R01 Product disclosure, guidance and fair treatment: free practice questions
5 free questions on Product disclosure, guidance and fair treatment, part of learning outcome 7 (The advice framework). Pick an answer to check it, or open the answer to see why each option is right or wrong.
Question 1 of 5
Which disclosure document is required for a packaged retail and insurance-based investment product (PRIIP)?
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The answer is D: A key information document
PRIIPs need a key information document (KID). Non-PRIIP packaged products need a key features document; collective investment schemes currently have a KIID.
Why the other options are wrong
A
Key features documents are for non-PRIIP packaged products.
B
IPIDs are for general insurance products.
C
KIIDs are for collective investment schemes.
Question 2 of 5
What defines a pure protection policy for these rules?
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The answer is D: It pays only on death or incapacity, with little or no surrender value
Pure protection contracts pay only on death or incapacity and have no surrender value (or one not exceeding the single premium). Mainly term assurance and income protection, covered by ICOBS.
Why the other options are wrong
A
Pure protection is mainly term assurance and income protection.
B
A savings element would take it outside pure protection.
C
Paying at maturity regardless isn't pure protection.
Question 3 of 5
Which body was set up by the Financial Guidance and Claims Act 2018 to bring together the Government's guidance services?
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The answer is C: The Money and Pensions Service (MaPS)
MaPS took over the services of The Pensions Advisory Service, Pension Wise and the Money Advice Service. Its consumer brand, MoneyHelper, launched in June 2021.
Why the other options are wrong
A
TPR regulates workplace pension schemes.
B
The FSCS pays compensation when firms fail.
D
The FOS resolves complaints.
Question 4 of 5
Which of these is NOT one of the six fair treatment of customers outcomes?
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The answer is B: Consumers are guaranteed a positive investment return
The six outcomes cover culture, product design and targeting, clear information, suitable advice, products performing as expected, and no unreasonable post-sale barriers. They don't promise returns.
Why the other options are wrong
A
No unreasonable post-sale barriers is one of the outcomes.
C
Targeted product design is one of the outcomes.
D
Suitable advice is one of the outcomes.
Question 5 of 5
Which products can targeted support be used for?
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The answer is C: Designated investments and some IBIPs
Targeted support applies to designated investments and certain insurance-based investment products. It doesn't apply to non-investment insurance contracts.
Why the other options are wrong
A
Home finance isn't within targeted support.
B
It specifically doesn't apply to non-investment insurance.
D
It's limited to designated investments and certain IBIPs.
Practise all 15 Product disclosure, guidance and fair treatment questions
These are 5 of the 15 questions on this topic in R0 Exam Prep, and the full R01 bank covers every learning outcome. Practise free, track your weak areas and sit timed mocks.
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