Friday Five – 1 June – 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.
IMPORTANT! These questions relate to examinable tax year 2017/18, examinable by the CII until 31 August 2018. They do not relate to tax year 2018/19 which is only examinable by the CII from 1 September 2018.
- Which of the following is an example of a global regulatory body?
- The European Systemic Risk Board
- The Prudential Regulation Authority
- The Financial Action Task Force
- The Bank of England
- Adrian transferred assets worth £150,000 into a trust, in which he has no interest. If he had sold the assets he would have made a gain of £40,000. If holdover relief was claimed what effect would it have on the trust?
- Holdover relief is not available as the value of the gift is below the nil rate band
- There is no CGT at the time of the transfer, but the acquisition cost of the trust is reduced to £110,000
- Adrian has no immediate CGT liability, but he would be liable to CGT on the trust’s periodic review
- The gain is liable to CGT by the trust at acquisition and not on Adrian at disposal
- Four friends are considering whether they would find cash flow modelling useful in helping them decide how much they should withdraw each year from their flexi-access drawdown fund. It is true to say that the ones who will benefit are: Tick all that apply.
- Ben, who wishes to withdraw enough each year to meet his needs while keeping the capital value of his drawdown fund intact to pass on to his children.
- Jeff, who wishes to withdraw enough each year to provide an income for life.
- Tristan, who does not mind what happens to his drawdown fund as he has plenty of non-pension investments he can call on.
- All of them.
- Sharon has made a request to make her life assurance policy ‘paid up’. In relation to the sum assured, which of the following statements is TRUE?
- It stays at the current level for one year and then is reduced
- It stays the same
- It is reduced
- It can be increased for a fee at the time of making it paid up
- Someone who is entitled to receive the income from a trust during their lifetime is known as a:
- income recipient
- default beneficiary
- life tenant
- C – See R01 Study Text, Chp 1
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R03 Study Text, Chp 3
Grab our taster mock exam paper for CII R03. Click here to download.
- AB – See R04 Study Text, Chp 8
Grab our taster mock exam paper for CII R04. Click here to download.
- C – See R05 Study Text, Chp 4
Grab our taster mock exam paper for CII R05. Click here to download.
- D – See J12 Study Text, Chp 12
Grab our taster mock exam paper for CII J12. 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?
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