Friday Five Focus on Regulation -11 February – 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.

1. Which of the following is true of the FCA handbook?
   1. Regulated firms can decide which rules they will apply
   2. The rules are entirely binding on regulated firms
   3. The rules are for guidance only on how regulated firms should operate
   4. The handbook covers complaints handling and compensation only

2. Chloe is considering equity release as a means of boosting her retirement income. Can you explain to her the purpose of a home reversion plan?
   1. A shorter-term loan for older homeowners, where the ownership of the home reverts back to the client at the end of the loan period
   2. Enables older homeowners to release equity in the home without having to move out
   3. To enable first time buyers to get onto the property ladder
   4. To allow the older homeowner a method of transferring ownership of the house to family members to avoid/reduce the impact of IHT

3. Which body has an overarching strategic objective to ensure that financial markets work well?
   1. The Financial Policy Committee
   2. The Bank of England
   3. HM Treasury
   4. The Financial Conduct Authority

4. Financial Conduct Authority reporting rules require that customer complaints are reported within how many working days of the end of the reporting period?
   1. 14
   2. 21
   3. 30
   4. 40

5. A local authority conducting investment business is treated as:
   1. a per se professional client.
   2. an elective professional client.
   3. an eligible counterparty.
   4. a retail client.

Answers

1. B – See R01 Study Text, Chp 6
   Grab our taster mock exam paper for CII R01. Click here to download.

2. B – See R01 Study Text, Chp 6
   Grab our taster mock exam paper for CII R01. Click here to download.

3. D – See R01 Study Text, Chp 4
   Grab our taster mock exam paper for CII R01. Click here to download.

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

5. A – 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.