Friday Five Focus on Regulation – 31 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 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.
- The Financial Conduct Authority is funded through
- taxes distributed by the Government.
- levies on the financial services industry.
- fines and penalties imposed when an authorised firm breaches rules.
- charges applied to large firms e.g., banks and building societies.
- The sale and rent back (SRB) regime introduced in 2010 helps to protect customers by
- ensuring that only in-house valuers are used.
- providing guidelines and detailed scripts for cold-calling.
- ensuring tenancy agreements are fixed for at least five years.
- restricting standard wording to “mortgage rescue” only.
- What is the definition of money laundering?
- Criminals converting illegally obtained money into apparently legitimate funds.
- The process of withdrawing regular amounts of cash from an investment bond.
- A series of transactions through financial products.
- Investing money under a false identity.
- Which of the following would you NOT expect to find in a client’s suitability report?
- A full reproduction of the fact-find.
- The client’s needs and demands which are not being met.
- Reasons why a particular investment/provider was selected.
- The process used to determine any asset allocation.
- Which of the following is NOT covered under the Financial Services and Markets Act 2000 (FSMA)?
- Home reversion plans.
- Life policies.
- Electronic money.
- Commercial loans.
Answers
- B – See R01 Study Text, Chp 6
Grab our taster mock exam paper for CII R01. Click here to download.
- C – See R01 Study Text, Chp 6
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R01 Study Text, Chp 7
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R01 Study Text, Chp 9
Grab our taster mock exam paper for CII R01. Click here to download.
- D – See R01 Study Text, Chp 7
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?
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