Friday Five Focus on Regulation – 5 Questions in 5 Minutes – 6 Sep 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 2024/25, examinable by the CII until 31 August 2025.

1. Rachel’s firm’s professional indemnity insurance requirements are set out in Prudential Standards under the sourcebook MIPRU. This means that she must work for
   1. a bank.
   2. an investment business.
   3. a building society.
   4. a home finance firm.

2. Under which of the following circumstances must the Financial Conduct Authority notify a person who is subject to an investigation?
   1. Possible insider dealing investigation.
   2. Market abuse investigation.
   3. Falsely describing themselves as authorised.
   4. A misleading statement investigation.

3. Who has responsibility for ensuring that procedures are implemented to meet the six consumer outcomes that a firm should strive to achieve to ensure the fair treatment of customers?
   1. The Financial Conduct Authority.
   2. The advisory firm.
   3. The Financial Policy Committee.
   4. The Association of British Insurers.

4. When considering the differences between ‘leadership’ and ‘strategy’ as key drivers for a company we can say that leadership
   1. can only be derived from senior management whereas strategy can be filtered down and delivered by virtually any member of staff.
   2. is the purpose of the business whereas strategy relates to how this is achieved.
   3. sets the tone of the business, drives staff behaviours and quality of decisions whereas strategy sets priorities and management focus.
   4. is an inherent skill whereas strategy can be learned.

5. The primary purpose of a fact-find is to
   1. gather all the relevant client data to allow an adviser to make suitable recommendations.
   2. accurately record client information as it will be relied upon in the event of a complaint.
   3. assist an adviser in methodically working through the required client information.
   4. act as a prompt to ensure no area of client information is forgotten.

Answers

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

2. C – 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 8
   Grab our taster mock exam paper for CII R01. Click here to download.

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

5. A – See R01 Study Text, Chp 9
   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.