Professional Paraplanner’s Development zone is run in conjunction with key support providers, such as Brand Financial Training, and aims to test your knowledge of the financial services market, as part of your overall training goals and exam techniques.
The following questions relate to examinable Tax year 22/23, examinable by the CII until 31 August 2023.
You will find the answers separately under the Development Zone tab on the Professional Paraplanner website.
QUESTIONS
1. What was created by the Banking Act 2009 to provide the tripartite authorities with a framework to deal with failing banks?
A. The Financial Stability Board.
B. The Prudential Regulation Committee.
C. The Financial Action Taskforce.
D. The Special Resolution Regime.
2. Which of the following is considered under Modern Portfolio Theory when creating the optimum portfolio?
A. Correlation of asset classes.
B. Fund management styles.
C. Charges.
D. Economic conditions.
3. Pippa died in the tax year 2002/2003 using 50% of the then Inheritance Tax nil-rate band of £250,000. If her husband David dies in this tax year his executors could apply for the standard nil rate band to be extended to:
A. £650,000.
B. £487,500.
C. £450,000.
D. £325,000.
4. Which type of pension arrangement will always provide benefits via a scheme pension?
A. A Retirement Annuity Contract
B. A defined benefit pension scheme
C. A Small Self-Administered Scheme
D. A defined contribution occupational scheme
5. Neil’s critical illness policy has been set up on a reviewable basis. Which of the following is the new rate based on when the reviews are undertaken?
A. The policyholder’s health
B. The policyholder’s age
C. Claims’ experience of the insurer
D. Changes in the amount of claims made within the industry
6. In addition to company accounts, there are other sources of information that could impact on investment decisions. For example, UK listed companies have to publish
A. annual reports only.
B. annual reports and one interim report.
C. annual reports and semi-annual reports only.
D. annual reports, semi-annual reports, and interim reports.
7. Robert and Kim have £117,000 held jointly in a savings account. In the event of the institution becoming insolvent, how much could they expect to recover under the Financial Services Compensation Scheme?
A. £75,000
B. £85,000
C. £100,000
D. £117,000
8. Maureen’s primary need is for continuous health care. Who is responsible for providing this?
A. The Local Authority for the area where Maureen resides
B. The National Health Service
C. Her GP’s Clinical Commissioning Group
D. Maureen herself
9. Lana took out a lifetime mortgage with interest payments but has fallen into arrears. Each of the following is a requirement under MCOB regulations for the lender to follow in these circumstances except?
A. Refer Lana to Citizen’s Advice within the appropriate timescale.
B. Provide Lana with a copy of the FCA’s fact sheet on mortgage arrears.
C. Keep records of all dealings with Lana.
D. Adopt a reasonable approach to the timescale for any shortfall in the payments to be redressed.
10. Brenda and Edward had been married for 10 years before they decided to separate with Edward wishing to be removed from the mortgage. Who must sign the documentation to agree to the contract being altered?
A. Brenda and Edward
B. Brenda and the lender
C. Edward and the lender
D. Brenda, Edward, and the lender
Need help with your CII exams? For resources including mock exam papers and e-mocks, calculation workbooks, revision notes, audio masterclasses and video tutorials do visit Brand Financial Training at https://brandft.co.uk , including free taster versions!
