CII R01 Consumer Protection 5

Question 1

What is a 'product intervention' by the FCA?

Accepted Answer

The FCA using its powers to restrict or ban a financial product to prevent consumer harm

Answer

Product intervention powers allow the FCA to restrict or ban financial products or practices that it considers harmful to consumers, even before harm has occurred.

Question 2

What protection exists for consumers who buy financial products online?

Accepted Answer

The Consumer Contracts Regulations provide additional cancellation rights for distance contracts

Answer

The Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 provide additional protections for distance contracts, including a 14-day cancellation right.

Question 3

What is 'best execution' in the context of consumer protection?

Accepted Answer

Taking all sufficient steps to obtain the best possible result for the client when executing orders

Answer

Best execution requires firms to take all sufficient steps to obtain the best possible result for clients when executing orders, considering factors such as price, costs, speed, and likelihood of execution.

Question 4

What is the role of the Money and Pensions Service (MaPS)?

Accepted Answer

To provide free, impartial money and pensions guidance to the public

Answer

MaPS is an arm's-length body of the Department for Work and Pensions that provides free, impartial guidance on money and pensions matters to the public, including the MoneyHelper service.

Question 5

What is 'Pension Wise'?

Accepted Answer

A free, impartial government guidance service for people aged 50+ with defined contribution pensions

Answer

Pension Wise (now part of MoneyHelper) is a free, impartial guidance service that helps people aged 50 and over understand their defined contribution pension options.

CII R01 Practice Test

CII R01 Practice Test

CII R01 Consumer Protection 5