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Friday Five – 4 March – 5 Questions in 5 Minutes

Friday Five – 4 March – 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 2015/16, examinable until 31 August 2016.

  1. Where an investment manager establishes and manages a portfolio of assets taking all the decisions to meet the investor’s objectives, this is known as:
    1. tied financial advice
    2. a discretionary service
    3. an advisory service
    4. an execution only service
  1. Why might an investor want an investment gain to be realised under an OEIC instead of via an onshore bond? Tick all that apply
    1. If the gain is as a result of a fund switch
    2. To utilise their annual CGT exempt amount
    3. Tax rates would be lower, especially for higher and additional rate taxpayers
    4. To be able to reclaim the 10% tax credit on dividends
    5. It is easier to offset losses against gains
  1. Hannah has just started a hairdressing business with anticipated earnings for the first year of £5,000. What is her position in relation to national insurance contributions? Tick all that apply
    1. She must apply to NICO for a certificate of exemption from class 2 NICs
    2. Advise NICO that her earnings are expected to be below the small profits threshold
    3. She must decide for herself whether to pay Class 2 contributions assuming her actual earnings stay below £5,965
    4. Pay the Class 4 weekly flat rate of £2.80
    5. She will not be required to pay Class 4 contributions
  1. The Pension Protection Fund (PPF) was introduced in the 2004 Pension Act to provide default protection for whom?
    1. Employees who are members of defined benefit schemes.
    2. Pensioners retiring on an inadequate level of benefits.
    3. Anyone who has elected to opt out of earnings related state benefits.
    4. Anyone who has been mis-sold a pension product.
  1. Who has responsibility for the regulation of second charge mortgages?
    1. The Consumer Credit Association
    2. The Financial Conduct Authority
    3. They are not regulated
    4. The Association of British Insurers



  1. B – See R01 Study Text, Chp 1, Section B2C
    Grab our taster mock exam paper for CII R01. Click here to download.


  1. BCE – See R02 Study Text, Chp 8, Section G3
    Grab our taster mock exam paper for CII R02. Click here to download.


  1. CE – See R03 Study Text, Chp 2 Section B1A
    Grab our taster mock exam paper for CII R03. Click here to download.


  1. A – See R04 Study Text, Chp 1 Section A1
    Grab our taster mock exam paper for CII R04. Click here to download.


  1. B – See R07 Study Text, Chp 6 Section D
    Grab our taster mock exam paper for CII R07. 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!)


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