Friday Five Focus on Regulation – 27 May – 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. They do not relate to tax year 2022/23 which is only examinable by the CII from 1 September 2022.

1. What would be a strong positive indicator that a firm’s strategy was working?
   1. The firm has a clear vision that supports the fair treatment of customers
   2. Internal posters for staff highlighting key messages
   3. Evidence of target rewards in place for individuals achieving desired outcomes
   4. Evidence of frequent staff meetings where strategy has been discussed

2. Of the following types of management information (MI) that can give an insight into a firm’s attention to ethical issues, which is most likely to help identify fairness issues?
   1. Customer complaints
   2. Employee ethics training
   3. File reviews
   4. Sales volumes

3. How do the FCA and the Competition and Markets Authority (CMA) work together in considering fairness of standard terms in financial services contracts?
   1. The FCA refers all matters to the CMA
   2. The CMA refers all unfair terms within the financial services sector to the FCA
   3. If the FCA considers the CMA better placed to deal with a matter, they will pass the case on
   4. The CMA investigates unfair terms and the FCA rectifies them

4. If a firm currently regulated by the Financial Conduct Authority (FCA) wishes to undertake a new regulated activity, what must they do?
   1. Inform the FCA that they are undertaking a new activity
   2. List the new activity in their Terms of Business
   3. Fill out the relevant form giving FCA notice of the change of activities within the firm
   4. Apply to the FCA for authorisation for the new activity

5. Each of the following must be included within a Key Information Document with the exception of:
   1. personalised illustration.
   2. aims of the investment.
   3. cancellation rights.
   4. risk factors.

Answers

1. A – See R01 Study Text, Chp 10
   Grab our taster mock exam paper for CII R01. Click here to download.

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

5. A – 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.