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.https://professionalparaplanner.co.uk/wp-admin/post.php?post=16747&action=edit#edit_timestamp
You will find the answers separately under the Development Zone tab on the Professional Paraplanner website.
Questions
1. What must a non-real time financial promotion include?
A. Past performance data for the past 5 years.
B. That tax may be subject to change in the future.
C. The shelf life of the promotion.
D. Name of firm and address or contact point.
2. Where investors demand higher yields for holding longer-term bonds the yield curve is said to be
A. normal.
B. flat.
C. inverted.
D. reversed.
3. Lisa has recently made a £100,000 gain on selling her buy to let home. She is now considering whether to reinvest this in an Enterprise Investment Scheme (EIS). Which of the following would be a benefit to Lisa of doing this?
A. She can defer the original gain until she disposes of the EIS shares.
B. 50% of the original gain will be exempt from tax.
C. Any subsequent gain would be taxed at a lower rate on disposal.
D. This will reduce the base cost of the EIS shares by the original gain.
4. Kim is 60 and has no taxable income in 2023/24. She has a personal pension valued at £300,000 and she decides to take £40,000 of this fund as an uncrystallised funds pension lump sum (UFPLS). What is the net payment that Kim will receive?
A. £30,000
B. £32,000
C. £36,384
D. £36,514
5. In which of the following circumstances might an income protection policy provider pay a commuted lump sum to the insured rather than continue paying the benefits on a regular basis?
A. It is not expected that the client will recover from their incapacity.
B. The client has a life expectancy of less than 6 months.
C. If the insured recovered from a condition initially expected to be terminal.
D. Where the insured is aged over 55 at the time of the first claim.
6. A company is within a sector where the average price-earnings ratio currently stands at 9. If earnings per share are expected to be 40p and dividend cover is 2.8, the implied value of a share in this company is
A. 360p
B. 1428p
C. 445p
D. 321p
7. What is the price to book ratio for a company where the shareholders’ funds are £40m, the number of ordinary shares in issue is 25m and the current share price is £2.50?
A. 0.625
B. 1.56
C. 1.60
D. 4.00
8. If an individual is assessed as requiring a wheelchair, this will usually be provided
A. free of charge on long term loan from the NHS to all qualifying individuals.
B. up to a cost of £1,000, if more expensive the excess charged to the individual.
C. by their Local Authority who is allowed to charge a reasonable level of rental depending on their resources.
D. free to individuals with capital of less than £23,250, otherwise charged at a reasonable level of rental.
9. Barbara is eligible to take out an enhanced lifetime mortgage. This is because she meets which of the following criteria in particular?
A. Income threshold.
B. Minimum age.
C. Impaired lifestyle.
D. Geographic location.
10. Carol, an amateur property developer, was thrilled to have had her bid accepted on a two-bedroomed semi-detached property, which was sold at a traditional face-to-face auction. When can she expect to exchange contracts?
A. The same day.
B. Within 7 days.
C. Within 14 days.
D. Within 28 days.
