Friday Five Focus on Regulation – 29 October – 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 the following elements would you NOT expect to see within a firm’s framework for embedding an ethical culture into the firm?
   1. No commitment to a professional ethical body
   2. Ethics code or values statement
   3. Methods of measuring and evaluating ethics
   4. Process and structures to embed ethics

2. Which of the following statements is correct regarding the evolution of building societies in the UK?
   1. Building societies are required to pay dividends to their shareholders
   2. Building societies were originally set up to lend money to other banks
   3. Building societies are owned by their shareholders
   4. Building societies do not have shareholders to pay dividends to

3. You’re in the process of conducting a fact-find for Charles and Meghan. How do you go about calculating their net worth?
   1. Deduct the clients’ total liabilities from their total assets
   2. Value of house less mortgage
   3. Total expenditure deducted from total income
   4. Value of non-essential expenditure

4. What does the term ‘best execution’ mean when a customer wishes to make an investment?
   1. A stockbroker must obtain the lowest price for the customer.
   2. An adviser must choose the most advantageous product for the customer
   3. An adviser must process the application quickly and efficiently.
   4. The customer states the investment they want to make and does not want or ask for or receive any advice.

5. Which of the following is an advantage of a bank offering a Will and executorship service to its customers?
   1. Significantly lower cost than a solicitor would charge
   2. Ability to negotiate a lower inheritance tax bill with HM Revenue & Customs (HMRC)
   3. Significant reduction in fees on other services such as portfolio management
   4. Expertise, experience and a continuity of service

Answers

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

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

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

4. A – 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 1
   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.