CTFA

CTFA practice questions, page 2 of 35, with answer review and explanations.

Question 6

This is a type of employee benefit plan wherein the employer allocates a certain amount of money and then the employee spends that money for benefits selected from a menu covering everything from child care to health and life insurance to retirement benefits.

  1. Flexible benefit plan
  2. Cafeteria plan
  3. Short-term financial plan
  4. Both of the above are one and the same

Question 7

Most financial planners fall into one of two categories based on how they are paid. Commission based planners earn commissions on the financial products they sell, whereas ______________ charge fees based on the complexity of the plan they prepare.

  1. Free only planners
  2. Commission based planners
  3. Professional planners
  4. Security planners

Question 8

When determining the interaction between the UK and EU on the regulation of the financial services industry, the UK government must always

  1. seek approval from the European Commission before implementing any new regulations.
  2. implement new EU Directives by passing acts of Parliament.
  3. accommodate all EU Decisions in UK legislation.
  4. provide copies of new regulation to the European Commission within a reasonable period of time for their approval.

Question 9

A client has previously written to her former adviser opting out of any marketing activities from the firm or any third parties. However she continues to receive direct investment offers from the firm. She should complain based on the firm not complying with which set of regulations?

  1. Conduct of Business rules.
  2. Data Protection Act 1998.
  3. Distance Selling Regulations.
  4. Treating Customers Fairly.

Question 10

The Financial Services and Markets Act 2000 regulates the provision of which type(s) of financial advice?

  1. Advice to vulnerable individuals only
  2. Advice to all individuals
  3. Advice to all individuals and group personal pensions schemes only
  4. Advice to all individuals unless they are elective professional clients