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2 July 2020

For Professional Paraplanner’s TDQ (Training, Development and Qualifications) series, 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.
This series aims to provide 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, which can also be found in our July/August 2020 issue, relate to examinable Tax year 19/20, examinable by the CII until 31 August 2020.


1. Under the Consumer Rights Act 2015, what is the requirement for expressing standard terms?
A. The terms must be individually negotiated with the consumer
B. The terms must be in plain and intelligible language
C. The terms must be forcible against the consumer
D. The terms must take into account the consumer’s legitimate interests

2. Which of the following best describes a ‘synthetic’ passive fund?
A. An Exchange Traded Fund that uses derivatives to match an index
B. An index-tracking fund that tracks a specialist index
C. An Exchange Traded Fund that holds stocks to replicate an index
D. A socially responsible index-tracking fund

3. Annuity rates have fallen in recent years due to the fact that people are living for longer and also because of:
A. falling gilt yields.
B. rising equity prices.
C. lower charges.
D. higher inflation.

4. Craig is one of three partners in a partnership and has £80,000 in the capital account. On his death, this is treated as:
A. An asset of the partnership
B. An asset of his estate and repayable immediately
C. An asset of his estate and the partnership equally
D. An asset of the partnership up to the amount stated in the partnership agreement with the remainder being due to his estate

5. 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

6. Gerard, a newly authorised financial adviser, has met with clients Ann-Marie and Janie for the first time. As his supervisor, which of the following would you advise him is the most important aspect of a sound client-adviser relationship?
A. Trust
B. Technical skill
C. Length of time in industry
D. Experience

7. A trade has been executed over the telephone by a member broker. When must the trade be reported to the exchange?
A. Within 1 minute of execution
B. Within 3 minutes of execution
C. At the end of automatic trading ie 4.30pm
D. By the time the LSE system finishes running ie 5.15pm

8. Which benefit might an informal carer be able to claim as a result of providing support for an individual requiring care?
A. Income Support/Universal Credit
B. Attendance Allowance
C. Personal Independence Payment
D. Disability Living Allowance

9. How is a borrower’s entitlement to Income Support potentially affected by taking out a lifetime mortgage?
A. By the income generated
B. Not affected
C. By both the income and capital generated
D. By the capital generated

10. Richard has been advised that he does not need advice regarding his mortgage application. This is most likely because:
A. the funds are for residential purposes
B. he has worked in the finance sector for 6 months
C. he only requires a 50% mortgage
D. he has net income of £350,000

Professional Paraplanner