Friday Five – 28 August 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.
These questions relate to examinable tax year 2014/15, examinable until 31 August 2015.
- 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
- Cyril had pension benefits already in payment at ‘A’ day. As he has further benefits to crystallise, the earlier pension will be valued by a factor of:
- A property was bought for £117,000 and has tenants paying £525 per month, with general management costs of 25% and £1,100 worth of purchase costs. What is the rental yield?
- William took out a Long Term Care bond some years ago but investment performance has been poor and the insurer has recommended a further contribution, which William cannot afford to do. What is the likely effect on the plan?
- The insurer will look to cancel the Long Term Care cover and encash the bond
- It will continue but may not provide for the full cost of care fees if William makes a claim
- Long Term Care cover will cease but the bond will continue as an investment only
- It will continue but will only pay out in the case of a residential care requirement and not for domiciliary care
- Which of the following benefit is either wholly or largely exempt from income tax for an employee?
- Accommodation where the employee pays a low rent
- A company car that runs on diesel
- Premiums paid for Private Medical Insurance
- An award of £1,000 for 25 years’ service
- C – See R01 Study Text, Chp 5.2 Section H1B
Grab our taster mock exam paper for CII R01. Click here to download.
- C – See R04 Study Text, Chp 2.1 Section C3
Grab out taster mock exam paper for CII R04. Click here to download.
- C – See R02 Study Text, Chp 1.2 Section D2
Grab our taster mock exam paper for CII R02. Click here to download.
- B – See CF8 Study Text, Chp 5 Section B4
Grab our taster mock exam paper for CII CF8. Click here to download.
- D – See R03 Study Text, Chp 1 Section G7
Grab our taster mock exam paper for CII R03. 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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