The rulebook itself. This area tests whether you can find your way around the FCA Handbook — the high-level Principles, the detailed conduct rules, and how the two relate. Questions frequently quote a situation and ask which Principle or rule has been breached.
What the fca handbook covers in the R01 exam
- The structure of the FCA Handbook: high-level standards, business standards and more
- The eleven Principles for Businesses and what each requires
- The Conduct of Business Sourcebook (COBS) and the client's best interests rule
- Client categorisation: retail client, professional client, eligible counterparty
- Communications that are clear, fair and not misleading
- The status of guidance versus binding rules
Where candidates lose marks
Quoting a Principle number wrong — Principle 6 (customers' interests) and Principle 7 (communications) are the usual mix-up.
Assuming the highest level of consumer protection applies to every client — categorisation changes it.
Treating FCA guidance as binding, or binding rules as optional.
Worked example questions
Real R01-style questions from our bank, with the correct answer and the reasoning. No sign-in needed.
Which dispute resolution body hears appeals against decisions made by the FCA?
- AFSCS
- BUpper TribunalCorrect
- CFinancial Ombudsman Service
- DCompetition and Markets Authority
- EHigh Court
Why: The Upper Tribunal (Tax and Chancery Chamber) hears references and appeals against certain decisions made by the FCA or PRA.
What is the FSCS compensation limit for investment claims?
- A£85,000 per person per firmCorrect
- B£50,000 per person per firm
- C£10,000 per person per firm
- D£35,000 per person per firm
- E£100,000 per person per firm
Why: The FSCS provides compensation for investment business up to £85,000 per eligible claimant per failed firm.
Which category of client is covered by the FSCS?
- AOnly eligible counterparties
- BOnly directors of regulated firms
- COnly professional clients
- DAll clients regardless of status
- EEligible claimants, including most retail clientsCorrect
Why: FSCS protection applies to eligible claimants, primarily retail clients, but excludes certain categories such as large financial institutions.
Free, exam-style R01 questions across the syllabus, with an explanation for every answer and a per-topic breakdown at the end. The full 100-question mocks come with Pro.
Start free practiceThe FCA Handbook — questions answered
How many FCA Principles for Businesses are there?
There are eleven Principles for Businesses, with a twelfth — the Consumer Duty Principle — applying to retail customers. Principle 6 (treating customers fairly) and Principle 7 (clear, fair and not misleading communications) come up most often in R01.
What is COBS in the FCA Handbook?
COBS is the Conduct of Business Sourcebook. It contains the detailed conduct rules for firms dealing with clients, including the client's best interests rule and how clients are categorised as retail clients, professional clients or eligible counterparties.
The other R01 syllabus areas
Independent study material, not affiliated with or endorsed by the Chartered Insurance Institute. Always check the official CII website for the current R01 syllabus, format and fees. The CII sets a nominal pass mark of 65% and adjusts it per sitting.