Friday Five – 27 May – 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

These questions relate to examinable tax year 2015/16, examinable until 31 August 2016.

1. Which of the following factors does the FCA take into account when conducting a risk assessment for a regulated firm?
   1. Geographical location and volume of transactions
   2. Proximity of competitors and the average age of the client base
   3. Average age of the client base and the type of products sold
   4. Volume of transactions, type of products sold and the type of customer

2. Alex has recently bought £5,400 worth of shares through an online platform provider. Which of the following is he liable for?
   1. Stamp duty of £30
   2. Stamp duty of £27
   3. Stamp duty reserve tax of £30
   4. Stamp duty reserve tax of £27

3. Which of the following are individual defined contribution schemes? Tick all that apply.
   1. SIPP.
   2. Group Stakeholder.
   3. Retirement annuity contract.
   4. Final salary scheme.
   5. SSAS.

4. A specialist direct property fund should hold at least what percentage of their assets in direct property?
   1. 20%
   2. 40%
   3. 60%
   4. 85%

5. Which of these types of risk are of most concern to bond investors?
   1. Exchange rate risk and market risk
   2. Liquidity risk and credit risk
   3. Credit risk and market risk
   4. Seniority risk and credit risk

Answers

1. D – See R01 Study Text, Chp 5:1, Section D
   Grab our taster mock exam paper for CII R01. Click here to download.

2. D – See R03 Study Text, Chp 7, Section B
   Grab our taster mock exam paper for CII R03. Click here to download.

3. ABC – See R04 Study Text, Chp 5, Section A1
   Grab our taster mock exam paper for CII R04. Click here to download.

4. C – See J10 Study Text, Chp 5, Section B
   Grab our taster mock exam paper for CII J10. Click here to download.

5. C – See J12 Study Text, Chp 2, Section G5
   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?

Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)