The CII Financial Assess training package tests your knowledge of key
What is the lifetime allowance for tax year 2021/22?
When considering pension transfers and life expectancy the adviser should:
A. Discuss with the client and agree an age based on family history
B. Use a period beyond the client’s average life expectancy
C. Use ceding scheme assumptions from the triennial review
D. Use GAD tables for life expectancy
Which legislation implemented automatic enrolment?
A. Finance Act 2010
B. Finance Act 2011
C. Pensions Act 2008
D. Pensions Act 2011
What are the main characteristics of a 'treating customers fairly' (TCF) oriented reward structure for financial advisers?
A. Achieving sales targets
B. Efficient use of IT and systems
C. Encouragement of discretionary fund management usage
D. High emphasis on client satisfaction
Cryptocurrencies are well suited to money laundering and tax evasion because:
A. They are backed by government
B. They are only partially regulated
C. Transactions are anonymous
D. Transactions are only carried out in person
Efficient frontiers are a set of portfolios with:
A. The highest return for a given level of risk
B. The highest risk for a given level of return
C. The lowest cost for a given level of return
D. The lowest cost for a given level of risk
How is a capital loss on a venture capital trust (VCT) investment treated for capital gains tax (CGT) purposes?
A. Allowable after the investment has been held for five years
B. Allowable after the investment has been held for two years
C. Allowable whenever realised
D. Not allowable because gains are exempt from tax
Which form must be completed if legal personal representatives (LPRs) are trying to claim an unused percentage of a deceased spouse's nil rate band?
What approach should financial advisory firms take to using social media for marketing?
A. Social media is not very useful because it is essentially only used by people under 30
B. Social media is useful, but also time consuming because it is important to manage the replies and content
C. Social media is easy to manage and so can be delegated to junior members of staff
D. Social media is valuable because clients are impressed by firms thatuse the latest technology
What would be considered as an essential starting point with a customer in respect of their financial planning?
A. Assessing their attitude to risk
B. Defining their financial ambitions
C. Drawing up a statement of their income and expenditure
D. Undertaking a review of their will arrangements
1C. The allowance increased to £1,073,100 for 2021/22 through to 2025/26.
2B. The assumption should include a period longer than the client’s average life expectancy as this better demonstrates the risk of funds not lasting through retirement.
3C. Pensions Act 2008 defines the employer duties under automatic enrolment.
4D. Well-designed service that is clearly communicated to clients and consistently delivered lies at the heart of TFC and good business practice.
5C. Because cryptocurrency is anonymous, it is well suited to money laundering and tax evasion.
6A. The efficient frontier is the set of portfolios offering the optimal risk-return trade-offs.
7D. A corollary of the VCT's exemption from any CGT on gains is that any loss on the shares does not qualify for relief against other capital gains.
8D. An IHT402 is needed for LPRs to claim any unused percentage of a deceased spouse's nil rate band.
9B. You must have sufficient time to manage and respond to content and contact. If you cannot do this, social media could damage your brand.
10C. Drawing up a statement of their income and expenditure.