Tag Archives: pension transfers

AF7 exam: the five myths

The CII’s AF7 exam is one of the most popular AF exams. I’ll make the rash assumption that you are interested in this exam and you would like to pass AF7 first time.

In this blog, I’ll look at the five common myths about this exam.

Myth 1 – the AF7 examiners would like me to fail

None of the examiners are employed by the CII which means they have other jobs within the profession. Some are trainers and some are subject matter experts. The point is that all of them would like to give you a pass if they can. There is no quota restricting the number of people that can pass so, in theory, everyone could pass. They are not incentivised to fail an exam candidate and, as nice people, they would prefer not to.

Myth 2 – it’s all about my knowledge of DB transfers

If only it was…… The reality is that most people who fail the AF7 exam will do so by between 5 and 10 marks. This means that they probably failed even though they knew just as much as someone who passed. So what makes the difference? The answer is exam technique. The people who pass often have no better knowledge but they answer the questions better. Here’s how.

1. The two case studies in AF7 test your ability to apply your knowledge to a client scenario which means that you MUST use the information provided in some way. For example, the AF7 exam will frequently ask you to identify additional information. If you provide a list which includes information that has already been provided, you won’t get any marks. Note the use of the word ‘additional’ in the question. If you ask about generic additional information that doesn’t apply to the client’s specific circumstances, guess what? Yep, no marks.

2. Answer the question asked. For example, here is a past question:  ‘Based on the information provided in the case study, state the factors that an adviser should consider when assessing Asher and Esther’s capacity for loss’. A ‘factors question’ is NOT a ‘fact find question’ so the examiners are NOT looking for you to identify additional information. Factors are those things that would impact on the advice that you’d give. For example, the client’s have significant/limited other savings, their other income is sufficient to meet their essential income requirements, they have no dependants etc. You can only answer this is you read the information that you have been provided with – and apply it. Many people struggle with this type of question – but it should be straightforward once you know what the examiners’ want.

Myth 3 – the exam will give you spurious or misleading information to throw you off the scent

Rubbish.  The examiners will spend anything up to 3 months writing and re-writing the AF7 exam that you sit. The information that they provide is there for a reason. So when reading it, ask yourself ‘so how can I use this?’ and make sure you do. Here are some other tips:

1. First look at the questions and understand what you are being asked to do – and then read the case study. The AF7 exam will typically use the verbs list or state. In this case, a brief list will be fine. If the verb is explain, outline or describe, more depth is required to get full marks.
2. If it’s a question with 12-15 marks, spend a couple of minutes planning how you will answer the question before you start writing.
3. Use a structure. For example, if you are being tested on GMP benefits, split your answer between GMP and excess-GMP benefits to ensure you get full marks.

The examiners would like you to pass. Make it easy for them to do so.

To access a CII AF7 exam guide, click here and you will find the two most recent exam reports on the right hand side of the page.

Myth 4 – the AF7 exam could test practically anything

This is incorrect. The exam is based on the AF7 syllabus and so it should only test the content of this. Having said that, some elements of AF7 will be more ‘core’ than other areas. So it’s likely that APTA and CETV will be more frequently tested going forward than the Transfer Club or nomination forms.

Our AF7 exam preparation guide has an overview of what the previous AF7 exams have tested so you can pick up some of the trends.

Having said this, you’ll need a decent knowledge across the syllabus. The short answer questions will, in particular, test across a range of different areas that you might come across very often. Many people find using our audio talking books is useful so that they can refresh their knowledge of these areas whist travelling or at the gym. Click here for further details.

Myth 5 – As AF7 is only worth 20 credits, it’s easier than the other AF exams

Afraid it doesn’t work like that. The syllabus is admittedly relatively narrow because it only looks at the issues around transferring safeguarded benefits. The exam also consists of 3 or 4 short answer questions which are often easier to score well on (as they are often a recall of knowledge), compared to case study questions (which require knowledge to be applied).

That said, the pass rate for AF7 has historically been the worst for any AF exam but is currently standing ‘mid-table’ at 56%. But this still means that many more people will fail this exam than pass it. Perhaps part of the reason for this is people don’t treat it with the respect it deserves. As ever, preparation is the key.

For more help specifically on AF7, click here.

Until the next time.

Ian Patterson

Ex-examiner and author of the CF8, J07 and AF6 CII study texts