The CII Financial Assess training package tests your knowledge of key
Question 1
Ethical behaviour is difficult to evaluate and so it is necessary to employ proxy measures, such as:
A. Analysing the social background of each member of staff
B. Audio and video recordings of staff interaction with customers
C. Sales statistics compared with other organisations offering similar products and services
D. The persistency of problems and the number and nature of complaints received
Question 2
Where must a lasting power of attorney normally be registered for the attorney's powers to come into force?
A. HMRC
B. The Department for Work and Pensions
C. The High Court
D. The Office of the Public Guardian
Question 3
Who executes a deed to create a power of attorney?
A. The attorney
B. The donee
C. The donor
D. The settlor
Question 4
In England and Wales, how much does a widow currently receive outright under the rules of intestacy if there is no issue, but the deceased's parents are alive?
A. £270,000
B. £270,000 plus half the residue
C. £450,000 plus half the residue
D. The entire value of the estate
Question 5
Which of the following scenarios would, generally speaking, ensure a will is valid?
A. Although written 10 years ago, the recently married testator's will is in writing, signed and witnessed
B. The will is in writing, signed, witnessed by two or more people who are 18 or over and the testator has not remarried since
C. The will was signed, and the testator has not remarried since
D. The will was witnessed by two individuals
Question 6
Systemic risk can be best described as the risk of:
A. A government being unable to repay an interest payment
B. A single financial institution defaulting
C. The collapse of an entire market
D. The counterparty to a transaction failing to settle
Question 7
Which of the following is true about annuity protection lump sum death benefits?
A. They are always tax free
B. They are always taxable as income
C. They are normally tax free if death occurs before age 75, but taxable thereafter
D. They are normally taxable as income if death occurs before age 75, but tax free thereafter
Question 8
Stamp duty land tax (SDLT) on residential property is paid at a zero rate up to a threshold of:
A. £125,000
B. £150,000
C. £250,000
D. £500,000
Question 9
What event will result in a member losing enhanced protection?
A. A transfer from a defined benefit (DB) scheme to another DB scheme that is part of a business transfer
B. A transfer from a defined contribution scheme to a DB scheme
C. A transfer split between three different schemes
D. Establishing a new plan to take a transfer value from another registered pension scheme
Question 10
What is the main difference between a retirement interest-only (RIO) mortgage and a conventional lifetime mortgage?
A. Interest is paid each month by the customer on a RIO
B. Interest rates are always variable on RIOS
C. RIOs are only available through life insurance companies
D. RIOs have a fixed term whereas lifetime mortgages are open-ended
Answers
1D. Proxy measures employed to evaluate ethical behaviour include the persistency of problems and the number and nature of complaints received.
2D. The Office of the Public Guardian.
3C. The donor is the individual who establishes a power of attorney.
4D. The widow would receive the entire value of the estate outright.
5B. For a will to be valid, it must be in writing, be signed and witnessed by two or more people who are 18 or over. The testator must not have remarried since.
6C. Systemic risk can be best described as the risk of the collapse of an entire market rather than the failure of individual parts of the market.
7C. They are normally tax free if death occurs before age 75, but taxable thereafter.
8A. SDLT is paid at 0% up to £125,000 on purchases.
9B. A transfer from a DC arrangement to a DB or cash balance arrangement is not a permitted transfer.
10A. Interest is paid each month by the customer on a RIO.
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