Friday Five Focus on Regulation -18 March – 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 mortgage contracts are regulated?

   i)	Where the borrower is a company
   ii)	Where 40% of the property will be used by the borrower
   iii)	Where the loan is secured by a legal second charge mortgage
   iv)	Where the loan is secured by a legal first mortgage

   1. i and iii only
   2. ii and iii only
   3. ii, iii and iv only
   4. iv only

2. If a solicitor assisted a client with a claim on a life policy would FCA authorisation be required?
   1. Yes, as this type of work is classed as a regulated activity
   2. No, as long as it was a one-off activity
   3. Yes, as the client will have received advice
   4. No, this is classed as incidental to their professional services

3. Who does COBS apply to?
   1. Friendly societies and life insurers only
   2. Banks and building societies, Friendly Societies and Insurers
   3. Regulated life, pension, and investment businesses, as well as to bank and building societies in relation to their investment activities
   4. Home finance and general insurance firms

4. Joint Money Laundering Steering Group guidance states that each of the following is an acceptable means of verifying a customer’s identification with the exception of a:
   1. valid passport.
   2. valid photocard driving licence.
   3. firearms certificate.
   4. national insurance card.

5. What is the maximum fine The Pensions Regulator can impose on a company for a breach of the law?
   1. £50,000
   2. £100,000
   3. £150,000
   4. £170,000

Answers

1. C – 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 7
   Grab our taster mock exam paper for CII R01. Click here to download.

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

4. D – See CF1 Study Text, Chp 12
   Grab our taster mock exam paper for CII CF1 Click here to download.

5. A – 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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.