Monthly Archives:August 2018

r01 exam

R01 exam – free practice questions

Are you revising for the CII’s R01 exam? Know someone who is? Then read on…..!

We’ve put together 10 single-response multiple choice questions for you as a taster of what you can expect in the R01 exam.

We’ve helped over 6,000 people prepare for the CII R0 exams over the past 12 months (1st August 2022 to the 31st July 2023). We don’t sell multiple choice questions but we are here to help as much as we can with your R01 exam.

What we do offer is unique R01 MP3 audio material. This provides around 4 hours of dedicated R01 material that enables you to fit your study around your business and social life – not the other way around.  Click here for further details.

Now, onto these practice questions. See how well you do on these R01 exam style questions. You’ll find the answers at the end.

R01 questions

These questions are based on the 2023/24 tax year. Here goes……..

1. Which body sets interest rates in the UK and what is its inflation target?

a) The Treasury; 2% CPI

b) The Treasury; 2% RPI

c) The Monetary Policy Committee; 2% CPI

d) The Monetary Policy Committee; 2% RPI

2. Mohammed is concerned about how he would cope financially in the event of long term sickness. Which type of insurance policy is MOST likely to satisfy this need?

a) Accident sickness and unemployment insurance

b) Mortgage payment protection

c) Private medical insurance

d) Income protection insurance

3. John and Janet owned a property as tenants in common. On Janet’s death:

a) the entire property would pass straight to John as surviving joint owner

b) her children would automatically become legal owners of the full property

c) her share of the property forms part of her estate and is distributed accordingly

d) her share of the property would be held in trust for her adult children

4. A ‘directive’ is a form of EU legislation. This requires Member States to implement the directive:

a) to achieve a set outcome, but how this is achieved is left to each State

b) in its entirety with no discretion about how it is implemented

c) by introducing high level principle-based regulation that underpin the directive

d) only if they choose to do so

5. Which regulator is charged with ensuring that competition between businesses is a benefit to customers and the economy as a whole?

a) The Office of Fair Trading

b) Competition Commission

c) The Prudential Regulation Authority

d) Competition and Markets Authority

6. If a firm of financial advisers has been granted a Part 4A permission by the FCA, the organisation can now:

a) act as a Designated Professional Body

b) proceed to appoint some Appointed Representatives

c) undertake the regulated activities applied for

d) advise on a whole of market basis only

7. How much notice does the Financial Conduct Authority need to give before conducting an enforcement visit on a regulated firm?

a) None

b) 3 working days

c) 5 working days

d) 7 working days

8. Smith and Wesson are insurance brokers who also undertake mortgage and investment advice. Which conduct of business rule book(s) will they need to comply with?

a) ICOBS only

b) COBS and MCOB only

c) COBS, ICOBS and MCOB only

d) BCOBS, MCOB and ICOBS only

9. Under S.19 of the Financial Services and Markets Act 2000, it is an offence for someone to carry out a regulated activity unless they are:

a) authorised or exempt

b) recognised by a Designated Professional Body

c) recognised by a relevant professional body

d) licensed under the Consumer Credit Act

10. George is in the process of applying to be a financial adviser with a UK bank. Under the certification regime, who will decide that George is competent and suitable for this role?

a) The CII

b) The Financial Conduct Authority

c) His employer

d) The Prudential Regulation Authority

R01 Resources

Here are some other tips and information you might find useful:

R01 exam: the 5 myths. Click here

R01 exam: three technical areas you should know. Click here 

Five top tips for R0 exam success – part 1. Click here

For more details on R01, see the CII website. Click here

Answers: 1: C; 2: D; 3: C; 4: A; 5: D; 6: C; 7: A; 8: C; 9: A; 10: C.

Remember, good preparation is the key. Until the next time

Ian Patterson

Ex-examiner and author of the current CF8, J07, and AF6 CII study texts