Friday Five Focus on Regulation – 24 September – 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.

1. Which of these offers the best definition of financial advice?
   1. When a professional adviser assesses a client’s personal circumstances and recommends financial products that are suitable for them
   2. Where written recommendations are given based on a client’s shortfalls
   3. All verbal discussions between an adviser and a client within the context of a meeting
   4. Anyone offering generic information on the subject of financial services

2. In the Financial Conduct Authority’s Handbook, what information must be given in a direct offer financial promotion? Tick all that apply.
   1. Must always mention that tax treatments can change
   2. Confirmation that the firm is regulated or authorised by the FCA
   3. The firm’s one-page product summary document featuring the FCA’s logo
   4. Details of any charges and expenses

3. Remuneration for financial advice is in the form of a fee and is structured as a customer agreed remuneration. This is commonly known as:
   1. a disclosure document
   2. terms of business
   3. adviser charging
   4. menu of charges

4. Which of the following is correct regarding how long training records of pension transfer specialists must be kept?
   1. Indefinitely
   2. 5 years
   3. 3 years
   4. 1 year

5. Which of the following is a responsibility of the Competition and Markets Authority?
   1. Investigating mergers that could restrict competition
   2. Product terms being expressed in plain English
   3. Enforcement of consumer protection rules
   4. Monitoring those holding licences under the Consumer Credit Act

Answers

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

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

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

4. A – See CF1 Study Text, Chp 10
   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.