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.
These questions relate to examinable tax year 2015/16, examinable until 31 August 2016.
- How does the FCA determine the level of periodic fee to charge an authorised firm?
- The periodic fees are based on the length of time the firm has been authorised
- Periodic fees are a flat annual subscription
- 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
- Periodic fees are based on the level of risk attributed to each firm
- What information would you expect to find within the title of a bond?
- Risk rating
- Interest payment dates
- The primary market the bond was issued from
- 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
- for those created after the 22nd March 2006 there is generally no CGT uplift on the death of the life tenant
- the trust will benefit from a standard rate band of £1,000 to offset against gains
- for those created before 22nd March 2006 the trust assets are valued at the date of death of the life tenant
- all gains realised by trustees are charged at the rate of 28%
- Which of the following would NOT be a prohibited asset when purchased in a registered scheme? Tick all that apply.
- A caretaker’s flat.
- A beach hut.
- Student Halls of Accommodation.
- An office building.
- Who has to prove that a CIC claim is payable?
- The life office
- The policyholder
- The policyholder or their spouse
- The personal representatives of the policyholder
- C – See R01 Study Text, Chp 5:2, Section F3B
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R02 Study Text, Chp 1, Section B1A
Grab our taster mock exam paper for CII R02. Click here to download.
- ACD – See R03 Study Text, Chp 3, Section I6
Grab our taster mock exam paper for CII R03. Click here to download.
- ACD – See R04 Study Text, Chp 8, Section B6D
Grab our taster mock exam paper for CII R04. Click here to download.
- 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!)