Friday Five – 9 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 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.

1. What is an approved person?
   1. Someone who carries out a controlled function
   2. Someone who is authorised by the FCA
   3. Someone holding a position in senior management
   4. The principal of a firm who ultimately bears responsibility for compliance

2. Johnny recently sold an antique vase making a net chargeable gain of £10,000 after deducting the annual exempt amount and allowable losses. What rate of tax will he be charged if his total taxable income is £20,000?
   1. 28%
   2. 20%
   3. 18%
   4. 10%

3. Which of the following is an exception to the requirement to provide a Statutory Money Purchase Illustration?
   1. Personal Pensions.
   2. Stakeholder Pensions.
   3. SIPPs.
   4. Retirement Annuity Contracts.

4. In calculating the amount of premium to be paid for a life assurance policy, what is normally added to a loaded premium to arrive at the final premium payable?
   1. Initial percentage charge
   2. Underwriting fee
   3. Policy charge
   4. Mortality adjustment

5. Under the Investment Association’s (IA’s) fund sector rules, a specialist direct property fund must hold at least what percentage of their assets in direct property?
   1. 20%
   2. 40%
   3. 60%
   4. 85%

Answers

1. A – See R01 Study Text, Chp 9
   Grab our taster mock exam paper for CII R01. Click here to download.

2. D – See R03 Study Text, Chp 3
   Grab our taster mock exam paper for CII R03. Click here to download.

3. D – See R04 Study Text, Chp 5
   Grab our taster mock exam paper for CII R04. Click here to download.

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

5. C – See J10 Study Text, Chp 5
   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!)