Q37. Offshore foundations are often used as a suitable alternative to which similar type of arrangement?

Q38. What term is used to describe a situation where clients give investment instructions to a firm without being given advice to do so?

Q39. If someone in a fiduciary position has personal or professional interests that compete with their duty to act in the client’s best interest, this is called:

Q40. What is a key feature of offshore trusts that can make them attractive to wealthy UK clients?

Q41. When investors wish to sell units in mutual funds, there is a risk of the fund being gated. Why might this happen?

Q42. Equities have a higher risk/reward profile when compared to many other asset classes. Their use within a portfolio stems from:

Q43. Which of the following will be a major constraint on a client’s ability to invest and protect against all of the risks that might arise?

Q44. If an investor expects to receive a bullet payment, they are likely to be invested in a:

Q45. Which one of the following is true of fundamental analysis? It seeks to establish:

Q46. What is the most likely effect on the demand curve of an increase in consumer preference for a good?

Q47. If two sets of data have a correlation coefficient of 1.0, they possess:

Q48. Stablecoins are less prone to price fluctuations because:

Q49. “An approach which applies a theoretical price to a company’s shares by discounting the company’s expected future cash flow into infinity.” This statement is describing the:

Q50. In economics, costs are defined as:

Q51. Which type of investment is associated with providing finance to growing companies with the objective of exiting via a profitable stock market listing?

Q52. An execution-only sale usually means a sale where there is an absence of:

Q53. The UCITS regulations have been integral to introducing a common format for:

Q54. Which term is used to describe a dividend payment made by a company with insufficient earnings to do so?

Q55. What causes the price of a closed-ended investment company to trade at a premium or discount to net asset value (NAV)?

Q56. Your client estimates that they will require £40,000 of income annually to live off when they retire. Personal plus state pension will provide £35,000. They wish to retire in 20 years’ time. It is estimated that they can earn
3% per annum and inflation has been forecast at 2% over the next 20 years. Interest rates are currently 1.5%.
Allowing for inflation, what lump sum would they need to accrue to supplement their pension?