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 consequences of trying to embed ethics into an organisation should be encouraged?
A. Superficial ethical behaviour being viewed as a marketing ploy.
B. Inconsistent ethical behaviour resulting in cynicism.
C. Senior management ‘walking the talk’ to reinforce the ethics of the business.
D. Not addressing behaviours that could underpin an organisation.
2. Yellowstone’s accounts show that dividends paid to ordinary shareholders over the last 12 months was £315,000 whilst dividends paid to preference shareholders was £175,000. Their profit after taxation was £1,114,000. What is their dividend cover?
A. 3.54 times.
B. 2.98 times.
C. 1.98 times.
D. 6.37 times.
3. Sylvia is hoping to make up a significant gap in her National Insurance contributions record by paying Class 3 contributions. Which of the following must she be aware of?
A. She must satisfy a residence condition.
B. They do not increase entitlement to State pension.
C. The contributions are collected weekly by demand.
D. She can make Class 3 contributions after she reaches State pension age.
4. Following divorce, an offset order is being applied to pension benefits from Clive’s defined benefit scheme. Which of the following would NOT apply?
A. A cash equivalent transfer value calculation will be made to establish the amount of offset.
B. Any offset calculation should take account of the possible income tax payable on any pension.
C. Re-marriage of the ex-spouse will terminate the offset order.
D. This will be a “clean break” arrangement.
5. Paul made a PET of £450,000 in June 2017. If he dies in September 2021, how much inheritance tax would the donee be liable for? (Assume no annual allowances are available)
A. £30,000
B. £180,000
C. £50,000
D. £102,000
6. There are widely published indices for all major overseas markets, which provide an indication of local market performance. Which of the following indices records the opening prices on the Paris cash market?
A. The DAX 30.
B. The Dow Jones.
C. The Nikkei 225.
D. The CAC General Index.
7. Which of the following shares get first call on an investment trust’s assets once any borrowing has been repaid?
A. Zero dividend preference shares.
B. Capital shares.
C. Income shares.
D. Distribution shares.
8. How does the FCA/PRA regulate pure protection contracts for long term care?
A. In the same way as “designated investments”
B. Similarly to general insurance contracts
C. In the same way as Income Replacement cover
D. Similarly to mortgage contracts
9. Harry, aged 70, has recently become disabled as a result of severe arthritis. Which benefit should he be eligible to claim?
A. Disability Living Allowance
B. Attendance Allowance
C. Carer’s Allowance
D. Employment Support Allowance
10. Regarding client money rules, which of the following is true?
A. Any interest earned belongs to the firm.
B. Client cash can be held in the same bank account as the firm.
C. Money must be banked within 1 day of receiving it.
D. Money must be reconciled at least monthly.
