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.
https://professionalparaplanner.co.uk/development/
We hope you find our Q&A useful in achieving your qualifications.
Questions
1. The purpose behind ‘part 1: basic details’ of a typical fact-find is to
A. gather general information about a client and their circumstances.
B. allow the adviser to ask straightforward questions to help build rapport.
C. understand if the client is able to proceed with the meeting.
D. establish whether the client is suitable for the intermediary.
2. Madeline has invested in a number of different fixed-interest securities on a direct basis. She should be aware that
A. she has protected herself from any exposure to interest rate risk.
B. bonds with a low coupon and a long maturity date are usually more volatile.
C. non-investment grade bonds tend to be less volatile than investment grade bonds.
D. if inflation rises, bond prices tend to rise as well.
3. How does Jane receive basic-rate tax relief on her individual personal pension contributions?
A. She must claim the tax relief back via self assessment.
B. She receives basic rate tax relief at source.
C. She makes a gross payment and tax relief is deducted from her total income.
D. She is only entitled to tax relief if payments are made via her employer’s payroll.
4. Norman started flexible drawdown in June 2013. As a result of the rule changes on 6 April 2015, he should be aware that (Tick all that apply.)
A. his arrangement was converted to flexi-access drawdown.
B. the money purchase annual allowance (MPAA) was triggered from the date of his first withdrawal after converting to flexi-access drawdown.
C. his position with regards to being able to make defined contribution pension contributions without incurring an annual allowance charge improved.
D. the automatic conversion into flexi-access drawdown was a benefit crystallisation event.
5. Sharon has made a request to make her life assurance policy ‘paid up’. Assuming she does so, what is the correct position in relation to the sum assured?
A. It stays at the current level for one year and then is reduced.
B. It stays the same.
C. It is reduced.
D. It can be increased for a fee at the time of making it paid up.
6. The dominant theory of risk and portfolio management concerned with how portfolios can be constructed to maximise returns and minimise risk is
A. the efficient frontier.
B. asset allocation.
C. stochastic modelling.
D. modern portfolio theory.
7. An investor holds a super-long-term Japanese Government bond. This tells us that the bond has a maturity of how many years?
A. 5, 10 and 20.
B. 20, 30 and 40.
C. 25 and 50.
D. 25, 50 and 100.
8. Fiona, age 70, has been assessed as needing care in a care home, and is about to move into a home in Scotland on a self-funded basis. What financial assistance can she expect to receive?
A. Flat rate contributions towards both nursing care and personal care.
B. A flat rate contribution towards nursing care only.
C. The personal expenses allowance.
D. A flat rate contribution towards personal care only.
9. When a borrower takes out a standard lifetime mortgage (cash scheme), which of the following is NOT a likely cost involved with setting up the plan?
A. Valuation fee.
B. Stamp Duty Land Tax.
C. Legal costs to set up the loan.
D. Arrangement fee.
10. The process of converting existing assets or future cash flows into marketable securities is known as
A. optimisation.
B. securitisation.
C. limited recourse.
D. collateral.
“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!”
