The case studies that will be tested in the July 2023 sitting of R06 are now available. If you haven’t seen these yet, you can download them here.
You now have until now until Tuesday 4th July to prepare for the exam. The case studies are issued in advance of the exam for a reason – to help you prepare for the exam. This will test across a range of different aspects of financial planning that are based on two client case studies. As you will not know the actual questions you will face in the R06 exam until the day, it makes sense to prepare for any eventuality before then.
With around two weeks until the exam, you may think reading the case studies are your last chance but our audio material is over four hours long and covers all aspects of planning covered within the R06 exam. For more information or to download the audio material, click here.
Based on the case studies, we believe that you may be required in the R06 July 2023 exam to have a knowledge of the following topics:
I have to say, there are some familiar themes. Case study one is a couple in retirement, with an objective to ensure sufficient income throughout retirement, which is nothing new. However, something that is slightly different is that both Declan and Carmen are over State pension age and already in receipt of pension income, so it’s difficult to see how the examiners may test any areas surrounding pensions. From the information already provided in case study one, I’d expect Discretionary Trusts to be tested and potentially Holdover Relief, given these are two technical areas that would link in well with the information provided in the case study.
In terms of case study two, there is a huge emphasis on protection, which again is nothing particularly new for R06. Also within the case study, there is clearly a protection shortfall for Mr and Mrs, including an over-reliance on death-in-service benefits. From technical areas within case study two, Salary Sacrifice seems the obvious one that jumps out, in addition to a clear signal towards ESG investing (covered in detail on page 3/21 of your R06 study text!). A potential outlier that may be tested from case study two is guardianship; Sam and Kelly have three young children and we know Wills are up-to-date, but there is no mention of guardianship?
Best of luck with the exam!
Sam Patterson
Are you planning on sitting an upcoming CII AF1 exam? If so, I’d look to brush up on your knowledge relating to the Trust Registration Service. But don’t bother looking in any of the CII study texts…
Despite being tested in both the September 2022 and February 2023 AF1 exam papers, the Trust Registration Service is unfortunately not covered in any real detail in either the AF1 or J02 study texts.
However, given its prevalence in the industry, I can understand why it is featuring in the AF1 Tax and Trusts exam (and it is covered by the syllabus of the AF1 exam!). So I wanted to produce an article to concentrate on three main areas:
Should you wish for a further AF1 revision aid that allows you to learn on the move, click here to download over 6 hours of audio material covering all things AF1!
The Trust Registration Service is basically the government’s way of keeping track of all of the trusts in the UK. The service itself is managed by HMRC and it records all of the information of trusts and the individual’s associated with the trusts, including settlors, trustees, beneficiaries and any other key connected parties.
Trusts that were in existence on or after 6 October 2020 had to have been registered by 1 September 2022, with any trusts created now needing to be registered within 90 days of creation. In addition to this, any changes to trust details or circumstances must also be logged with the Trust Registration Service within 90 days of the change.
For the September 2022 AF1 exam, there was a five mark question testing knowledge surrounding who was responsible for registering a Discretionary Will Trust and by when? On this occasion, there was a mark available for the following points:
For the February 2023 AF1 exam, there was also a five mark question testing knowledge surrounding who was responsible for registering a Discretionary Trust and the penalties for failing to register the trust in time. For this question, the marks were allocated for the following answers:
It’s important to state at this stage that I have no knowledge of whether the Trust Registration Service will be tested again in an AF1 exam paper, especially given the deadline to register all existing trusts (and no doubt was a headache to the majority of people in the industry!) passed in September 2022.
However, looking at the two ways the Trust Registration Service has been tested previously, it can become clear that a few topics related to the Trust Registration Service haven’t been tested in an AF1 paper yet. These are:
What types of trusts are exempt from registration?
What trust information does a trustee need to register a trust?
What personal information does a trustee need to provide when registering a trust?
Any of the above would need to be incorporated into the case studies of the relevant AF1 exam, however, it would seem that these are areas related to the Trust Registration Service that has not yet been tested.
I hope you’ve found this article useful and good luck with your AF1 exam preparation!
Sam Patterson
AF6 is one of the two current coursework or assignment-based advanced diploma exams offered by the CII. This style of exam offers a very different challenge to the traditional variations on a written exam that are used to test the other CII AF exams. I’ll look at some essential background and then give you our top 10 tips to help you prepare for this exam.
The glib answer is any CII member who wants 30 credits towards achieving Chartered status.
Many people don’t like written exams so AF6 is ideal if the stress of a written exam is not your thing. You have 12 months to complete the three assignments that you submit online – so you never need to go anywhere near an exam hall.
The CII’s J07 (Supervision in a Regulated Environment) is for people who manage other people. This would include T&C supervisors, small business owners, and any team leaders or managers. It looks at generic topics such as leadership, communication, employment law, and coaching skills, in addition to the FCA requirements such as SM&CR, Consumer Duty and T&C. Click here to see the full J07 syllabus which changed quite dramatically in summer 2022 when the syllabus was extensively updated.
AF6 is for people who manage a business (or part of a business), now or in the future. Topics include managing risk, the impact of business strategy on risk, governance and oversight, and how leadership impacts on a firm’s culture. Click here to see the full AF6 syllabus.
J07 provides some useful background to AF6 but there is limited overlap of the syllabi. The style of each exam is also completely different. Because of this, it is quite possible to sit AF6 before sitting J07, or without sitting J07.
On the face of it, this is where there is some very welcome news. The current pass rate is a massive 97%. But remember, this pass rate is based on the percentage of people that FINISH and submit all three assignments – it does NOT include those people who drop out and don’t finish. In practice, the percentage of people that pass AF6 will be much lower compared to those that started it.
The most common question we get asked is ‘what is the best AF exam to sit?’. Our answer is always this: don’t sit an exam just because it has a high pass rate. Sit exams that are most relevant to you and your business.
There is also limited study support available from commercial providers. The CII provide materials (as we’ll see below) but most other training providers don’t feel able to provide support for this exam due to potential difficulties with plagiarism. The assignments you complete have to be your own work without assistance. In other words, there is very limited scope to support you when you complete specific assignments and this can feel a little uncomfortable for some people. Click here to watch the CII video on what is plagiarism.
Because of this, The Patterson Group does not provide individual support for AF6. The generic support provided in this blog is as far as we go. We’d love you to pass and we’re here to help as much as possible with this and your other CII exams.
Here are our top ten tips:
We hope you find this useful. If you want to know more about our range of study support when you sit other CII AF and R0 exams, click here.
Until the next time…
Ian Patterson
Ex-examiner and author of the current CII study texts: CF8, J07 and AF6
So you want to pass the CII’s AF1 exam first time? The good news is that this is a very doable AF exam as long as you prepare in the right way. And the stats bear this out – of the three ‘technical’ AF exams (AF1, 4, 7), AF1 is the hardest with a pass rate of just 43% (the latest published results).
To see the full pass rates and how these have changed over the years, go to this page.
We all know that working through past exam papers is one of the best ways to prepare for the CII’s AF1 exam.
Tip: Don’t just skim through them, start off with a blank sheet of paper and complete at least two of them under exam conditions.
Tip: Start this process towards the beginning of your study, not at the end. Learn about the technical aspects and also about how the examiners’ expect you to set your answers and apply your knowledge. Sure, you’ll make lots of mistakes but view this as a way of learning, not to assess whether you are ready for the exam or not.
The really useful bit is that the AF1 exam does tend to cover similar areas from one exam to another, but not always. If we look at an example AF1 exam paper (April 2022), each of the three main personal taxes were covered (this is typical). In this paper, the marks were split between them approximately:
Note that this balance will vary between exams – as the last exam shows. Typically, these three areas are worth around 2/3rds of the total 160 marks available.
Around 26% of the marks were awarded in this exam for undertaking a calculation. This around the average of 20-25% of the total marks. You can normally expect at least one calculation question for each tax
Tip: To be successful with AF1, you’ll need to be comfortable with undertaking calculations, so practice doing these before the exam for the 3 key personal taxes. In particular, make sure you are comfortable with undertaking an income tax calculation which includes things like the treatment of a VCT, benefits in kind, and pension contributions.
Tip: Whenever you undertake a calculation in an AF1 exam, marks are awarded for demonstrating the correct process. So make sure that your calculation is laid out clearly. One way of doing this is to ‘label’ each step of the process. Believe it or not, you can get most of the marks in a calculation question if you do this even if you get the answer wrong.
I’ll mention the types of question that are used in AF1. In the April 2022 paper, the following instructions (or verbs) were used:
Note: The balance of these ‘instructions’ was broadly similar with previous recent exams.
Tip: In the AF1 exam, the instruction is the examiner telling you what to do. List or state does not need any amplification; a couple of words or short sentence will be fine.
Tip: Over two-thirds of this paper needed you to describe or explain. With this type of question, the examiner wants you to show what you know, and link this back to the information you have been given. A one or two word answer will not be enough to score well.
Past performance isn’t a guide to future performance. We know this just like we know that a technical exam like AF1 will test across the broad syllabus. Although some of the broad areas that will be tested can be predicted in advance, they will also test some more peripheral areas of the syllabus.
So in addition to the 3 personal taxes, these areas have also historically been frequently tested in AF1:
You know that you are going to have to put in some hard yards with AF1. The CII suggest 150 hours of study is required and unfortunately, many people will need approaching this amount of study. Which begs the question, what will this look like? These are all areas that I’ve looked at in other blogs so click onto them if these are of interest:
For study tips, click here
If you think that your revision technique can be improved, click here for our dedicated exam technique and revision hub.
Learn on the go. Our unique audio material gives you 6 hours of AF1 content that helps you to fit your learning in around the rest of your life. Click here for details.
Best wishes. Prepare well and past first time.
Ian Patterson
Ex-examiner and author of the CF8, J07 and AF6 CII study texts
If you are preparing for the CII’s AF7 exam, here’s what you need to know about the exam.
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.
The simple answer is ‘not very’. Based on the last published CII results, the pass rate for AF7 is a historically high 56%. Historically, this has been the hardest AF exam subject. Forget about the fact it is only worth 20 credits – the majority of people historically fail this exam.
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 22/23 syllabus.
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 to answer the question If you don’t, you won’t score well.
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:
The May 2022 exam is likely to be typical of what you might expect in future AF7 exams. 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. Here’s the areas that were examined and the available marks:
Statutory pension transfer process: 12 marks
Assessing the security of an underfunded deferred pension: 8 marks
Transitional protections: 5 marks
CETV: 7 marks
Additional information: 8 + 7 marks
Cashflow/ stress tests: 6 marks
Class 3 NICs: 6 marks
Lifetime annuities: 8 marks
Benefits of transferring DB to personal pension: 10 marks
Death benefits: 4 + 7 marks
Actions to meet clent objectives: 4 + 4 marks
Sustainability of fexible withdrawals: 7 marks
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 May 2022 AF7 exam, the examiners’ used three types of instructions:
In this exam, including part questions, there were 4 ‘state’ questions; 3 ‘outline’ questions and 6 ‘describe, evaluate or explain’ questions. Future exams could use different instructions but this exam reflects the typical pattern used in AF7. Ensure you are comortable with these different questions and how to answer them.
Related blogs: AF7 study options. Click here
Prepare well and be successful.
Ian Patterson
Ex-examiner and author of the current CII study texts: CF8, J07 and AF6
One of the questions that we frequently get asked is ‘which CII exams should I sit next?’. If you are on the road to chartered status, there are a wide range of options. This is a big area so in this article, I’ll look at some of the key options for the Certificate and Diploma CII exams that are worth considering. I’ve looked at related areas in two other blogs:
CII exams: getting to CII Chartered status (part 2). To view it, click here
Which CII exam should I sit next? To view it, click here
To complete Chartered Status, the CII require a total of 290 exam credits. Assuming you’ve completed all of the R0 exams, that’s 100 credits out of the way. A further 120 credits must be AF subjects (including AF5 which is compulsory). This leaves a remaining 70 credits that can come from Diploma, Certificate or Advanced Diploma CII exams.
Click here for a link to the CII qualification guide.
What you’ll find is that most of the Advanced Diploma or AF exam subjects are based on the lower level Diploma exams. In other words, the technical content is Diploma but the use or application of this knowledge is a level 6 skill. In simple terms, view Diploma as being ‘what is it?’ and Advanced Diploma as being ‘how do I use it?’.
If you know the rules, this means that it is possible to ‘max out’ your credits and minimise your work. Here’s how.
Based on the CII AF1 syllabus, there are three underpinning Diploma subjects for this exam: R03, part of R05 and J02 (Trusts).
On successful completion of all these subjects, the credits are:
AF1 (30 credits at Advanced Diploma)
J02 (20 credits at Diploma level)
Total credits: 50. If you haven’t already got R03 or R05, then that’s an additional 20 credits.
Remember that J02, R03 and R05 are deemed to be the necessary underpinning knowledge for AF1 so if you need this knowledge anyway, why not also sit these CII exams (if you haven’t already) and potentially get up to 70 credits?
Sensibly, you’d sit these exams relatively close together to minimise your study and to ensure that you lose as little of your knowledge from your study as possible.
Likewise with AF4, there are underpinning Diploma subjects for this exam: R02 and J10 (Discretionary investment management)
On successful completion of all these subjects, the credits are:
AF4 (30 credits at Advanced Diploma)
J10 (20 credits at Diploma level)
Total credits: 50. If you haven’t already got R02, then that’s an additional 20 credits, making 70.
If you look at the syllabuses for R02 and J10 CII exams, you’ll find a significant degree of overlap. So if investments are your thing, why wouldn’t you ensure that you have credits for both of these? For not too much extra study, you could get 40 credits between them.
Finally on the theme of investments, there is also J12 that looks at securities and dealing. The content in these subjects could also be tested to some degree in AF4. So if you go the full monty and also sit this, there is a potential total of 90 credits for investment related subjects.
With AF7, the CII state that the two underpinning subjects are R02 and J05 (pension income options).
On successful completion of all these subjects, the credits are:
AF7 (20 credits at Advanced Diploma)
J05 (20 credits at Diploma level)
Total credits: 40. If you haven’t already got R02, then that’s an additional 20 credits, making 60. If you want the qualification: ‘Certificate in Pension Transfer Advice’, you’ll also need R01 and R04. If you haven’t already got them because you started sitting CII exams more years ago than you care to remember, this is another 30 credits in addition. Finally, AF8, or retirement income planning, is an Advanced Diploma subject that is tested using coursework and is worth another 30 credits. Pensions related subjects could potentially be worth a total of 120 credits.
If you want to know more about these AF exams and how to prepare for them, click here to access our FREE Exam preparation guides.
If you want to know how to fit your study in around your work and family commitments, click here.
Remember, work smarter, not harder. Until the next time
Ian Patterson
Ex-examiner and author of the CII CF8, J07 and AF6 study texts
One of the questions that we frequently get asked is ‘which CII AF exam should I sit next?’. Oh, if only there was a simple answer!
We believe that the purpose of exams is to make people more knowledgeable so sensibly, people would choose the AF exam that is most useful to both themselves, and their business. The road to chartered is a long journey and that also means that many people want to select the subjects that help them to shorten this journey.
This is a big subject area so, in this blog, I’ll consider some of the main CII AF exam options. In two subsequent blogs, I’ll look at the options for the Certificate and Diploma subjects that are worth considering:
CII exams: getting to Chartered. To view it, click here
CII exams: getting to CII Chartered status (part 2). To view it, click here
To complete Chartered Status, the CII require a total of 290 exam credits. 120 of these must be from AF subjects which means that a minimum of four 30 credit Advanced Diploma subjects will have to be completed (if you don’t have existing credits from the previous AFPC or earlier exams). This must include AF5, as it is compulsory. The remaining credits can come from other Diploma or certificate level exams.
Click here for a link to the CII qualification guide.
Remember that there are two exam sittings per year of the written AF exams: in April and October. Coursework-based exams can be entered when you like during the year and you will then have 12 months to complete them.
You need at least four AF exams, but which ones are best for you? There’s the usual caveat about prioritising the ones that are most relevant to your work – and this might make your choice obvious. If not, here are the key questions to consider:
If so, you have two choices: Senior management and supervision (AF6) and Retirement income planning (AF8).
AF6 is aimed at people who run a regulated firm (or might do so in the future). With AF8, it might be called ‘Retirement income planning’ but don’t fall into the trap of thinking that it’s all about pensions. It’s more of a later life planning module that includes at-retirement pension options, tax and estate planning, and potentially care planning.
The benefit of doing coursework is that you will have a year to complete it. With some sensible planning, this shouldn’t prevent you from also sitting two or more written AF exams. With 3 exam sittings, this opens up a chance of you getting 4 x 30 exam credits within a year (three exam-based exams and one assignment-based exam). We never recommend trying to sit two written AF exams at the same sitting – this usually ends in tears. But completing a coursework option as well as a written AF exam is possible with hard work.
If this is how you want to select your AF exams, then the current traditional exam-based CII AF subjects can be ranked as follows (easiest first): AF5 (Financial planning process), AF7 (Pension transfers), AF4 (Investment planning), AF1 (Personal tax and trust planning). This is based on the latest published results. Please note that AF7 has traditionally been one of the harder exams and may be again in the future.
The pass rates for AF6 and AF8 tend to be higher (much so in the case of AF6). These appear artificially high as anyone who drops out once they have started is regarded as being ‘timed out’ rather than failing the subject. In other words, the pass rates are based on those that complete their 3 assignments. The assignments are not as easy as these pass marks might suggest.
Click here and scroll down to see the actual pass rates.
Yes. AF1 is the CII AF exam that underpins most of the other AF written exams so we believe this is a good subject to start with – even if it is the hardest AF exam. With suitable preparation, it’s also possible to prepare for the four key areas it covers and give you a decent chance of being successful.
Also, look to sit AF5 as soon as you can. It is examined 3 times a year and, because it’s based on a fact find that is issued 2 weeks before the exam, there isn’t too much preparation you are able to do before this 2 week period. It’s also a test of your financial planning skills so the depth of technical knowledge needed usually isn’t that great. What technical knowledge that is required can be mostly be identified from the client scenario that is provided.
The CII website (using the earlier link) is a good place to start. We produce free ‘preparation guides’ for AF1, 4, 5 and 7 which set out your study options, how to study, and the common areas that are tested in each exam. Click here to access them.
Until the next time,
Ian Patterson
Ex-examiner and author of the current CII study texts for CF8, J07 and AF6
So your CII AF exams are in around four weeks’ time. The CII suggest 150 hours of study is required for the written AF exams (100 hours for AF7) and some people will have already have done this amount of work. For many others, the hard work is just about to start. You’ll probably have done enough exams by now to know what works best for you. Whether you are a ‘steady studier’ or a last minute ‘crammer’, you’ll know the last four weeks are crucial. In this article, I’ll share some ideas about your AF exam study options and how to make the best of the remaining time you have available.
Ah, it would be great if only we could tell you this! The Syllabus for each AF subject are very broad. The good news is that the examiners will test some core areas in most papers and throw in a few more peripheral areas so they cover the full syllabus over a period of time. If you’ve done little study so far, with four weeks to go, it’s time to make sure you are OK with the core areas.
So what are these core areas? We’ve looked at the past exam papers and identified what these are. These can be found towards the end of each of our FREE preparation guides. Click here to download our guide for each of the specific AF1, AF4, AF5 and AF7 exams.
This is what we recommend. The focus should be very much on doing practice papers at this stage, practising your technique and making as many mistakes as you can. Make these before you go into your exam! Use Diploma study texts and Google to check technical areas that you are not comfortable with.
There are a range of these to suit how you prefer to study. I’ll cover the main ones:
This is a bundle that includes the exam entry. Along with this, it also includes study texts (eBooks) and access to RevisionMate – the CII online learning support. This varies between subjects but also includes a case-study workbook. For example, the ‘enrolment only’ AF1 package from the CII include the eBooks for R03, R05, and J02, a case study workbook and your exam entry.
These are great for checking examples and technical aspects. If you are using a text which isn’t in the current tax year, you obviously need to ensure the tax rates etc are still current. With four weeks to go, your time is probably better used on practice questions, rather than trying to read study texts from cover to cover.
Back to the CII website. The site includes the full exam guides for the last two published AF exams (AF5 also has additional practice papers) which can all be downloaded for free. Being past exam papers, these are the closest you’ll get to finding out what standard the exam will require.
These are ideal for learning on the go and for making sure your knowledge of both the ‘core’ and the ‘peripheral’ syllabus areas is good. They are available for AF1, 4 and 7 and most include over 6 hours of material. It also includes comments from CII examiners on the all important exam technique you will need. If you spend time travelling, running or in the gym, these are an ideal way of learning on the go and reminding yourself of the areas you need to know. Click here for a sample and full details.
Prepare well and be successful first time.
Until the next time…
Ian Patterson
Ex-examiner and author of the current CII study texts: CF8, J07 and AF6
For many people who are on the ‘road to chartered’ status, the hard work preparing for AF exams starts 4-6 weeks out from the written exam. The CII suggests 150 hours of study for each AF exam, and, if you look at the stats, either people don’t do this amount of work or they do but it’s not effective. With a pass rate of between of only 43% for some written AF exams, some people who sit these exams can clearly be more effective with their study. This post aims to highlight how to pass your CII AF exam first time.
So what does working smarter and working harder look like? Here are our top ten tips:
Prepare well and be successful first time.
Until the next time…
Ian Patterson
Ex-examiner and author of the current CII study texts: CF8, J07 and AF6
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