Friday Five – 20 October – 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. What are the differences between best execution and execution only sales? Tick all that apply.
   1. Execution only cannot happen with stocks and shares, but this is where best execution is most likely to happen
   2. With an execution-only transaction on a complex product, the firm is required to assess the appropriateness, but under best execution the firm is required to carry out the instruction
   3. Best execution does not apply to life or pension contracts. Although rare, execution only can apply to this field
   4. Best execution involves financial advice, but execution only is where the client has received no advice

2. The Public Sector Net Cash Requirement (PSNCR) is growing. What does this indicate?
   1. The economy is expanding
   2. Spending on unemployment is falling
   3. The economy is in recession
   4. Tax revenues are rising

3. Donna has made a PET of £350,000 to her nephew to help him start up his own business. She has now asked you to explain when she must register this gift with HMRC. You tell her that:
   1. she must inform HMRC within 28 days of the gift being made
   2. she must inform HMRC within 90 days of the gift being made
   3. her nephew must report it within 6 months of receiving the gift
   4. the gift does not have to be reported to HMRC

4. Which of the following types of care is funded solely by the State?
   1. Domiciliary care
   2. Sheltered accommodation
   3. Hospital care
   4. Residential care

5. Bridget is in receipt of a scheme pension from a defined benefit scheme. What death benefits may be included in respect of her scheme pension?
   1. A nominee’s scheme pension.
   2. A 10 year plus guarantee period.
   3. A scheme pension taxable as the beneficiary’s pension income.
   4. An annuity protection lump sum.

Answers

1. BC – 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 2
   Grab our taster mock exam paper for CII R02. Click here to download.

3. D – See R03 Study Text, Chp 4
   Grab our taster mock exam paper for CII R03. Click here to download.

4. C – See CF8 Study Text, Chp 1
   Grab our taster mock exam paper for CII CF8. Click here to download.

5. C – See R08 Study Text, Chp 4
   Grab our taster mock exam paper for CII R08. 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!)