CISI Investment, Risk & Taxation Latest
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"Bulldog" bonds are: - Answer -Sterling bonds issued in the UK by a foreign entity
"Dark green" vs "Light green" funds - Answer -Dark green - negative screening
Light green - positive screening
"Residence" - Answer -status in a given tax year
2 most common types of open-ended funds - Answer -- Unit Trusts
- OEICs
3 biases of performance reporting for ARFs - Answer -- self-selection bias
- backfill bias
- survivorship
3 components of risk for investors - Answer -Risk tolerance
Risk attitude
Risk capacity
3 stages of top-down portfolio management - Answer -1. Asset allocation
2. Sector selection
3. Individual stock selection
3 types of unemployment - Answer -cyclical
frictional
structural
4 Factors of productivity - Answer -land
labour
capital
enterprise
4 types of crowdfunding - Answer -- Investment
,- Loan
- Donation
- Reward
5 main elements of BoE's framework - Answer -- Sterling Monetary Framework (SMF)
- non-interest based facilities
- term funding scheme (TFS)
- gilt/corporate bond holdings
- short-term non-sterling liquid facilities
Advantages of a wrap platform - Answer -- greater automation
- improved efficiency
- instant valuations
- improved reporting
Amount policyholder can withdraw each year from investment bond tax-free - Answer -5%
Arbritrage pricing theory relies on: - Answer -regression analysis
Are NS&I premium bonds tax-free? - Answer -Yes
Are repair costs deductible from CGT? - Answer -No
Are vintage cars and normal cars liable for CGT? - Answer -Typically not, they are only liable if they
have been used for business purposes
Authorised corporate director - Answer -day-to-day operation and management of UK-authorised
OEICs
Bare trust: beneficiary has ____ - Answer -IMMEDIATE and ABSOLUTE right to both capital and
income
Bare Trusts - tax treatment - Answer -Trust is effectively ignored, the beneficiary pays at their
marginal rate.
Benchmarks should be: - Answer -- Unambiguous
- Investable
- Measurable
- Appropriate
- Specified in advance
, Benefit of purchasing gilt directly through Computershare - Answer -pay lower commission
Blind - additional exemption - Answer -+2500 to personal allowance
Blue bonds are: - Answer -Issued by govts or banks to finance marine and ocean-based projects
BoE tool for interest rates - Answer -gilt repo market
Broad money - Answer -M4 - notes and coins in circulation
and instant access and time deposits
of UK residents in UK banks and building societies
By when is the SPA for men and women expected to increase to 67? - Answer -2028
Can the expenses of an offshore fund be offset against its income? - Answer -No
Capital gains made within an OEIC are: - Answer -Exempt
Capital redemption bond - Answer -no insurance element, used purely for investment
Capital redemption bonds - Answer -- NO insurance element
- purely for investment purposes
- only pay out on expiry or early encashment
Capitalisation rate for value of buy-to-let property - Answer -Net operating income divided by sales
price
CGT Annual Tax Exemption - Answer -£12,300 (most residents)
then
10% for basic rate
20% for higher and additional taxpayers
CGT rates for property - Answer -18%
and
28%
Chief difficulty of devaluing home currency to balance international payments - Answer -need to
raise interest rates which may also raise currency rates
Class 3 contributions can be made how many years after? - Answer -6 years
Contribution limits to pensions - Answer -- £40,000 maximum
- reduce £1 for every £2 earned over £240k
Update Questions with Verified
Answers Guaranteed Pass Reliable
"Bulldog" bonds are: - Answer -Sterling bonds issued in the UK by a foreign entity
"Dark green" vs "Light green" funds - Answer -Dark green - negative screening
Light green - positive screening
"Residence" - Answer -status in a given tax year
2 most common types of open-ended funds - Answer -- Unit Trusts
- OEICs
3 biases of performance reporting for ARFs - Answer -- self-selection bias
- backfill bias
- survivorship
3 components of risk for investors - Answer -Risk tolerance
Risk attitude
Risk capacity
3 stages of top-down portfolio management - Answer -1. Asset allocation
2. Sector selection
3. Individual stock selection
3 types of unemployment - Answer -cyclical
frictional
structural
4 Factors of productivity - Answer -land
labour
capital
enterprise
4 types of crowdfunding - Answer -- Investment
,- Loan
- Donation
- Reward
5 main elements of BoE's framework - Answer -- Sterling Monetary Framework (SMF)
- non-interest based facilities
- term funding scheme (TFS)
- gilt/corporate bond holdings
- short-term non-sterling liquid facilities
Advantages of a wrap platform - Answer -- greater automation
- improved efficiency
- instant valuations
- improved reporting
Amount policyholder can withdraw each year from investment bond tax-free - Answer -5%
Arbritrage pricing theory relies on: - Answer -regression analysis
Are NS&I premium bonds tax-free? - Answer -Yes
Are repair costs deductible from CGT? - Answer -No
Are vintage cars and normal cars liable for CGT? - Answer -Typically not, they are only liable if they
have been used for business purposes
Authorised corporate director - Answer -day-to-day operation and management of UK-authorised
OEICs
Bare trust: beneficiary has ____ - Answer -IMMEDIATE and ABSOLUTE right to both capital and
income
Bare Trusts - tax treatment - Answer -Trust is effectively ignored, the beneficiary pays at their
marginal rate.
Benchmarks should be: - Answer -- Unambiguous
- Investable
- Measurable
- Appropriate
- Specified in advance
, Benefit of purchasing gilt directly through Computershare - Answer -pay lower commission
Blind - additional exemption - Answer -+2500 to personal allowance
Blue bonds are: - Answer -Issued by govts or banks to finance marine and ocean-based projects
BoE tool for interest rates - Answer -gilt repo market
Broad money - Answer -M4 - notes and coins in circulation
and instant access and time deposits
of UK residents in UK banks and building societies
By when is the SPA for men and women expected to increase to 67? - Answer -2028
Can the expenses of an offshore fund be offset against its income? - Answer -No
Capital gains made within an OEIC are: - Answer -Exempt
Capital redemption bond - Answer -no insurance element, used purely for investment
Capital redemption bonds - Answer -- NO insurance element
- purely for investment purposes
- only pay out on expiry or early encashment
Capitalisation rate for value of buy-to-let property - Answer -Net operating income divided by sales
price
CGT Annual Tax Exemption - Answer -£12,300 (most residents)
then
10% for basic rate
20% for higher and additional taxpayers
CGT rates for property - Answer -18%
and
28%
Chief difficulty of devaluing home currency to balance international payments - Answer -need to
raise interest rates which may also raise currency rates
Class 3 contributions can be made how many years after? - Answer -6 years
Contribution limits to pensions - Answer -- £40,000 maximum
- reduce £1 for every £2 earned over £240k
