Whether taking exams or wanting to keep your knowledge up-to-date, Professional Paraplanner’s TDQ (Training, Development and Qualifications) series, run in conjunction with key support providers, such as Brand Financial Training, aims to test your knowledge of the financial services market.
The following questions relate to examinable Tax year 20/21, examinable by the CII until 31 August 2021.
Questions
1. What must be included within the Key Information Documents produced by the marketing departments of product providers? Tick all that apply.
A. Personalised illustration
B. Aims of the investment
C. Cancellation rights
D. Future benefit projection
E. The website address of MaPS
2. Madeline owns a number of gilts; within the title of each one she can expect to find the:
A. risk rating.
B. coupon.
C. interest payment dates.
D. primary market the bond was issued from.
3. Assuming all of the following individuals are UK-resident but non-UK domiciled, which of them could claim the remittance basis without having to pay the annual tax charge? Tick all that apply.
A. Sarah who is aged 20
B. Claire who has been resident in the UK for 5 out of the last 9 years
C. Alex who is aged 16
D. Leo who has unremitted overseas income for the year of £3,000
E. Duncan who has unremitted overseas income for the year of £1,800
4. When dealing with pension benefits on divorce, one of the key advantages of pension sharing compared to earmarking is that:
A. the timing of drawing benefits is not inter-dependent.
B. the arrangement does not require a court order.
C. lower administration charges apply from the pension provider.
D. the benefits will be less severely taxed.
5. Which of the following definitions of incapacity used by insurance companies gives the widest definition and provides the highest level of cover?
A. Any occupation
B. Own occupation
C. Suited occupation
D. Current occupation
6. A security has a positive alpha, what does this tell us about the investment?
A. It has performed better than expected given its beta.
B. It has performed worse than expected given its beta.
C. The investment manager took higher risks than expected.
D. The investment has underperformed the market.
7. Analysis is being done on a company, in particular of its brand strength and effectiveness of its management. What type of analysis is this?
A. Technical
B. Fundamental
C. Disclosure
D. Quantitative
8. Chloe has given up work to look after her aged mother, who is in receipt of full rate Attendance Allowance, on a full-time basis. Which benefit may Chloe be eligible to claim?
A. Disability Living Allowance
B. Carer’s Allowance
C. Personal Independence Payment
D. Job Seeker’s Allowance
9. Which of the following is an example of a regulated mortgage contract?
A. Home Reversion Plans
B. Lifetime mortgages
C. Professional buy-to-let mortgages
D. Commercial mortgages entirely for business purposes
10. Which of the following is true of the Zurich Municipal building guarantee?
A. It is not available to new buyers.
B. It is the standard for new homes built in the UK.
C. If a builder goes out of business during construction, 50% of the deposit is refunded.
D. Only during the year after completion should the builder put right defects.
