Friday Five Focus on Regulation – 21 July – 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.

1. Under which of the following circumstances must the Financial Conduct Authority notify a person who is subject to an investigation?
   1. Possible insider dealing investigation.
   2. Market abuse investigation.
   3. Falsely describing themselves as authorised.
   4. A misleading statement investigation.

2. 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.

3. Which of the following would you expect to find in the revised Remuneration Code within the Financial Conduct Authority Handbook?
   1. Reduce short-term bonuses and base bonuses on longer term performance.
   2. Reward risk-taking and outperformance to secure good quality staff.
   3. Ban overtime payments for staff who have a ‘material impact’.
   4. Avoid over-reliance on high salaries, instead promote performance related pay.

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

5. For how long must records of financial promotions for life policies and pension contracts be kept for by a firm?
   1. 1 year.
   2. 3 years.
   3. 6 years.
   4. Indefinitely.

Answers

1. C – 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 6
   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. B – See CF1 Study Text, Chp 10
   Grab our taster mock exam paper for CII CF1 Click here to download.

5. C – 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.