Friday Five – 14 June – 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

IMPORTANT!  These questions relate to examinable tax year 2018/19, examinable by the CII until 31 August 2019.  They do not relate to tax year 2019/20 which is only examinable by the CII from 1 September 2019.

1. When can the FCA logo be used on an authorised firm’s materials?
   1. On their website only
   2. They are not able to use this on any of their own material
   3. On their compliment slips, business cards and headed notepaper
   4. On business cards only

2. Which of the following would you expect to find within the title of a bond?
   1. Risk rating
   2. Coupon
   3. Interest payment dates
   4. The primary market the bond was issued from

3. Tim has recently started a job with a company car and is concerned about the tax position. Which of the following would be taken into account when calculating the taxable benefit?
   1. Any discount offered by the car dealer
   2. Provision of a car phone
   3. The car’s level of C0₂ emissions
   4. The age of the car

4. 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?
   1. She can apply for a short service refund of her personal contributions.
   2. As the scheme is not insured it is likely the nature of charges may change.
   3. She can convert preserved benefits into retirement benefits in essentially the same way as someone who has remained active.
   4. The preserved benefits will be based on employee contributions only.

5. After a full review an adviser has recommended to their client that they take out both term assurance cover and income protection insurance. The client only agrees to the term assurance cover. What is best practice as to how the adviser should proceed?
   1. Proceed with the term assurance but ask the client to confirm in writing that they did not want the income protection insurance
   2. Advise the client that they are unable to act for them anymore
   3. Refuse to proceed unless the client accepts the full recommendation
   4. Take no action and suggest that the matter is looked at in the next review meeting

Answers

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

2. B – See R02 Study Text, Chp 1:1
   Grab our taster mock exam paper for CII R02. Click here to download.

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

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

5. A – See R05 Study Text, Chp 10.1
   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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.