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.
QUESTIONS
1. Insurable interest is an additional requirement in relation to life assurance contracts. In contract law, it can also be thought of as a
A. financial interest.
B. equitable interest.
C. life interest.
D. legal interest.
2. Ethan is aged 15 with a junior ISA. At what age does he take over the role from his parent as the ‘registered contact’?
A. 21
B. 18
C. 17
D. 16
3. Tim has recently started a job with a company car which has been adapted for his limited mobility. Which of the following would be taken into account when calculating the taxable benefit?
A. Any discount offered by the car dealer.
B. Provision of a car phone.
C. The car’s level of C02 emissions.
D. The cost of the adaptations for Tim.
4. Under HM Revenue & Customs (HMRC) rules pension advice provided to employees by their employers is treated as a benefit in kind provided the cost is no more than how much per employee per tax year?
A. £50
B. £75
C. £150
D. £500
5. Ian has a life assurance policy that includes critical illness. If he wishes to place the policy in trust, he should use a split trust because he can
A. direct the death benefits to his estate via his will.
B. choose to direct the critical illness benefits to different beneficiaries.
C. maintain the death benefit for the intended beneficiaries if he makes a claim on the diagnosis of a critical illness.
D. receive the benefits if diagnosed with a critical illness.
6. Your client, Ida, has heard that investing in residential property can provide a steady income and capital growth. You tell her that this can be the case but that one of the major drawbacks is
A. regional variations in prices.
B. anti-competitive practices.
C. liquidity in the market.
D. lack of availability of finance.
7. If the credit rating agency Standard & Poor’s modified their rating of a bond from AAA to BBB investors should be aware that the bond
A. is now non-investment grade.
B. is now a junk bond.
C. has kept an investment grade.
D. is now rated as the highest quality.
8. Free personal and nursing care is means tested in every country in the United Kingdom except
A. England.
B. Wales.
C. Northern Ireland.
D. Scotland.
9. Which of the following product features is applicable only to lifetime mortgages?
A. Method of repayment.
B. Rent to be paid.
C. Whether a part share of the property can be sold.
D. Tenancy obligations.
10. Susan, a first-time buyer, is in the process of applying for a mortgage. Her lender is assessing her current financial situation for affordability purposes. Which of the following outgoings would Susan’s lender most likely class as committed expenditure?
A. Maintenance payments.
B. Council tax.
C. Childcare costs.
D. Buildings insurance.
