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 CII 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. What is the maximum fine The Pensions Regulator can impose on a company for breaching the law?
A. £500,000
B. £100,000
C. £50,000
D. £5,000
2. When considering the performance of equities against cash for different holding periods, the Barclays Equity Gilt Study 2016 specifically demonstrated that
A. risk has no relation to time horizon.
B. the longer equities can be held the better the chances of riding out downturns.
C. disasters such as war have no long- or short-term impact on equity portfolios.
D. cash has never outperformed equities.
3. Bill and Ben are brothers and jointly own an investment bond. A chargeable event has occurred resulting in a gain of £10,000. How is this apportioned between Bill and Ben?
A. The gain is split in the same proportion as their ownership.
B. If Ben caused the chargeable event through a part surrender, he would be liable.
C. The gain is always split 50/50 on a joint investment bond.
D. The gain is held over until total encashment of the bond.
4. To qualify as a Qualifying recognised overseas pension scheme (QROPS) the scheme must be established in a country which
A. agrees to implement the same pension regulations that apply in the UK.
B. has a double taxation agreement in place with the UK.
C. agrees not to impose any pension flexibility.
D. is outside the UK and notifies HM Revenue & Customs (HMRC) annually that the scheme meets the required conditions to be a QROPS.
5. Stewart has a critical illness policy that has no attached life cover. When will he receive the payment from the policy if he makes a claim on the diagnosis of a critical illness?
A. Within 45 days of making the claim.
B. Immediately.
C. When he has completed any required medical treatment.
D. When he has survived for a stated number of days after diagnosis.
6. If the UK’s Public Sector Net Cash Requirement (PSNCR) is growing, this is a likely
A. indication that
B. the economy is expanding.
C. spending on unemployment is falling.
D. the economy is in recession.
E. tax revenues are rising.
7. Treasury bills are issued at an average price of £99.897643 per £100 nominal. If an investor subscribes for £1m of bills and holds them until maturity what is their return on the investment?
A. £511.80
B. £921.24
C. £1,023.60
D. £1,114.70
8. Which of the following is one of the main duties of the Care Quality Commission?
A. Providing compensation in the event of a long-term care product provider defaulting.
B. Investigating complaints about hospitals and community health services.
C. Monitoring and inspection of all health and adult social care.
D. Ensuring that registered nursing care is provided for a patient if required.
9. Hilary is aged 73; she has built up significant debt by using high-interest credit cards to supplement her pension income over the last few years. Why might a lifetime mortgage with interest roll-up be an appropriate option for her?
A. Interest rate on mortgage will always be lower.
B. Only the interest is repayable on death.
C. No capital or interest has to be repaid.
D. The no negative equity guarantee.
10. Simon’s firm is an intermediary specialising in mortgage advice. They do NOT need professional indemnity insurance. This is most likely because
A. they do not deal with client money.
B. they all hold the Certificate in Mortgage Advice.
C. their liabilities have been guaranteed by their parent company.
D. they have a stock market capitalisation in excess of £10 million.
