Friday Five Focus on Regulation – 5 Questions in 5 Minutes – 2 Aug 2024

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.

1. Regulated larger firms must maintain resources to cover risks and must carry out risk assessment and stress testing scenarios as required by the
   1. Senior Managers and Certification Regime (SM&CR).
   2. Investment Firms Prudential Regime (IFPR).
   3. Capital Adequacy Directive (CAD).
   4. Capital Requirements Directive (CRD).

2. Which of the following are specifically exempt from the Consumer Credit Act 1974?
   1. Building societies.
   2. Debt restructuring services.
   3. Credit card issuers.
   4. Payday loan companies.

3. What is the maximum pay out under the Financial Services Compensation Scheme for home finance mediation activities?
   1. 100% of £50,000.
   2. 100% of £85,000.
   3. 90% of the claim with no limit.
   4. 100% of the claim with no limit.

4. Which of the following is NOT regarded as a key cultural driver?
   1. Controls.
   2. Recruitment and training and competence.
   3. Decision making and challenge.
   4. Ethnic diversity.

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. B – See R01 Study Text, Chp 6
   Grab our taster mock exam paper for CII R01. Click here to download.

2. A – See R01 Study Text, Chp 6
   Grab our taster mock exam paper for CII R01. Click here to download.

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

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

5. C – See R01 Study Text, Chp 8
   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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.