Friday Five – 23 February – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:24 am
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 2017/18, examinable until 31 August 2018.
- What is the FCA Complaints Commissioner’s role?
- To determine whether to make any ex-gratia payments to FCA claimants
- To investigate suspicious activity by regulated firms
- To investigate complaints made against the FCA
- To listen to appeals against the FCA disciplinary decisions
- What is the underlying assumption central to Modern Portfolio Theory (MPT)?
- That investors are irrational
- Investors are risk averse and would choose a less risky investment if offered 2 investments with the same return
- That investors have persistent biases which are motivated by psychological factors
- That security prices fully reflect all available information and prices rapidly adjust to new information
- A company pays a basic rate taxpaying director a dividend. What is the tax liability for both the company and the director?
- There is no tax implication for the company and the director receives the income with a 10% tax credit which satisfies his liability
- The company is liable to corporation tax on the dividend payment and the director is liable to income tax at 7.5% if it is in excess of their dividend allowance
- There is no tax implication for the company, the director receives the income gross and is liable to tax at 7.5% if it is in excess of their dividend allowance
- The company claims the dividend payment as an expense and the dividend is taxed at 7.5%
- Before a complaint can be sent to the Financial Ombudsman Service, the provider must first investigate and respond to the complainant within how many weeks?
- Each of the following statements regarding a hybrid lifetime mortgage is true with the exception of which one?
- The borrower must ensure that the new arrangement is suitable for their needs
- There is no need to check affordability, as repayments will no longer be made
- There must be sufficient equity remaining in the property
- Roll up will start from the date the mortgage is converted
- C – See R01 Study Text, Chp 5:2
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R02 Study Text, Chp 3
Grab our taster mock exam paper for CII R02. Click here to download.
- C – See R03 Study Text, Chp 8
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R04 Study Text, Chp 3
Grab our taster mock exam paper for CII R04. Click here to download.
- A – See ER1 Study Text, Chp 5
Grab our taster mock exam paper for CII ER1. 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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