Friday Five – 25 September – 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

IMPORTANT! These questions relate to examinable tax year 2020/21, examinable by the CII until 31 August 2021.

1. What is the maximum fine The Pensions Regulator can impose on a company for breaching the law?
   1. £500,000
   2. £100,000
   3. £50,000
   4. £5,000

2. Maureen wants to invest tax-efficiently for her daughter born in June 2020. Which of the following products would best enable her to do this?
   1. A Personal Pension and Junior ISA
   2. A Junior ISA and a Child Trust Fund
   3. A Child Trust Fund and a Personal Pension
   4. A Junior ISA and a Friendly Society Plan

3. Ricky is approaching retirement and has decided to opt for flexi-access drawdown rather than buying an annuity. His adviser should make him aware that he will suffer mortality:
   1. drag.
   2. gain.
   3. cross-subsidy.
   4. factor.

4. Jennifer, who works in the hotel and catering industry as a housekeeper, is applying for an income protection policy. In which occupational class will she be placed for the calculation of her premium rate?
   1. Class 1
   2. Class 2
   3. Class 3
   4. Class 4

5. If a convertible preference share is priced at 90p and can be converted into the company’s ordinary shares at a conversion ratio of 5:1, what is the conversion premium? The ordinary shares are priced at 415p.
   1. 8.43%
   2. 13.25%
   3. 21.69%
   4. 33.23%

Answers

1. C – See R01 Study Text, Chp 4
   Grab our taster mock exam paper for CII R01. Click here to download.

2. A – See R03 Study Text, Chp 11
   Grab our taster mock exam paper for CII R03. Click here to download.

3. A – See R04 Study Text, Chp 8
   Grab our taster mock exam paper for CII R04. Click here to download.

4. B – See R05 Study Text, Chp 6
   Grab our taster mock exam paper for CII R05 Click here to download.

5. A – See J12 Study Text, Chp 1
   Grab our taster mock exam paper for CII J12. 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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.