Friday Five Focus on Regulation – 23 December – 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. What is required in order for a firm to qualify for exempt status?
   1. It must be contracted to an authorised person responsible for their activities.
   2. A firm would gain exempt status if it merely acted as an introducer.
   3. The firm must be comprised entirely of appointed representatives.
   4. The firm must be a specialist firm selling protection and savings products.

2. Which of the following statements regarding the Senior Managers and Certification Regime is correct?
   1. All certified individuals must have a ‘Statement of Responsibilities’.
   2. All certified individuals must be pre-approved by the regulator.
   3. Senior managers have a ‘statutory duty of responsibility’.
   4. The Conduct Rules apply to senior managers only.

3. Who carries the compliance responsibility for an appointed representative?
   1. The individual carries their own responsibility.
   2. The FCA.
   3. The firm’s principal.
   4. The introducer.

4. Which of the following types of mortgage contract is unregulated?
   1. Where the loan is secured on a second or subsequent charge.
   2. Where the property is used 40% as a dwelling by the borrower.
   3. Where the borrower is a trustee.
   4. For a buy-to-let property bought purely for business purposes.

5. When considering customer due diligence, if a firm determines that a business transaction presents a low degree of risk they can apply
   1. simplified due diligence measures.
   2. simple identification procedures.
   3. basic identification procedures.
   4. foundation diligence measures.

Answers

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

3. C – 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. A – See CF1 Study Text, Chp 12
   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.