Friday Five – 21 June – 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.
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.
- How do sale and rent back schemes work?
- The client sells their home then obtains an agreement to remain there under an assured short hold tenancy for a set period
- It is a scheme designed to match clients who can’t sell with potential new rental tenants
- The scheme allows clients to rent their houses and raise a mortgage to purchase a new home
- It is a scheme designed for purchasers with insufficient deposit, they can rent for a set period before purchasing
- Simon is a preference share holder with Hayden PLC. In the event of Hayden PLC going into liquidation where would he rank?
- Ahead of ordinary shareholders and other creditors
- After ordinary shareholders but ahead of other creditors
- Ahead of ordinary shareholders but after other creditors
- After ordinary shareholders and other creditors
- Which of the following statements regarding Stamp Duty on documents transferring share ownership is true? Tick all that apply.
- The rate is 0.5% of the purchase price
- Stamp duty is paid by the seller
- Stamp duty is paid by the purchaser
- The purchaser is responsible for paying the stamp duty to HMRC
- Stamp duty paid can be taken into account for CGT calculations
- Which of the following is a minimum standard on a recently established Stakeholder pension?
- The maximum initial charge is 1.5%.
- The scheme must accept transfer payments from another pension source.
- Transfer charges, out of the scheme, must not be more than 10%.
- The minimum permitted contribution cannot be higher than £25 net.
- Which of the following statements CORRECTLY defines the pure or net premium calculated for life assurance policies by actuaries from mortality tables?
- The premium required just to meet the claims of those who die during the year insurance
- The actual premium that will be paid by the policyholder
- The premium for all policyholders in good health
- The premium required to meet claims each year including an assumed interest rate of 5%
- A – See R01 Study Text, Chp 5:2
Grab our taster mock exam paper for CII R01. Click here to download.
- C – See R02 Study Text, Chp 1:2
Grab our taster mock exam paper for CII R02. Click here to download.
- ACE – See R03 Study Text, Chp 7
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R04 Study Text, Chp 5
Grab our taster mock exam paper for CII R04. Click here to download.
- A – 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?
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