Friday Five – 8 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.
IMPORTANT! These questions relate to examinable tax year 2017/18, examinable by the CII until 31 August 2018. They do not relate to tax year 2018/19 which is only examinable by the CII from 1 September 2018.
- Why would a client who has a history of small regular savings arouse suspicion if he proposed a substantial investment to his IFA?
- It might indicate that there had been missed opportunities within the client’s fact find
- It might affect the client’s existing estate planning recommendations
- It is inconsistent with the IFA’s previous knowledge and experience of the client
- It might imbalance or jeopardise the client’s overall portfolio
- Why is the market price for “A” ordinary shares usually lower than ordinary shares?
- They rank behind ordinary shareholders in the event of liquidation
- They do not qualify for dividends until the dividends on ordinary shares have reached a pre-determined level
- Holders of ‘A’ shares are entitled to a smaller proportion of profits than ordinary shareholders
- Holders of ‘A’ shares receive the same dividend but have restricted or no voting rights
- As a financial adviser, which of the following individuals would you advise if possible to pay Class 3 National Insurance Contributions? Tick all that apply.
- Jane, who took early retirement at 50 having established 32 years of NICs
- Peter, aged 66, with an inadequate NIC record to qualify for a full State pension
- Hayley, who is moving to Portugal for a year, after selling the UK-based business she owned for 10 years
- Mary, who has an incomplete NIC record after taking the last 2 years off to study
- In assessing her eligibility for State Pension Credit, Molly has declared savings of £14,000. This means that, on this information alone, she will:
- be unable to claim any Pension Credit.
- be assumed to have, from own sources, a weekly income of £8.
- be assumed to have, from own sources. a weekly income of £14
- be assumed to have, from own sources, a weekly income of £28.
- Which of the following should be disregarded by a Local Authority when assessing an individual’s capital and income?
- The fund value of a pension fund
- A pension commencement lump sum taken from a pension fund
- Deferred income from pension benefits
- An uncrystallised funds pension lump sum
- C – See R01 Study Text, Chp 6
Grab our taster mock exam paper for CII R01. Click here to download.
- D – See R02 Study Text, Chp 1:2
Grab our taster mock exam paper for CII R02. Click here to download.
- ACD – See R03 Study Text, Chp 2
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R04 Study Text, Chp 7
Grab our taster mock exam paper for CII R04. Click here to download.
- A – See CF8 Study Text, Chp 3
Grab our taster mock exam paper for CII CF8. 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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