Friday Five Focus on Regulation – 4 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 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 2020/21, examinable by the CII until 31 August 2021.

1. What is required in order for a firm to qualify for exempt status?
   1. It must be contracted to an authorised person responsible for their activities.
   2. A firm would gain exempt status if it merely acted as an introducer.
   3. The firm must be comprised entirely of appointed representatives.
   4. The firm must be a specialist firm selling protection and savings products.

2. Which of the following statements regarding the Senior Managers and Certification Regime is correct?
   1. All certified individuals must have a ‘Statement of Responsibilities’.
   2. All certified individuals must be pre-approved by the regulator.
   3. Senior managers have a ‘statutory duty of responsibility’.
   4. The Conduct Rules apply to senior managers only.

3. Under the Conduct Rules (COCON), what must a firm do once they have taken formal disciplinary action against a person for breaching a conduct rule?
   1. Inform the Financial Conduct Authority
   2. Commence civil or criminal proceedings as appropriate
   3. Suspend the individual for 24 months
   4. Confirm the regulatory fine as per the FCA’s rules

4. In relation to the General Data Protection Regulation (GDPR), whose role is it to say how and why personal data is processed?
   1. The data processor
   2. The data subject
   3. The data controller
   4. The Information Commissioner

5. Which of the following is one of the operational objectives of the Financial Conduct Authority?
   1. Transparency
   2. Protect consumers
   3. Market growth
   4. Market efficiency

Answers

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

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

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

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

5. B – 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.