Friday Five Focus on Regulation – 3 December – 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. Why is income and expenditure information especially important under the “know your customer rules”? Tick all that apply.
   1. To ascertain if the client is able to pay a fee
   2. To establish if the client is likely to provide referrals
   3. Affordability of recommendations
   4. Understanding entitlements to State benefits

2. Which of the following is one of the FCA’s regulatory principles?
   1. Consumer protection
   2. Efficiency and economy
   3. Promoting competition
   4. Protecting financial markets

3. According to the regulator, good management information (MI) should display what a manager can directly influence or something that they can escalate to someone who can take the necessary action. Which of the regulator’s principles of good management information (MI) does this statement relate to?
   1. Accuracy
   2. Timeliness
   3. Relevance
   4. Consistency

4. How often must money laundering re-training for existing staff be carried out?
   1. Every 6 months
   2. Every 12 months
   3. Every 24 months
   4. At regular intervals

5. What does Part 4A permission as set out by the Financial Services and Markets Act 2000 refer to?
   1. A partnership being able to remain authorised in the event of one partner’s death
   2. A firm wishing to change its legal status e.g., from a partnership to a limited
   3. The public record of all successful Financial Conduct Authority authorisation applications in the past year
   4. Applying to the Financial Conduct Authority for direct authorisation to carry out regulated activities

Answers

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

2. B – See R01 Study Text, Chp 5
   Grab our taster mock exam paper for CII R01. Click here to download.

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

4. D – See CF1 Study Text, Chp 12
   Grab our taster mock exam paper for CII CF1 Click here to download.

5. D – See CF1 Study Text, Chp 9
   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.