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. Following the Pensions Act 2014, the State pension age is expected to be reviewed at least every
A. six years.
B. five years.
C. three years.
D. two years.
2. Anthony holds various corporate bond funds and is seeking clarification of the taxation of the income. You can tell him that a corporate bond fund pays interest distributions
A. net of 20% income tax.
B. net of 10% income tax.
C. net of 10% savings tax.
D. without a tax deduction.
3. John is employed full time but also has self-employed profits of £100 per week. Which of the following National Insurance contributions must John pay on his self-employed earnings?
A. Class 2 only.
B. Class 3 only.
C. Class 4 only.
D. He is not obliged to make any contribution.
4. A financial adviser is considering the inclusion of fixed interest securities in a client’s retirement portfolio. She should be aware that (Tick all that apply.)
A. the fixed redemption value is known as the par value.
B. the coupon represents the fixed rate of interest given.
C. they all have a set redemption date.
D. they represent loans to various institutions.
5. Mark and Joanne are making a claim in November 2023 for child tax credit having had their first child in June 2023. Their claim can be backdated to the
A. start of the 2023/24 tax year.
B. date of birth of their child.
C. start of the month following the birth of their child.
D. month before only.
6. If the value of the pound fell, what effect (if any) would this have on the share price of a firm where the majority of profits come from exporting furniture to American clients?
A. Their share price would fall.
B. Their share price would be marked down.
C. There would be no effect at all.
D. Their share price would rise.
7. A savings account has a quoted rate of interest of 8%; the interest is payable half yearly. What is the effective annual rate of interest?
A. 8.25%
B. 8.16%
C. 8.22%
D. 8.12%
8. Failure of how many activities of daily living is normally required for a successful claim under a long term care insurance plan for full residential nursing care?
A. Two or three.
B. Three or four.
C. None, cognitive impairment is the only valid basis for a claim.
D. One.
9. What is meant by the “better off” test in connection with equity release products? The customer needs to
A. know in advance of taking out a plan that they will not lose any entitlement to State Benefits.
B. take into account their financial position as well as their heirs; it is important that neither party ends up worse off than before.
C. be certain that their income position will be better after taking out the plan.
D. be certain that they will be better served by taking out the equity release product than by not doing so.
10. Paddy has entered into an individual voluntary agreement with his creditors. At the end of the agreed period how does the insolvency practitioner share the accumulated amount?
A. It is split between the creditors equally.
B. It is paid to the creditors in proportion to the loans involved.
C. The oldest debt is paid first and the latest is paid last.
D. The debts are paid according to the size with the smallest being paid first.
