Friday Five – 13 November – 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.

Questions

These questions relate to examinable tax year 2015/16, examinable until 31 August 2016.

1. What does Principles Based Regulation mean?
   1. Instead of rules to cover every situation, general terms are issued to outline the types of behaviours expected
   2. The principal of each authorised firm carries the ultimate responsibility for FCA authorisation
   3. The FCA issues regulations to those responsible for controlled functions and it is their responsibility to cascade down the firm
   4. Only the main areas of compliance are supported by regulation

2. If the Bank of England tightened Monetary Policy and increased short-term interest rates what effect might this have? Tick all that apply
   1. Increased consumer demand
   2. Longer-term interest rates raised
   3. Consumers reducing expenditure as they would be less willing to take on credit
   4. Lower longer-term interest rates

3. On which of the following disposals would the sale proceeds be used as the disposal figure in calculating Capital Gains Tax (CGT)?
   1. On a commercial sale
   2. If an asset is given away
   3. On a disposal to a connected person
   4. On a disposal not at arm’s length

4. Sally is currently paying Class 3 National Insurance contributions. This would indicate that she is:
   1. Self-employed.
   2. Contracted out of S2P.
   3. Earning less than the Lower Earnings Threshold.
   4. Rectifying a shortfall in her NI record.

5. What feature of a Personal Pension plan might an individual needing long term care before age 55 be able to benefit from?
   1. Impaired life annuity
   2. Early retirement grant
   3. Early retirement due to ill health at any age
   4. Income Replacement cover

Answers

1. A – See R01 Study Text, Chp 9 Section A2
   Grab our taster mock exam paper for CII R01. Click here to download.

2. B,C – See R02 Study Text, Chp 2 Section D2
   Grab our taster mock exam paper for CII R02. Click here to download.

3. A – See R03 Study Text, Chp 3 Section D1
   Grab our taster mock exam paper for CII R03. Click here to download.

4. D – See R04 Study Text, Chp 7 Section A1 and A5
   Grab our taster mock exam paper for CII R04. Click here to download.

5. C – See CF8 Study Text, Chp 4 Section A3
   Grab our taster mock exam paper for CII CF8. 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!)