TDQ – Test your knowledge – questions and answers
29 March 2018
In our new series, Professional Paraplanner TDQ (Training, Development and Qualifications), we have teamed up with key support providers, such as Brand Financial Training, to provide our readers with the very best in training, development and exam support.
We will be providing you with valuable advice and guidance materials to help you achieve your training goals, perfect your exam techniques and test your knowledge of the financial services market.
These questions relate to examinable Tax year 17/18, examinable by the CII until 31 August 2018. NOTE: These DO NOT relate to tax year 18/19 as this is not currently examined.
- Under ICOBS rules, who is responsible for ensuring an intermediary is authorised to deal with an insurer?
A. The responsibility lies solely with the intermediary
B. An insurer must ensure that any intermediary it deals with is authorised
C. An intermediary would not be able to contact an insurer unless they were authorised
D. It is solely the FCA’s responsibility to ensure all intermediaries are authorised
- For which investor would inflation levels be most significant?
A. Annabelle, whose sole source of income is her fixed interest securities
B. Sarah, whose equity portfolio is very concentrated in the banking sector
C. Stephanie, who has delayed investment and is holding her money as cash
D. Amy, whose investments comprise only of buy-to-let properties
- Majestic plc pays a dividend of £270 each to two brothers, Jason and Miles. Jason is a higher rate taxpayer and Miles is an additional rate taxpayer. Which of the following is correct regarding their additional income tax liabilities?
A. Jason will pay tax at 22.5% once he has used up his dividend allowance
B. As an additional rate taxpayer Miles is not entitled to the dividend allowance
C. Assuming he has not used his dividend allowance, Miles has no tax to pay
D. Assuming he has used his dividend allowance, Jason has a liability of £27
- A contract based pension scheme has which advantage over a Trust based pension scheme?
A. Member contribution refunds for early leavers.
B. Member contributions deducted from gross pay before tax and national contributions are applied.
C.Less costly and time-consuming administration.
D. Protection for the members, with their interest being safeguarded by Trustees
- Income Protection is likely to be a higher priority than Critical Illness cover for most people because:
A. It has a shorter deferred period
B. It allows higher sums assured
C. It covers significantly more medical conditions
D. It pays the benefits tax free
- You have two new clients, Glenda and John. They have asked you to explain the investment management process in more detail. As you come to the end of your explanation you tell them that the final stage of the process is:
A. stock (or fund) selection
B. performance measurement
C. formulating investment policy and strategies
D. determining client investment objective
- Which of the following types of care provision never needs to be self-funded?
A. Accommodation costs in an NHS hospital
B. Domiciliary care
C. Respite care
D. Residential care in a nursing home
- Which type of equity release product normally involves a long term open ended lease?
A. Home Income Plan
B. Shared Appreciation Mortgage
C. Home Reversion Plan
D. Drawdown scheme
- Josie has accepted an unconditional offer for her house. The buyer is now legally bound to buy the house. This is because:
A. it was unconditional
B. the property is in Scotland
C. it is a listed building
D. it is a re-possession
- Colin is about to receive a scheme pension in respect of his membership of his employer’s defined benefit scheme on his 67th birthday. He should be aware that the MAXIMUM term for any guarantee period included will be:
A. 3 years.
B. 5 years.
C. 8 years.
D. 10 years.
Answers and Cross-References
- B CII R01 Study Text Chapter 5:2
- A CII R02 Study Text Chapter 2
- C CII R03 Study Text Chapter 9
- C CII R04 Study Text Chapter 5
- C CII R05 Study Text Chapter 7
- B CII J10 Study Text Chapter 3
- A CII CF8 Study Text Chapter 1
- C CII ER1 Study Text Chapter 6
- B CII R07 Study Text Chapter 4
- D CII R08 Study Text Chapter 1