Friday Five Focus on Regulation – 14 October – 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. Which EU led requirements were incorporated into COBS?
   1. Conduct of Business.
   2. MIFID.
   3. Principle based requirements.
   4. Banking conduct of business.

2. The FCA is planning to investigate an adviser. What are the requirements?
   1. Notify the firm but not to inform the adviser so as to avoid concealing evidence.
   2. No notice can be given to the adviser as the instigator is protected under a whistleblowing policy.
   3. Notify the adviser prior to starting the investigation and verbally inform of any changes to the nature of the investigation.
   4. No notice is required as the investigation relates to possible insider dealing.

3. If a person applies to the regulator for direct authorisation, this is called applying for part:
   1. 3 permission.
   2. 4A permission.
   3. 6A permission.
   4. 2 permission.

4. Multi-tied advisers fall into which of the following categories?
   1. Independent advice.
   2. Restricted advice.
   3. Execution-only.
   4. Guidance.

5. Charlie is carrying out a transaction for one client on a ‘best execution’ basis and another on an ‘execution-only’ basis. From this information we can say that
   1. best execution typically applies to firms dealing in cash and bonds.
   2. a suitability report would only be required for the execution-only sale.
   3. both execution-only and best execution sales require a fact-find.
   4. a fact-find would not be relevant for the execution-only sale.

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 5
   Grab our taster mock exam paper for CII R01. Click here to download.

4. B – 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.