Friday Five Focus on Regulation – 9 September – 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 2022/23, examinable by the CII until 31 August 2023.

1. Would an IFA firm always be subject to the first Markets in Financial Instruments Directive (MiFID)?
   1. Not if they only advise and arrange investments and do not hold client money.
   2. No, as MiFID is only concerned with investment banks and stockbrokers.
   3. Yes, if the firm provides investment advice to its clients.
   4. Yes, as MiFID has wide scope to cover all financial services firms.

2. Within the FCA handbook what does COBS stand for?
   1. Conduct of Business Standards.
   2. Code of Business Standards.
   3. Communication of Business Strategies.
   4. Conduct of Business Sourcebook.

3. What must be included within the Key Information Documents produced by the marketing departments of product providers? Tick all that apply.
   1. Personalised illustration.
   2. Aims of the investment.
   3. Cancellation rights.
   4. Future benefit projection.
   5. The website address of MaPS.

4. For how long must a firm retain complaints records relating to MiFID business?
   1. 1 year.
   2. 3 years.
   3. 5 years.
   4. 10 years.

5. What is an important financial strength measure for a life office?
   1. Free asset ratio.
   2. Assets less debt.
   3. Balance sheet.
   4. Report and accounts.

Answers

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

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

3. BC – 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 12
   Grab our taster mock exam paper for CII CF1 Click here to download.

5. A – See CF1 Study Text, Chp 9
   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.