The CII Financial Assess package tests your knowledge of key financial topics
What is the purpose of the stakeholder pension decision tree?
A. To be kept on file by financial advisers to show that the RU64 rules have been met
B. To be used by an employee of a retailer that provides non-advised financial products through its stores
C. To be used by financial advisers when discussing the pension options open to their client
D. To be used by individuals when deciding if a stakeholder pension is suitable for them
How often can an individual access the pensions advice allowance?
A. Four times
C. Three times
What benefit of annuities is lost by those investing in drawdown?
A. Mortality drag
B. Mortality gain
C. Natural income generation
D. Pound cost averaging
Which of these investments would be classed as ‘taxable property’?
A. Gold bullion
B. Hedge funds
C. Unquoted company shares
D. Vintage cars
If someone fears no longer being able to act for themselves, what can they take out to cover that situation?
A. A last will and testament
B. A lasting power of attorney
C. A life insurance policy
D. An enduring power of attorney
Which of the following trusts, if any, can be revoked?
A. Discretionary trust
B. Life interest trust
C. Trustee trust
D. Will trust
Which taxpayers are entitled to the dividend allowance of £2,000?
A. All taxpayers
B. Only additional rate taxpayers
C. Only basic and higher rate taxpayers
D. Only basic rate taxpayers
How often is Universal Credit usually paid?
A. Every 28 days
B. Every two weeks
What are split trusts sometimes called?
A. Carve out trusts
B. CIC trusts
C. Discretionary trusts
D. Gift trusts
What is the level of the alternative annual allowance for tax year 2020/21?
C. £40,000 minus any defined contribution (DC) plan contributions
D. The higher of £30,000 and £40,000 minus any DC plan contributions
1D. Although financial advisers may use it to discuss pension options with their clients, its purpose is to help consumers who do not wish to seek financial advice.
2C. The allowance can be used a total of three times at any age (but only once in any tax year).
3B. Drawdown does not benefit from mortality gain.
4D. Cars, like fine wine, are considered taxable property, and are subject to high tax charges.
5B. An individual can take out a lasting power of attorney (LPA) to ensure someone will act on their behalf if they can no longer do so.
6D. A will trust does not come into force until the testator has died. The testator could, at any time, destroy or execute a new will which would revoke any previous wills.
7A. The £2,000 dividend allowance is available to all taxpayers.
8C. Universal Credit is paid monthly, on the same day each month, usually directly into your bank, building society or credit union account.
9A. Split trusts are sometimes called carve out trusts because benefits are carved out for the settlor.
10B. The alternative annual allowance is equal to the standard annual allowance (£40,000) minus the money purchase annual allowance (MPAA £4,000).
7-8 Very good