• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Chapter 3 Regulation: End of chapter Question

G

George Philip

Active Member
Q3.5 in course notes asks the advantages and disadvantages of regulation in the sale of unit linked savings products.

In the answer provided, the solution is just an outline of the costs and benefits of regulation in GENERAL without much connection to the unit-linked products.
For the exam, will such a general answer be sufficient? Or will I needs to provide the specific points to connect it with unit linked savings products?
 
Hi George

I believe you’re referring to part (i) of the question: ‘Outline the main benefits and costs associated with the regulation of the sale of unit-linked savings products by life insurers.’

Your question is a good one, and you are correct that we should be thinking about the specifics of a question when answering it. However, CP1 is about breadth and is fairly general so the regulation of specific products / investments / functions is not covered. Therefore, the general benefits and costs of regulation should be used/applied when asked for benefits and costs for a particular investment/ policy and function – the general points made just need to be relevant.

It is a good strategy for CP1 to aim to tailor points to the specifics of the question as much as possible, such as is done in the solution for this question by referring to investment / unit-linked funds and to charges (rather than premiums). However, it is still fine to include more general points where such tailoring is not feasible, provided those points could be relevant to the context.

I hope this makes sense.
 
You must log in or register to reply here.
Back
Top