Friday Five – 29 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

IMPORTANT!  These questions relate to examinable tax year 2019/20, examinable by the CII until 31 August 2020.  They do not relate to tax year 2020/21 which is only examinable by the CII from 1 September 2020.

1. What is a ‘demand and needs’ statement?
   1. Documentation used to allow the client to prioritise their requirements
   2. The IFA’s requirements in terms of charges for product or time
   3. A statement detailing the client’s needs with the reasons for recommendations
   4. A list of requirements for new clients with the services the client can expect

2. When a portfolio is being arranged to meet more than one objective and a client has different attitudes to risk for each objective, this is known as:
   1. mental accounting.
   2. risk capacity.
   3. accounting planning.
   4. mental capacity.

3. Why might a company consider using the flat rate scheme for Value Added Tax (VAT)?
   1. The simplified structure should reduce their administration burden
   2. To allow them to reclaim VAT on business-related purchases
   3. For caterers, it allows them to reclaim VAT on standard rate purchases
   4. To qualify for the reduced VAT rate of 17.5%

4. Members with safeguarded benefits have a statutory right to request a CETV once in every:
   1. 3-month period.
   2. 6-month period.
   3. 12-month period.
   4. 18-month period.

5. Daphne took out a full Home Reversion Plan some years ago and now wants her daughter to move in with her as a full-time carer. Will this be possible under the terms of her plan?
   1. Never in any circumstances
   2. Yes, without restriction
   3. Only if her contract allows occupancy by people not party to the lease, and subject to their waiving rights of residence
   4. Only if the daughter has a Lasting Powers of Attorney in place

Answers

1. C – See R01 Study Text, Chp 5:2
   Grab our taster mock exam paper for CII R01. Click here to download.

2. A – See R02 Study Text, Chp 7
   Grab our taster mock exam paper for CII R02. Click here to download.

3. A – See R03 Study Text, Chp 8
   Grab our taster mock exam paper for CII R03. Click here to download.

4. C – See R04 Study Text, Chp 4
   Grab our taster mock exam paper for CII R04 Click here to download.

5. C – See ER1 Study Text, Chp 6
   Grab our taster mock exam paper for CII ER1. 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.