Tricky Qu Flashcards
What is a likely affect, if any from a fall in sterling compared to others?
Inflation
Deflation occurs when the purchasing power of money….
Rises and the gen price level of goods falls
Uni wol policy, least likely benefit
Long term care
Typical inc in premium for convertable term ass
10-15%
Max from state for funeral
1k
Net div of 90, what would highe rate tax payer pay?
£22.50
Fsa can ask courts for ind to forfiet any profits made in contravention of regs, this is?
Restitution
Which fsa handbook contains principles for bus?
High level stds
Min period advisor must keep record of ipi sales?
3 yrs
If client fail to disc all material fact for life ass pol, contract is….
Voidable
Index used to revalue index linked gilts
RPI
NS&I product pay int gross but is taxible
Income bond
What type of schemes does pensions reg cover?
Occ scheme and group personal or stakeholder schemes only
Ie not individual personal
Regs cca?
OFT
Fsa bus stds for inv firms is contained in….
Market conduct sourcebook
Past perf figs in a promo must be min of…
5 yrs
For life policy, when should suitability report be given to cons?
B4 canc notice is sent and before plan in force
Reg prem pension product, what is deadline for giving suitability report?
B4 stat canc notice sent
Lasting prop and affair poa which has been reg, what happens if doner bko?
Revoked and matter deferred for court of protection
What will always revoke or invalidate a will?
Mental incap of testator at time will affected
Type of tax adv lost is settlor is also bene of a trust
IHT
Max exit chrg on 18-25 trust?
4.2%
Gearing risk is what type of risk?
Pure risk
Using collective inv is an attempt to address what type of risk?
Non systematic
Wat risk do you avoid by trading in only large cos
Liquidity risk
Captive ins co is form of?
Risk retention
Canc period for gen ins
14 days from consumer receiving the notice
For non life product, when is the latest suitability report can be given?
With canc notice
When must key feature doc for personal pension be given?
Before app form signed
Min period non-mifid firm must keep training and competence record for approved person?
3 years from leaving
How sould firm dealwith conflict of int?
Manage conflicts fairly
Can you receive comm for advice?
Yes, but must offer fee basis
Canc period for disc gift trust arrgmt?
30 days
Freedom of movmt of cap under single euro act.
Restrictions on ptmys prohibited for what?
Goods and services
Max state give for funeral?
£2k
Max length of time premiums would be paid under waiver of prem on wol policy?
6 mths
Who does boe report to for roles and resposibilties?
Chanellor of exchequer
Fsa reports directly to…
Treasury
Controlled function not significate influence function?
Consumer function
Person dies interstate with no relative
Who gets the estate?
Crown or hm treasury- depending on location
Min amount of nominal gift to create an immediate post death interest trust during settlors lifetime is?
£10
Not a requirement for policy arranged under married persons property act?
And requirements
Policy must refer to the act But must be: Applys end and wales only Own life pol For bene of spouse child, or civil partner
Financial intermediation mitigates what typemof risk?
Counterparty risk
Legal claim against firm is categorised as what risk?
Non-business and an event risk
Fsa reg primarily based on what?
Principles for bus
If you out inheritance in childrens acc, what will happen?
If interest >£100 on either acc, entire interest added to your income
Fsa’s ‘key facts’ logo can be used on…
Service and cost disclosure docs
Not key feature docs
Unit linked ins bond valued at 100k
Max recovered under fscs?
90k
90%- ins companies, non compulsary
Which trust immediately reduced iht liability?
Discounted gift trust
Discretionary trust rec gilt coupon of 3k
How much income tax payable?
1200
20% on 1st 1k
50% on rest
Mother sets up 2 life int trusts for kids
1 trust makes 10300 gain on disp of shares
Cgt payable?
2142
5300/2 no of trusts assets split bet
10300-2165*0.28= 2142
Basel commitee on banking supervision is a multinational commitee of the….
Bank of international settlements
Share in 1 co- what type of risk?
Market and non-systematic
Main concern for invester with conventional gilts?
Inflation risk
Can get index linked gilts- rpi
Risk a terrorist incident constitutes?
Business continuity risk
Unit trust and key feature document- when should it be given?
Its not a mandatory req
The simplified conduct of bus rule in nov 07 designed to what?
Complement the fsa risk based approach
Re the fit and proper test all approved persons undergo, senior managers are subject to procedures that test tech skills and….
Ethics
Adequate risk management forms which fsa princ for bus?
Mngmt and control
