Friday Five – 18 May – 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 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.

1. What are the main provisions under the E-commerce directive rules? Tick all that apply.
   1. FCA status disclosure and Financial Services Register number must be given
   2. Orders have to be accepted
   3. Customers must be told clearly how to place an order
   4. Orders have to be acknowledged without delay

2. The great bear market of 1973-1974 would be regarded as what type of risk?
   1. Beta risk
   2. Non-systematic risk
   3. Systematic risk
   4. Specific risk

3. How often do registered Value Added Tax (VAT) traders normally have to pay any VAT due to HMRC?
   1. At the date they supply taxable goods
   2. Monthly
   3. Quarterly
   4. Annually

4. When considering pension sharing on divorce, which of the following cannot be shared?
   1. Additional Voluntary Contributions
   2. SERPS and S2P
   3. Public sector schemes
   4. Single-tier State Pension

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. ACD – See R01 Study Text, Chp 7
   Grab our taster mock exam paper for CII R01. Click here to download.

2. C – See R02 Study Text, Chp 5
   Grab our taster mock exam paper for CII R02. Click here to download.

3. C – See R03 Study Text, Chp 8
   Grab our taster mock exam paper for CII R03. Click here to download.

4. D – See R04 Study Text, Chp 3
   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?

Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)