Friday Five – 24 July – 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 2019/20, examinable by the CII until 31 August 2020. They do not relate to tax year 2020/21 which is only examinable by the CII from 1 September 2020.
- Why does the FCA have rules regarding inducements under COBS 2?
- To ensure all offers or inducements are correctly recorded
- To ensure all intermediaries receive the same inducements
- To ensure intermediaries are not swayed by any incentives
- To ensure all life offices are aware what their competitors are offering
- Davina took a loan that charged interest at a rate of 15% a year on a monthly basis. What is the annual percentage rate (APR)?
- 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.
- State Pensions are funded on a ‘pay as you go’ basis. What does this mean?
- Revenue raised from income tax is used to pay for the State pensions of today.
- The current working population pay into their future National Employment Savings Trust (NEST) benefits.
- National insurance contributions of the current working population pay for State pensions of today.
- Revenue raised from all the forms of direct taxation is used to pay for State pensions of today.
- Arlene has taken out a unit-linked whole of life assurance policy on a standard cover basis. In which of the following situations would the premiums need to be increased?
- If her state of health changed
- If the unit prices fall by more than 1.0% over a six-month period
- Every ten years in line with her increased age
- If the underlying fund did not meet a pre-determined rate of return each year
- C – 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 4
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.
- C – See R04 Study Text, Chp 1
Grab our taster mock exam paper for CII R04 Click here to download.
- D – 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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