Friday Five – 12 June 2015 – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:41 am
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.
- What is the maximum fine The Pensions Regulator can impose on a company for breaching the law?
- If two assets have a correlation of 0.25, what does this tell us about their relationship within a portfolio?
- They are closely linked and would therefore increase the volatility within a portfolio
- They are negatively correlated and will move in opposite directions
- They are positively correlated and you would expect them to move in the same direction at the same time
- They have low correlation so would reduce volatility within a portfolio
- Joanne sold an investment property to her sister at a market value of £120,000 making a gain of £40,000, but has allowed her sister 2 years to pay for the house. When would Joanne be liable to pay any Capital Gains Tax (CGT)?
- Joanne would be required to pay any CGT due based on the contract date
- Joanne would be required to pay any CGT due based on when she receives the money from her sister
- There would be no CGT liability as Joanne has sold to a close relative
- Joanne is liable to pay any CGT due based on the contract date but can request to pay in instalments
- At age 80, Sidney dies, leaving behind a wife and child. Sidney had uncrystallised benefits. How can the fund pay out any lump sum death benefits?
- No lifetime allowance test required and can pay out a lump sum subject to 35% tax charge.
- Benefit crystallisation event so lifetime allowance test required with any excess above the lifetime allowance taxed at 55%.
- No lifetime allowance test required and lump sum is payable tax free.
- No lifetime allowance test required and can pay out lump sum death benefits subject to 55% tax charge.
- Zero dividend preference shares in a split capital investment trust are subject to:
- income tax on the income and capital gains tax on gains
- capital gains tax on gains
- withholding tax on the income and capital gains tax on gains
- income tax on the income and free of capital gains tax on gains
- C – See R01 Study Text, Chp 4 Section D2
Grab our taster mock exam paper for CII R01. Click here to download.
- D – See R02 Study Text, Chp 8 Section B1
Grab out taster mock exam paper for CII R02. Click here to download.
- D – See R03 Study Text, Chp 3 Section B2
Grab our taster mock exam paper for CII R03. Click here to download.
- D – See R04 Study Text, Chp 2.2 Section E2A
Grab our taster mock exam paper for CII R04. Click here to download.
- B – See J12 Study Text, Chp 4 Section B1C
Grab our taster mock exam paper for CII J12. 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!)