CII R01 Exam 2025 Questions and
Answers 100% Pass
Financial Services and Markets Act 2000 (FSMA) - ✔✔- Brought together the regulation
of all sectors of the UK financial services industry under one regulatory system - the
FSA
Introduced FOS and FSCS
set out the rules for all regulated activities when dealing with:
• deposit taking
• stocks and shares
• gilts and local authority bonds
• debentures
• futures
• unit trusts
• open-ended investment companies (OEICs)
Financial Services Authority (FSA)
Disbanded - ✔✔- In 2013
- Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA)
formed
COPYRIGHT © 2025 BY EMILLY CHARLOTTE, ALL RIGHTS RESERVED 1
, - Reforms clarified responsibilities between:
HM Treasury and Bank of England in the event of a financial crisis, Chancellor of the
Exchequer directs the Bank of England where public funds are at risk to financial
stability.
Financial Policy Committee (FPC) - ✔✔- Committee within the Bank of England allows:
1. scrutiny towards emerging risks to the financial system as a whole
2. Powers to take action where it identifies threats.
Prudential Regulation Authority (PRA) - ✔✔- Works with the Bank of England but is
independent.
- Responsibility for the prudential supervision and
authorisation of important financial institutions such as banks and firms
- Ensure that individual firms can fail without bringing
down the entire financial system.
- 'judgment based' approach to supervision,
Prudential Regulation Committee (PRC) makes the PRA decisions.
UK regulatory structure - ✔✔1. HM Treasury & Parliament
2. The Bank of England: comprising the (PRA), the
F(FPC), and the (PRC)
3. Financial Conduct Authority (FCA)
Memorandum of Understanding - ✔✔1998 & 2006
...is a document that outlines of an agreement that two or more parties have reached.
Financial Conduct Authority objectives - ✔✔1. Protection for consumers
2. Enhance integrity of financial system
3. Promote effective competition
COPYRIGHT © 2025 BY EMILLY CHARLOTTE, ALL RIGHTS RESERVED 2
Answers 100% Pass
Financial Services and Markets Act 2000 (FSMA) - ✔✔- Brought together the regulation
of all sectors of the UK financial services industry under one regulatory system - the
FSA
Introduced FOS and FSCS
set out the rules for all regulated activities when dealing with:
• deposit taking
• stocks and shares
• gilts and local authority bonds
• debentures
• futures
• unit trusts
• open-ended investment companies (OEICs)
Financial Services Authority (FSA)
Disbanded - ✔✔- In 2013
- Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA)
formed
COPYRIGHT © 2025 BY EMILLY CHARLOTTE, ALL RIGHTS RESERVED 1
, - Reforms clarified responsibilities between:
HM Treasury and Bank of England in the event of a financial crisis, Chancellor of the
Exchequer directs the Bank of England where public funds are at risk to financial
stability.
Financial Policy Committee (FPC) - ✔✔- Committee within the Bank of England allows:
1. scrutiny towards emerging risks to the financial system as a whole
2. Powers to take action where it identifies threats.
Prudential Regulation Authority (PRA) - ✔✔- Works with the Bank of England but is
independent.
- Responsibility for the prudential supervision and
authorisation of important financial institutions such as banks and firms
- Ensure that individual firms can fail without bringing
down the entire financial system.
- 'judgment based' approach to supervision,
Prudential Regulation Committee (PRC) makes the PRA decisions.
UK regulatory structure - ✔✔1. HM Treasury & Parliament
2. The Bank of England: comprising the (PRA), the
F(FPC), and the (PRC)
3. Financial Conduct Authority (FCA)
Memorandum of Understanding - ✔✔1998 & 2006
...is a document that outlines of an agreement that two or more parties have reached.
Financial Conduct Authority objectives - ✔✔1. Protection for consumers
2. Enhance integrity of financial system
3. Promote effective competition
COPYRIGHT © 2025 BY EMILLY CHARLOTTE, ALL RIGHTS RESERVED 2
