Friday Five Focus on Regulation – 25 August – 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. They do not relate to tax year 2023/24 which is only examinable by the CII from 1 September 2023.

1. Within the ninth block of the FCA handbook, what does The Perimeter Guidance Manual (PERG) cover?
   1. The United Kingdom Listing Authority Rules.
   2. Guides to the handbook and a basic overview of topics and sectors.
   3. The requirements applying to individual business sectors.
   4. Guidance on when authorisation is required or exempt person status is available.

2. The essence of outcomes-based regulation is about the regulator
   1. having rules to cover every specific situation.
   2. providing tangible standards for firms to achieve.
   3. setting out general terms for the types of behaviour they expect to see.
   4. making judgments on what might happen in the future.

3. What is a ‘demand and needs’ statement?
   1. Documentation used to allow the client to prioritise their requirements.
   2. The IFA’s requirements in terms of charges for product or time.
   3. A statement detailing the client’s needs with the reasons for recommendations.
   4. A list of requirements for new clients with the services the client can expect.

4. Maggie is a new client and her main priority is to generate income since her husband’s very recent death. Maggie has no experience of financial matters as her husband took care of all the bills and investments. The adviser should be aware that
   1. Maggie must wait 12 months after the death of her husband before receiving advice.
   2. Maggie may require an additional duty of care due to her vulnerable status.
   3. they can only meet with Maggie in the presence of her solicitor.
   4. they can only meet with Maggie when probate has been granted on her late husband’s estate.

5. The type of client service provided by an adviser and their fees for work will be set out in the
   1. suitability report.
   2. key features document.
   3. fact-find.
   4. client agreement.

Answers

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

2. D – See R01 Study Text, Chp 10
   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. B – See CF1 Study Text, Chp 11
   Grab our taster mock exam paper for CII CF1 Click here to download.

5. D – 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.