Friday Five – 30 October – 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. 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. Sam is a higher rate taxpayer requiring a tax efficient strategy for his £150,000 investment portfolio. What would offer the optimum tax efficiency?
   1. Cash deposit held directly
   2. Property held within an onshore bond
   3. Fixed interest held within a pension
   4. Equities held within an offshore bond

3. When considering the use of the transferable nil rate band for Inheritance Tax purposes, individuals should be aware that: Tick all that apply
   1. it must be claimed on the second death
   2. it will not be available if the surviving spouse has re-married
   3. it can only be increased on second death by a maximum of 100%
   4. it is only available if the first death occurred after 1986

4. Caroline held an own life with-profits life assurance policy. On her death, the amount payable on the claim will vary depending on which of the following factors?
   1. The amount of premiums paid over the term
   2. Her age
   3. The sum assured
   4. The exact date of death

5. Arnold, who was born in 1976, has a stakeholder pension plan. Assuming he remains in good health, the MINIMUM age that he will be able to draw his pension benefits will be:
   1. 55.
   2. 56.
   3. 57.
   4. 58.

Answers

1. C – See R01 Study Text, Chp 5:2 Section H2A
   Grab our taster mock exam paper for CII R01. Click here to download.

2. C – See R02 Study Text, Chp 7 Section A1H
   Grab our taster mock exam paper for CII R02. Click here to download.

3. AC – See R03 Study Text, Chp 4 Section B4F
   Grab our taster mock exam paper for CII R03. Click here to download.

4. D – See R05 Study Text, Chp 4 Section G2
   Grab our taster mock exam paper for CII R05. Click here to download.

5. C – See R08 Study Text, Chp 5 Section A
   Grab our taster mock exam paper for CII R08. 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!)