Friday Five Focus on Regulation – 12 May – 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. They do not relate to tax year 2023/24 which is only examinable by the CII from 1 September 2023.
- Damian, a city trader, has been found guilty of market abuse. What is the maximum criminal penalty for this offence?
- A fine limited to £10 million.
- Five years’ imprisonment.
- An unlimited fine and five years’ imprisonment.
- An unlimited fine or seven years’ imprisonment.
- Within the Financial Conduct Authority handbook, the term “Threshold Conditions” refers to the
- minimum conditions a firm must satisfy to retain permission to conduct investment business.
- minimum levels of business that needs to be produced in order for the firm to remain viable.
- minimum supervision levels required in order for the firm to operate.
- maximum levels of business a firm is able to write.
- Under the status disclosure rules, what should an adviser confirm to a retail client on first contact where advice or arrangements in packaged products are contemplated? (Tick all that apply.)
- How to complain.
- The firm’s regulatory status.
- Investment objectives.
- Withdrawal rights.
- Each of the following has a 30-day cancellation period with the exception of
- a life policy.
- an enterprise investment scheme.
- a pension transfer.
- a stakeholder pension contract.
- If a complainant receives a final response from a firm and chooses to refer the matter to the Financial Ombudsman Service, they must do this within how many months?
- 3
- 6
- 9
- 12
Answers
- D – See R01 Study Text, Chp 5
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R01 Study Text, Chp 6
Grab our taster mock exam paper for CII R01. Click here to download.
- AB – See R01 Study Text, Chp 8
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See CF1 Study Text, Chp 11
Grab our taster mock exam paper for CII CF1 Click here to download.
- B – See CF1 Study Text, Chp 12
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?
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