CII R01 exam: the 5 myths
Like any exam, it helps if you understand the type of exam it is. Here are five common myths about the CII R01 exam. If you want to pass R01 first time, read on and go into the exam with your eyes open.
Myth 1. R01 is a nice easy introduction to the R0 exams.
Er, i don’t think so. Although the latest CII statistics show that the pass rate for R01 is ‘middle of the road’, it won’t feel like that when you are studying for it. People tend to find the R01 exam difficult because:
1. ‘regulation’ isn’t everyone’s cup of tea. Yes, there are easy bits like the advice disclosure requirements – most people who have a little experience will know this. But there are also other bits with a bewildering array of acronyms such as MiFID, FIT and SYSC. You will need a high-level understanding of these but the challenge for some will be staying awake long enough to learn this; and
2. around 13 out of the 100 questions are multiple response questions. This means that there will be more than one correct answer to get a mark. These are much more difficult than the one from four standard question. Work on the basis that if you get 50% of these correct, you are doing well. The easiest R0 exam – statistically and from people’s feedback – is R05. Amongst other things, there are no multiple response questions at all in this subject.
Tip: The CII recommend 100 hours of study for R01. If you are new to the profession, you’ll need this and more. If you have some experience, you’ll probably need less than this but focus your study on those areas you are least familiar with.
Tip: Don’t feel you have to make this the first R0 exam you sit. In practice, many people sit it last as there is no serious overlap between R01 and the other R0 subjects.
Myth 2. It’s all about the FCA and regulation.
I have some sympathy with this view. Although the CII R01 exam ISN’T all about the FCA, it will probably feel like it is! Let me explain. The R01 syllabus has 11 elements. The first three of these account for 27 out of the 100 marks for the CII R01 exam and have no real ‘FCA’ content.
Chapter 2, in particular, has little to do with the ‘FCA’ as it tests you – at a high level – on insurance-based products. This chapter requires a knowledge that is ‘broad but shallow’. Chapter 3 is all about legal concepts such as intestacy and powers of attorney so, again, this has nothing to do with ‘regulation’.
Tip: if you have purchased the CII’s R01 study text, then you automatically get access to RevisionMate online. Use the end-of-chapter test questions and find out how good your knowledge is in the areas you think you know. You might only have to do a bit of ‘topping-up’. More about RevisionMate in our 4th myth.
Myth 3. The R01 exam tests each area of the text book with an equal number of questions
This is definitely incorrect. There are 11 elements to the CII R01 exam syllabus which are broadly reflected in the chapters in the CII study text. The three most heavily examined areas are:
- Chapter 5 – which has a whopping 29 questions (all of them on the standard format basis)
- Chapter 6 – which has 9 questions; 4 standard format and 5 multiple response; and
- Chapter 7 – which has 13 questions; 5 standard format and 8 multiple response
Between them, these three chapters account for over half the total questions in R01. They also account for for all of the multiple response questions – and these are much harder to answer. It is almost impossible to pass the CII R01 exam without scoring well on these chapters.
Tip: If your revision time is short, focus on these key areas. For many people, chapter 8 is a doddle and chapters 9 and 10 just need a healthy dose of common sense. Invest your time revising chapters 5, 6 and 7 instead.
Click here for the link to the R01 exam syllabus
Myth 4. I need to know the detail.
Not usually. Accept that there will be some questions that are based on just one or two words in the text. For the remainder, R01 typically tests the broader application of knowledge. For example:
Chapt 2 – this includes a sizeable section on social security benefits. The good news is that there is unlikely to be more than 1 or 2 questions on these. Where questions are asked, they’ll tend to test what benefits someone would qualify for, rather than a monetary amount or the ‘bells and whistles’.
Chapt 5.2 -this covers each of the nine sections that make up the FCA rule book. You are unlikely to get a question along the lines of ‘in which section of the FSA rule book would you find the T&C rules?’ This would be dull and not very relevant. You are much more likely to get a question along the lines of: ‘A mortgage adviser is subject to which of the conduct of business rules?’. The answer would be MCOB and this is much more relevant because most of what a mortgage adviser does face-to-face with a customer is governed by these rules.
Tip: Do practice questions on RevisionMate (or otherwise) to get a feel for the level of detail you will need when studying the text.
Myth 5. I should read the R01 study guide from cover to cover.
Really?! For many people, this could be the worst piece of advice they ever get. Anyone with some industry experience should usually do practice questions first, and use the text as a reference source. Sure, you will make loads of mistakes but you will learn from these. Even if you read the text from cover to cover, in isolation, most people will not remember much of it.
Click here for a link to effective revision techniques.
Click here for a students point of view on R01.
Resources:
If you like learning on the go, click here for details of our audio material
For FREE practice papers and summary notes, click here
Until the next time…
The Diploma Doctor
CII R02 exam: The Five Myths
Like any exam, it helps if you understand the type of exam it is. Over time, myths can develop and so the purpose of this blog is to explore five common myths of the CII’s R02 exam. If you want to pass R02 exam first time, read on and go into the exam with your eyes open.
Myth 1. It’s about investments – that’s what I do for my ‘day job’.
There will be an element of truth in this. Some areas such as ISA’s, life assurance products and OEICS will be well known to all but the most recent recruits into the profession. Unfortunately, the breadth of the R02 syllabus means that other areas aren’t likely to be well known such as the time value of money, efficient market hypothesis and modern portfolio theory. The R02 syllabus also looks at direct investments into equities and fixed interest stocks. The inescapable truth, for most people sitting the exam, is that significant study will be required even for people who have been in the profession for some time.
Tip: From a revision point of view, focus on those areas you are least familiar with. The CII recommend 60 hours of study for R02; most people will need this and more.
Myth 2. R02 is harder than the other R0 subjects.
The latest CII statistics show that the pass rate for R02 was 59.99% in 2018. In other words, 40% of people fail this CII exam. Compared to the other CII R0 exams, this pass rate is ‘middle of the road’ but it won’t feel like that when you are studying for it. People tend to find the R02 exam difficult because of:
1. the unfamiliarity of much of the subject matter to many people who sit the exam; and
2. the fact that around 28 out of the 100 questions are multiple response questions. This means that there will be more than one correct answer to get a mark. These are much more difficult than the standard one from four standard question. You should work on the basis that if you get 50% of these correct, you are doing well.
Myth 3. The R02 exam tests each area of the text book with an equal number of questions
This is definitely incorrect. There are 9 elements to the CII’s R02 exam which are reflected in the chapters in the CII study text for the exam. The two most heavily examined areas are:
- Chapter 1 – which has a total of 28 questions; 17 standard format and 11 multiple response; and
- Chapter 6 – which as 22 questions; 15 standard format and 7 multiple response.
These two areas account for half the questions in R02 between them. They also account for 18 out of the 28 of the much harder multiple response questions. You can ignore this if you like, but the examiners’ are giving you a pretty clear steer that they believe these areas are important. It is impossible to pass the R02 exam without scoring well on these chapters.
Tip: If your revision time is short, focus on these key areas. Even if time is not short, still focus on these areas. Chapter 5, for example, is only worth 5 questions. Focus your study where the questions are.
Click here for the link to the R02 exam syllabus
Myth 4. I should be OK without being able to do calculations.
Around 19 of the first 72 questions will need a calculator. This means that some mathematical talent will be required so, at the very least, take a calculator into the exam that you know how to work. If you are lucky, the calculations will be around stamp duty or the maximum a family can collectively invest into an ISA. If you are unlucky, you may have to calculate dividend cover, running yields and the time value of money.
Tip: Practice these types of calculation on the calculator you intend to use before the exam
Myth 5. R02 is all about formulas.
This is similar to Myth 4 – but it is still widely believed. It’s actually easy to get too caught up in the likes of earnings per share, dividend cover, sharpe ratios and running yields. Yes, all of these might be tested either as a calculation – or an understanding of what they are and how they could be used. But a typical R02 paper is only going to have perhaps half a dozen questions on these. Yes, you should try to be able to work these out – but not at the expense of all of the other areas.
Tip: Use practice papers – CII or otherwise – to practice these calculations. If that doesn’t work, move on. There are plenty of other areas the R02 examiners’ can test.
Resources:
If you like learning on the go, click here for details of our audio material.
Until the next time…
The Diploma Doctor
