Friday Five – 10 May – 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 2018/19, examinable by the CII until 31 August 2019. They do not relate to tax year 2019/20 which is only examinable by the CII from 1 September 2019.
- Which of the following financial planning opportunities can usually be addressed at the end of a tax year? Tick all that apply.
- Re-assessing a client’s goals
- Using up ISA allowances
- Utilising the CGT exempt amount
- Reviewing a client’s protection arrangements
- Utilising pension contribution limits
- A portfolio consists of 45% equities, 30% bonds, 15% property and 10% cash. Which of the following risk profiles best describes this asset allocation?
- Balanced growth
- Balanced income
- Cautious growth
- Kevin is a cautious investor but would like to benefit from the potential returns from property. Which of the following might mean he prefers to do this through an insurance company property fund rather than through a Real Estate Investment Trust (REIT)?
- The insurance fund should be a lower risk as they cannot utilise gearing
- He would rather be in a pooled investment with other investors
- He wants to avoid the 6-month potential deferral period on encashment
- He wants to use his Capital Gains Tax annual exempt amount on encashment
- Why might an employee view a contract-based pension scheme as a less valuable benefit than a trust-based pension scheme?
- Basic rate tax relief on contributions is not obtained immediately but instead via self- assessment.
- Early leavers lose employer contributions in the event of transfer within 2 years.
- Because the scheme has been outsourced to a third party and does not provide members with the protection of trustees.
- Because the scheme is unlikely to offer drawdown options at retirement.
- James has completed a sales process with a client and sold a protection product. To meet the FCA rules he should keep copies of:
- The fact-find, written recommendations and suitability letters
- The fact-find
- The fact-find and suitability letters
- The fact-find, product application forms and suitability letters
- BCE – See R01 Study Text, Chp 7
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R02 Study Text, Chp 7
Grab our taster mock exam paper for CII R02. Click here to download.
- A – See R03 Study Text, Chp 10
Grab our taster mock exam paper for CII R03. Click here to download.
- C – See R04 Study Text, Chp 5
Grab our taster mock exam paper for CII R04. Click here to download.
- A – See R05 Study Text, Chp 10.1
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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