Friday Five Focus on Regulation – 26 April – 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. They do not relate to tax year 2024/25 which is only examinable by the CII from 1 September 2024.

1. The General Provisions sourcebook provides for an emergency situation in that an individual is able to cover for a senior manager with first being approved, where the absence is temporary or unforeseen and the appointment is for less than how many weeks?
   1. 8
   2. 10
   3. 12
   4. 24

2. How do the rules within the Mortgages and Home Finance: Conduct of Business Sourcebook ensure there is uniformity in the market as to the meaning of various terms e.g., the higher lending charge?
   1. The rules give guidance to firms on suggested wordings.
   2. Standard terms and meanings must be used in client communications.
   3. Regular testing of knowledge is carried out.
   4. Individual compliance checks on every form of client communication.

3. Which of the following would NOT give rise to a potential compensation claim?
   1. An adviser failing to consider the tax implications of the investment recommended.
   2. A portfolio increasing in value by 20% but being in an investment vehicle outside the client’s risk parameters.
   3. A portfolio losing 50% of its value due to a stock market crash.
   4. An adviser not considering current pension contributions when recommending a new pension contribution.

4. Which of the following does NOT fall into one of the five key demands and needs broadly related to key life stages?
   1. Protection and income protection.
   2. Investment.
   3. Estate planning.
   4. Pensions and savings.

5. Within the Consumer Credit Act 1974, what obligations does a credit reference agency have?
   1. To disclose information held about a consumer and to correct it if inaccurate.
   2. Make all relevant information available to interested parties free of charge.
   3. To provide consumers with a copy of their details every time the information held changes.
   4. To hold records for a minimum period of five years.

Answers

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

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

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

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

5. A – 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.