R04 The Pensions Regulator, complaints and pension protection: free practice questions

1. Question 1 of 5

   Which Act established The Pensions Regulator?

   Option A: The Pensions Act 2004Option B: The Pensions Act 2008Option C: The FSMA 2000Option D: The Pensions Act 1995

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   The answer is A: The Pensions Act 2004

   TPR was set up by the Pensions Act 2004 to regulate work-based pensions and support employers with automatic enrolment.

   Why the other options are wrong

   B

   The 2008 Act introduced automatic enrolment duties.

   C

   FSMA 2000 created the FCA regime, not TPR.

   D

   The 1995 Act created the earlier regulator, OPRA, and member protections.

2. Question 2 of 5

   What does TPR's clearance procedure give an employer planning a transaction?

   Option A: TPR's formal approval that the deal suits membersOption B: A guarantee that the PPF will cover the schemeOption C: Confirmation TPR won't use anti-avoidance powers on itOption D: An exemption from paying the PPF levy for that year

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   The answer is C: Confirmation TPR won't use anti-avoidance powers on it

   Clearance means TPR won't issue a contribution notice or financial support direction for that transaction. It isn't an approval of the transaction.

   Why the other options are wrong

   A

   Clearance isn't an endorsement of the deal.

   B

   It doesn't guarantee PPF entry.

   D

   It has nothing to do with the PPF levy.

3. Question 3 of 5

   Which complaint would go to the Pensions Ombudsman rather than the FOS?

   Option A: A member says the trustees ignored the scheme rulesOption B: A client complains about a pension transfer recommendationOption C: A client says an adviser mis-sold them a personal pensionOption D: A customer says the sale of their annuity was unsuitable

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   The answer is A: A member says the trustees ignored the scheme rules

   The Pensions Ombudsman deals with maladministration, such as not following scheme rules. Mis-selling and advice complaints go to the FOS.

   Why the other options are wrong

   B

   Advice complaints go to the FOS.

   C

   Mis-selling goes to the FOS.

   D

   Sales complaints go to the FOS.

4. Question 4 of 5

   What happens during a PPF assessment period?

   Option A: New members can still join the scheme during the periodOption B: Transfer values continue to be paid to members as normalOption C: The PPF Board takes over the day-to-day runningOption D: Benefits are paid only up to PPF levels

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   The answer is D: Benefits are paid only up to PPF levels

   The trustees stay in day-to-day control, but no new members, accrual or transfers are allowed and benefits are cut to PPF levels. The PPF aims to finish within two years.

   Why the other options are wrong

   A

   No new members can be admitted.

   B

   Transfer values generally can't be paid.

   C

   The trustees keep day-to-day control.

5. Question 5 of 5

   When can the PPF pay a trivial commutation lump sum?

   Option A: Aged 55 to 74 with total benefits up to £30,000Option B: Only to members who have already passed age 75Option C: Where benefits are under £10,000 and the member is under 55Option D: Whenever the member asks for it, at any age at all

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   The answer is A: Aged 55 to 74 with total benefits up to £30,000

   The pension flexibilities don't apply to the PPF, but trivial commutation is allowed from normal minimum pension age to under 75 with total benefits up to £30,000.

   Why the other options are wrong

   B

   The member must be under 75.

   C

   The member must have reached normal minimum pension age.

   D

   There are age and value limits.

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