Friday Five Focus on Regulation – 7 May – 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 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 2020/21, examinable by the CII until 31 August 2021. They do not relate to tax year 2021/22 which is only examinable by the CII from 1 September 2021.

1. Damian, a city trader, has been found guilty of market abuse. What is the maximum criminal penalty for this offence?
   1. A fine limited to £10 million
   2. 5 years’ imprisonment
   3. An unlimited fine and 5 years’ imprisonment
   4. An unlimited fine or 7 years’ imprisonment

2. There is no requirement for a cancellation notice to be sent out in relation to Peter’s new policy. This is because he has taken out:
   1. a critical illness policy with a 5-year term.
   2. an income protection policy with a 2-year term.
   3. a travel policy with a 2-week term.
   4. a life policy with a 1-year term.

3. You are meeting with your clients Rory and Gwyneth at the end of March for an annual review. Which of the following financial planning opportunities would usually be addressed at the end of a tax year? Tick all that apply.
   1. Re-assessing a client’s goals
   2. Using up ISA allowances
   3. Utilising the CGT exempt amount
   4. Reviewing a client’s protection arrangements
   5. Utilising pension contribution limits

4. Client agreements are NOT required for:
   1. professional clients.
   2. business conducted on the internet.
   3. life offices selling life and pension policies as a principal.
   4. business conducted over the telephone.

5. Which Act regulates use of computers and other automatic data processing equipment?
   1. Data Protection Act 2018
   2. Data Protection Act 2004
   3. Computer Protection Act 1998
   4. Computer Protection Act 2004

Answers

1. D – See R01 Study Text, Chp 5
   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. BCE – See R01 Study Text, Chp 8
   Grab our taster mock exam paper for CII R01. Click here to download.

4. C – See CF1 Study Text, Chp 11
   Grab our taster mock exam paper for CII CF1 Click here to download.

5. A – See CF1 Study Text, Chp 12
   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.