R01 Senior Managers and Certification Regime: free practice questions

1. Question 1 of 5

   When did the Senior Managers and Certification Regime start to apply to solo-regulated FCA firms?

   Option A: December 2019Option B: March 2016Option C: January 2018Option D: April 2013

   Show answer

   The answer is A: December 2019

   SM&CR applied to banks and insurers (dual-regulated) from March 2016 and to solo-regulated FCA firms from December 2019, replacing the Approved Persons Regime.

   Why the other options are wrong

   B

   March 2016 is when it applied to banks and insurers.

   C

   January 2018 is when MiFID II took effect.

   D

   April 2013 is when the FCA and PRA took over from the FSA.

2. Question 2 of 5

   Under the Senior Managers Regime, what must every senior manager have?

   Option A: A personal guarantee covering the firm's debts and liabilitiesOption B: A Level 6 qualification relevant to their senior management roleOption C: A Statement of Responsibilities setting out their accountabilityOption D: At least ten years' experience in regulated financial services

   Show answer

   The answer is C: A Statement of Responsibilities setting out their accountability

   Each senior manager needs a Statement of Responsibilities, must be pre-approved by the regulator and be assessed as fit and proper at least annually. Enhanced firms also need a responsibilities map.

   Why the other options are wrong

   A

   Senior managers don't guarantee the firm's debts.

   B

   There's no general Level 6 requirement.

   D

   There's no minimum ten-year experience rule.

3. Question 3 of 5

   Under SM&CR, which category do sole traders and small authorised professional firms usually fall into?

   Option A: Enhanced scopeOption B: Limited scopeOption C: Exempt statusOption D: Core baseline

   Show answer

   The answer is B: Limited scope

   Solo-regulated firms are Limited Scope (smaller firms with fewer requirements), Core (the baseline) or Enhanced (largest, most complex or riskiest).

   Why the other options are wrong

   A

   Enhanced applies to the largest and riskiest firms.

   C

   'Exempt' isn't an SM&CR category for these firms.

   D

   Core is the baseline for firms that aren't Limited Scope or Enhanced.

4. Question 4 of 5

   Which of these roles is a certification function rather than a senior management function?

   Option A: The Compliance Oversight functionOption B: The Chief ExecutiveOption C: The Chair of the governing bodyOption D: A retail investment adviser

   Show answer

   The answer is D: A retail investment adviser

   Advisers (investment, mortgage and general insurance) are certified roles, under functions such as the client dealing function. The others are senior management functions.

   Why the other options are wrong

   A

   Compliance Oversight is SMF16.

   B

   The Chief Executive is SMF1.

   C

   The Chair is SMF9.

5. Question 5 of 5

   How quickly must a firm notify the FCA of a senior manager's breach of the conduct rules?

   Option A: Within 30 working days of the end of the yearOption B: Within 7 days of concluding disciplinary actionOption C: Only in the firm's next annual conduct returnOption D: Within 24 hours of first suspecting the breach

   Show answer

   The answer is B: Within 7 days of concluding disciplinary action

   Senior manager conduct rule breaches must be notified within 7 days of concluding disciplinary action (such as a written warning, suspension or pay recovery). Other staff breaches are reported annually.

   Why the other options are wrong

   A

   30 working days relates to complaints returns.

   C

   Annual reporting applies to other staff, not senior managers.

   D

   The trigger is concluding disciplinary action, within 7 days.

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