Anson Investment Management Limited
 
 
 

Things a Personal Adviser should know
Are you ready to be your own financial adviser?
(Score out of 15 given at the end of the quiz)
1) What percentage of final salary is usually regarded as an adequate amount of pension?
a) 50%
b) 66%
c) 75%
d) 90%

2) What must be present for one person to take out a policy on the life of another?
a) Insurable Interest
b) A 'blood' relationship
c) A close 'personal' relationship
d) Financial dependancy

3) What is the name given to a bonus which is added to the sum assured of with-profits
policies each year?
a) Reversionary bonus
b) Terminal bonus
c) Simple bonus
d) Compound bonus

4) Generally speaking, what is the minimum period of time that 'long term' savings and
investments should be held?
a) 5 yrs
b) 7.5 yrs
c) 10 yrs
d) 20 yrs

5) What term is used to describe the process by which investment trusts may borrow money to invest on their shareholder's behalf?
a) Churning
b) Gearing
c) Discounting
d) Levelling

6) What type of insurance provides long term income protection in the event of sickness or
ill-health?
a) Critical illness care
b) Permanent health insurance
c) Personal accident and sickness insurance
d) Long-term care insurance

7) Which of the following can be changed under a 'flexible' whole of life policy?
a) Type of cover from with profits to unit linked
b) Level of cover within certain limits
c) Life assured under the policy
d) Contribution increases without evidence of health

8) What effect will a substantial fall in interest rates have on fixed interest stocks?
a) Market price will go up
b) Market price will go down
c) Income from them will fall
d) Income from them will rise

9) What risk rating would you give to an asset-backed investment in the shares of a new company in an emerging market?
a) high risk
b) medium risk
c) low risk
d) no risk

10) What of the following form of investments would be suitable if you were looking for a secure short-term savings plan?
a) Deposit account
b) Gilt stock
c) Company shares
d) Endowment policy

11) What term is normally used to describe the price at which an investor will purchase units in a collective investment?
a) Bid price
b) offer price
c) cancellation price
d) mid-market price

12) What is the typical employee-contribution rate to a contributory occupational pension?
a) 2.3% of salary
b) 5.6% of salary
c) 10.12% of salary
d) 17.5 - 20% of salary

13) What is the most basic principal of professionalism to be observed by a financial adviser?
a) Integrity
b) Knowledge
c) Perception
d) Education

14) What is a 'tied agent'?
a) An adviser who may advise in the products of one provider only
b) An adviser who is tied to an independent network
c) An adviser who may advise on the products available in one country only
d) An adviser whose activities are limited to one class of business only

15) Independant financial advisers have a responsibility over and above that of tied agents.
What is it?
a) To recommend the best product for the client given the situation
b) Recommend the best provider of a given product
c) Offer choice of several products
d) Act as the agent of the product provider they represent


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