Monthly Archives:June 2018

CII R06 July exam

CII R06 July 2018 exam

The case studies for the CII R06 July 2018 exam are now available. If you have’t yet seen these, click here.

What do I do now?

You have from now until the exam at 9.30 on the 9th July to prepare. The case studies are issued in advance of the exam for a reason – to help you to 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.

What areas should I focus on in the CII’s R06 July 2018 exam?

Based on the case studies, we believe that you may be required in the CII’s R06 July 2018 exam to have a knowledge of the following topics:

Case Study 1: Mike and Shuwan

• Critical illness protections (and IPI to a lesser extent)
• Private medical insurance
• Benefits in kind / P11D benefits
• Information provided on a state pension forecast
• How the High Income Child Benefit Tax Charge works
• Retirement funding options for them

Case Study 2: Stefan and Sabine

• Loan trusts (and discounted gift trusts to a lesser degree)
• Discretionary will trusts
• Pension death benefits – options and tax treatment
• Deferring the state pension
• Taxation of their investments and how this can be minimised, e.g. PSA, DA and CGT annual exemptions
• Wills (including mutual wills)
• Transfer of NRB from a previous deceased spouse

How does the CII’ R06 July 2018 exam compare with previous exams?

I have to say that there are some familiar themes. Case study 1 is a relatively young couple with a family and relatively limited income whilst case study 2 is a ‘retirement’ scenario. Both of these are very familiar themes in R06.  Of the two, case study 2 is likely to be the most technically demanding. Also remember that this exam is based on the 2017/18 tax rates so use the £5,000 dividend allowance and £100,000 for the RNRB.

In a R06 exam, most of the questions are also based on the client’s stated financial objectives. Usually there are 6 to 8 of these spread across the two case studies. This time there are only 6. This could mean, especially on case study 2, that the examiners explore more non-technical areas.  Don’t forget that this is a financial planning paper so it won’t just be about technical aspects. Prepare for questions such as the benefits of using a financial adviser and the ever present ‘review’ question. This asks you to state the areas you would address when conducting an annual review of some aspect of the client’s circumstances. This is usually case study 2.

What do I need to do to pass the CII’s Ro6 July 2018 exam?

  1. Familiarise yourself with the clients’ circumstances, right down to remembering the child’s name! Although the case studies that you will have in the exam are identical to what you have already, you should know their circumstances well. You should also be able to apply your knowledge to their circumstances – generic answers will not usually score well.
  2. Revise and read around the technical aspects. Google is a good place to start or use the CII R06 study text.
  3. Be familiar with the technique and style of answers the CII will want. This is NOT just about applying your day job to an exam paper. Click here for a FREE copy of the CII October R06 exam paper.

If you want to know the types of question that have been asked previously in R06, it’s not to late to download or R06 audio material. If you do, just listen the the financial objectives that link in with this exam. Click here for full details

Prepare well and be successful.

The Diploma Doctor