Test question from Financial Exam in Bat
What is the purpose of the use of the word personal in the ‘fair and personal’ analysis for the disclosure in the Insurance Distribution Directive?
1.It is the adviser’s personal advice and use of the word stresses it is his personal advice.
2.It is the advisers advice that is personal to the specific client, and the word stresses it is personal to the client concerned.
3.It is both of the above.
The answer is 2. The advice should be based on the client’s personal circumstances and the recommendation personal to the client
Answer = b
There is no stamp duty for first time buyers up to £300,000 in England and Northern Ireland, but for properties between £300,000-£500,000 the charge is on the difference over £300,000. Therefore £200,000 x 5% =£10,000. There is no relief available for properties worth over £500,000 and the full Stamp Duty liability applies to all, even to first time buyers.