Friday Five – 9 September – 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 2016/17, examinable until 31 August 2017.

1. Which of the following is one of the FCA’s regulatory principles?
   1. Consumer protection
   2. Efficiency and economy
   3. Promoting competition
   4. Protecting financial markets

2. Peter is an ordinary shareholder in Abacus PLC. What rights would he normally have as a shareholder in respect of the company?
   1. Entitled to all of the profits after tax and before preference share dividends have been paid
   2. Entitled to attend and vote at general company meetings
   3. The right to be informed regarding the appointment of directors, although unable to elect controlling directors
   4. Entitled to residual value of assets after repayment of debts in event of liquidation

3. Which of the following can be an effective strategy for reducing a company director’s liability to national insurance contributions?
   1. Sacrificing salary to increase the amount the company pays to company pension schemes
   2. Giving up their company car
   3. Arranging for their salary to be paid in ad-hoc lump sums rather than on a monthly or weekly basis
   4. Increasing their contributions into a personal pension

4. Joyce is about to retire and take the benefits from her defined benefit arrangement, which she has been a member of since 2006. In payment, her benefits must increase by a minimum of:
   1. CPI to a maximum of 5%.
   2. CPI to a maximum of 2.5%.
   3. CPI to a maximum of 3%.
   4. CPI to a maximum of 1%.

5. Why is it important to clarify the legal capacity of an individual with regard to long term care advice before making a recommendation for a financial product?
   1. To ascertain if a relative / friend should accompany the client at a meeting
   2. Because a client without legal capacity will require more time to consider the advice
   3. Because potentially certain types of product cannot be recommended
   4. To confirm that the individual has legal capacity to enter into a contract

Answers

1. B – See R01 Study Text, Chp 5:1, Section B
   Grab our taster mock exam paper for CII R01. Click here to download.

2. B – See R02 Study Text, Chp 1:2, Section C3B
   Grab our taster mock exam paper for CII R02. Click here to download.

3. A – See R03 Study Text, Chp 11, Section C2
   Grab our taster mock exam paper for CII R03. Click here to download.

4. B – See R04 Study Text, Chp 4, Section C1A
   Grab our taster mock exam paper for CII R04. Click here to download.

5. D – See CF8 Study Text, Chp 9, Section B
   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?

Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)