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20 Cards in this Set

  • Front
  • Back
what are the main advantages to an investor of collective investments
the services of a skilled invetsment manager reduction of investment risk by spreading the fund reduced dealing costs wide choice of investment funds
who owns and controls a unit trust funds assets
the trustees
how would you describe forward pricing
under forward pricing clients buy or sell units in a given dealing period at the prices that will be determinated at the end of the dealing period
how does gearing benefit trusts
company gearing relates to the amount of borrowing its taken on investment trusts being companies are able to borrow in order to take advantage of investment opportunities(whereas unit trusts and oeics cannot borrow)
laqab invests £4000 in an equity mini ISA in july 2006 and withdraws 1000 in sep 2006. how much can he invest in the same ISAin dec 2006 ?
jack shit
in what circumstances might a terminal bonus be added to a with profits endownment policy ?
on maturity or an earlier deatho of the life assured, terminal bonuses are not usually adde to surrender values.
What rate of tax would be ayable on the proceeds of a non qualifying policy ?
High rate tax payers would pay20% on the gain (policy proceeds less premiums paid)for others there would be no tax due
How much can parents invest in a child trust fund ?
up to 1,200 a year
In what circumstances might a gift inter vivos term assurance be used ?
to cover the possible inheritance tax on a gift if the donor dies within seven years
how does the deferred period on a PHI policy affect the premium ?
the defered period is the length of time before benefits commence. The longer the period, the lower the premium.
Which of the following would not normally be excluded from a private medical insurance claim ?
-dental treatment
-outpatients consultation
outpatient consultation
what is the defenition of indemnity ?
in the event of a claim after loss, insured persons should be restored to the same financial position that they were in immediately before the loss occured.
which of the followingwould not be normally covered against damage under a buildings insurance policy ?
Dining room table
What is a mortgagee ?
A lender (bank, building society or other institution) who has an interest in the property for the duration of the loan.
whose responsibility is it to ensure that an interest-only mortgage is repaid at the end of the term ?
The borrower
a self employed plumber aged 25 takes out apension mortgage. what is the minimum term for which his mortgage could run ?
25 years -because the minimum age at which he could take the cash lump sum on his pension plan is 50. (from 2010, this will increase to 30 years, as the minimum age will be 55).
What is cap and collar mortgage ?
A mortgage where the interest rate cannot rise above a specified maximum rate or drop below a specified minimum rate.
Why do maortgage lenders insist that properties on which they lend should be continuously insured?
Because if the property is damaged, the value of the lender's security is reduced
What is the most common form of revolving credit ?
Credit Cards
What is the maximum permissable contribution to a stakeholder pension in 2006/07 ?
The greater of £3,600 or 100% of earnings with an overall limit of £215,000.