Friday Five – 11 October – 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.
These questions relate to examinable tax year 2019/20, examinable until 31 August 2020.
- Mrs Evans died in March 2008 when the NRB was £300,000 leaving £50,000 to her niece with the remainder of the estate passing directly to her husband. On Mr Evans’s death on April 2019, the total estate was worth £600,000. What is the IHT due on Mr Evans’s estate if it is all left to his niece?
- No IHT due
- When assessing suitability, MiFID II specifically requires that firms not only take account of investment objectives but also obtain information about a client’s:
- knowledge and experience in the investment field concerned
- previous gains and losses made on directly held shares
- past experience of systematic and non-systematic risk
- knowledge of behavioural finance such as prospect theory/loss aversion
- Miriam has worked in the same company for 15 years and has recently been asked by them to relocate to London to take up a new role. They have offered to reimburse relocation and removal expenses of £10,000. How will Miriam be taxed on this payment?
- £2,000 will be tax-free, and £8,000 will be taxable.
- £8,000 will be tax-free, and £2,000 will be taxable.
- £5,000 will be tax-free, and £5,000 will be taxable.
- The whole £10,000 will be tax-free.
- GAD rates used for capped drawdown are based on which of the following underlying annuity assumptions? Tick all that apply.
- Level in payment
- Monthly in advance
- 10-year guarantee
- Single life
- Which of the following is true in relation to critical illness premiums?
- Premiums are more expensive for women.
- Premiums are based on mortality statistics.
- Reviewable premiums are dependent on the health of the insured.
- Guaranteed premiums tend to be higher than reviewable premiums.
- C – See R01 Study Text, Chp 2
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R02 Study Text, Chp 7
Grab our taster mock exam paper for CII R02. Click here to download.
- B – See R03 Study Text, Chp 1
Grab our taster mock exam paper for CII R03. Click here to download.
- AD – See R04 Study Text, Chp 6:2
Grab our taster mock exam paper for CII R04. Click here to download.
- D – See R05 Study Text, Chp 7
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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