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Friday Five – 7 February – 5 Questions in 5 Minutes

Friday Five – 7 February – 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 2019/20, examinable until 31 August 2020.

  1. Which of the following firms, authorised prior to the FSMA, would have been automatically re-authorised by the FSA and since recognised by the FCA and PRA? Tick all that apply.
    1. Firms authorised under the Banking Act 1987
    2. A solicitor’s firm authorised by their Recognised Professional Body (RPB) under the Financial Services Act 1986
    3. Firms authorised under the Insurance Companies Act 1982
    4. Firms authorised under a Self-Regulating Organisation (SRO) under the Financial Services Act 1986
  1. Which of the following is one of the main types of security traded in the money markets?
    1. Traded endowments
    2. Exchanged traded funds
    3. Derivatives
    4. Commercial bills
  1. Donna has made a PET of £350,000 to her nephew to help him start up his own business. She has now asked you to explain when she must register this gift with HMRC. You tell her that:
    1. she must inform HMRC within 28 days of the gift being made
    2. she must inform HMRC within 90 days of the gift being made
    3. her nephew must report it within 6 months of receiving the gift
    4. the gift does not have to be reported to HMRC
  1. David is a pre-87 member of his occupational defined benefit scheme. He had 20 years’ service at 05/04/06, which gave him an entitlement to a tax-free cash sum in excess of 25%. He has not applied to HMRC for transitional protection. David will lose his scheme-specific lump sum protection if he:
    1. takes his PCLS and leaves the remaining funds uncrystallised
    2. takes his PCLS and designates the funds into FAD
    3. transfers to a deferred annuity because of scheme wind-up
    4. transfers his benefits as part of a bulk transfer
  1. Peter, a self-employed plumber, has taken out a loan of £40,000 to buy new equipment for his business. Why might he want any associated insurance policy to repay it on his death to have a sum assured greater than the amount of the loan?
    1. To ensure that it keeps pace with inflation
    2. To take account of changes in interest rates affecting the amount to be repaid
    3. There may be early redemption penalties involved
    4. To provide funds for his dependants

 

Answers

  1. ACD – See R01 Study Text, Chp 6
    Grab our taster mock exam paper for CII R01. Click here to download.
  1. D – See R02 Study Text, Chp 1:1
    Grab our taster mock exam paper for CII R02. Click here to download.
  1. D – See R03 Study Text, Chp 4
    Grab our taster mock exam paper for CII R03. Click here to download.
  1. A – See R04 Study Text, Chp 2.2
    Grab our taster mock exam paper for CII R04 Click here to download.
  1. C – See R05 Study Text, Chp 10.2
    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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.

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