R01 - PP1

PP1

R01 - PP1

100問 • 1年前PP1

ユーザ名非公開

通報

問題一覧

1. If the EU issues regulations in respect of the financial services industry, how would the UK be expected to respond?

A. it must implement them without any changes.

Banks and building societies were developed from the need to:

C. Provide a safe but accessible place to keep individual’s money.

With respect to UK short-dated gilts, index linked gilts and National Savings & Investment products, a financial adviser should be aware that they:

C. Are all used by the government to raise funds.

How are UK gilts issued and traded?

D. New gilts are issued by Debt management Office and subsequent trading is done on the London Stock Exchange.

The tripartite regulators of UK financial firms, when considering issues relating to financial stability, will report to:

A. The European Systemic Risk Board.

Rob and Becky want to protect their £1.2m joint estate from inheritance tax. Their estate is owned in equal shares and includes the family home. Their wills state that on first death, they plan to leave their estate to each other and on second death to their children. If they were both to die in the current tax year, the most effective policy would be:

D. A joint life second death policy for £80,000.

Fred met his financial adviser Bob to discuss his financial needs and concerns. Fred refused to provide details of his income. How should Bob react?

C. Record that Fred refused to provide this detail on the fact-find.

A client is considering mortgage payments for both capital and interest and interest-only mortgages. He should be aware that if interest rates stay constant throughout the mortgage term, compared to a capital and interest mortgage, an interest-only mortgage will result in:

A. A lower monthly cost, but a higher overall borrowing cost.

Why do most insurers limit the amount of protection they provide under Income Protection policies?

C. To prevent the individual from getting more income than they would do by working.

Charlotte, aged 38, is concerned about funding the future further education costs for her children, aged 9 and 10. When considering an appropriate timescale for any investment and reflecting her medium attitude to risk, she is most likely to consider using:

B. A range of tax-efficient savings plans investing in a range of investment types.

How many qualifying years are needed to receive the full new State pension?

D. 35

Following the Pensions Act 2014, State pension age will be reviewed at least every:

D. 6 years

When considering estate and Inheritance Tax planning for a retired couple, who have no outstanding debts or liabilities and a substantial estate, their priority should be:

D. Writing a valid will.

What would the general priorities be for a client before they considered saving and investment?

B. Pay off expensive debts, protect the family, then put an emergency fund in place.

15. Joanne and David have two children, aged five and seven. They have no outstanding mortgage and David is the sole wage earner. To ensure that Joanne can continue looking after the children in the event of David’s death, they should consider a family income benefit policy based on:

C. David’s life and Joanne’s income requirement.

16. Sean is considering using the conversion option under his convertible term assurance policy and can easily afford to increase his premiums. What factor is most likely to influence his choice of the two main options typically available under this facility?

C. The duration of cover required.

17. Ryan required £150,000 of stand-alone level critical illness cover but was quoted a prohibitively expensive first year premium. How was he able to immediately reduce the premium whilst maintaining the same cover?

C. He elected for a reviewable premium basis.

18. A self-employed jeweller wanting to purchase a shop using his pension scheme should consider a:

C. Self-invested personal pension (SIPP).

19. Deborah owns a property on a freehold basis. This means that she owns:

A. The property and the land it stands on until she dies or sells it.

20. A financial adviser has been approached by his client, Bob, who has recently been appointed as a deputy by the Court of Protection on behalf of his mother, Margaret, who has lost mental capacity. Margaret is a joint trustee of a discretionary trust with her brother, Jeremy. Who will have the power to act on any advice given in relation to the trust assets?

B. Jeremy only.

21. What is the difference between an Enduring Power of Attorney and a Lasting Power of Attorney?

B. A lasting power of attorney allows the attorney to make decisions regarding the donor’s

22. At what point when dealing with life assurance is acceptance regarded as having taken place?

D. Payment of the first premium.

23. Alan, Bill and Chris jointly own an investment property as tenants in common. Alan owns 20%, Chris owns 30% and Bill owns 50% of the property. The property is subject to a mortgage. If Alan dies, what will happen to his share of the property?

B. It will be passed to Alan’s estate.

24. A court will normally only consider a petition for bankruptcy where a creditor is owed at least how much?

C. £5,000, or a share of debts totalling at least £5,000.

25. In a case of bankruptcy, who has a statutory duty to investigate, where necessary, the bankrupt’s affairs and send a report to the creditors?

C. The Official Receiver.

26. Which party would you expect to see named in a trust deed?

A. Beneficiaries.

27. What is the Bank of England’s two core purposes?

B. Monetary stability and financial stability.

28. In creating a trust for her client, a solicitor recommends the inclusion of a charging clause in the trust wording. What is this most likely to relate to?

B. To allow professional trustees to be remunerated for their services.

29. Which of the following product types are NOT within the scope of the Financial Services and Markets Act 2000?

B. National Savings and Investments.

30. A professional firm of pension trustees have been deemed to be in breach of the law whilst administering and managing an occupational pension scheme. What maximum fine may be levied by The Pensions Regulator against the firm?

C. £50,000

31. How quickly will the FCA decide on authorisation when it has received a completed application form?

D. Within 6 months.

32. What is the maximum fine The Pensions Regulator can impose?

B. It can fine any individual up to £5,000, or a company up to £50,000.

33. What is the main function of the Financial Action Task Force with regard to the EU Money Laundering Directives?

A. To set standards required to deal with money laundering and terrorist financing.

34. Which individual or organisation is directly responsible for overseeing the activities of the Financial Conduct Authority?

B. HM Treasury.

35. The maximum fine, if any, which the Financial Conduct Authority (FCA) can impose on an authorised firm for a breach of the FCA rules is:

D. Unlimited.

36. Which of the following is outside the scope of the FSMA 2000?

A. Commercial buy-to-let mortgages.

37. The FCA has the power to ban products from sale. It will only be allowed to use this power in relation to which of the following?

C. Retail customers.

38. What is the main purpose of the stress-testing which the Financial Conduct Authority requires of certain authorised firms?

A. To assess firms’ ability to meet capital and liquidity levels during challenging economic circumstances.

39. Eric and Emily are both employed by an authorised firm. The firm’s record-keeping requirements for Eric’s responsibilities are greater than for Emily’s. This is because:

A. Eric is a senior manager and Emily is a customer adviser.

40. What is the maximum term of imprisonment which may be imposed, if any, on an individual who is found guilty of insider dealing?

C. Seven years.

41. An authorised firm of financial advisers holds a client money bank account. The directors of the firm should be aware that:

A. An annual client money audit and an annual report is required.

42. If an employee reports that a colleague is failing to comply with the law, what must the employer do?

C. Protect the whistleblower.

43. In the Prudential Standards section of the combined handbook of the Financial Conduct Authority Handbook and the Prudential Regulation Authority, which type(s) of firm are covered by the MIPRU requirements?

C. Administrators, home finance providers, intermediaries, and general insurance intermediaries only.

44. The FCA is concerned about a firm’s efforts to implement the principles for the fair treatment of customers. This was most likely to be because:

A. The firm was unable to demonstrate the fair treatment of customers across its entire range of activities.

45. Gavin, a financial adviser, has sold a payment protection insurance contract to his client. In respect of this sale, he should be aware that the sale is:

B. Regulated by the provisions of the Insurance: Conduct of Business sourcebook (ICOBS).

46. Nick is an adviser in an authorised firm, and he is about to be promoted to undertake a senior manager’s role. This means that he:

B. Will still be allowed to advise clients.

47. Large, regulated firms must maintain sufficient resources to cover risks, carry out risk assessments and stress testing scenarios as required by the:

D. Capital requirements directive.

48. An independent financial adviser is comparing free asset ratios. This is most likely to be because she is:

A. Considering a with-profits investment.

49. In what circumstances, if any, must the Financial Conduct Authority notify an adviser of a change in the scope of an investigation into his/her conduct?

B. If absence of notification may prejudice the adviser.

50. In an authorised firm, the services of a nominee company are being used. This would typically be to:

A. Protect the assets of a client.

51. If a provider gives any benefits or inducements to an intermediary how long must they keep records for?

C. 5 years.

52. Which of the following does not require a cancellation notice to be sent?

C. A travel policy with a 2 week term.

53. Derek is employed as a financial adviser by an appointed representative of an authorised firm. With whom does the primary responsibility for assessing Derek’s continuing competency lie?

D. The authorised firm only.

54. When, if at all, can an alternative status disclosure statement be used by an authorised firm?

D. Only if they are a firm from another EU member state using a passporting of authorised permissions, when they must state that they are authorised by their respective regulator.

55. Philip has recently left an authorised firm where he advised on pension transfers. For what minimum period, if any, must the firm retain his training records?

D. Indefinitely

56. As a result of a recent investigation, the practitioner panel has made a recommendation to the FCA. Therefore, the FCA must:

B. Consider the recommendation without any obligation to amend its rules.

57. If ABC Investment Advice Ltd outsourced its compliance to a compliance services provider, who would be held liable for any regulatory issues?

C. ABC Investment Advice Ltd, as the regulated firm itself.

58. Martin has recently become a trainee financial adviser for the first time, although he has no financial services qualifications. In what circumstances, if any, may he be allowed to provide advice to clients without supervision?

A. In no circumstances.

59. Which mortgage products are not regulated?

D. Mortgage sales on commercial buy to let properties.

60. If the Financial Conduct Authority identifies an unfavourable trend in pension advice that may NOT be in the best interests of consumers, how is it most likely to react in the first instance?

C. Issue a guidance statement to all authorised firms.

61. How do the FCA and CMA work together in considering the fairness of standard terms in financial services contracts?

C. The FCA considers fairness within authorised firms and the CMA considers the fairness of unregulated activities.

62. An authorised firm has discovered that they have breached one of the FCA’s Principles for Businesses. What action must the firm take?

B. The firm’s compliance officer must notify the FCA immediately and implement remedial actions as soon as possible.

63. Following settlement of a Financial Ombudsman Service (FOS) case, the complainant was awarded compensation. The complaint related to a loss that occurred in March 2019. The FOS recommended monetary award was £200,000. If the complaint was referred to the FOS on 1 May 2022 excluding interest and cost, how much was the respondent obliged to pay the complainant?

C. £170,000

64. Which of the following would give rise to a potential compensation claim?

A. An investment adviser failing to consider the tax implications of the investment recommended.

65. Three financial advisers have transacted business over the past 12 months as follows: Richard, a pension transfer and life assurance adviser; Dean, a pension transfer and regular contributions stakeholder pension adviser; Tom, a cash ISA and equity release adviser. From this information, it can be deduced that:

A. Tom will not need to keep his suitability records indefinitely.

66. A client referred a complaint about the investment advice he received from his adviser to the FOS. The FOS has ruled that the advice was unsuitable and has recommended an award of £125,000 plus £2,500 costs. What is the maximum compensation the firm is obliged to pay?

D. £127,500.

67. Jonas is an independent mortgage and financial adviser. He has NOT passed long-term care or equity release examinations to enable him to transact business in those areas. Which of the following transactions will Jonas be able to undertake? i) A new term assurance with critical illness cover ii) A remortgage for a 40-year-old applicant iii) An immediate needs annuity iv) A home reversion plan v) A compulsory purchase annuity for a 65-year-old applicant

B. i, ii and v only.

68. Paul and Christine have two children, aged 16 and 18. The entire family intend to open their first ISA accounts and invest the maximum available amounts. They only wish to consider stocks and shares ISAs and NOT any other form of ISAs. What is the total amount they would be allowed to invest in the tax year 2021/2021?

C. £60,000.

69. Which of the following organisations are per se eligible counterparties? i) A government of an EU member state. ii) A credit institution in an EU member state. iii) A central bank in an EU member state. iv) A UK pension fund.

D. i, ii, iii and iv.

70. Which of the following statements with regards to stakeholder products and basic advice is TRUE?

C. The recommended product only must be suitable, not necessarily the most suitable.

71. Barry and Paula both have lump sums to invest, and both intend to use life office managed funds. Why are the opportunities for Barry to benefit from diversification more limited than Paula’s?

A. Barry has decided to adopt a socially responsible approach.

72. During the fact-finding process, a financial adviser decided to ask several open-ended questions. The primary purpose of this approach was to:

B. Obtain the client’s views and opinions.

73. How do you calculate a client’s net worth?

A. Deduct total liabilities from total assets.

74. Which of the following does not fall into one of the five key demands and needs broadly related to the different life stages?

C. Estate planning.

75. A financial adviser is specifically discussing issues relating to best in class and engagement with his client. This is most likely to be because the client:

D. Wishes to take an ethical approach.

76. In relation to the sales of life policies and pension contracts:

A. All records of both must be kept for 5 years.

77. The essence of outcomes-based regulation is about the regulator:

D. Making judgements on what may happen in future.

78. An authorised firm should adapt its recruitment and remuneration policies to have a positive impact on the fair treatment of customers outcomes by:

B. Creating a corporate culture that makes knowledge and training central to career progression.

79. In order to adhere to the Financial Prudence principle of the Financial Conduct Authority’s Principles for Businesses, an authorised firm should:

C. Have adequate financial resources to meet its obligations.

80. Who within an authorised firm is ultimately responsible for compliance with the Financial Conduct Authority’s outcomes-based regulatory regime?

A. Senior management only.

81. The FCA's Principles for Businesses can be defined as:

B. General statements that set out the obligations on all authorised firms under the regulatory system.

82. Considering only the Financial Conduct Authority’s Statements of Principle and Code of Practice for Approved Persons (APER), the issue of financial loss or financial detriment in the advice process applies to:

D. All clients and product providers.

83. The Financial Conduct Authority’s Code of Conduct (COCON), expects senior managers to:

B. Act with integrity at all times.

84. According to the Financial Conduct Authority’s High Level Standards, an individual holding a senior managers role in an authorised firm must:

D. Always uphold the highest personal and professional standards.

85. When establishing a new risk profile questionnaire for its clients, an authorised firm should consider the use of:

A. Clearly-phrased and unambiguous questions.

86. The compliance officer of an authorised firm has discovered that one of the firm’s senior managers has been declared bankrupt. What action must the authorised firm take?

A. Terminate the managers’ employment.

87. Which of the following can give a particular insight into the ethical issues in a firm?

B. Persistency ratios.

88. Which of the following are regulated activities under FSMA 2000?

B. Advising on home finance., C. Administering insurance contracts., D. Safeguarding of investments.

89. Which of the following bodies are exempt from FCA authorisation?

A. The ECB., B. The BoE., C. Local authorities.

90. Client records must be kept indefinitely for which of the following?

C. Pension transfers., D. Free standing AVCs, E. Pension opt-outs.

91. Who would be regarded as an ‘eligible complainant’ under FCA rules?

B. A consumer., D. A guarantor.

92. For how long must a client agreement be held for?

A. 5 years for most forms of business., B. The duration of the relationship with the client if longer than 5 years., C. Indefinitely if the case is a pension transfer.

93. Which of the following are NOT regarded as pure protection policies?

A. Unemployment cover., D. Endowment.

94. Which of the following has a 30 day cancellation period?

A. Electing to take income withdrawal., B. Pension annuities., C. Stakeholder pensions.

95. What key life changes could impact on existing and future financial advice?

A. Birth of a child., B. Marriage/divorce., C. Change of employment.

96. Which of the following might prompt a client review?

B. Introduction of a new tax relief., C. An increase in interest rates., D. Changes to tax liabilities.

97. Which investments have a 14 day cancellation period?

A. Transferring a Child Trust Fund with face to face advice., B. The sale of an Enterprise Investment Scheme with face to face advice., C. Opening a cash ISA with face to face advice.

98. A financial adviser is working in collaboration with a client’s accountant and solicitor in respect of the client’s divorce. In relation to the financial advice provided, the financial adviser should be aware that:

B. The financial adviser can give generic information in relation to taxation issues., D. The financial adviser is solely responsible for the financial advice given.

99. Firms X and Y are both authorised firms providing financial advice. Firm X is paid by commission only, firm Y is paid by fee only. When comparing their disclosure obligations to retail customers, the firms should be aware that:

A. Both firms must disclose details of what they can expect to receive., B. Both firms must confirm their regulatory status.

100

100. Simon has experience of dealing with retail clients and is now training to be able to give advice on pension transfers. He should be aware that:

B. His firm is allowed to impose a time limit on completion of the qualification., D. All records of his training and CPD must be maintained indefinitely.

R01 - pp2

R01 - pp2

R01 - pp3

R01 - pp3

CII pp1

CII pp1

Real Revision

Real Revision

問題一覧

1. If the EU issues regulations in respect of the financial services industry, how would the UK be expected to respond?

A. it must implement them without any changes.

Banks and building societies were developed from the need to:

C. Provide a safe but accessible place to keep individual’s money.

With respect to UK short-dated gilts, index linked gilts and National Savings & Investment products, a financial adviser should be aware that they:

C. Are all used by the government to raise funds.

How are UK gilts issued and traded?

D. New gilts are issued by Debt management Office and subsequent trading is done on the London Stock Exchange.

The tripartite regulators of UK financial firms, when considering issues relating to financial stability, will report to:

A. The European Systemic Risk Board.

D. A joint life second death policy for £80,000.

Fred met his financial adviser Bob to discuss his financial needs and concerns. Fred refused to provide details of his income. How should Bob react?

C. Record that Fred refused to provide this detail on the fact-find.

A. A lower monthly cost, but a higher overall borrowing cost.

Why do most insurers limit the amount of protection they provide under Income Protection policies?

C. To prevent the individual from getting more income than they would do by working.

B. A range of tax-efficient savings plans investing in a range of investment types.

How many qualifying years are needed to receive the full new State pension?

D. 35

Following the Pensions Act 2014, State pension age will be reviewed at least every:

D. 6 years

When considering estate and Inheritance Tax planning for a retired couple, who have no outstanding debts or liabilities and a substantial estate, their priority should be:

D. Writing a valid will.

What would the general priorities be for a client before they considered saving and investment?

B. Pay off expensive debts, protect the family, then put an emergency fund in place.

C. David’s life and Joanne’s income requirement.

C. The duration of cover required.

C. He elected for a reviewable premium basis.

18. A self-employed jeweller wanting to purchase a shop using his pension scheme should consider a:

C. Self-invested personal pension (SIPP).

19. Deborah owns a property on a freehold basis. This means that she owns:

A. The property and the land it stands on until she dies or sells it.

B. Jeremy only.

21. What is the difference between an Enduring Power of Attorney and a Lasting Power of Attorney?

B. A lasting power of attorney allows the attorney to make decisions regarding the donor’s

22. At what point when dealing with life assurance is acceptance regarded as having taken place?

D. Payment of the first premium.

B. It will be passed to Alan’s estate.

24. A court will normally only consider a petition for bankruptcy where a creditor is owed at least how much?

C. £5,000, or a share of debts totalling at least £5,000.

25. In a case of bankruptcy, who has a statutory duty to investigate, where necessary, the bankrupt’s affairs and send a report to the creditors?

C. The Official Receiver.

26. Which party would you expect to see named in a trust deed?

A. Beneficiaries.

27. What is the Bank of England’s two core purposes?

B. Monetary stability and financial stability.

28. In creating a trust for her client, a solicitor recommends the inclusion of a charging clause in the trust wording. What is this most likely to relate to?

B. To allow professional trustees to be remunerated for their services.

29. Which of the following product types are NOT within the scope of the Financial Services and Markets Act 2000?

B. National Savings and Investments.

C. £50,000

31. How quickly will the FCA decide on authorisation when it has received a completed application form?

D. Within 6 months.

32. What is the maximum fine The Pensions Regulator can impose?

B. It can fine any individual up to £5,000, or a company up to £50,000.

33. What is the main function of the Financial Action Task Force with regard to the EU Money Laundering Directives?

A. To set standards required to deal with money laundering and terrorist financing.

34. Which individual or organisation is directly responsible for overseeing the activities of the Financial Conduct Authority?

B. HM Treasury.

35. The maximum fine, if any, which the Financial Conduct Authority (FCA) can impose on an authorised firm for a breach of the FCA rules is:

D. Unlimited.

36. Which of the following is outside the scope of the FSMA 2000?

A. Commercial buy-to-let mortgages.

37. The FCA has the power to ban products from sale. It will only be allowed to use this power in relation to which of the following?

C. Retail customers.

38. What is the main purpose of the stress-testing which the Financial Conduct Authority requires of certain authorised firms?

A. To assess firms’ ability to meet capital and liquidity levels during challenging economic circumstances.

39. Eric and Emily are both employed by an authorised firm. The firm’s record-keeping requirements for Eric’s responsibilities are greater than for Emily’s. This is because:

A. Eric is a senior manager and Emily is a customer adviser.

40. What is the maximum term of imprisonment which may be imposed, if any, on an individual who is found guilty of insider dealing?

C. Seven years.

41. An authorised firm of financial advisers holds a client money bank account. The directors of the firm should be aware that:

A. An annual client money audit and an annual report is required.

42. If an employee reports that a colleague is failing to comply with the law, what must the employer do?

C. Protect the whistleblower.

C. Administrators, home finance providers, intermediaries, and general insurance intermediaries only.

44. The FCA is concerned about a firm’s efforts to implement the principles for the fair treatment of customers. This was most likely to be because:

A. The firm was unable to demonstrate the fair treatment of customers across its entire range of activities.

45. Gavin, a financial adviser, has sold a payment protection insurance contract to his client. In respect of this sale, he should be aware that the sale is:

B. Regulated by the provisions of the Insurance: Conduct of Business sourcebook (ICOBS).

46. Nick is an adviser in an authorised firm, and he is about to be promoted to undertake a senior manager’s role. This means that he:

B. Will still be allowed to advise clients.

47. Large, regulated firms must maintain sufficient resources to cover risks, carry out risk assessments and stress testing scenarios as required by the:

D. Capital requirements directive.

48. An independent financial adviser is comparing free asset ratios. This is most likely to be because she is:

A. Considering a with-profits investment.

49. In what circumstances, if any, must the Financial Conduct Authority notify an adviser of a change in the scope of an investigation into his/her conduct?

B. If absence of notification may prejudice the adviser.

50. In an authorised firm, the services of a nominee company are being used. This would typically be to:

A. Protect the assets of a client.

51. If a provider gives any benefits or inducements to an intermediary how long must they keep records for?

C. 5 years.

52. Which of the following does not require a cancellation notice to be sent?

C. A travel policy with a 2 week term.

53. Derek is employed as a financial adviser by an appointed representative of an authorised firm. With whom does the primary responsibility for assessing Derek’s continuing competency lie?

D. The authorised firm only.

54. When, if at all, can an alternative status disclosure statement be used by an authorised firm?

D. Only if they are a firm from another EU member state using a passporting of authorised permissions, when they must state that they are authorised by their respective regulator.

55. Philip has recently left an authorised firm where he advised on pension transfers. For what minimum period, if any, must the firm retain his training records?

D. Indefinitely

56. As a result of a recent investigation, the practitioner panel has made a recommendation to the FCA. Therefore, the FCA must:

B. Consider the recommendation without any obligation to amend its rules.

57. If ABC Investment Advice Ltd outsourced its compliance to a compliance services provider, who would be held liable for any regulatory issues?

C. ABC Investment Advice Ltd, as the regulated firm itself.

A. In no circumstances.

59. Which mortgage products are not regulated?

D. Mortgage sales on commercial buy to let properties.

60. If the Financial Conduct Authority identifies an unfavourable trend in pension advice that may NOT be in the best interests of consumers, how is it most likely to react in the first instance?

C. Issue a guidance statement to all authorised firms.

61. How do the FCA and CMA work together in considering the fairness of standard terms in financial services contracts?

C. The FCA considers fairness within authorised firms and the CMA considers the fairness of unregulated activities.

62. An authorised firm has discovered that they have breached one of the FCA’s Principles for Businesses. What action must the firm take?

B. The firm’s compliance officer must notify the FCA immediately and implement remedial actions as soon as possible.

C. £170,000

64. Which of the following would give rise to a potential compensation claim?

A. An investment adviser failing to consider the tax implications of the investment recommended.

A. Tom will not need to keep his suitability records indefinitely.

D. £127,500.

B. i, ii and v only.

C. £60,000.

D. i, ii, iii and iv.

70. Which of the following statements with regards to stakeholder products and basic advice is TRUE?

C. The recommended product only must be suitable, not necessarily the most suitable.

71. Barry and Paula both have lump sums to invest, and both intend to use life office managed funds. Why are the opportunities for Barry to benefit from diversification more limited than Paula’s?

A. Barry has decided to adopt a socially responsible approach.

72. During the fact-finding process, a financial adviser decided to ask several open-ended questions. The primary purpose of this approach was to:

B. Obtain the client’s views and opinions.

73. How do you calculate a client’s net worth?

A. Deduct total liabilities from total assets.

74. Which of the following does not fall into one of the five key demands and needs broadly related to the different life stages?

C. Estate planning.

75. A financial adviser is specifically discussing issues relating to best in class and engagement with his client. This is most likely to be because the client:

D. Wishes to take an ethical approach.

76. In relation to the sales of life policies and pension contracts:

A. All records of both must be kept for 5 years.

77. The essence of outcomes-based regulation is about the regulator:

D. Making judgements on what may happen in future.

78. An authorised firm should adapt its recruitment and remuneration policies to have a positive impact on the fair treatment of customers outcomes by:

B. Creating a corporate culture that makes knowledge and training central to career progression.

79. In order to adhere to the Financial Prudence principle of the Financial Conduct Authority’s Principles for Businesses, an authorised firm should:

C. Have adequate financial resources to meet its obligations.

80. Who within an authorised firm is ultimately responsible for compliance with the Financial Conduct Authority’s outcomes-based regulatory regime?

A. Senior management only.

81. The FCA's Principles for Businesses can be defined as:

B. General statements that set out the obligations on all authorised firms under the regulatory system.

D. All clients and product providers.

83. The Financial Conduct Authority’s Code of Conduct (COCON), expects senior managers to:

B. Act with integrity at all times.

84. According to the Financial Conduct Authority’s High Level Standards, an individual holding a senior managers role in an authorised firm must:

D. Always uphold the highest personal and professional standards.

85. When establishing a new risk profile questionnaire for its clients, an authorised firm should consider the use of:

A. Clearly-phrased and unambiguous questions.

86. The compliance officer of an authorised firm has discovered that one of the firm’s senior managers has been declared bankrupt. What action must the authorised firm take?

A. Terminate the managers’ employment.

87. Which of the following can give a particular insight into the ethical issues in a firm?

B. Persistency ratios.

88. Which of the following are regulated activities under FSMA 2000?

B. Advising on home finance., C. Administering insurance contracts., D. Safeguarding of investments.

89. Which of the following bodies are exempt from FCA authorisation?

A. The ECB., B. The BoE., C. Local authorities.

90. Client records must be kept indefinitely for which of the following?

C. Pension transfers., D. Free standing AVCs, E. Pension opt-outs.

91. Who would be regarded as an ‘eligible complainant’ under FCA rules?

B. A consumer., D. A guarantor.

92. For how long must a client agreement be held for?

A. 5 years for most forms of business., B. The duration of the relationship with the client if longer than 5 years., C. Indefinitely if the case is a pension transfer.

93. Which of the following are NOT regarded as pure protection policies?

A. Unemployment cover., D. Endowment.

94. Which of the following has a 30 day cancellation period?

A. Electing to take income withdrawal., B. Pension annuities., C. Stakeholder pensions.

95. What key life changes could impact on existing and future financial advice?

A. Birth of a child., B. Marriage/divorce., C. Change of employment.

96. Which of the following might prompt a client review?

B. Introduction of a new tax relief., C. An increase in interest rates., D. Changes to tax liabilities.

97. Which investments have a 14 day cancellation period?

A. Transferring a Child Trust Fund with face to face advice., B. The sale of an Enterprise Investment Scheme with face to face advice., C. Opening a cash ISA with face to face advice.

B. The financial adviser can give generic information in relation to taxation issues., D. The financial adviser is solely responsible for the financial advice given.

A. Both firms must disclose details of what they can expect to receive., B. Both firms must confirm their regulatory status.

100

100. Simon has experience of dealing with retail clients and is now training to be able to give advice on pension transfers. He should be aware that:

B. His firm is allowed to impose a time limit on completion of the qualification., D. All records of his training and CPD must be maintained indefinitely.