January 2019 CII R06 exam

january 2019 cii ro6 exam

January 2019 CII R06 exam

The case studies for the January 2019 CII R06 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 21st January 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 the two given client case studies. You will not know the actual questions you will face in the R06 exam until you are safely tucked away in the exam hall but it makes sense to prepare for any eventuality before then.

What areas should I focus on in the CII’s January 2019
R06 exam?

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

Case Study 1: Mario and Dianne

  • Options for repaying an interest-only mortgage, e.g. using investments, pension TFC
  • Protection plans i.e. critical illness, income protection, and PMI
  • Dividend Allowance and PSA
  • Pension death benefits (DB & DC)
  • Dependant’s FAD: taxation of income and death benefits
  • EIS & VCTs
  • CGT holdover relief
  • Business Relief
  • Self employed Vs limited companies
  • Passive Vs Active investment management
  • Discretionary fund management – characteristics

Case Study 2: Geoff and Katy

  • Dividend Allowance and PSA
  • Pension death benefits (DC)
  • Flexi Access Drawdown and Lifetime Annuities – characteristics and benefits/drawbacks
  • How reviewable whole of life plans work
  • How discretionary will trusts work
  • The characteristics and benefits/drawbacks of using platforms
  • Risks of the client’s current investment and pension arrangements
  • IHT planning solutions, e.g. suitable life cover, use of DWTs, residence nil-rate band, loan plans
  • Dividend Allowance and PSA
  • Pension death benefits (DC)
  • Flexi Access Drawdown and Lifetime Annuities – characteristics and benefits/drawbacks
  • How reviewable whole of life plans work
  • How discretionary will trusts work
  • The characteristics and benefits/drawbacks of using platforms
  • Cash-flow analysis
  • Risks of the client’s investments
  • IHT planning solutions, e.g. suitable life cover, use of DWTs, residence nil-rate band, loan plans

How does the CII’s January 2019 R06 exam compare with previous R06 exams?

These case studies have a different feel about them but they are likely to revisit some familiar R06 themes. Case study 1 is a couple in their 50’s. They have received inheritances and need to consider how to arrange their investments in a suitable way. They also need to consider how to fund their retirement income and appear to have a shortage of protection such as IPI and PMI.

Case study 2 is a familiar ‘at retirement’ scenario. The client’s expect to retire shortly and need to generate a sustainable retirement income by using using their investment portfolio of over a £1 million, and two modest pension funds. Typically for R06, they also have an inheritance tax liability and there is scope to arrange their investments in a more tax efficient manner.

Remember that R06 is a level 4 ‘planning’ exam so you won’t get tested in depth on every potential technical area in the case study. And if a question is asked on a technical area, the technical knowledge needed to answer it shouldn’t be particularly ‘heavy’.

Also prepare for questions such as the benefits of using a financial adviser, cash-flow analysis, and the ever present ‘review’ question.

In a R06 exam, most of the questions will be 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 6 so this is ‘par for the course’.

What do I need to do to pass the January 2019 CII R06 exam?

  1. Familiarise yourself with the clients’ circumstances, right down to remembering the children’s names! Although the case studies provided in the exam are identical to what you have already, you will need to 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. Use the CII’s RevisionMate system to look at examiners reports from past papers. Pay particular attention to the style of questions and the model answers provided.

CII past R06 exam guides can also be downloaded from links on the following page: click here

If you want to know the types of question that have been asked previously in R06, it’s not too late to download our R06 audio material. If you do, just listen the the financial objectives that link in with this specific exam to get exam technique tips and hear how they have been previously tested. Click here for full details

Prepare well and be successful.

The Diploma Doctor

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