Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

P4 > Unit 2 > Flashcards

Unit 2 Flashcards

1
Q

FCA

A

Regulates consumer credit industry, supervises insurance provision and marketing of pension products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

PRA

A

Regulates certain types of firms at individual level (insurance)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

FPC

A

Financial policy committee:

Responsible for systemic risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Unregistered/employer financed pension schemes

A

Don’t receive tax concessions. Conts paid post income tax and NI. Benefits paid get income tax, no NI. Employer conts get tax relief when member takes benefits.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What can you claim tax relief on personal contributions on?

A

Higher of £3,600 or full earnings made by you or third party on your behalf

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

AA amount

A

£40k

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Money purchase AA

A

£4k

For people who have already accessed money purchase benefits, max amount they can put back into a pension fund

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Pension input period

A

6 April to 5 April

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

AA - Value of increased pen

A

DC - value of conts

DB - 16 x (accrued pen at end of PIP - beginning x CPI)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

AA - tax charge

A

Marginal rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

When is AA not applied?

A

Year in which retire on ill health or dies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

AA - carry forward

A

3 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

LTA

A

Total value of benefits from registered pension schemes

£1.055m

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

LTA - calculation

A 
DC - amount
Cash comm - amount
DB pre comm - x 20
DB in payment before 06 - x 25
Annuities - value of them
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

LTA charges

A

55% if cash, 25% plus marginal rate if pension

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Refund of conts to employer

A

OK if have enough assets to meet wind up costs. 35% rate. Need to have provision in rules agreed by 5 April 2016.

17
Q

Refund of conts to employer

A

OK if have enough assets to meet wind up costs. 35% rate. Need to have provision in rules agreed by 5 April 2016.

18
Q

Pension sharing on divorce

A

Not compulsory, up to the parties involved. Set up pension debit, and pension credit for ex-spouse. Or can pay out CETV.

19
Q

TPR - COP 1

A

Reporting breaches of law

Requirement to report breaches. Decision to report based on whether likely a breach has occurred and materiality of impact

20
Q

TPR - COP 2

A

Notifiable events

Gives tpr early warning of call on PPF. Events notified asap.

21
Q

TPR - COP 3

A

Funding DB

IRM/Funding/Covenant/Investment/Recovery Plans

22
Q

TPR - COP 4

A

Early leavers - reasonable periods

Applies if scheme rules don’t provide vested rights for +3 months, less than 2 years. Gives TPR view on reasonable time period for notifying members of rights

23
Q

TPR - COP 5

A

Reporting late payments of conts to MP schemes

What is a reasonable period within which trustees must report late payments of conts

24
Q

TPR - COP 6

A

Reporting late payments of conts to Personal pens

What is a reasonable period within which trustees must report late payments of conts

25
Q

TPR - COP 7

A

Trustee knowledge & understanding

Sets out TPR expectations of TKU

26
Q

TPR - COP 8

A

MNT requirements

Helps trustees to meet 1/3 requirement

27
Q

TPR - COP 9

A

Internal controls

Sets out what expectations are

28
Q

TPR - COP 10

A

Modification of subsisting rights

Helps anyone who needs to modify to do duties

29
Q

TPR - COP 11

A

Dispute resolution reasonable periods

Expectation of time periods, not on what IDRP should cover

30
Q

TPR - COP 12

A

Material detriment test

Circumstances where TPR expects to issue contribution notice if material detriment test met (whether sponsor’s actions have materially detrimented scheme)

31
Q

TPR - COP 13

A

Governance of DC trust based schemes

Standards expected (e.g. investment governance, administration, VFM)

32
Q

TPR - COP 14

A

Governance of public sector schemes

Knowledge/understanding, risk controls, record keeping

33
Q

TPR - COP 15

A

Authorisation of master trusts

Information needed for authorisation.

34
Q

PPF benefits

A
  • 100% if over NPA, 90% if under
  • Deferred are subject to compensation cap/long service cap
  • Can take PCLS
  • Increases: Pre 97 - nil, Post 97 - CPI2.5
  • Reval - CPI5 pre 09, CPI2.5 post 09
  • Widowers entitled to 50%
  • PPF can change rules if wants to
35
Q

Entry to PPF

A
  • Scheme must be eligible
  • Wind up post 6 April 05
  • Qualifying insolvency event
  • No chance of rescue
  • Not enough assets to buy out PPF level benefits
36
Q

What if PPF thinks could buy out but trustees disagree?

A

Can request PPF reconsider decision, within 3 months with auditor valuation and quotes from insurers.

37
Q

Logistics of entry

A

Section 143 valuation

P4 (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions