Friday Five – 15 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.
These questions relate to examinable tax year 2019/20, examinable until 31 August 2020.
- What is the maximum payout under the Financial Services Compensation Scheme for home finance mediation activities?
- 100% of £50,000
- 100% of £85,000
- 90% of the claim with no limit
- 100% of the claim with no limit
- What does reinvestment risk refer to?
- A potential penalty suffered on early encashment within a fixed rate notice period
- Fluctuating interest rates on variable savings accounts
- The inability to secure the same level of interest on maturing money from fixed-rate accounts
- The withdrawal of maturity investment options on monies in fixed-rate and variable-rate accounts
- Sylvia is hoping to make up a significant gap in her National Insurance record by paying Class 3 contributions. Which of the following must she be aware of?
- She must satisfy a residence condition.
- They do not increase entitlement to State pension.
- The contributions are collected weekly by demand.
- She can make class 3 contributions after she reaches State pension age.
- Which of the following rules regarding trivial commutation by a pension member are TRUE? Tick all that apply.
- Facility is not available until age 60.
- There is a 12-month commutation period.
- The commutation limit is £30,000 across all schemes.
- All of the resulting proceeds will be tax-free.
- Graeme has set up an accident, sickness and unemployment insurance policy. Which of the following statements CORRECTLY explains the payment of his premiums and the tax treatment of the benefits?
- There is tax relief available on the premiums but the benefits are taxable.
- There is no tax relief on the premiums and the benefits are tax-free.
- There is no tax relief on the premiums and the benefits are taxable.
- There is tax relief available on the premiums and the benefits are tax-free.
- B – See R01 Study Text, Chp 6
Grab our taster mock exam paper for CII R01. Click here to download.
- C – See R02 Study Text, Chp 1:1
Grab our taster mock exam paper for CII R02. Click here to download.
- A – See R03 Study Text, Chp 2
Grab our taster mock exam paper for CII R03. Click here to download.
- BC – See R04 Study Text, Chp 6:1
Grab our taster mock exam paper for CII R04. Click here to download.
- B – 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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