Friday Five – 19 January – 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

These questions relate to examinable tax year 2017/18, examinable until 31 August 2018.

1. How can an adviser establish a client’s attitude to risk?
   1. By asking the client the risk they are willing to take based on a scale of 1-10
   2. Through considering their existing investments
   3. By careful questioning to clarify understanding, knowledge and experience
   4. By understanding their attitude to any potential loss

2. What characteristic would you associate with fixed interest securities?
   1. Fixed redemption value
   2. High risk
   3. Variable rate of interest
   4. Negotiable long-terms

3. Rhiannon and Vera exchanged their houses with no cash payment as both houses were worth £250,000. What, if any, Stamp Duty Land Tax (SDLT) is payable?
   1. Neither is liable for SDLT as no money has changed hands
   2. Both would be liable for SDLT of £2,500 each
   3. Neither is liable for SDLT as it is not a commercial transaction
   4. They would have a joint liability to SDLT of £2,500

4. Evelyn wishes to make a complaint against her former employer in relation to incorrect administration of the occupational pension scheme. Who should she complain to?
   1. The Pensions Advisory Service.
   2. The Pensions Ombudsman.
   3. The Pensions Regulator.
   4. The Financial Ombudsman Service.

5. To qualify for a full single-tier State pension an individual must have a total of how many years’ NIC contributions or credits?
   1. 26
   2. 30
   3. 35
   4. 39

Answers

1. C – See R01 Study Text, Chp 8
   Grab our taster mock exam paper for CII R01. Click here to download.

2. A – See R02 Study Text, Chp 1:1
   Grab our taster mock exam paper for CII R02. Click here to download.

3. B – See R03 Study Text, Chp 7
   Grab our taster mock exam paper for CII R03. Click here to download.

4. B – See R04 Study Text, Chp 3
   Grab our taster mock exam paper for CII R04. Click here to download.

5. C – See R05 Study Text, Chp 3
   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!)