Friday Five – 1 September – 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 2017/18, examinable until 31 August 2018.

1. If a client said that all of their current investments were in emerging market funds, what might this indicate to the adviser?
   1. That the client was considering retiring abroad
   2. That the client has little confidence in the UK stock market
   3. That the client was reckless
   4. That the client has an adventurous attitude to risk

2. The primary purpose of rebalancing a client’s portfolio is to?
   1. Maximise portfolio performance in the long-term
   2. Minimise the client’s tax liabilities both now and in the future
   3. Reduce the client’s exposure to risk
   4. Maintain the portfolio in line with the client’s stated needs and risk tolerance

3. Robert is 48 and has total earnings of £10,000 and gross interest from his building society account of £4,000. What is his total income tax liability in this tax year?
   1. £0
   2. £300
   3. £500
   4. £700

4. Alan used his £300,000 pension fund to buy a pension protected annuity. The annuity was £18,000pa payable annually in arrears. Alan died age 72, having received 12 payments to that point. The annuity protection lump sum his dependants would receive is:
   1. £54,600
   2. £84,000
   3. £37,800
   4. £126,900

5. Carla, aged 20, cares for her disabled mother, who receives disability living allowance. She applied for carer’s allowance, but her claim was refused. This was because:
   1. Carla is under age 21
   2. Carla has net earnings of £75 per week
   3. Carla’s mother is receiving another state benefit
   4. Carla is on a full-time course at college

Answers

1. D – See R01 Study Text, Chp 8
   Grab our taster mock exam paper for CII R01. Click here to download.

2. D – See R02 Study Text, Chp 7
   Grab our taster mock exam paper for CII R02. Click here to download.

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

4. B – See R04 Study Text, Chp 6:1
   Grab our taster mock exam paper for CII R04. Click here to download.

5. D – See R05 Study Text, Chp 3
   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!)