Friday Five Focus on Regulation – 5 Questions in 5 Minutes – 11 Sep 2026

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 2026/27, examinable by the CII until 31 August 2027.

1. Unsolicited real-time financial promotions are often termed
   1. direct offer promotions.
   2. advertisements.
   3. directive rules.
   4. cold calling.

2. A product provider makes benefits generally available to all of its intermediaries. As a result of this the provider must keep records of these benefits for
   1. seven years.
   2. six years.
   3. five years.
   4. three years.

3. The Prudential Regulation Authority (PRA) is part of the
   1. Bank of England.
   2. Financial Conduct Authority.
   3. Association of British Insurers.
   4. Treasury.

4. When considering insurance indemnity for Financial Conduct Authority (FCA) penalties or enforcement costs, a firm
   1. cannot indemnify itself against any FCA penalties, costs, or enforcement action.
   2. can only indemnify itself against a financial penalty imposed by the FCA.
   3. cannot indemnify itself against an FCA penalty, but it can against the cost of defending enforcement action or costs it may be ordered to pay.
   4. can only indemnify itself against any FCA costs it may be ordered to pay.

5. Sam and Joe are both policyholders with a life office, however only Sam receives a copy of the company’s Principles and Practices of Financial Management with his annual statement. This is because
   1. Sam has held his policy for more than 10 years.
   2. Joe receives his annual statement via e-mail.
   3. Sam’s policy has an element of with-profits.
   4. Joe’s policy is due to mature within the next 12 months.

Answers

1. D; See R01 Study Text, Chp 8; Rationale: Cold calling is another term used for unsolicited real time financial promotions.
2. C; See R01 Study Text, Chp 6; Rationale: In the FCA’s COBS, it states records must be kept for five years if a provider gives any benefits or inducements to an intermediary.
3. A; See R01 Study Text, Chp 5; Rationale: The PRA is part of the Bank of England. The PRA is a regulatory body set up as a result of the FSA 2012 to regulate large financial institutions.
4. C; See R01 Study Text, Chp 6; Rationale: A firm can take out an insurance policy to cover both the costs of defending enforcement actions and the costs it may be ordered to pay. It cannot take out a policy to cover itself against an FCA penalty.
5. C; See R01 Study Text, Chp 8; Rationale: The Principles and Practices of Financial Management documents are produced by life offices carrying out with-profits business. As only Sam’s policy has an element of with-profits, only he will receive this document.

Grab the resources you need!

R01 can feel straightforward until you see how regulation and ethics topics are tested under exam conditions. If you’d like to preview how our full R01 E-Mocks present these areas, access the free R01 E-Mocks taster to see the question style, layout and level of detail included in the complete set.

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