Friday Five – 20 March – 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.
These questions relate to examinable tax year 2019/20, examinable until 31 August 2020.
- Within the FCA handbook, under ‘Threshold Conditions’ what is the rule around the location of offices?
- The registered office must be within the EEA.
- The head office and registered office must be within the EEA if the body.
- Corporate is constituted under the law of any part of the UK.
- A regulated firm must provide an address that they have held for 5 years.
- Your client, Anya, has been identified as having an adventurous risk profile and as such requires 75% of her portfolio in equities. You have decided to place half of this in large cap and half in small caps, what is this an example of?
- Strategic asset allocation
- Portfolio rebalancing
- Using a momentum-based investment strategy
- Tactical asset allocation
- Simon makes payments to his occupational pension scheme by deduction from his pay. What is this method known as?
- Net pay arrangement
- Relief at source
- Gross pay arrangement
- Relief by claim
- A contract-based pension scheme has which advantage over a trust-based pension scheme?
- Member contribution refunds for early leavers.
- Member contributions deducted from gross pay before tax and national contributions are applied.
- Less costly and time-consuming administration.
- Protection for the members, with their interest being safeguarded by Trustees.
- George, a key person of Romulus Ltd is currently off work after an accident and receiving an income from an income protection plan taken out by his employer. How are the benefits from the policy treated in relation to the company’s taxation?
- They are taxable only if they exceed £1,000 per month
- They are free from any liability for tax
- They are paid as a regular income and therefore taxable
- Any excess over £1,000 per month is taxable
- D – See R01 Study Text, Chp 5:2
Grab our taster mock exam paper for CII R01. Click here to download.
- D – See R02 Study Text, Chp 7
Grab our taster mock exam paper for CII R02. Click here to download.
- A – See R03 Study Text, Chp 1
Grab our taster mock exam paper for CII R03. Click here to download.
- C – See R04 Study Text, Chp 5
Grab our taster mock exam paper for CII R04 Click here to download.
- C – See R05 Study Text, Chp 10.2
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?
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