Friday Five Focus on Regulation – 12 January – 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 2023/24, examinable by the CII until 31 August 2024.

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

2. How does the Insurance Conduct of Business Sourcebook (ICOBS) categorise insurance products?
   1. According to commission basis, i.e., nil, upfront or trail.
   2. Term assurance, whole of life and income replacement.
   3. Life and critical illness, general insurance, and income protection.
   4. General insurance, pure protection, and payment protection insurance.

3. What is the purpose behind the Upper Tribunal (Tax and Chancery Chamber)?
   1. Where the Financial Conduct Authority (FCA) enforcement officers present their findings from an investigation.
   2. It is the appeal body for those objecting to FCA disciplinary decisions.
   3. Where the more serious criminal prosecutions decisions are heard.
   4. To allow suspicious activity to be reported.

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

5. Which of the following is a fair reflection of the position of the Prudential Regulation Committee?
   1. It works alongside the Financial Policy Committee in what is known as ‘dual regulation’.
   2. It is the governing body of the Financial Conduct Authority.
   3. It is on the same legal footing as the Monetary Policy Committee and the Financial Policy Committee.
   4. It regulates around 60,000 financial firms and is responsible for the Financial Ombudsman Service

Answers

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

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

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

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

5. C – See R01 Study Text, Chp 4
   Grab our taster mock exam paper for CII R01. 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.