Whether you are preparing for your exams, or simply want to keep your knowledge up-to-date, Professional Paraplanner’s Development Zone can help.
Every month, in conjunction with Brand Financial Training, we provide a series of questions from across the syllabus which aim to test your knowledge of the financial services market, as part of your overall self development training goals and exam techniques.
The following questions relate to examinable Tax year 23/24, examinable by the CII until 31 August 2024.
You will find the answers separately under the Development Zone tab on the Professional Paraplanner website.
These questions relate to examinable Tax year 23/24, examinable by the CII until 31 August 2024.
Questions
1. Which of the Competition and Markets Authority (CMA) strategic goals aims to ‘deter wrongdoing, protect consumers, and educate businesses’?
A. Delivering effective enforcement.
B. Extending competition frontiers.
C. Achieving professional excellence.
D. Developing integrated performance.
2. Your client has specified that their return objective is ‘capital appreciation’. A typical characteristic for this type of client is
A. risk aversion.
B. a short timescale.
C. growth is usually achieved from capital gains.
D. they are dependent on increasing income.
3. Sarah is a basic-rate taxpayer and in August 2015 took out a 10-year qualifying life policy as a savings plan. Regarding this policy, which of the following is true?
A. If she is a UK resident, she will receive full tax relief on the premiums.
B. For the policy to keep its qualifying status, she cannot pay more than £36,000 in premiums over the term.
C. The premiums will be taken into account on maturity when a chargeable event is triggered.
D. The premiums must be paid monthly, annually or as a single premium.
4. James, aged 29, was nominated by his uncle as the beneficiary of his occupational defined contribution pension scheme upon his death. Which of the following death benefit options will NOT be available to James?
A. Scheme pension.
B. Lifetime annuity.
C. Flexi-access drawdown.
D. Lump sum.
5. Paul made a PET of £450,000 in June 2019. If he dies in September 2023, how much inheritance tax would the donee be liable for? (Assume no annual allowances are available)
A. £30,000
B. £50,000
C. £102,000
D. £18,000
6. In order for the CAPM to be useful, the beta of a security must be stable or predictable. The beta of a security is usually calculated from
A. Treasury bills.
B. future returns.
C. past experience.
D. profitability.
7. Which of the following tax benefits do non-domiciled investors specifically gain from investing offshore?
A. The offshore funds are not liable to UK Inheritance Tax.
B. No Capital Gains Tax on sales of reporting funds.
C. No Income Tax on income that is not distributed on a reporting fund.
D. No Income Tax on income that is distributed on a reporting fund.
8. Which of the following is part of the Care Quality Commission’s role?
A. Paying compensation if a firm is unable to pay claims made against it.
B. Using enforcement powers if standards are not being met.
C. Settling complaints about care provided by National Health Service (NHS) staff.
D. Dealing with complaints about the administration of long-term care policies.
9. What level of savings is completely disregarded when establishing eligibility to State pension guarantee credits?
A. £5,000
B. £10,000
C. £16,000
D. £23,250
10. Josie has accepted an unconditional offer for her house. The buyer is now legally bound to buy the house. This is because
A. it was unconditional.
B. the property is in Scotland.
C. it is a listed building.
D. it is a re-possession.
“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!”
