Friday Five – 14 July – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:30 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.
Questions
IMPORTANT! These questions relate to examinable tax year 2016/17, examinable by the CII until 31 August 2017. They do not relate to tax year 2017/18 which is only examinable by the CII from 1 September 2017.
- Whose professional indemnity insurance requirements are set out in MIPRU?
- Banks
- Investment businesses
- Building societies
- Home finance providers and intermediaries
- Which of the following is considered under Modern Portfolio Theory when creating the optimum portfolio?
- Correlation of asset classes
- Fund management styles
- Charges
- Economic conditions
- Julie bought a ring for £1,000 over 10 years ago, and has recently sold it for £8,000. What is the chargeable gain for Capital Gains Tax purposes?
- £8,000
- £7,000
- £3,333
- £2,000
- Paula, age 56, has just left her employer’s occupational money purchase scheme after three years’ pensionable service as her employment has been terminated, what does this mean for the benefits accrued in the fund to date?
- She can apply for a short service refund of her personal contributions.
- As the scheme is not insured it is likely the nature of charges may change.
- She can convert preserved benefits into retirement benefits in essentially the same way as someone who has remained active.
- The preserved benefits will be based on employee contributions only.
- Olivia has taken out a mortgage secured against her property. It has been set up so she does not need to make any capital repayments and when the property is eventually sold, the loan will be repaid together with a payment based on the percentage increase in the property value. What type of plan does Olivia have?
- Equity Share Mortgage
- Home Reversion Plan
- Shared Appreciation Mortgage
- Home Income Plan
Answers
- D – See R01 Study Text, Chp 5:2
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R02 Study Text, Chp 8
Grab our taster mock exam paper for CII R02. Click here to download.
- C – See R03 Study Text, Chp 3
Grab our taster mock exam paper for CII R03. Click here to download.
- C – See R04 Study Text, Chp 5
Grab our taster mock exam paper for CII R04. Click here to download.
- C – See ER1 Study Text, Chp 5
Grab our taster mock exam paper for CII ER1. 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!)
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