Friday Five – 17 July 2015 – 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.
The clock is ticking…
These questions relate to examinable tax year 2014/15, examinable until 31 August 2015.
- What was the main objective of the Financial Services and Markets Act 2000?
- To bring together the regulation of all sectors of the UK financial services industry under one regulatory system.
- To provide a distinction for different sectors of the financial services sector e.g. friendly societies and insurance companies
- To provide more stability for Self Regulating Organisations
- To provide guidance on the differences between regulated and non-regulated activities
- What is a limitation of using company investment ratios?
- In the event of a take-over bid ratios are unable to assist shareholders in assessing if assets are being given away too cheaply
- Ratios are company specific and so unable to provide a meaningful comparison with similar companies in the same sector
- They are unable to highlight any areas of a company that may require further scrutiny
- Accounting policies could be changed over time, thus making historical comparisons misleading
- Florence has recently become self-employed. She is aware that she will have to pay National Insurance contributions but wants to know how. You tell her that:
- Class 2 and class 4 are normally paid by monthly direct debit
- Class 2 is included with the income tax self-assessment and class 4 is normally paid by monthly direct debit
- Class 2 and class 4 are included with the income tax self-assessment
- Class 2 is normally paid by monthly direct debit and class 4 is included with the income tax self-assessment
- The minimum level of contribution for auto-enrolment purposes is:
- 13% of total earnings.
- 10% of qualifying earnings.
- 9% of total earnings.
- 8% of qualifying earnings.
- New rules on affordability came into effect from April 2014 in connection with lifetime mortgages. On whom will the onus to prove affordability fall?
- The intermediary
- The Benefits Agency
- The borrower
- The lender
- A – See R01 Study Text, Chp 4 Section A
Grab our taster mock exam paper for CII R01. Click here to download.
- D – See R02 Study Text, Chp 1:2 Section C5F
Grab out taster mock exam paper for CII R02. Click here to download.
- D – See R03 Study Text, Chp 2 Section B3
Grab our taster mock exam paper for CII R03. Click here to download.
- D – See R04 Study Text, Chp 1 Section A2
Grab our taster mock exam paper for CII R04. Click here to download.
- D – See ER1 Study Text, Chp 8 Section C1
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!)