Every month Professional Paraplanner teams up with Brand Financial Training to provide a series of questions from across the CII syllabus to test your knowledge .
Whether you are preparing for your exams, or simply want to keep your knowledge up-to-date, Professional Paraplanner’s Development Zone can help.
The following questions relate to examinable Tax year 24/25, examinable by the CII until 31 August 2025.
You will find the answers separately under the Development Zone tab on the Professional Paraplanner website.
Questions
1. What is a ‘demand and needs’ statement?
A. Documentation used to allow the client to prioritise their requirements.
B. The IFA’s requirements in terms of charges for product or time.
C. A statement detailing the client’s needs with the reasons for recommendations.
D. A list of requirements for new clients with the services the client can expect.
2. Simone is considering a buy-to-let investment. What are the key factors that she should consider when choosing a residential investment property? (Tick all that apply)
A. Availability of tenants.
B. Location.
C. Age of property.
D. Void periods.
3. Maureen, a basic-rate taxpayer, has just invested £50,000 into a guaranteed income bond that has been constructed by the provider using a medium-term note. She should be aware that: (Tick all that apply.)
A. her personal savings allowance can be used to reduce the amount of Income Tax payable.
B. any chargeable gains are subject to Capital Gains Tax in the normal way.
C. her Income Tax liability will be met at source with a 20% tax credit.
D. products constructed in this way cannot be held in an ISA wrapper.
4. Susan is a member of an occupational targeted money purchase scheme. Which feature does NOT apply to these schemes?
A. In the event of the employer’s insolvency, the trustees are able to claim against the employer’s assets, as long as all scheme contributions are up to date.
B. The scheme is regarded as a “hybrid” between defined contribution and defined benefit schemes.
C. The only underlying promise is the benefit derived from the defined contribution assets.
D. This type of arrangement will incorporate regular reviews to monitor the intended benefit levels.
5. A group accident, sickness and unemployment policy have which advantage over an individual policy?
A. Unrestricted cover for accidents.
B. Enhanced benefit amounts.
C. No deferred periods.
D. Preferential premiums and underwriting.
6. A machine needed to produce goods for a company is bought for £5,000. It has a useful life of six years and an expected re-sale value then of £500. What is the annual depreciation charge?
A. £916
B. £833
C. £750
D. £417
7. In the event of the liquidation of a company, the order of priority for payment states that HMRC is considered a(n)
A. secured creditor.
B. preferential creditor.
C. floating charge creditor.
D. unsecured creditor.
8. It is usually desirable for the client’s family to be involved where a financial recommendation involves
A. pension planning.
B. protection.
C. equity release.
D. investment planning.
9. Compared to the situation pre-2007, clients now taking out home reversion plans have the additional reassurance that they are fully protected by the
A. Financial Conduct Authority.
B. Consumer Protection Act.
C. Equity Release Council.
D. Prudential Regulation Authority.
10. In what circumstances, can a lender grant an interest only loan?
A. Where the customer is an existing one.
B. Where there is sufficient equity in the property.
C. Where there is a credible strategy for repaying the capital.
D. Where the interest rate is fixed for five years.
“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 and don’t forget to download your free taster versions!”
