Friday Five Focus on Regulation – 22 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 2023/24, examinable by the CII until 31 August 2024.

1. If an employee reports that a colleague is failing to comply with the law, the employer must
   1. publicly acknowledge the informer’s (the whistleblower’s) actions.
   2. set up a meeting between the two employees and a Human Resources representative.
   3. protect the informer (whistleblower).
   4. ensure all staff are aware of what has happened and who reported it.

2. If a firm passes mortgage leads to an authorised person for a fee, does that firm require authorisation from the Financial Conduct Authority (FCA)?
   1. Authorisation is not required as the introducer is not advising the client.
   2. If they receive payment for leads, they must have FCA authorisation.
   3. The principle at the introducing firm must hold FCA authorisation.
   4. As long as the introducer is not paid for leads no authorisation is required.

3. If a solicitor assisted a client with a claim on a life policy would Financial Conduct Authority 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.

4. You’re in the process of conducting a fact-find for Charles and Meghan. How do you go about calculating their net worth?
   1. Deduct the clients’ total liabilities from their total assets.
   2. Value of house less mortgage.
   3. Total expenditure deducted from total income.
   4. Value of non-essential expenditure.

5. What are the three different ways in which a mortgage intermediary can operate to bring customers and lenders together?
   1. Execution only, best execution or advised sale.
   2. Through estate agents, through solicitors or through financial advisers.
   3. Paper based applications, interest/web based or via the telephone.
   4. Whole market, limited number of lenders or single lender.

Answers

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

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

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

4. A – See R01 Study Text, Chp 9
   Grab our taster mock exam paper for CII R01. Click here to download.

5. D – See R01 Study Text, Chp 6
   Grab our taster mock exam paper for CII R01. 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.