R04 Trustees and administrators: free practice questions

1. Question 1 of 5

   Which of these people is NOT disqualified from being a pension scheme trustee?

   Option A: Someone with an unspent dishonesty convictionOption B: An undischarged bankruptOption C: Someone with a spent conviction for a motoring offenceOption D: A disqualified company director

   Show answer

   The answer is C: Someone with a spent conviction for a motoring offence

   Minors, those lacking capacity, bankrupts, disqualified directors and people prohibited by TPR can't act. A criminal record only disqualifies if it's an unspent dishonesty or deception conviction.

   Why the other options are wrong

   A

   Unspent dishonesty convictions disqualify.

   B

   Bankrupts are disqualified.

   D

   Disqualified directors are disqualified.

2. Question 2 of 5

   Within what period should trustees generally report a material failure by the employer to pay contributions to TPR?

   Option A: 7 days of the due dateOption B: 30 days of the due dateOption C: 14 days of identifying it as materialOption D: 90 days of identifying the failure

   Show answer

   The answer is C: 14 days of identifying it as material

   Under the General Code, material failures should be reported within 14 days. Contributions outstanding for 90 days are usually material.

   Why the other options are wrong

   A

   Seven days isn't the requirement.

   B

   30 days isn't the requirement.

   D

   90 days is when a failure is usually material.

3. Question 3 of 5

   Whose advice may trustees rely on?

   Option A: Any FCA-authorised firmOption B: Only advisers they have formally appointedOption C: The scheme members' own advisersOption D: Any adviser the employer recommends

   Show answer

   The answer is B: Only advisers they have formally appointed

   Trustees must rely only on professional advisers they have appointed themselves. Relying on others can lead to removal or fines.

   Why the other options are wrong

   A

   Authorisation alone isn't enough.

   C

   Members' advisers aren't the trustees' advisers.

   D

   Employer-appointed advisers can't be relied on.

4. Question 4 of 5

   Which of these could NOT act as scheme auditor?

   Option A: An auditor appointed by the trusteesOption B: A registered auditor who is a scheme memberOption C: A firm holding a practising certificateOption D: A registered auditor unconnected with it

   Show answer

   The answer is B: A registered auditor who is a scheme member

   The auditor can't be a member, an employee of the trustees, the employer, a trustee or connected with the trustees.

   Why the other options are wrong

   A

   The trustees must appoint the auditor.

   C

   A practising certificate is required, not a bar.

   D

   An unconnected registered auditor can act.

5. Question 5 of 5

   What residence requirement does HMRC impose on the scheme administrator?

   Option A: The administrator must be resident in the EEAOption B: There is no residence requirementOption C: Every trustee of the scheme must be UK resident at all timesOption D: A person responsible for all the duties must be UK resident

   Show answer

   The answer is D: A person responsible for all the duties must be UK resident

   HMRC requires a person responsible for discharging all the scheme administrator's duties to be resident in the UK.

   Why the other options are wrong

   A

   EEA residence doesn't satisfy HMRC.

   B

   There is a requirement.

   C

   The rule applies to the administrator, not every trustee.

R0 Exam Prep is an independent revision tool. It is not produced, endorsed by or affiliated with the Chartered Insurance Institute (CII). Questions and explanations are original. Use it alongside the official study text. About R0 Exam Prep