Friday Five – 7 June – 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

IMPORTANT!  These questions relate to examinable tax year 2018/19, examinable by the CII until 31 August 2019.  They do not relate to tax year 2019/20 which is only examinable by the CII from 1 September 2019.

1. Who did The Pensions Regulator take over from?
   1. The Financial Services Authority (FSA)
   2. HM Revenue and Customs (HMRC)
   3. The Occupational Pensions Registry (OPR)
   4. The Occupational Pensions Regulatory Authority (OPRA)

2. Alex is self-employed and has asked you to explain what is included in the balancing payment he has to make to HMRC in January of each year. You tell him the following is included:
   1. class 2 national insurance, the balance of income tax and class 4 national insurance and any capital gains tax
   2. class 4 national insurance and any capital gains tax
   3. class 2 national insurance and any outstanding income tax
   4. class 2 national insurance, the balance of income tax, class 1 national insurance and any capital gains tax

3. At A-day Freda opted for Primary Protection. She chose this route because:
   1. it was possible the Lifetime allowance could be breached in the future.
   2. her fund was in excess of £1.5 million.
   3. her fund was less than £1.5 million.
   4. she wanted assurance that a Lifetime Allowance charge would never apply.

4. The usual process with private medical insurance policies is that pre-existing conditions are excluded from cover for the first:
   1. 6 months.
   2. 1 year
   3. 2 years
   4. 5 years

5. You are discussing the various risks that investors face with your new clients Toby and Emma. Emma asks you to explain to her what you mean by the term liquidity risk. You tell her it is the risk of:
   1. the issuer of a security being unable to repay capital or interest
   2. a new government changing fiscal policy
   3. investors forced to sell a security at a price below its fair value
   4. the value of sterling appreciating against a foreign currency

Answers

1. D – See R01 Study Text, Chp 4
   Grab our taster mock exam paper for CII R01. Click here to download.

2. A – See R03 Study Text, Chp 6
   Grab our taster mock exam paper for CII R03. Click here to download.

3. B – See R04 Study Text, Chp 2:2
   Grab our taster mock exam paper for CII R04. Click here to download.

4. C – See R05 Study Text, Chp 9
   Grab our taster mock exam paper for CII R05. Click here to download.

5. C – 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?

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