Friday Five – 28 June – 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 2018/19, examinable by the CII until 31 August 2019. They do not relate to tax year 2019/20 which is only examinable by the CII from 1 September 2019.
- What were the primary objectives of the Retail Distribution Review (RDR)?
- Improving consumer financial services knowledge by running nationwide courses
- Highlighting the differences between Appointed Representatives and directly authorised intermediaries
- Widening the authorisation process to allow more advisers into the market
- Removing commission bias, improving professional standards and making consumer advice routes clearer
- Neil has the following investments:
From this information, we can say that:
Share Beta A 1.0 B 1.2 C 1.5 D 1.8
- Investment D is more volatile than the others.
- Investment D will give the best returns.
- Investment B and C are also known as defensive securities.
- Investment A is also known as an aggressive security.
- Caroline is one of 4 trustees for the Elliott family trust. She lives in Spain although all the other trustees are UK resident. What is her liability regarding any tax liability arising from the trust?
- As she is not the nominated person to deal with HMRC, she has no accountability.
- Caroline would be liable for one quarter of any trust liabilities.
- Caroline is jointly liable for the full amount of any tax that is due.
- As Caroline lives in Spain, the trust is not liable to UK tax.
- GAD rates used for capped drawdown are based on which of the following underlying annuity assumptions? Tick all that apply.
- Level in payment
- Monthly in advance
- 10-year guarantee
- Single life
- Sharon has made a request to make her life assurance policy ‘paid up’. In relation to the sum assured, which of the following statements is TRUE?
- It stays at the current level for one year and then is reduced.
- It stays the same.
- It is reduced.
- It can be increased for a fee at the time of making it paid up.
- D – See R01 Study Text, Chp 7
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R02 Study Text, Chp 3
Grab our taster mock exam paper for CII R02. Click here to download.
- C – See R03 Study Text, Chp 1
Grab our taster mock exam paper for CII R03. Click here to download.
- AD – See R04 Study Text, Chp 6:2
Grab our taster mock exam paper for CII R04. Click here to download.
- C – 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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