Friday Five Focus on Regulation – 3 March – 5 Questions in 5 Minutes

Friday Five Focus on Regulation – 5 Questions in 5 Minutes Every Friday

What’s this all about?

Each week, we ask questions relating to one of these topics: Investments, Taxation, Pensions, Protection, or Regulation. This week, our Friday Five is relevant to Regulation; this is useful as you prepare for either of the CII’s R01 or CF1 exams. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.

Questions

IMPORTANT! These questions relate to examinable tax year 2022/23, examinable by the CII until 31 August 2023.

1. Data on policy cancellations or policy lapses is often called
   1. cancellation rate.
   2. duration rate.
   3. duration of products.
   4. persistency of products.

2. Under anti-money laundering regulations, in which circumstances must a firm complete full Customer Due Diligence? (Tick all that apply.)
   1. When a regulated firm suspects money laundering or terrorist financing.
   2. When a regulated firm establishes a business relationship.
   3. Where the transaction presents a low degree of risk.
   4. When a regulated firm carries out an ad hoc transaction.

3. Which of the following statements regarding stakeholder products and basic advice is TRUE?
   1. There is a short term collective or life stakeholder product.
   2. A full fact find is completed.
   3. The recommended stakeholder product only has to be suitable, not the most suitable.
   4. Providers of the deposit-based product can charge an annual management charge of 1.5% in the first ten years.

4. If a firm currently regulated by the Financial Conduct Authority (FCA) wishes to undertake a new regulated activity, what must they do?
   1. Inform the FCA that they are undertaking a new activity.
   2. List the new activity in their Terms of Business.
   3. Fill out the relevant form giving FCA notice of the change of activities.
   4. Apply to the FCA for authorisation for the new activity.

5. All complaints reports must be submitted to the Financial Conduct Authority within how many working days of the end of the reporting period?
   1. 7
   2. 21
   3. 28
   4. 30

Answers

1. D – See R01 Study Text, Chp 11
   Grab our taster mock exam paper for CII R01. Click here to download.

2. ABD – See R01 Study Text, Chp 7
   Grab our taster mock exam paper for CII R01. Click here to download.

3. C – See R01 Study Text, Chp 8
   Grab our taster mock exam paper for CII R01. Click here to download.

4. D – See CF1 Study Text, Chp 10
   Grab our taster mock exam paper for CII CF1 Click here to download.

5. D – See CF1 Study Text, Chp 11
   Grab our taster mock exam paper for CII CF1. Click here to download.

How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.