" with Companies House?

A. A small administrative fine of £50.

B. The bank account will be frozen immediately.

C. The Registrar may assume the company is inactive, strike it off the register, and its assets will become Crown Property.

D. The Director will be fired.

Q14. Why must every staff member (Legal, Accounting, Managers) work on the SAME Google Sheet checklist?

A. To save money on software licenses.

B. To ensure "Centralized Synchronization" where formulas autofill forms, preventing data loss and operational fragmentation.

C. Because the Handbook is not available in PDF.

D. To allow the client to see the progress.

Q15. Which of the following terms are STRICTLY FORBIDDEN in business descriptions during bank/PSP applications?

A. SaaS, Software, Marketing, Consulting.

B. Crypto, Finance, Holding, Invest, Hypnosis.

C. Digital, Online, Web, Tech.

D. Support, Management, Administration.

Q16. According to the "Risk Matrix" (The Cost of Failure), what is the "Domino Effect" sequence caused by a process failure?

A. Legal Exposure → Bank Frozen → Personal Liability.

B. Process Failure → Compliance Flag (Bank Frozen) → Operational Paralysis → Legal Exposure → Personal Liability.

C. Bank Frozen → New Bank Opened → Business Continues.

D. Process Failure → Client Complaint → Refund.

Q17. When applying for a Payment Service Provider (PSP) account, who must be the Administrator of the platform?

A. The Client, so they can manage their money.

B. The SPV (controlled by LTWM/CBC), while the client is granted "Viewer Access" only.

C. The PSP itself.

D. The Director's personal assistant.

Q18. Why must the Account Manager refuse a client's request to use a "Virtual Office" without a lease agreement?

A. Because Virtual Offices are too cheap.

B. Because banks and PSPs frequently reject companies without a physical footprint and lease agreement.

C. Because LTWM makes more money on physical offices.

D. Because virtual offices do not handle mail.

Q19. What is the Account Manager's duty regarding the "Mid-Period (6-Month) Review"?

A. To send a quick email saying everything is fine.

B. To conduct a full review (max 2 hours) of invoices, bank balances, and contracts, then organize a physical meeting with the Director and write minutes.

C. To ask the accounting team to handle it entirely.

D. To ask the client if they are happy.

Q20. If a client attempts to act as a "Shadow Director" (e.g., demanding direct login to the bank to make transfers), what risk does this create?

A. It saves LTWM time.

B. It creates "De Facto Director" status, making the client personally liable for taxes and legal issues, and pierces the corporate veil.

C. It is allowed as long as they sign a waiver.

D. It improves the workflow efficiency.

Q21. When purchasing a Physical Address, what vital database checks must be performed?

A. Google Maps only.

B. Royal Mail Postcode Database and Openreach Database (to ensure mail and broadband capability).

C. The Land Registry only.

D. Check if the building looks nice.

Q22. What is the rule regarding the Director's phone setup?

A. Directors can use their personal phones to save money.

B. 1 Director = 1 Smartphone. It must be a dedicated physical SIM/Phone for banking apps to avoid "device fingerprinting" by banks.

C. All directors share one office phone.

D. We use a virtual number for everything, including banking apps.

Q23. Why is ICO Registration mandatory for these SPVs?

A. Because it looks professional.

B. Because most SPVs process personal data, and failing to register violates GDPR, leading to potential fines.

C. It is only required if the turnover is over £1 million.

D. The bank requires it for the loan.

Q24. If a Bank Statement shows a balance below €10,000, what must the Account Manager do?

A. Ignore it if it's close enough.

B. Notify the client immediately using the template to rectify the situation, as it violates T&Cs.

C. Transfer money from another client's account to cover it.

D. Close the account.

Q25. Who is responsible for archiving financial records, and how long must they be kept?

A. The Client; 1 year.

B. CBC Team; 3 years.

C. LTWM Team; financial records must be archived for 6 years after the transaction.

D. Companies House; indefinitely.

UK SPV OPERATIONS & RISK STRATEGY ASSESSMENT

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