Friday Five Focus on Regulation – 1 July – 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 2021/22, examinable by the CII until 31 August 2022. They do not relate to tax year 2022/23 which is only examinable by the CII from 1 September 2022.

1. Which of the following can give a particular insight into a firm’s attention to ethical issues? 
   1. The number of new starters 
   2. Persistency ratios
   3. The number of days’ holiday it allows 
   4. The balance sheet 

2. A firm is required to produce a suitability report for a retail client, if they make a personal recommendation to a UK-based retail client that they: Tick all that apply.
   1. take income withdrawals from a pension contract 
   2. increase regular contributions on their OEIC 
   3. obtain a BR19 forecast
   4. suspend regular contributions on their pension

3. What is the purpose behind ‘part 1: personal details’ of an adviser’s fact-find? 
   1. To gather general information about a client and their circumstances
   2. To allow the adviser to ask straightforward questions to help build rapport 
   3. To understand if the client is able to proceed with the meeting 
   4. To establish whether the client is suitable for the intermediary 

4. Maggie is a new client, and her main priority is to generate income since her husband’s very recent death. Maggie has no experience of financial matters as her husband took care of all the bills and investments. The adviser should be aware that
   1. Maggie must wait 12 months after the death of her husband before receiving advice. 
   2. Maggie may require an additional duty of care due to her vulnerable status
   3. they can only meet with Maggie in the presence of her solicitor
   4. they can only meet with Maggie when probate has been granted on her late husband’s estate. 

5. The type of client service provided by an adviser and their fees for work will be set out in the: 
   1. suitability report. 
   2. key features document. 
   3. fact-find. 
   4. client agreement. 

Answers

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

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

3. A – See R01 Study Text, Chp 9
   Grab our taster mock exam paper for CII R01. Click here to download.

4. B – See CF1 Study Text, Chp 11
   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.