Friday Five – 10 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.
IMPORTANT! These questions relate to examinable tax year 2019/20, examinable by the CII until 31 August 2020. They do not relate to tax year 2020/21 which is only examinable by the CII from 1 September 2020.
- The rule that all communications concerning the financial promotion of regulated business must be fair, clear and not misleading does NOT apply to:
- a personal quotation or illustration.
- a poster highlighting a fund’s past performance.
- an advertisement detailing charges under a product.
- web-based advertising covering claim statistics for IP.
- What should be considered in determining the success or failure of a portfolio through performance evaluation? Tick all that apply.
- If the client’s return expectations have been exceeded
- The composition of the portfolio compared with a suitable benchmark portfolio
- Changes in the fund manager’s ratings e.g. S&P ratings
- The effects of asset allocation
- Stock selection and/or sector choice
- Henry is planning to move to Switzerland. Which of the following tax planning strategies relating to his investments should he consider? Tick all that apply.
- Move bank accounts offshore to avoid any potential liability to UK income tax.
- Dispose of any gilt-edged securities as the income is taxable.
- Withdraw any ISA investments as they will lose their tax-free status.
- Dispose of any assets that will produce a loss and postpone the disposal of any assets that will produce a gain.
- The Pension Protection Fund (PPF) was introduced to provide default protection for whom?
- Employees who are members of defined benefit schemes.
- Pensioners retiring on an inadequate level of benefits.
- Anyone who had elected to opt out of earnings-related State benefits.
- Anyone who has been mis-sold a pension product.
- Irene has taken out an income protection policy. If she becomes incapacitated and unable to work, when will her benefits be paid?
- After a deferred period chosen by her
- From day one of her claim
- After a deferred period stated by the insurer
- If she is incapacitated for a continuous period of 3 months or more
- A – See R01 Study Text, Chp 7
Grab our taster mock exam paper for CII R01. Click here to download.
- BDE – See R02 Study Text, Chp 9
Grab our taster mock exam paper for CII R02. Click here to download.
- AD – See R03 Study Text, Chp 12
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R04 Study Text, Chp 1
Grab our taster mock exam paper for CII R04 Click here to download.
- A – See R05 Study Text, Chp 6
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?
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