1) Which of the following would not typically be found within a key features document ? (13.1.7.2) A Client-specific information relating to charges
B Details of where additional information can be obtained C Essential elements of the product
D Money laundering requirements
2) Harrow Bank are about to begin an advertising campaign to promote fresh interest in their UK Equity Unit Trust Fund which was launched ten years ago. What is the minimum period for which performance figures must be shown ? (13.1.3.2)
A 5 years B 7 years C 10 years
D There is no specific period
3) When drawing up a client agreement, which of the following is least likely to be included ? (13.1.4.2)
A Any restrictions to be placed on the adviser
B Details of options available in the recommended product C How the agreement can be terminated
D The client’s aims relating to the service being provided
4) Regarding client communications, comparisons with other products must be presented: (13.1.3.1) A with skill, care and diligence
B adequately and reasonably C accurately
D in a fair and balanced way
5) Which of the following statements relating to non-solicited real-time promotions (cold calls) is incorrect ? (13.1.3.3)
A The person receiving the call must have an existing client relationship with the firm.
B The person receiving the call expects to receive calls as part of the relationship.
C The call relates to a generally marketable packaged product that isn’t a higher volatility fund.
D A contact point must be given to the client at the beginning of the call 6) A financial promotion is defined as (13.1.3)
A Mediation activity
B An offer to enter into pension activity C An offer to enter into life assurance activity.
D An invitation or inducement to engage in investment activity
51 7) Advisers are permitted to operate in one of three categories. Which is the exception ? (13.1.4.1)
A Whole-of-market advisers B Multi-tied advisers
C Panel advisers D Tied advisers
8) Which of the following is one of the main aims of the Retail Distribution Review ? (13.1.5) A Standardise the way in which advice is paid for
B Raising professional standards C Reduction of financial crime
D Maintaining confidence in the UK financial system
9) With regard to a whole-of-life policy, for how long must fact find information be retained ? (13.1.6.1)
A Indefinitely B 3 years C 5 years D 10 years
10) Conduct of Business Sourcebook (COBS) 4 deals with client communications, particularly financial promotions. Which type of financial promotions are covered ? : (13.1.3)
A internet and written B written and non-written C broadcast and non-broadcast D verbal and written
11) Financial promotions can be communicated only if they have been prepared, or approved by : (13.1.3) A a suitably-qualified individual
B an approved person C an authorised person
D a person who has a controlled function within the firm
12) The Retail Distribution Review, published in 2008 was implemented at the end of : (13.1.5)
A 2010
B 2011
C 2012
D 2013
52 13) When must a suitability report be provided for an execution-only customer ? (13.1.6.3)
A A suitability report is not required B Before the transaction is effected
C Within 14 days of the transaction being effected D No later than the cancellation notice
14) The cancellation period for a cash ISA is : (13.1.8) A 7 days
B 10 days C 14 days D 30 days
15) In which of the following areas are the fundamental requirements for mortgage advisers significantly less onerous than for pensions advisers ? (13.1.6.2)
A Suitability reports B Data protection
C Personalised illustrations D Client affordability
16) With the sale of a monthly unit trust, a suitability report must be sent to the client no later than which of the following : (13.1.6.2)
A five days after the initial interview
B as soon as possible after the transaction was effected and no later than the issue of the cancellation notice
C the end of the cooling-off period D 14 days after the policy was effected
17) The FSA’s ‘KeyFacts’ logo can be incorporated in which of the following documents ? (13.1.4.1)
A Annual Stakeholder Pension statements B Annual with-profits documentation C Suitability reports
D Services and costs disclosure documents (SCDD)
18) Which of the following statements regarding information provided by financial promotions to retail clients is incorrect ? Information supplied must : (13.1.3) A be accurate – giving a fair and prominent indication of risks.
B be understandable by an ‘average’ member of the target group.
C not disguise or obscure important terms or warnings.
D be tested in advance by representatives of the target group.
53 19) Which of the following information would not be included in a Services and Costs Disclosure
Document (SCDD) ? (13.1.4.1) A The name of the regulator
B The method of payment for the service C How to obtain compensation
D How future unsolicited calls can be made
20) In terms of product design, the FSA considers that three of the following areas are particularly important – which is the exception ? (13.2.1.1)
A identifying the target market for which the product is likely to be suitable B stress-testing the product
C the target group’s financial profile to fall within regulatory boundaries D systems and controls in place to manage the risks posed by the product or
service design.
21) The statutory cancellation period for a free-standing AVC is : (13.1.8) A 7 days
B 14 days C 21 days D 30 days
22) The statutory cancellation period for an annuity is : (13.1.8) A 7 days
B 14 days C 21 days D 30 days
23) The overall principle of financial promotions to retail and professional clients, is that they must be : (13.1.3)
A legal, decent, honest and truthful B fair, clear and not misleading C reasonable
D understandable by most of the target group.
24) Which of the following is covered in Section 3 of the Conduct of Business Sourcebook (13.1.2)
A Client communications B Suitability
C Client categorisation
D Conduct of business obligations
54 25) What’s covered in COBS 2 ? (13.1.1)
A Financial promotions
B Conduct of business obligations C Cancellation
D Providing product information to clients
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