Friday Five – 7 July – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:30 am
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
IMPORTANT! These questions relate to examinable tax year 2016/17, examinable by the CII until 31 August 2017. They do not relate to tax year 2017/18 which is only examinable by the CII from 1 September 2017.
- What are the differences between best execution and execution only sales? Tick all that apply.
- Execution only cannot happen with stocks and shares, but this is where best execution is most likely to happen
- With an execution-only transaction on a complex product, the firm is required to assess the appropriateness, but under best execution the firm is required to carry out the instruction
- Best execution does not apply to life or pension contracts. Although rare, execution only can apply to this field
- Best execution involves financial advice, but execution only is where the client has received no advice
- Phil is buying a residential property for £275,000 and has agreed with the seller that this includes £5,000 for carpets and curtains. How much Stamp Duty Land Tax is payable by Phil?
- £3,500
- £3,750
- £8,100
- £8,250
- Caroline died aged 66 with uncrystallised funds valued at £1,600,000. What is the lifetime allowance charge (if any) if benefits over the lifetime allowance are paid as a dependant’s lifetime annuity within two years of her death?
- No charge.
- £192,500.
- £150,000.
- £87,500.
- Who from the following would be ineligible for a Mortgage Payment Protection Insurance policy?
- Kathleen, aged 32, with her main residence on the Isle of Man
- Norma, aged 66, with her main residence in the England
- Daniel aged 62, with his main residence in the Channel Islands
- Peter, aged 42, with his main residence in the Scotland
- Which of the following clients is/are likely to be hardest hit by inflation?
- Geraldine, age 55, who has a significant proportion of her portfolio invested in commercial property
- Arthur, age 22, whose portfolio contains a number of hedge funds
- Jack and Jan, a high net worth couple, who have a significant proportion of their portfolio in emerging markets
- Ella and Tim, an elderly couple, whose wealth is mostly held in cash and fixed interest investments
Answers
- BC – See R01 Study Text, Chp 7
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R03 Study Text, Chp 7
Grab our taster mock exam paper for CII R03. Click here to download.
- C – See R04 Study Text, Chp 2.2
Grab our taster mock exam paper for CII R04. Click here to download.
- B – See R05 Study Text, Chp 9
Grab our taster mock exam paper for CII R05. Click here to download.
- D – See J10 Study Text, Chp 7
Grab our taster mock exam paper for CII J10. 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!)
I've just answered this week's Friday Five CII exam questions - can you? #Fri5 Share on X