CII R01 Consumer Protection

Question 1

What is the FCA's Consumer Duty and when did it come into force?

Accepted Answer

A mandatory standard requiring firms to deliver good outcomes for retail customers, effective July 2023

Answer

The Consumer Duty (Principle 12) came into force on 31 July 2023 for open products and services, requiring firms to act to deliver good outcomes for retail customers across four key areas.

Question 2

What are the four outcomes the Consumer Duty focuses on?

Accepted Answer

Products and services, price and value, consumer understanding, consumer support

Answer

The Consumer Duty focuses on four outcomes: products and services, price and value, consumer understanding, and consumer support, ensuring firms deliver good outcomes across these areas.

Question 3

What is the Financial Ombudsman Service (FOS)?

Accepted Answer

An independent body that resolves disputes between consumers and financial firms

Answer

The FOS is an independent body set up by Parliament to resolve disputes between consumers and financial businesses. It provides an alternative to the courts and its decisions are binding on firms.

Question 4

What is the current maximum award the Financial Ombudsman Service can make?

Accepted Answer

£430,000

Answer

The FOS can award up to £430,000 for complaints about acts or omissions by firms on or after 1 April 2024. This limit is reviewed periodically.

Question 5

What is the Financial Services Compensation Scheme (FSCS)?

Accepted Answer

The UK's statutory deposit insurance and compensation scheme for customers of failed authorised firms

Answer

The FSCS is the UK's statutory compensation scheme that protects customers of authorised financial services firms that have failed. It is funded by levies on authorised firms.

CII R01 Practice Test

CII R01 Practice Test

CII R01 Consumer Protection