Other

Question 1

The Pension Protection Fund (PPF) provides how much compensation?

Answer 1

100% of the fund if the client has reached normal pension age
90% of the fund if the client is below normal pension age

Question 2

What is ‘Basic Advice’?

Answer 2

A short, simple form of financial advice which uses pre-scripted questions to determine whether a stakeholder product within a firm’s range will be suitable for a retail customer

Question 3

What is Streamlined Advice?

Answer 3

When a company provides a personal recommendation that is limited to one or more of a client’s specific needs. The service does not involve analysis of the client’s circumstances that are not directly relevant to those needs.

Question 4

The Financial Guidance and Claims Act 2018 introduced which service?

Answer 4

The Money and Pensions Service (MaPS), and in 2021 MaPS launched MoneyHelper

Question 5

Retirement Risk Warnings are contained where?

Answer 5

Cobs 19.7

Question 6

Who is the regulator of workplace pension schemes in the UK?

Answer 6

The Pensions Regulator

Question 7

What is the Service Profit Chain?

Answer 7

Highlights that satisfied staff produce good results and client outcomes which in turn drives long term growth for the business

Question 8

What are Tuckman’s 5 stages of team development?

Answer 8

Forming. (Team is assembled and task is agreed)
Storming (brain storm ideas of how the task should be completed)
Norming (team is harmonised with their goals and strategies)
Performing (team members working well together, mature)
Adjourning (complete the task and move on)

Question 9

What is the difference between Functional Roles and Team Roles?

Answer 9

Functional roles are roles carried out because of their job role, whereas Team roles reflect the innate abilities or preferences of that team member

Question 10

SMART goals stand for..

Answer 10

S specific
M measurable
A achievable
R relevant
T time bound

Question 11

What are Covey’s 7 habits of effective people?

Answer 11

Be proactive
Start with the end in mind
Put first things first
Think win/win
Seek first to understand then to be understood
Synergise
Sharpen the saw (brings together the other 6 habits)

Question 12

Which body is responsible for the regulation of insurance companies in relation to the amount of capital they hold ?

Answer 12

The PRA

Question 13

The FCA’s TCF policy falls within its..

Answer 13

Principles for business

Question 14

Which variable will be considered when a firm is using psychographic segmentation?

Answer 14

Independence or personality

Question 15

What is a key benefit of a contact centre using automated outbound dialling?

Answer 15

It makes use of staff time more efficient

Question 16

Bank A sells insurance products from Insurer B to Bank A’s customers. This is known as:

Answer 16

Indirect distribution

Question 17

What is the first stage of the meeting customer needs cycle?

Answer 17

Identifying customer needs

Question 18

Why is an organisation most likely to use technological advances such as online chat, email and online self-servicing when communicating with its customers?

Answer 18

To fit their service around customers busy lives

Question 19

Under the Pensions Regulator requirements, when will an initial wake-up pack be sent out to a pension policyholder?

Answer 19

6 months before the customers intended retirement date

Question 20

When documenting the customer journey involved when making a top-up to an existing investment, what should customer operations do?

Answer 20

Document only the touch points within the process

Question 21

If Rachel audits pension transfer cases and this is known as a ‘second line of defence’, who does she work for?

Answer 21

Compliance

Question 22

How can a financial promotion for a new pension drawdown product ensure it is clear, fair and not misleading?

Answer 22

Avoid assuming any level of knowledge of experience from the customers

Question 23

The most likely reason for asking call centre advisers to use a script is to ensure:

Answer 23

Specific regulatory disclosures are read to every customer

Question 24

Who should unresolved complaints about pension scheme trustees be referred to?

Answer 24

The Pension Ombudsman

Question 25

Under the UK General Data Protection Regulation, data controllers must give the Information Commissioner’s Office details of all the data they hold and:

Answer 25

The purpose that the information is held

Question 26

When must risk warnings be provided to a retail customer with a pension?

Answer 26

When they access a defined contribution pension

Question 27

Using Bruce Tuckman’s theory on team development, during which stage might a team become complacent?

Answer 27

Norming

Question 28

The Harvard Business Review recognises six components of a great corporate culture: values, practices, people, narrative and what other two?

Answer 28

Vision and Place

Question 29

What are the two stages of dispute management within a DB scheme?

Answer 29

Schemes can offer either a one-stage or a two-stages internal dispute resolution procedure (IDRP). Under a one-stage process the decision is taken by the trustees. In the two-stage process a ‘nominated person’ chosen by the trustees makes the stage-one decision and (if necessary) the trustees reconsider the complaint at stage two.

Question 30

The Consumer Duty, which requires firms to act to deliver good outcomes for retail customers’ is contained within the Financial Conduct Authority’s

Answer 30

Principles for Business

Question 31

psychographic segmentation =

Answer 31

Independence and personality

Question 32

There are 4 consumer outcomes and 3 cost cutting rules

Question 33

Max complaint payout is £415,000