Every month Professional Paraplanner teams up with Brand Financial Training to provide a series of questions from across the CII syllabus to test your knowledge .
Whether you are preparing for your exams, or simply want to keep your knowledge up-to-date, Professional Paraplanner’s Development Zone can help.
These questions relate to examinable Tax year 25/26, examinable by the CII until 31 August 2026.
You will find the answers separately under the Development Zone tab on the Professional Paraplanner website.
We hope you find our Q&A useful in achieving your qualifications.
QUESTIONS
1. What is the position regarding the Financial Conduct Authority (FCA) holding a principle specifically relating to ethics?
A. There is not a specific principle, but all FCA rules relate to the principles of ethics.
B. It is a specific principle within the FCA’s Principles for Businesses.
C. There is a specific code of ethics for investment advisers not yet fully qualified.
D. There is not a specific principle as ethics relate to only the culture of a few firms.
2. Ironstone has retained profits of £750,000 after paying £175,000 in dividends (each) to both their ordinary and preference shareholders. What is their dividend cover?
A. 3.29
B. 4.29
C. 6.29
D. 5.29
3. Lenny owns an 80% share in the family company and on his daughter Freya’s 21st birthday gives her a 20% shareholding. Instead of paying Capital Gains Tax (CGT) on the gain of £50,000 he has made, Lenny instead claims holdover relief. What is the impact of this course of action?
A. There is no impact on Freya, but if she disposes of the shares, Lenny will then have to pay the outstanding CGT.
B. Holdover relief extinguishes Lenny’s CGT liability, and Freya acquires the shares at the value at the time they are transferred to her.
C. There is no impact on Freya, but if she disposes of the shares, Lenny will then have to pay the CGT but at the reduced holdover rate of 10%.
D. Freya acquires the shares at Lenny’s acquisition cost, and if she disposes of the shares, her gain will include Lenny’s gain of £50,000.
4. The fall in annuity rates in the latter part of last decade was due to the fact that people are living for longer and also because of
A. falling gilt yields.
B. rising equity prices.
C. lower charges.
D. higher inflation.
5. Karim, a financial adviser, is in the process of arranging income protection policies for a number of his clients. It is likely that the highest premium will be charged to
A. Derek, aged 45, with a deferred period of 13 weeks.
B. Chloe, aged 52, with a deferred period of 26 weeks.
C. Arthur, aged 47, with a deferred period of 8 weeks.
D. Julia, aged 48, with a deferred period of 4 weeks.
6. If an investment portfolio has a standard deviation of 12% with an annualised return of 13%, and this compares to an annual risk-free investment return of 4.1%, the Sharpe ratio is
A. 0.74
B. 0.25
C. 1.23
D. 0.42
7. The price of a warrant is 20p. The current share price is 90p. The exercise price is 80p. What is the warrant’s gearing ratio?
A. 8.89
B. 1.12
C. 2.25
D. 4.5
8. Which body deals with complaints against the National Health Service which CANNOT be resolved at a local level?
A. Patient Advice and Liaison Service.
B. Parliamentary and Health Service Ombudsman.
C. Local Authority Ombudsman.
D. Healthcare Commission.
9. Alan will shortly start receiving Universal Credit. This is because he qualifies for which of the following benefits at present?
A. Carer’s allowance.
B. Disability living allowance.
C. Statutory sick pay.
D. Income-related ESA.
10. Lucinda and Mark have expressed an interest in buying a residential property in London for £2.2m. It will be their only home. They should be aware that the top rate in the tiered system of stamp duty land tax they will have to pay is
A. 15%
B. 12%
C. 10%
D. 5%
About Brand Financial Training
Need help with your CII exams? For resources including mock exam papers and e-mocks, calculation workbooks, revision notes, audio masterclasses and video tutorials do visit Brand Financial Training at https://brandft.co.uk and don’t forget to download your free taster versions!
