Friday Five – 24 July 2015 – 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.
1, 2, 3, Go…
These questions relate to examinable tax year 2014/15, examinable until 31 August 2015.
- What is the general rule requirement under capital adequacy?
- Depending on the size of the firm they must hold a prescribed level of capital
- Depending on the firm’s activities and assumed levels of risk a prescribed level of capital must be held
- All authorised firms must undertake detailed risk assessments to determine the level of capital they are required to hold
- All businesses must be able to meet their financial obligations as and when they fall due
- What is the least complex method of producing a portfolio based on asset allocation? (Assuming a formal risk profile is not being used)
- Adjusted historic
- Optimised portfolio
- Dominic sold his house to an interest in possession trust, with the purchase price outstanding. He then set up a separate trust for his children into which he placed the debt and continued to live in the house. What is the most likely charge that Dominic will face from HMRC?
- Income tax under the pre-owned assets tax (POAT)
- Capital gains tax under CGT legislation
- Stamp duty land tax on a reduced valuation of the debt
- Income tax under the gift with reservation rules
- To be a lifetime annuity HMRC requires that the annuity must be:
- Payable for the member’s life.
- Purchased from a list of HMRC approved annuity providers.
- Be paid at least once a year in advance.
- Capable of assignment and surrender in any circumstances.
- The interest rate that banks charge each other is known as the:
- London Inter-bank Offered Rate
- Inter-bank Swap Rate
- London Banks Swap Rate
- The London Banks Offered Rate
- D – See R01 Study Text, Chp 5.2 Section G1
Grab our taster mock exam paper for CII R01. Click here to download.
- C – See R02 Study Text, Chp 8 Section D
Grab out taster mock exam paper for CII R02. Click here to download.
- A – See R03 Study Text, Chp 4 Section D5
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R04 Study Text, Chp 6:1 Section C3C
Grab our taster mock exam paper for CII R04. Click here to download.
- A – See R07 Study Text, Chp 1 Section F
Grab our taster mock exam paper for CII R07. 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!)