Friday Five – 13 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.

Questions

These questions relate to examinable tax year 2017/18, examinable until 31 August 2018.

1. The FCA is planning to investigate an adviser. What are the requirements?
   1. Notify the firm but not to inform the adviser so as to avoid concealing evidence
   2. No notice can be given to the adviser as the instigator is protected under a whistleblowing policy
   3. Notify the adviser prior to starting the investigation and verbally inform of any changes to the nature of the investigation
   4. No notice is required as the investigation relates to possible insider dealing

2. Mark earns a basic salary of £50,000 and also receives self-employed profits of £15,000. In this tax year, what is Mark’s total liability to income tax?
   1. £10,700
   2. £14,700
   3. £19,300
   4. £21,400

3. Max is a client of yours who has always invested any surplus income in the stockmarket. He now wishes to set up a pension arrangement where he can continue to do this. Which of the following would be suitable for him?
   1. A self-invested personal pension.
   2. A small self-administered scheme.
   3. A retirement annuity contract.
   4. A Stakeholder plan or personal pension.

4. Neil, a highly successful fund manager with an impressive track record, has joined a new firm. For the first few months of his employment he is expected to follow the ‘house style’ when it comes to investment management. What is this usually referred to as?
   1. Decentralised approach
   2. Top down approach
   3. Centralised approach
   4. Bottom up approach

5. If Peter’s employer buys Peter’s house because he is moving with his work, which of the following is true?
   1. Peter will be liable for capital gains tax on the sale
   2. Peter may be exempt from stamp duty land tax on the purchase of his next home
   3. The employer may be exempt from stamp duty land tax on the purchase
   4. The employer may be liable for corporation tax on the purchase

Answers

1. D – See R01 Study Text, Chp 5:2
   Grab our taster mock exam paper for CII R01. Click here to download.

2. B – See R03 Study Text, Chp 1
   Grab our taster mock exam paper for CII R03. Click here to download.

3. A – See R04 Study Text, Chp 5
   Grab our taster mock exam paper for CII R04. Click here to download.

4. C – See J10 Study Text, Chp 4
   Grab our taster mock exam paper for CII J10. Click here to download.

5. C – See R07 Study Text, Chp 4
   Grab our taster mock exam paper for CII R07. 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!)