Friday Five – 2 August – 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 2018/19, examinable by the CII until 31 August 2019.  They do not relate to tax year 2019/20 which is only examinable by the CII from 1 September 2019.

1. Which of the following would be regarded as an advantage of using a platform?
   1. Increased investment returns due to lower taxation
   2. The special offers and greatly reduced charges on offer
   3. The personal investment manager allocated to each investor
   4. The ability to aggregate holdings from several companies on the same system

2. Your client has indicated a return objective of ‘capital appreciation’. What characteristic is typical for this type of client?
   1. Risk averse
   2. Short-term
   3. Growth usually achieved from capital gains
   4. Income dependent

3. James incurs the following expenses on his rental property. Which of the following is an allowable expense against his rental income?
   1. Plumber’s charge to repair the shower
   2. Capital repayments on his mortgage payments
   3. An extension to the side of the house
   4. An upgraded kitchen and bathroom

4. Which of the following rules regarding trivial commutation by a pension member is TRUE? Tick all that apply.
   1. Facility is not available until age 60.
   2. There is a 12-month commutation period.
   3. The commutation limit is £30,000 across all schemes.
   4. All of the resulting proceeds will be tax-free.

5. In which of the following circumstances would the claimant on a life assurance policy normally be asked to sign a Statutory Declaration?
   1. When receiving the proceeds of a death claim
   2. When receiving the proceeds of a maturity claim
   3. When a policy document has been lost
   4. When a policy has been assigned

Answers

1. D – See R01 Study Text, Chp 2
   Grab our taster mock exam paper for CII R01. Click here to download.

2. C – See R02 Study Text, Chp 7
   Grab our taster mock exam paper for CII R02. Click here to download.

3. A – See R03 Study Text, Chp 9
   Grab our taster mock exam paper for CII R03. Click here to download.

4. BC – See R04 Study Text, Chp 6:1
   Grab our taster mock exam paper for CII R04. Click here to download.

5. 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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.