Friday Five – 18 November – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:34 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.
These questions relate to examinable tax year 2016/17, examinable until 31 August 2017.
- Which of the following can the FCA impose if an insurance company’s financial strength falls below the minimum standard?
- They would stop them accepting new business
- They could amend their capital adequacy tests
- They could request they re-perform their capital adequacy test
- They could guarantee the life office’s financial strength
- Which of the following is used generically to describe ethical investment?
- Globally responsible investment
- Negative screening
- Socially responsible investment
- Environmental lending
- John and Sue are both aged 85 and have been married for 65 years. John is concerned that he will lose some of their married couple’s allowance as his pension income will exceed £27,700 this tax year. What measures could John take to ensure this doesn’t happen? Tick all that apply
- Use the gift out of normal expenditure rule
- Transfer income producing assets to Sue
- Make a gross pension contribution
- Switch investments from income to growth funds
- Which of the following pension contributions would be treated as an “authorised” payment?
- Steven receives his pension commencement lump sum of £20,000 and immediately pays £10,000 into his pension to receive tax relief.
- Hayley is currently paying £2,000 per month into her pension but on receipt of £15,000 from her pension commencement lump sum decides to pay in a single contribution of £5,000.
- Paula received £28,000 from her pension commencement lump sum in June and in December she received an unexpected windfall and so decided to contribute £20,000 into her pension as a lump sum.
- Elizabeth received £40,000 from her pension commencement lump sum in August and within 3 months decided to recycle half of this back into her pension.
- Aaron lives in a large house converted into flats. He wishes to buy the freehold. Which of the following will prevent him from doing this?
- The original lease is for 99 years
- Aaron has lived in his flat for 1 year
- Half of the tenants have agreed to buy the freehold
- All of the qualifying tenants have agreed to buy the freehold
- A – See R01 Study Text, Chp 5:1
Grab our taster mock exam paper for CII R01. Click here to download.
- C – See R02 Study Text, Chp 7
Grab our taster mock exam paper for CII R02. Click here to download.
- BD – See R03 Study Text, Chp 11
Grab our taster mock exam paper for CII R03. Click here to download.
- C – See R04 Study Text, Chp 2.1
Grab our taster mock exam paper for CII R04. Click here to download.
- B – See R07 Study Text, Chp 5
Grab our taster mock exam paper for CII R07. 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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