Friday Five Focus on Regulation – 22 January – 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 2020/21, examinable by the CII until 31 August 2021.

1. Which of the following are acceptable limitations to a firm’s expertise? Tick all that apply.
   1. Reliance on client information
   2. Reliance on others
   3. Limited experience in a particular field
   4. Insufficient information

2. Which of the following is one of the FCA’s regulatory principles?
   1. Consumer protection
   2. Efficiency and economy
   3. Promoting competition
   4. Protecting financial markets

3. Which of the following would you expect to find in the revised Remuneration Code within the FCA 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. A firm must provide a retail client with a client agreement which is sometimes referred to as:
   1. initial disclosure.
   2. a key features document.
   3. a statement of demands and needs.
   4. terms of business.

5. Where can a firm hold client money?
   1. In the firm’s bank account
   2. In a client bank account
   3. In the firm’s secondary bank account
   4. In any account, other than the firm’s main bank account

Answers

1. ABD – See R01 Study Text, Chp 8
   Grab our taster mock exam paper for CII R01. Click here to download.

2. B – See R01 Study Text, Chp 5
   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. D – See CF1 Study Text, Chp 11
   Grab our taster mock exam paper for CII CF1 Click here to download.

5. B – 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.