Friday Five – 8 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 2018/19, examinable until 31 August 2019.

1. If a solicitor assisted a client with a claim on a life policy would FCA authorisation be required?
   1. Yes, as this type of work is classed as a regulated activity
   2. No, as long as it was a one-off activity
   3. Yes, as the client will have received advice
   4. No, this is classed as incidental to their professional services

2. Thomas is an additional rate taxpayer and makes a gift aid payment of £5,000 to a charity. How much can the charity reclaim from HMRC?
   1. £500
   2. £1,000
   3. £1,250
   4. £2,250

3. Under his capped drawdown arrangement Terry is now considering the purchase of a short-term annuity. He should be aware that: Tick all that apply.
   1. they will only be available from the provider of his capped drawdown fund.
   2. the annuity must be paid at least annually.
   3. the annuity cannot have a term longer than five years.
   4. the annuity can be guaranteed during its term.

4. Irene has taken out an income protection policy. If she becomes incapacitated and unable to work, when will her benefits be paid?
   1. After a deferred period chosen by her
   2. From day one of her claim
   3. After a deferred period stated by the insurer
   4. If she is incapacitated for a continuous period of 3 months or more

5. With regard to the use of tactical allocation models in managing investment portfolios, which of the following statements can be said to be true?
   1. They are more often applied by advisory managers than discretionary fund managers
   2. Where markets are buoyant, this could involve adding exposure to emerging markets
   3. If the investment manager’s view is bullish, they could buy put options or go short stock futures
   4. If the investment manager’s view is bearish, this could involve more exposure to longer duration bonds

Answers

1. D – See R01 Study Text, Chp 6
   Grab our taster mock exam paper for CII R01. Click here to download.

2. C – See R03 Study Text, Chp 1
   Grab our taster mock exam paper for CII R03. Click here to download.

3. CD – See R04 Study Text, Chp 6:2
   Grab our taster mock exam paper for CII R04. Click here to download.

4. A – See R05 Study Text, Chp 6
   Grab our taster mock exam paper for CII R05. Click here to download.

5. B – See J10 Study Text, Chp 3
   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.