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Friday Five – 1 April – 5 Questions in 5 Minutes

Friday Five – 1 April – 5 Questions in 5 Minutes

Welcome to this week’s Friday Five – 5 Questions in 5 Minutes Every Friday

What’s this all about?

It’s a bit of Friday Fun where we provide you with 5 questions relevant to a mix of CII exams. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.

Questions

These questions relate to examinable tax year 2015/16, examinable until 31 August 2016.

  1. How does the FCA determine the level of periodic fee to charge an authorised firm?
    1. The periodic fees are based on the length of time the firm has been authorised
    2. Periodic fees are a flat annual subscription
    3. Periodic fees are based on the product areas a firm has permission to advise on and the income the firm receives under each product area
    4. Periodic fees are based on the level of risk attributed to each firm
  1. What information would you expect to find within the title of a bond?
    1. Risk rating
    2. Coupon
    3. Interest payment dates
    4. The primary market the bond was issued from
  1. A financial adviser has been asked to explain the potential capital gains tax (CGT) liabilities of the trustees regarding the assets of an interest in possession trust? She will explain that: Tick all that apply
    1. for those created after the 22nd March 2006 there is generally no CGT uplift on the death of the life tenant
    2. the trust will benefit from a standard rate band of £1,000 to offset against gains
    3. for those created before 22nd March 2006 the trust assets are valued at the date of death of the life tenant
    4. all gains realised by trustees are charged at the rate of 28%
  1. Which of the following would NOT be a prohibited asset when purchased in a registered scheme? Tick all that apply.
    1. A caretaker’s flat.
    2. A beach hut.
    3. Student Halls of Accommodation.
    4. An office building.
  1. Who has to prove that a CIC claim is payable?
    1. The life office
    2. The policyholder
    3. The policyholder or their spouse
    4. The personal representatives of the policyholder

 

Answers

  1. C – See R01 Study Text, Chp 5:2, Section F3B
    Grab our taster mock exam paper for CII R01. Click here to download.

 

  1. B – See R02 Study Text, Chp 1, Section B1A
    Grab our taster mock exam paper for CII R02. Click here to download.

 

  1. ACD – See R03 Study Text, Chp 3, Section I6
    Grab our taster mock exam paper for CII R03. Click here to download.

 

  1. ACD – See R04 Study Text, Chp 8, Section B6D
    Grab our taster mock exam paper for CII R04. Click here to download.

 

  1. B – See R05 Study Text, Chp 7, Section F
    Grab our taster mock exam paper for CII R05. Click here to download.

 

How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?

Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)

 

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