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Test your Knowledge – exam support

25 January 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.   

The following 10 questions are provided by Brand Financial Training and relate to the examinable Tax year 17/18, examinable by the CII until 31 August 2018.

Answers follow the questions below.


  1. Which of the following is accurate regarding actively and passively managed funds?
  2. Passive funds aim to track the market in which they operate and active funds aim to outperform it
  3. Passive funds are always classed as lower risk than active funds
  4. Active funds will always have higher returns and lower charges than passive funds
  5. Passive funds are only available through open ended investment funds


  1. Claire requires an annual payment of interest and capital of £1,500 at the end of each year for 10 years. The interest earned is 7.5%. Approximately how much needs to be invested now in order for her to achieve this?
  2. £21,220
  3. £15,000
  4. £10,296
  5. £16,875


  1. Tamsin makes a transfer of £150,000 to a discretionary trust and 4 years later made a PET of £325,000. She dies 6 ½ years later.  All other gifts were covered by the annual allowance. Assuming she had used her annual exemptions elsewhere what is the Inheritance Tax liability?
  2. Nil
  3. £12,000
  4. £24,000
  5. £60,000


  1. GAD rates used for capped drawdown are based on which of the following underlying annuity assumptions? Tick all that apply.
  2. Level in payment.
  3. Monthly in advance.
  4. 10 year guarantee.
  5. Single life.


  1. Which of the following is a term assurance policy which may be used as an alternative to a whole life policy?
  2. Whole term
  3. Term 100
  4. Life-long term
  5. Long-term life


  1. Lara and Theo are looking to take out a joint equity release product. They have joint pension income of £20,000 per annum but If Lara is the first to die, Theo’s pension will only be £6,000 per annum. What sort of joint equity release product would not be suitable for them?
  2. Partial Home Reversion Plan
  3. Lifetime mortgage with interest payments
  4. Full Home Reversion Plan
  5. Lifetime mortgage with interest roll up


  1. Chloe has given up work to look after her aged mother, who is in receipt of full rate Attendance Allowance, on a full-time basis. Which benefit may Chloe be eligible to claim?
  2. Disability Living Allowance
  3. Carer’s Allowance
  4. Personal Independence Payment
  5. Job Seeker’s Allowance


  1. A Trust that holds assets for a child until they reach the age of 18 is called a:
  2. bare trust
  3. discretionary trust
  4. interest in possession trust
  5. accumulation and maintenance trust


  1. Under which circumstances must a firm complete Customer Due Diligence? Tick all that apply.
  2. When a regulated firm suspects money laundering or terrorist financing
  3. When a regulated firm establishes a business relationship
  4. For pension schemes where members cannot assign their rights
  5. When a regulated firm carries out an ad hoc transaction


  1. Julian and Chloe are married and buying their first home together. Julian will be away when the paperwork will need to be signed. Which of the following could they do?
  2. An enduring power of attorney to be used as a one-off
  3. Use the court of protection to sign on his behalf
  4. Effect a limited power of attorney
  5. Ask the lender to accept Chloe’s signature only


Answers below – no peeking..












ANSWERS – with cross references

  1. A       CII R01 Study Text Chapter 2
  2. C       CII R02 Study Text Chapter 4
  3. B       CII R03 Study Text Chapter 4
  4. AD    CII R04 Study Text Chapter 6.2
  5. B       CII R05 Study Text Chapter 4
  6. B       CII ER1 Study Text Chapter 6
  7. B       CII CF8 Study Text Chapter 7
  8. A       CII J12 Study Text Chapter 12
  9. ABD CII R01 Study Text Chapter 6
  10. C       CII R07 Study Text Chapter 6


Brand Financial Training
Need help with your CII exams?  Brand Financial Training provides a range of resources, including mock exam papers, calculation workbooks, study notes, audio masterclasses and e-learning videos. Visit: https://brandft.co.uk. Free taster versions available.




Professional Paraplanner