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.
- 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:
- tied financial advice
- a discretionary service
- an advisory service
- an execution only service
- Why might an investor want an investment gain to be realised under an OEIC instead of via an onshore bond? Tick all that apply
- If the gain is as a result of a fund switch
- To utilise their annual CGT exempt amount
- Tax rates would be lower, especially for higher and additional rate taxpayers
- To be able to reclaim the 10% tax credit on dividends
- It is easier to offset losses against gains
- 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
- She must apply to NICO for a certificate of exemption from class 2 NICs
- Advise NICO that her earnings are expected to be below the small profits threshold
- She must decide for herself whether to pay Class 2 contributions assuming her actual earnings stay below £5,965
- Pay the Class 4 weekly flat rate of £2.80
- She will not be required to pay Class 4 contributions
- The Pension Protection Fund (PPF) was introduced in the 2004 Pension Act to provide default protection for whom?
- Employees who are members of defined benefit schemes.
- Pensioners retiring on an inadequate level of benefits.
- Anyone who has elected to opt out of earnings related state benefits.
- Anyone who has been mis-sold a pension product.
- Who has responsibility for the regulation of second charge mortgages?
- The Consumer Credit Association
- The Financial Conduct Authority
- They are not regulated
- The Association of British Insurers
- B – See R01 Study Text, Chp 1, Section B2C
Grab our taster mock exam paper for CII R01. Click here to download.
- BCE – See R02 Study Text, Chp 8, Section G3
Grab our taster mock exam paper for CII R02. Click here to download.
- CE – See R03 Study Text, Chp 2 Section B1A
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R04 Study Text, Chp 1 Section A1
Grab our taster mock exam paper for CII R04. Click here to download.
- 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!)