The Big 10

The CII Financial Assess training package tests your knowledge of key financial topics

QUESTION 1 A client agreement is required for which type of client? A Professional clients only B Retail and professional clients and eligible counterparties C Retail and professional clients D Retail clients only

QUESTION 2 Geoff is terminally ill and plans to sell his whole of life policy to an intermediary to raise money. What is this called? A Equitable assignment B Power of attorney C Terminal illness benefi t D Viatical settlement

QUESTION 3 Which Act introduced a replacement for the enduring power of attorney? A The Attorney Act 2006 B The Finance Act 2006 C The Mental Capacity Act 2005 D The Powers of Attorney Act 2005

QUESTION 4 How often can an individual access the pensions advice allowance? A Four times

B Once C Three times D Twice QUESTION 5 What distinguishes NEST from every other pension scheme? A It cannot accept transfers from other pension schemes B It is an occupational scheme but uses the relief at source method of tax relief C It is run by the government D It must accept every employer who wants to use it, regardless of size

QUESTION 6 Under UK Financial Conduct Authority complaints rules, for how long must an authorised fi rm keep records of customer complaints for non-MiFID business? A At least three years B Indefi nitely C One year D Six months

QUESTION 7 How can a put option on a FTSE index help a fund manager who believes the index is going to fall? A They can buy the underlying asset at a price agreed at contract B They can buy the underlying asset at the price at expiry C They can sell the underlying asset at the exercise price D They can sell the underlying asset at the price at expiry of the contract QUESTION 8 Who is responsible for the underlying investment decisions with collective investments?

A The adviser B The client C The fund manager D The trustee

QUESTION 9 Which of the following is a requirement for a client to be treated as a professional client? A It is essential that no advice is given B The client must confi rm their agreement in writing C The client refuses to disclose information to you D The professional client basis will apply to all new investment business

QUESTION 10 Systematic or market risk is measured by? A Alpha

B Beta C Correlation D Standard deviation

YOUR SCORE »

1–3 POOR 7–8 VERY GOOD 4–6 GOOD 9-10 EXCELLENT

risk is measured by beta. Systematic or market 10B. in writing. must confi rm their status A professional client 9B. investment decisions. make the underlying Professional fund managers 8C. falls, they will make a profi t. specifi ed price. If the index manager the right to sell at a A put option gives the fund 7A. least fi ve years.) must be kept for at

ANSWERS

case of MiFID, a fi rm’s records for at least three years. (In the A record must be kept 6A. service obligation. This is NEST’s public 5D. (but only once in any tax year). a total of three times at any age The allowance can be used 4C lasting powers of attorney. provisions that introduced Act 2005 contains the The Mental Capacity 3C. sum insured. all of the policy’s full

used to achieve much but not Viatical settlements can be 2D. professional clients. required for both retail and client agreements are implementation of MiFID II, Following the 1C.