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CII AF7 exam

CII AF7: Free preparation guide

If you are thinking of sitting the CII’s AF7 exam, then go into it with your eyes open. Based on the latest CII published results, this is the hardest AF exam to pass with a pass rate of just 43% (the latest published results). If you expect to pass purely because you do transfers at work, clearly this isn’t enough for many people.

If you want to know about important dates, what’s been tested in the past, exam technique and what study options are available, click here for our FREE AF7 preparation guide.

You will also find preparation guides for AF1, 2, 4 and 5 on the same link.

The CII AF7 is a popular exam. Safeguarded benefits is a big area for many financial advisers and if you are involved in the transfer of safeguarded benefits in some way, then this might be the subject for you. It also satisfies the FCA additional exam requirement to advise on safeguarded benefits.

What does the AF7 exam look like?

The AF7 exam is 2 hours long. It consists of 3 or 4 short answer questions and then two additional case studies. These both have three to four questions making 9-12 questions in total. Overall, the paper will have 100 marks with the short answer questions accounting for around 30 to 35 of the marks, and the case study questions accounting for 30-35 marks each.

With a pass mark of around 60%, this means that you will normally need 60 marks to pass the exam.  The 60% pass mark applies to the exam overall so you could bomb on one case study and still pass if you get enough marks elsewhere.

What’s been tested in the past?

AF7 is a relatively new exam, launched in October 2017. Like any relatively new exam, it takes a few sittings to see what the examiners are choosing to focus on. The best way to spot these areas is to look at the past exam guides. Here are some key areas:

  • TPR and the transfer process
  • FCA regulatory requirements, e.g. APTA, COBS
  • DB schemes and CETV
  • Death benefits

The last two exam guides are now provided on the CII website. Click here for the link to the CII website. You should ensure you spend time studying these.

How much revision will I need?

The CII suggest around 100 hours of study for this exam. Whether you need this amount – more or less – will depend on your existing knowledge of the area. Even if you have good knowledge of transfers already, there are likely to be areas of the syllabus that you are NOT familiar with. And you will still need to practice that all important exam technique, if nothing else.

With the current low pass rate for AF7, one thing is clear – relying on just your day job is unlikely to prove successful. Don’t under-estimate this exam.

Do I need to read the CII AF7 study text from cover to cover?

Unless this is a brand new area for you, the answer will probably be ‘no’. For many people, just reading a study text is not likely to be an effective method of revision. You’re unlikely to remember much, especially if you just read without taking notes.

Most people sitting this exam will have some knowledge. Some will have quite extensive existing knowledge. So just use the study text as a reference source – focus on using past exam papers and top-up your knowledge by reading about the bits you are not familiar with.

Click here for a link to our exam technique.

Click here for more details about how you can learn on the go.

If you want to access our FREE preparation guides for other CII AF exams, they are available on our site for AF1, 2, 4 and 5. Just click here.

Prepare well and be successful.

The Diploma Doctor

af7 exam

Spotlight on the AF7 exam

If you are preparing for the CII’s AF7 exam, here’s what you need to know about the exam.

What does the AF7 exam look like?

The AF7 exam is 2 hours long. It consists of 3 or 4 short answer questions and then two additional case studies. These both have three to four questions making 9-12 questions in total. The exam typically have 12 questions in total (although this could vary between papers). Overall, the paper will have 100 marks with the short answer questions accounting for around 30 to 35 of the marks, and the case study questions accounting for 30-36 marks each.

You will normally need 60 marks to pass the exam.  The 60% pass mark applies to the overall exam so you could bomb on one case study and still pass if you get the marks elsewhere.

How easy is it?

The simple answer is ‘not very’. Based on the last published CII results, the pass rate for AF7 is 43%. This makes it the second hardest AF exam subject. Forget about the fact it is only worth 20 credits – the majority of people currently fail this exam.

Why short answer questions and case studies?

In simple terms, the short answer questions will test your knowledge across the syllabus, and each case study will require you to apply your knowledge to the client scenario that is provided in the case study.  In simple terms, it’s regurgitation v application.

Click here to access the CII AF7 19/20 syllabus (this applies until 1st September 2020)

Example 1

State the key documents that an adviser must keep on file having given advice to a client on a pension transfer from a DB scheme.

This is regurgitation because this is generic knowledge that applies to any client in this position. If you know your AF7 material, you should be able to answer this whilst you are reading this. You’ll either know it, or not.

Example 2

Outline the factors you would need to take into account before advising the client to transfer her deferred benefits in order to meet her financial objectives.

This is a bit harder isn’t it? That’s because you’d need to know about the client’s circumstances before you could answer it. The question or case study will provide this information – your job is to spot this and make sure you use the information you have been given.  If you don’t, you won’t score well.

What does the AF7 exam test?

I’ll answer this question by analysing in detail the April 2019 exam paper. This was a typical paper. I’ll look at it in terms of what it tested – the technical content – and how it tested it – the style of question:

     1. The scope of the technical areas tested

The April 2019 exam was the fourth AF7 exam so the content in this is likely to be typical of what you might expect in future exams. Certainly, it has focused on the key areas involved in transfers. The marks are also pretty balanced across each of the topics so you will need to know your stuff across key elements of the syllabus.

    2. The instruction in the question.

Each question in AF7 will use a verb.  Examiners like to describe these as ‘instructions’ because they tell the candidate what they want you to do. If you look at the verb and the number of marks for each question, this should give you a pretty good idea how much depth to go into when answering it.

In the April 2019 AF7 exam, the examiners’ used three types of instructions:

In this exam, including part questions, there were 8 ‘state’ questions; 4 ‘outline’ questions and 5 ‘describe, evaluate or explain’ questions. No other instructions were used. In the October 2019 AF7 paper, it was 6, 3 and 5 respectively. Future exams could introduce different instructions but a pattern does appear to be developing.

How do I use this to prepare of the AF7 exam?

  1. Familiarising yourself with the AF7 exam should be a key element of your preparation. Don’t just read past exam papers, complete them UNDER EXAM CONDITIONS.
  2. There are key topics that most (if not all AF7 exams) will cover. Make sure you know know your stuff on these.
  3. Section 1 of the exam will cover a range of technical areas across the syllabus so make sure you have broad knowledge. Try our MP3 audio – nearly 4 hours of material that will help you to learn around your work or family commitments. Click here for details.

Related blogs: AF7 study options. Click here

Prepare well and be successful.

The Diploma Doctor

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