Friday Five Focus on Regulation – 5 Questions in 5 Minutes – 13 Feb 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 2025/26, examinable by the CII until 31 August 2026.

1. Within the Senior Managers and Certification Regime, the Conduct rules (COCON) apply to
   1. senior managers and certified individuals only.
   2. senior managers only.
   3. certified individuals only.
   4. nearly all staff, apart from ancillary staff.

2. Under the General Provisions sourcebook an individual is able to cover temporarily for a senior manager in an emergency without first being approved, where the appointment is for less than
   1. 8 weeks.
   2. 10 weeks.
   3. 12 weeks.
   4. 6 months.

3. Which of the following types of management information can give an insight into a firm’s attention to ethical issues, and is most likely to help identify fairness issues?
   1. Customer complaints.
   2. Employee ethics training.
   3. File reviews.
   4. Sales volumes.

4. The Financial Conduct Authority has a power of intervention which includes banning products. It will only be allowed to use this power in relation to
   1. high net worth clients.
   2. corporate clients.
   3. retail customers.
   4. institutional customers.

5. Which of the following is a fair reflection of the position of the Prudential Regulation Committee?
   1. It works alongside the Financial Policy Committee in what is known as ‘dual regulation’.
   2. It is the governing body of the Financial Conduct Authority.
   3. It is on the same legal footing as the Monetary Policy Committee and the Financial Policy Committee.
   4. It regulates around 42,000 financial firms and is responsible for the Financial Ombudsman Service.

Answers

1. D; See R01 Study Text, Chp 7; Rationale: COCON are high-level rules that apply to nearly all staff of SM&CR firms. Firms must ensure that staff who are subject to the rules are aware of them and how they apply to their jobs.
2. C; See R01 Study Text, Chp 6; Rationale: The General Provisions sourcebook covers emergencies; an individual is able to cover for a senior manager without first being approved, where the absence is temporary or unforeseen, and the appointment is for a period of less than 12 weeks.
3. A; See R01 Study Text, Chp 11; Rationale: The type of MI that would highlight any fairness issues within a firm, is customer complaints. Employee ethics training is important MI but is more likely to highlight the effectiveness of the firm’s people in making ethical decisions. Good sales volume MI would identify any unusual activity in particular product sales, which are out of line with business objectives and may identify mis-selling risks. File reviews can measure ethical risk of sales practices.
4. C; See R01 Study Text, Chp 5; Rationale: The Financial Services Act 2012 gave the FCA powers of early intervention, which includes banning products. This intervention only applies to retail customers. Other examples of interventions include withdrawal of promotional material that is considered misleading, publicising enforcement actions and gathering market intelligence.
5. C; See R01 Study Text, Chp 4; Rationale: The only correct response is c). The PRC replaced the PRA Board as the governing body of the PRA, placing it on the same legal footing as the MPC and the FPC. It is the FCA that works alongside the PRA in what is known as ‘dual regulation’, not the PRC. The PRC is the governing body of the PRA, not the FCA. Finally, it is the FCA (not the PRC) that regulates the conduct of around 42,000 firms and is responsible for the FOS.

Grab the resources you need!

Friday Five is a useful way to check your grasp of key regulatory concepts, but exam success comes from practising full, exam-standard questions. Our CII R01 E-Mocks replicate the structure and style of the real paper, allowing you to prepare with confidence. Try the free R01 E-Mocks taster as part of your revision plan.

Know someone else studying for R01? Share this quiz with them and help make their revision a little easier.