Friday Five – 17 August – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:20 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.
IMPORTANT! These questions relate to examinable tax year 2017/18, examinable by the CII until 31 August 2018. They do not relate to tax year 2018/19 which is only examinable by the CII from 1 September 2018.
- Why has the FCA devised rules regarding client assets and client money?
- To minimise the risk of clients’ money being used by the firm without agreement
- To ensure the firm can identify the correct level of money for each client
- So the firm can show it has taken the appropriate level of risk with each asset
- To ensure that all cheques are banked within prescribed timescales
- Alison invested £10,000 for 3 years at 6%. At the end of this period the accumulated capital and interest was invested for a further 3 years at 5%. What will be the total sum she receives at the end of the 6-year period?
- Suzy has recently become employed following a period of self-employment and has discovered she has paid too much National Insurance through her employer’s payroll. What can she expect to happen to rectify this situation?
- She will automatically be credited with the overpayment as a lump sum at the end of the tax year
- Her National Insurance code will be adjusted immediately to reflect the overpayment
- Her Pay As You Earn code will be adjusted immediately to reflect the overpayment
- The over payment will be used to cover any underpayment that occurred whilst she was self-employed before any repayment is made to her
- When the administrators of a defined benefit scheme calculate an early leaver transfer value, the process of converting the lump sum value of pension benefits at retirement to a capital value in today’s terms is known as:
- In calculating the amount of premium to be paid for a life assurance policy, what is normally added to a loaded premium to arrive at the final premium payable?
- Initial percentage charge
- Underwriting fee
- Policy charge
- Mortality adjustment
- A – See R01 Study Text, Chp 5:2
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R02 Study Text, Chp 4
Grab our taster mock exam paper for CII R02. Click here to download.
- D – See R03 Study Text, Chp 2
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R04 Study Text, Chp 4
Grab our taster mock exam paper for CII R04. Click here to download.
- C – See R05 Study Text, Chp 4
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?
Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)I've just answered this week's Friday Five CII exam questions - can you? #Fri5 Click To Tweet