Friday Five – 26 August – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:36 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.
IMPORTANT! These questions relate to examinable tax year 2015/16, examinable by the CII until 31 August 2016. They do not relate to tax year 2016/17 which is only examinable by the CII from 1 September 2016.
- Why would a client who has a history of small regular savings arouse suspicion if he proposed a substantial investment to his IFA?
- It might indicate that there had been missed opportunities within the client’s fact find
- It might affect the client’s existing estate planning recommendations
- The source of the money should be verified for money laundering purposes
- It might imbalance or jeopardise the client’s overall portfolio
- Brynwold Accounts at year end contain the following information:
Total assets £14,150
Current liabilities £2,120
Long-term debt £1,140
Ordinary shares in issue 5,750
Preference shares in issue 1,500What is Brynwold’s net asset value?
- Sarah is a basic rate taxpayer and in August 2013 took out a 10-year qualifying life policy as a savings plan. Regarding this policy, which of the following is true?
- If she is a UK resident she will receive full tax relief on the premiums
- For the policy to keep its qualifying status she cannot pay more than £36,000 in premiums over the term
- The premiums will be taken into account on maturity when a chargeable event is triggered
- The premiums must be paid monthly, annually or as a single premium
- It is possible that certain individuals may be entitled to a higher lifetime allowance. Who would NOT qualify for this?
- Non-UK residents.
- All members of Public Service Schemes.
- Those with benefits transferred in from a recognised overseas scheme.
- Pre A-day divorcees, in receipt of a pension credit.
- Sarah, aged 70, has no dependants and owns a house valued at £200,000 plus a small amount of other capital. She wishes to release equity from her house now so she can pursue her interests but is keen for her estate to be as simple to administer as possible after her death and in particular for her executors not to have the bother of selling her house – what type of plan will suit her requirements?
- Partial Home Reversion Plan
- Lifetime mortgage with interest roll up
- Full Home Reversion Plan
- Shared Appreciation Mortgage
- C – See R01 Study Text, Chp 6, Section E2A
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R02 Study Text, Chp 1:2, Section C5E
Grab our taster mock exam paper for CII R02. Click here to download.
- B – See R03 Study Text, Chp 10, Section F1
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R04 Study Text, Chp 2.1, Section C4
Grab our taster mock exam paper for CII R04. Click here to download.
- C – See ER1 Study Text, Chp 9, Section D2
Grab our taster mock exam paper for CII ER1. Click here to download.
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