Friday Five – 13 April – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:23 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.
IMPORTANT! These questions relate to examinable tax year 2017/18, examinable by the CII until 31 August 2018. They do not relate to tax year 2018/19 which is only examinable by the CII from 1 September 2018.
- A firm categorised by the FCA as a ‘flexible portfolio’ firm will be subject to which of the FCA’s three supervision strategies?
- Proactive firm/group supervision only
- Event driven reactive supervision only
- Event driven reactive supervision and thematic issue or product supervision
- Proactive firm/group supervision and thematic issue or product supervision
- Exon PLC has a beta of 1.2, the expected return of the market portfolio is 6% and the expected return on a Treasury bill is 3.3%. Using the CAPM formula, what is Exon’s expected return?
- Which of the following actions would HMRC most likely take into account when assessing if someone has acquired a new domicile status? Tick all that apply.
- Sally sells her Kensington flat to buy a new home for her and her family in Madrid
- Evan is travelling around America for 12 months and will then return to the UK
- Ross let out his property as he is spending an increasing amount of time in Sweden with his new girlfriend
- Poppy’s Australian business is flourishing so she has sold her UK home and bought an apartment in Sydney and told everyone she is emigrating
- 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 LTA test needed and can pay out a lump sum subject to 45% tax charge.
- Benefit crystallisation event so LTA test needed with any excess taxed at 55%.
- No LTA test needed and lump sum is payable tax free if paid within 2 years.
- No LTA test needed and lump sum taxable at the recipient’s rate of tax.
- Which of the following statements is TRUE in relation to most private medical insurance policies?
- They are designed to cover chronic conditions
- They do not allow the insured a choice of hospital in which to receive treatment
- They are restricted to UK residents and do not provide cover for treatment abroad
- They provide benefits for a maximum of 5 treatments over the term of the policy
- C – See R01 Study Text, Chp 5:1
Grab our taster mock exam paper for CII R01. Click here to download.
- C – See R02 Study Text, Chp 3
Grab our taster mock exam paper for CII R02. Click here to download.
- AD – See R03 Study Text, Chp 5
Grab our taster mock exam paper for CII R03. Click here to download.
- D – See R04 Study Text, Chp 2.2
Grab our taster mock exam paper for CII R04. Click here to download.
- C – See R05 Study Text, Chp 9
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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