Friday Five – 3 January – 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 2019/20, examinable until 31 August 2020.
- Which of the following IFA firms would NOT require its annual accounts to be audited?
- An unincorporated firm that doesn’t have permission to hold client assets
- A sole trader who has formal permission to hold client assets
- A limited liability company who undertakes activity within the scope of the Insurance Distribution Directive
- A partnership who operates a client bank account specifically to hold client monies with formal permission to do so
- Dan runs a hedge fund and relies on arbitrage to produce his returns. This suggests that he is using which of the following strategies?
- Event driven
- Relative value
- Tactical trading
- Shaun has recently sold his buy-to-let house for £150,000 having paid £93,000 for it 15 years ago. He has incurred the following expenses; estate agent fees of £1,500; legal fees of £800 and £45 for a plumber to repair the shower prior to sale. What is his gain for capital gains tax
- Mary dies at age 56 before crystallisation of her only pension fund. At the date of death, her SSAS value was £750,000 and she also had £1.03m of pension term assurance. If her dependants took all benefits in the form of a lump sum benefit, the lifetime allowance charge (if any) would be:
- In which of the following situations can policy splitting on divorce be beneficial?
- Where one of the divorcees is significantly older than the other
- When the health of one has deteriorated since the policy was taken out
- Where the income of one of the divorcees is significantly lower than the others
- When the terms of a new policy would be more beneficial than the existing policy
- A – See R01 Study Text, Chp 4
Grab our taster mock exam paper for CII R01. Click here to download.
- B – See R02 Study Text, Chp 6:2
Grab our taster mock exam paper for CII R02. Click here to download.
- C – See R03 Study Text, Chp 3
Grab our taster mock exam paper for CII R03. Click here to download.
- D – See R04 Study Text, 2:2
Grab our taster mock exam paper for CII R04. Click here to download.
- B – See R05 Study Text, Chp 2
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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