R01 CMA, The Pensions Regulator and the ICO: free practice questions

1. Question 1 of 5

   Which of these is a responsibility of the Competition and Markets Authority?

   Option A: Setting the inflation targetOption B: Paying compensation to customers of failed firmsOption C: Investigating mergers that might reduce competitionOption D: Authorising financial advisers

   Show answer

   The answer is C: Investigating mergers that might reduce competition

   The CMA investigates mergers and whole markets, acts against cartels and anti-competitive behaviour, and protects consumers from unfair trading practices.

   Why the other options are wrong

   A

   The inflation target is set by the Chancellor.

   B

   Compensation is paid by the FSCS.

   D

   Authorising advisers is the FCA's job.

2. Question 2 of 5

   Which regulator is responsible for preventing the misuse of the assets of an occupational pension scheme?

   Option A: The Pension Protection FundOption B: The Pensions RegulatorOption C: The Financial Conduct AuthorityOption D: The Prudential Regulation Authority

   Show answer

   The answer is B: The Pensions Regulator

   The Pensions Regulator regulates work-based pension schemes and can obtain injunctions to prevent misuse of scheme assets.

   Why the other options are wrong

   A

   The PPF pays compensation; it doesn't police scheme assets.

   C

   The FCA regulates firms and advisers, not occupational scheme assets.

   D

   The PRA regulates banks and insurers prudentially.

3. Question 3 of 5

   What are the maximum fines The Pensions Regulator can impose for a breach of the law?

   Option A: £50,000 for an individual and £500,000 for a companyOption B: £1,000 for an individual and £10,000 for a companyOption C: Unlimited for bothOption D: £5,000 for an individual and £50,000 for a company

   Show answer

   The answer is D: £5,000 for an individual and £50,000 for a company

   TPR can fine an individual up to £5,000 and a company up to £50,000. It can also prohibit or suspend trustees, appoint trustees and wind up schemes.

   Why the other options are wrong

   A

   These figures are ten times too high.

   B

   The limits are £5,000 and £50,000.

   C

   TPR's fines are capped.

4. Question 4 of 5

   Who has a duty to report breaches of pensions law to The Pensions Regulator?

   Option A: Only members of the scheme and their dependantsOption B: Only the FCA, on behalf of the scheme's membersOption C: No one, because reporting breaches is voluntaryOption D: Trustees, administrators, employers and advisers

   Show answer

   The answer is D: Trustees, administrators, employers and advisers

   Trustees, managers, administrators, employers and professional advisers must report breaches of law to TPR in writing as soon as reasonably practicable.

   Why the other options are wrong

   A

   The duty falls on those involved with the scheme, not just members.

   B

   The duty falls on those connected with the scheme.

   C

   Reporting is a legal duty, not voluntary.

5. Question 5 of 5

   For anti-money laundering purposes, which body supervises estate agents?

   Option A: The FCAOption B: The CMAOption C: The ICOOption D: HMRC

   Show answer

   The answer is D: HMRC

   AML responsibilities are split: the FCA supervises (among others) consumer credit financial institutions, while HMRC supervises estate agents.

   Why the other options are wrong

   A

   The FCA supervises financial institutions, not estate agents, for AML.

   B

   The CMA deals with competition.

   C

   The ICO deals with data protection.

R0 Exam Prep is an independent revision tool. It is not produced, endorsed by or affiliated with the Chartered Insurance Institute (CII). Questions and explanations are original. Use it alongside the official study text. About R0 Exam Prep