Friday Five Focus on Regulation – 22 April – 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. They do not relate to tax year 2022/23 which is only examinable by the CII from 1 September 2022.

1. A new insurance company must apply to which of the following for authorisation?
   1. HMRC
   2. The PRA
   3. The FCA
   4. The FPC

2. Which of the following would be an example of poor leadership?
   1. A senior manager producing a web-based update for all staff of the challenges the firm faces in achieving FTC
   2. A firm spending considerable time and money pursuing an offence by an employee through court, even though it was relatively straightforward to rectify
   3. Head office staff receiving training on FTC from senior management, and staff in satellite offices receiving abbreviated versions of the training by junior members of staff
   4. Allowing staff to give anonymous feedback to management on incidents of failing FTC

3. Under FCA rules, the cooling-off period for consumers entering into a sale and rent back (SRB) scheme is:
   1. 7 days.
   2. 14 days.
   3. 21 days.
   4. 30 days.

4. How is the Financial Services Compensation Scheme funded?
   1. By the taxpayer
   2. By the Financial Conduct Authority
   3. By a levy on authorised firms
   4. By a levy on investors

5. The approved persons regime, which predates the Senior Managers and Certification Regime, is still in place for which of the following?
   1. Appointed representatives
   2. Local authorities
   3. Solo FCA regulated firms
   4. Government bodies

Answers

1. B – See R01 Study Text, Chp 7
   Grab our taster mock exam paper for CII R01. Click here to download.

2. C – See R01 Study Text, Chp 10
   Grab our taster mock exam paper for CII R01. Click here to download.

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

4. C – 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 10
   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.