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 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. Which of the following is a difference between a ‘real time’ promotion and a ’non-real time’ promotion? (Tick all that apply.)
A. Real time promotions are interactive dialogue.
B. Generally, a non-real time promotion is equivalent to a non-written financial promotion.
C. Generally, a non-real time promotion is equivalent to a written financial promotion.
D. A real-time promotion would be expected to have a shelf life.
2. If domestic goods have become more expensive relative to foreign goods, this indicates that
A. the real exchange rate has risen.
B. exchange rates have been fixed between the two countries.
C. the real exchange rate has fallen.
D. the countries operate a floating exchange rate regime.
3. David transferred ownership of his share portfolio to his son realising a gain on which he paid Capital Gains Tax (CGT). Four years later David died, what tax, if any, is now due?
A. His son faces a potential CGT charge on the difference between the value at which he acquired the asset and the market value at David’s death.
B. As a failed PET, there is a potential IHT charge with no credit given for the CGT paid on the earlier transfer.
C. There would be no further charge due to the CGT paid on the earlier transfer.
D. There may be an IHT charge, but relief would be given for the CGT paid.
4. Sarah is retiring after 20 years’ service in a 1/60th defined benefit pension scheme. Her final pensionable salary is £48,000. Sarah can commute part of her pension for a pension commencement lump sum (PCLS) of 3/80th of final pensionable salary for each year of service. The commutation factor is 12:1. Should Sarah take all of her PCLS entitlement, her reduced pension will be
A. £12,000 p.a.
B. £13,000 p.a.
C. £15,000 p.a.
D. £16,000 p.a.
5. Which of the following conditions is usually excluded from critical illness cover?
A. Heart valve replacement
B. Major organ transplant
C. Temporary loss of speech
D. Alzheimer’s disease before age 60
6. Germany’s main equity index is market-weighted and is the basis of futures and options traded on the Deutsche Termin Borse (DTB); it includes reinvested income and is called the
A. NASDAQ Composite.
B. CAC General Index.
C. DAX 30.
D. Nikkei 225.
7. Which of the following would be classed as a sub-investment grade bond?
A. Fitch BBB.
B. Moody’s Ba.
C. Standard & Poor’s A.
D. Moody’s Baa.
8. What is the current level of the means-test capital threshold in England for Local Authority funding of residential care costs below which the Local Authority may fund the full cost of care?
A. £14,250
B. £16,000
C. £23,250
D. £72,000
9. Where in the UK do over 65s have a general entitlement to free long-term care?
A. England and Wales
B. Scotland and Northern Ireland
C. Northern Ireland only
D. Scotland only
10. Marian is in the unfortunate position where the mortgage loan she has on her family home is, in fact, greater than its current market value. This is known as:
A. negative marketing.
B. market value reducer.
C. negative equity.
D. reducing debt.
