Friday Five Focus on Regulation – 18 November – 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. 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.

2. What is the maximum pay out under the Financial Services Compensation Scheme for home finance mediation activities?
   1. 100% of £50,000.
   2. 100% of £85,000.
   3. 90% of the claim with no limit.
   4. 100% of the claim with no limit.

3. Within the FCA High Level Standards, regulated firms must comply with ‘Common Platform Requirements’. What does this refer to?
   1. The systems and controls a firm should have that are appropriate to its business.
   2. The use of mainstream platform and proprietary systems.
   3. The use of FCA technology e.g. RegData.
   4. The level and type of management information required.

4. A retail client must be provided with a suitability report where an adviser recommends which of the following?
   1. Buying units in a unit trust.
   2. A single premium top-up of single premium contract.
   3. An increase to a regular premium contract.
   4. A friendly society life policy with a premium of less than £50 a year.

5. Which of the following products has a 14-day cancellation period?
   1. A life policy.
   2. A stakeholder pension.
   3. A pension transfer.
   4. A cash ISA.

Answers

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

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

4. A – See CF1 Study Text, Chp 11
   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.