R01 Record-keeping, reporting and notification: free practice questions

1. Question 1 of 5

   For how long must records relating to pension transfers and opt-outs be kept?

   Option A: IndefinitelyOption B: Five yearsOption C: Three yearsOption D: Six years

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   The answer is A: Indefinitely

   Records for pension transfers, pension opt-outs and FSAVCs must be kept indefinitely. Life and pension records are usually kept for five years, and financial promotions for six.

   Why the other options are wrong

   B

   Five years applies to most life and pension records.

   C

   Three years applies to some non-MiFID records.

   D

   Six years applies to financial promotions for life and pension products.

2. Question 2 of 5

   How long must financial promotions for life and pension products be retained?

   Option A: Five yearsOption B: Six yearsOption C: Three yearsOption D: One year

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   The answer is B: Six years

   Life and pension contract records are kept for five years, but financial promotions for such products should be kept for six years.

   Why the other options are wrong

   A

   Five years applies to the contract records, not the promotions.

   C

   Three years is too short.

   D

   One year is too short.

3. Question 3 of 5

   For FCA reporting purposes, roughly what shareholding counts as 'control' of a limited company?

   Option A: 10%Option B: 50%Option C: 20%Option D: 5%

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   The answer is A: 10%

   Firms report details of shareholdings and control (broadly holdings of at least 10%) and close links (broadly at least 20%).

   Why the other options are wrong

   B

   50% is a majority, not the reporting threshold for control.

   C

   20% is the broad close links threshold.

   D

   5% is below the control threshold described.

4. Question 4 of 5

   How often must firms submit complaints statistics to the FCA, and within what deadline?

   Option A: Monthly, within ten working days of the month endOption B: Twice a year, within 30 working days of period endOption C: Annually, within six months of the firm's year endOption D: Only when the FCA specifically requests the data

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   The answer is B: Twice a year, within 30 working days of period end

   Firms report complaints data twice a year, broken down by product, within 30 working days of the end of the reporting period. Firms reporting more than 500 complaints must publish a summary.

   Why the other options are wrong

   A

   Complaints returns aren't monthly.

   C

   They're half-yearly with a 30 working day deadline.

   D

   They're a regular requirement.

5. Question 5 of 5

   A firm discovers a serious fraud in its business. When does the FCA expect to be told?

   Option A: Within six monthsOption B: ImmediatelyOption C: In the next annual returnOption D: Only once the police have finished investigating

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   The answer is B: Immediately

   Under Principle 11 a firm must be open and cooperative with regulators. The FCA expects immediate notification of matters with significant regulatory impact, serious fraud or crime, major rule breaches or insolvency.

   Why the other options are wrong

   A

   Six months is far too late.

   C

   Serious matters can't wait for the annual return.

   D

   Notification shouldn't wait for police investigations.

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