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.
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. Under the Consumer Rights Act 2015, the requirement for expressing significant terms is that they must
A. be individually negotiated with the consumer.
B. be in plain and intelligible language.
C. be forcible against the consumer.
D. take into account the consumer’s legitimate interests.
2. Cynthia is considering investment in a Venture Capital Trust; it is true to say that the tax advantages of her doing so are that she (Tick all that apply.)
A. will receive Income Tax relief of 30%.
B. can use reinvestment relief for Capital Gains Tax purposes.
C. will pay no Income Tax on any dividends she receives.
D. will receive 100% Inheritance Tax relief after two years.
3. In the event of a married couple both dying in a plane crash where it’s impossible to say who died first, it is true to say that general law assumes
A. the older life died first and, for Inheritance Tax (IHT) purposes, it is assumed they died at the same time.
B. the older life died first and this is also the presumption for IHT purposes.
C. they both died at the same time and this is also the presumption for IHT purposes.
D. they died at the same time, and for IHT purposes, it is presumed that the older life died first.
4. Edward, aged 20, has been advised that he is the beneficiary of his father Paul’s scheme pension following Paul’s death at the age of 56. What type of benefit would Edward not potentially be entitled to from the scheme?
A. dependents flexi-access drawdown.
B. A dependents scheme pension.
C. payments under a guarantee period.
D. a lump sum death benefit.
5. James makes a lifetime gift into a trust which is not an absolute/bare or disabled trust. How much tax is due immediately? Assume no annual exemptions are available
A. 20% on the amount gifted into trust.
B. 20% on the amount gifted into trust that exceeds the available nil rate band.
C. 40% on the amount gifted into trust that exceeds the available nil rate band.
D. 40% on the amount gifted into trust.
6. If an investment has a mean of 5% and a standard deviation of 6%, we could expect that roughly 95% of returns would fall between
A. -1% and 11%
B. -5% and 15%
C. -7% and 17%
D. 1% and 16%
7. Firms must review the effectiveness of their execution arrangements and policies
A. once a quarter.
B. at least annually.
C. twice a year.
D. every 5 years.
8. Who has the authority to execute a statutory will for a person lacking mental capacity?
A. The Office of the Public Guardian.
B. A Court appointed deputy acting for the mentally incapacitated person.
C. The Court of Protection.
D. The Mental Health Commission.
9. Louise, a widow aged 75, lives in a house valued at £600,000. She is finding it hard to maintain her lifestyle on her income. As her financial adviser, what course of action would you suggest she considers before giving advice on equity release to boost her income?
A. A home income plan.
B. A shared appreciation mortgage.
C. Trading down to a lower cost property.
D. A drawdown scheme.
10. How is money viewed by those following the Muslim faith?
A. You can only profit by exchanging cash.
B. You are not allowed to earn interest.
C. You are not allowed to lend money.
D. You are not allowed to borrow money.
“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!”
