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CII FA5 ISA administration Exam CMP QUESTIONS
AND VERIFIED ANSWERS LATEST UPDATE
CII FA5 ISA administration Exam
Syllabus Coverage
The questions below are built around the official FA5 syllabus and cover: ISA types and basic features;
investor eligibility and the application process; the subscription limit; transfers, withdrawals, closure,
and death of an investor; investment rules; tax treatment of income; HMRC reporting and ISA manager
obligations; and Lifetime ISA, Junior ISA, and Innovative Finance ISA.
1. A UK resident who is 17 years old wants to open an account to start saving for their first home. Which
type of ISA can they open now?
A) Cash ISA
B) Stocks and Shares ISA
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C) Lifetime ISA
D) None, they must wait until age 18
Correct Answer: A
Rationale: The minimum age for a Cash ISA is 16, while Stocks and Shares, Innovative Finance, and
Lifetime ISAs require the investor to be at least 18 years old.
2. A client has already subscribed £15,000 to a Cash ISA in the current tax year. What is the maximum
additional amount they can put into a Stocks and Shares ISA in the same tax year?
A) £5,000
B) £15,000
C) £20,000
D) £10,000
Correct Answer: A
*Rationale: The overall annual ISA allowance for the 2025/26 tax year is £20,000. The client can split the
allowance across different types of ISA, as long as the total does not exceed £20,000.*
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3. An investor wishes to transfer their existing Cash ISA to a new provider. Which of the following
statements correctly describes the requirement?
A) They must withdraw the money and reinvest it themselves within 30 days
B) They must close the original Cash ISA and open a new one with the new provider
C) The ISA manager must transfer the funds directly to the new ISA manager; transferring to the investor
would be treated as a withdrawal
D) The investor must wait until the next tax year to transfer the funds
Correct Answer: C
Rationale: ISA managers must transfer investments and/or cash directly to new ISA managers. If the
investments are transferred to the investor, this will be treated as a withdrawal and the tax benefits will
be lost.
4. A parent opens a Junior ISA for their 10-year-old child. In the 2025/26 tax year, what is the maximum
total amount that can be paid into the child’s Junior ISA?
A) £20,000
B) £9,000
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C) £4,000
D) £15,000
Correct Answer: B
*Rationale: The annual Junior ISA allowance for the 2025/26 tax year is £9,000 across both Cash and
Stocks & Shares Junior ISAs.*
5. An ISA manager receives a transfer request from another provider. The original provider must
complete the transfer within what regulatory timeframe?
A) 30 days
B) 15 days
C) 10 working days
D) 5 working days
Correct Answer: A
Rationale: Under HMRC rules, ISA managers must adhere to specific transfer timeframes; the original
provider typically has 30 days to complete the transfer. The investor submits a transfer request, and the
CII FA5 ISA administration Exam CMP QUESTIONS
AND VERIFIED ANSWERS LATEST UPDATE
CII FA5 ISA administration Exam
Syllabus Coverage
The questions below are built around the official FA5 syllabus and cover: ISA types and basic features;
investor eligibility and the application process; the subscription limit; transfers, withdrawals, closure,
and death of an investor; investment rules; tax treatment of income; HMRC reporting and ISA manager
obligations; and Lifetime ISA, Junior ISA, and Innovative Finance ISA.
1. A UK resident who is 17 years old wants to open an account to start saving for their first home. Which
type of ISA can they open now?
A) Cash ISA
B) Stocks and Shares ISA
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C) Lifetime ISA
D) None, they must wait until age 18
Correct Answer: A
Rationale: The minimum age for a Cash ISA is 16, while Stocks and Shares, Innovative Finance, and
Lifetime ISAs require the investor to be at least 18 years old.
2. A client has already subscribed £15,000 to a Cash ISA in the current tax year. What is the maximum
additional amount they can put into a Stocks and Shares ISA in the same tax year?
A) £5,000
B) £15,000
C) £20,000
D) £10,000
Correct Answer: A
*Rationale: The overall annual ISA allowance for the 2025/26 tax year is £20,000. The client can split the
allowance across different types of ISA, as long as the total does not exceed £20,000.*
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3. An investor wishes to transfer their existing Cash ISA to a new provider. Which of the following
statements correctly describes the requirement?
A) They must withdraw the money and reinvest it themselves within 30 days
B) They must close the original Cash ISA and open a new one with the new provider
C) The ISA manager must transfer the funds directly to the new ISA manager; transferring to the investor
would be treated as a withdrawal
D) The investor must wait until the next tax year to transfer the funds
Correct Answer: C
Rationale: ISA managers must transfer investments and/or cash directly to new ISA managers. If the
investments are transferred to the investor, this will be treated as a withdrawal and the tax benefits will
be lost.
4. A parent opens a Junior ISA for their 10-year-old child. In the 2025/26 tax year, what is the maximum
total amount that can be paid into the child’s Junior ISA?
A) £20,000
B) £9,000
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C) £4,000
D) £15,000
Correct Answer: B
*Rationale: The annual Junior ISA allowance for the 2025/26 tax year is £9,000 across both Cash and
Stocks & Shares Junior ISAs.*
5. An ISA manager receives a transfer request from another provider. The original provider must
complete the transfer within what regulatory timeframe?
A) 30 days
B) 15 days
C) 10 working days
D) 5 working days
Correct Answer: A
Rationale: Under HMRC rules, ISA managers must adhere to specific transfer timeframes; the original
provider typically has 30 days to complete the transfer. The investor submits a transfer request, and the
