Friday Five – 1 March – 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 2018/19, examinable until 31 August 2019.

1. Under which circumstances must a firm complete full Customer Due Diligence? Tick all that apply.
   1. When a regulated firm suspects money laundering or terrorist financing
   2. When a regulated firm establishes a business relationship
   3. Where the transaction presents a low degree of risk
   4. When a regulated firm carries out an ad hoc transaction

2. If an investment has a mean of 5% and a standard deviation 6%, you would expect 95% of returns to fall between:
   1. -1% and 11%
   2. -5% and 15%
   3. -7% and 17%
   4. 1% and 16%

3. Of the following individuals, who would be eligible to make a pension contribution that would receive full tax relief?
   1. Alex, a 78-year-old wishing to make a single gross contribution of £3,600
   2. Leo, who earns £25,000 per annum and wishes to make a single gross contribution of £20,000
   3. Steve, who has never previously contributed to a pension, wishes to make a single contribution of £40,000, his earnings last year were £52,000 but have fallen this year to £38,000.
   4. Alison, a full-time housewife who wishes to make regular monthly gross contributions of £420

4. A Section 143 Valuation is an actuarial assessment carried out in connection with the:
   1. Pension Protection Fund taking over the assets of an insolvent company with an underfunded scheme.
   2. payment of a cash equivalent transfer value when a member leaves an occupational scheme.
   3. triennial fund valuation on a defined benefit scheme.
   4. transfer calculation on wind up of a final salary scheme with the assets moving over to a money purchase vehicle.

5. Tim is in a partnership with Nigel and they have agreed to set up a buy and sell agreement. The associated life assurance policies should be written as:
   1. own life policies in trust for the other partner
   2. own life
   3. life of another
   4. own life in trust for their dependants

Answers

1. ABD – See R01 Study Text, Chp 6
   Grab our taster mock exam paper for CII R01. Click here to download.

2. C – See R02 Study Text, Chp 3
   Grab our taster mock exam paper for CII R02. Click here to download.

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

4. A – See R04 Study Text, Chp 3
   Grab our taster mock exam paper for CII R04. Click here to download.

5. A – See R05 Study Text, Chp 10.2
   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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.