The first module in the route towards gaining a Financial Planning Certificate is the CF1 module on Regulation and Ethics, and one will find that these issues are of the up most importance throughout all financial training courses in the UK for those wanting to become financial advisors.
Underpinning the provision of financial planning advice must be the basis of ethical professionalism, which needs to be monitored through regulation. Becoming a financial advisor requires a high level of ethical responsibility and failing to maintain these standards could result in you losing your right to practice and possibly facing criminal prosecution.
UK Financial Service Regulations and Ethics Syllabus CF1
The Financial Service Regulations and Ethics (CF1) module not only covers how the UK financial services industry is structured and the various types of financial asset classes, product types and the process of giving advice, but also the regulations in place to ensure that ethical behaviour is upheld. If you are looking to embark on a financial career, then you need to keep yourself updated on the latest policies regarding professional ethics and conduct.
The following areas are given special emphasis during the CF1 syllabus:
• Legal concepts that relate to the provision of financial advice
• Social security systems and UK taxation as they influence individual financial positions
• How socio-economic factors such as interest rate volatility and inflation impact on personal financial circumstances
• Knowing the Financial Services Authority (FSA) and how it operates, and its way of enforcing ethical conduct by individuals and firms
• How the FSA’s rules affect the way firms design their control structures and how these firms relate to the FSA
• A look at how the FSA’s Conduct of Business rules have an impact on how firms advise clients
• Anti-Money Laundering rules and how they apply to the way that private and intermediary clients are dealt with
• Complaints and compensation: the rules that govern how they are handled
• The Data Protection Act 1998 and how it governs the way financial advice is administered as well as the conduct of firms
• Other non-tax laws and regulations that can affect how firms advise clients
CF1 UK Financial Service Regulations and Ethics - Past Exam Questions
To help you gain a good understanding of the types of questions normally found in the CF1 assessment a few multiple choice examples have been provided below:
1. In the UK who regulates the financial services and its policies?
A. Prime Minister
B. Bank of England
C. UK Government
D. Financial Services Authority
2. A consumer has a fixed interest savings account with their bank. If interest rates rise halfway through the term how will this affect the value the consumer receives?
A. The consumer will receive more value
B. There will be no change in value
C. They will receive less value than before
D. None of the above
3. What do the Consumer Prices Index measure?
A. The yearly change in how much goods and services cost
B. The monthly change in how much a basket of goods and services cost to the majority of households in England
C. the monthly change in how much a basket of goods and services cost to the majority of UK households
D. The monthly change in how much a basket of groceries cost to the majority of UK households
CF1 Examination Format
The UK Financial Service Regulations and Ethics (CF1) module exam is based on current English law and practice unless otherwise stated and assumes that candidates are UK residents and domiciled within the UK. Exams are 2 hours in duration and consist of 100 multiple choice questions of which 70% must be answered correctly for a PASS mark to be awarded. The CF1 module accounts for 15% of the total marks required towards the Certificate in Financial Planning.
Finding the Top CF1 Module Course Providers in the UK
For those serious about successfully completing the CF1 stage of the Certificate in Financial Planning and potentially moving up to the Diploma and Higher Diploma stages, choosing the right course provider is very important. Becoming a financial advisor requires dedication and good training so finding the best course providers should be done before comparing prices.