Friday Five – 7 August – 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.
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.
- What does the ‘general prohibition’ rule within s.19 of the FSMA refer to?
- The fact that intermediaries are generally restricted to certain activities
- It is an offence for someone to carry out a regulated activity unless the person is authorised or exempt
- The FCA will seek to stop unauthorised individuals working within the financial services sector
- The powers granted to the FCA by the FMSA in relation to authorising individuals
- Why is credit risk an important factor to consider when looking at structured products?
- The credit worthiness of the issuer and any counterparties might affect the ability to repay at maturity.
- The client needs to consider the costs and fees associated with buying, holding, and selling the structured product.
- It is essential to determine the extent to which the investor will capture any upward movements in the market.
- The lack of an established secondary market means investors are unable to trade the products.
- Which of the following is most likely to be classed as a gift with reservation for IHT purposes by HMRC?
- Simon gives away his holiday home to his sister but continues to stay there paying full market rent.
- Elaine gives away her antique jewellery to her daughter but cleans it annually.
- Edmond gives his son his share portfolio but retains the right to dividends from it.
- Andrea gives her antique chairs to her brother but always sits on them when she visits.
- A PPF Section 179 valuation is to establish the:
- future value of a defined benefit scheme.
- level of defined benefit scheme assets and liabilities.
- number of deferred members of a defined benefit scheme.
- basis of funding guidance for a defined benefit recovery plan.
- Jack, who is married to Vera, has an endowment policy approaching maturity. The life office’s form of discharge can be signed by:
- Jack or his solicitor.
- Jack or Vera.
- Jack or anyone appointed by him.
- Jack only.
- B – See R01 Study Text, Chp 6
Grab our taster mock exam paper for CII R01. Click here to download.
- A – 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 4
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R04 Study Text, Chp 4
Grab our taster mock exam paper for CII R04 Click here to download.
- D – See R05 Study Text, Chp 4
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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