CII R01 Consumer Protection 2

Question 1

What is the 'cooling-off period' for most retail investment products?

Accepted Answer

14 days

Answer

7 days

Answer

30 days

Answer

There is no cooling-off period

Question 2

What is a 'Key Information Document' (KID)?

Accepted Answer

A standardised document providing key information about packaged retail investment products

Answer

A simplified prospectus for institutional investors

Answer

A document that children must read before opening a bank account

Answer

An internal risk assessment used by financial firms

Question 3

What does 'vulnerable customer' mean in FCA guidance?

Accepted Answer

A customer who is at greater risk of harm due to personal circumstances

Answer

A customer who is financially illiterate

Answer

A customer who has made a complaint

Answer

A customer under the age of 18

Question 4

What are the four key drivers of vulnerability identified by the FCA?

Accepted Answer

Health, life events, resilience, capability

Answer

Age, income, location, education

Answer

Gender, ethnicity, disability, language

Answer

Employment, housing, debt, savings

Question 5

What is 'information asymmetry' in the context of consumer protection?

Accepted Answer

When one party in a transaction has more information than the other, typically the firm over the consumer

Answer

When consumers receive too much information

Answer

When information is provided in multiple languages

Answer

When the FCA withholds information from firms

Question 6

What is the purpose of the FCA's financial promotions rules?

Accepted Answer

To ensure that financial promotions are fair, clear and not misleading

Answer

To help firms create better advertising campaigns

Answer

To ban all advertising of financial products

Answer

To set minimum spending levels for advertising