What you need to know about the R01 exam
The R01 exam is one of the six modules that go to make up the CII's Regulated Diploma in Financial Services.
When studying for this qualification, this will be the first exam that many people will sit. So here are is some of the information you will need to know in order to pass first time.
What does R01 examine?
R01 tests your knowledge of the UK Financial Services market. It looks at four broad areas:
- A high level overview of the types of regulated products, e.g. savings, investments, pensions, and protection
- A high level overview of related areas such as social security benefits and legal aspects
- How the FCA and other regulators regulate the UK
- The detailed FCA rules that apply to those that provide advice
For full details of the syllabus, click here
To access free R01 practice questions, click here
How difficult is the R01 exam?
The pass rates for the R01 exam are remarkably consistent over the years.
| 2020 |
2019 |
2018 |
2017 |
2016 |
| 69% |
64% |
63.77% |
64.46% |
57.01% |
Source: CII website
What's the format of the R01 exam and the pass mark?
R01 is based in 100 multiple choice questions. The exam is 2 hours long and you will need to score 65% or more to pass the exam.
The R01 exam uses two types of multiple choice questions; standard format and multiple response format. With standard format questions, you will be given four options and only one will be correct. In R01, 87 of the 100 questions will be of this type.
The second style of question is the multiple response questions which are harder to answer. To start off with, there will be more than four options - so there is less chance of taking a guess and getting the right answer. Secondly, if there are two correct answers, you will need to get both of these correct in order to get a mark. In R01, there will be 13 multiple-response questions.
With either format, a wrong answer will fail to get a mark. In other words, marks aren't deducted for incorrect answers - you just fail to get a mark. So if you don't know the answer, you might as well guess. You have nothing to lose!
What do I need to do to pass R01 first time?
You will need decent all-round knowledge and you will have practiced answering R01 style questions.
The CII recommend 60 hours of study. If you are new to the profession, you will probably need all of this time and more. You will also probably have to use a range of study options. These include:
- Our MP3 audio material. This provides over 5 hours of content that helps you to study while driving, commuting, working out....
- CII R01 study text. There are no short cuts. Most people will need to put in some hard yards using this as the primary source of learning.
- CII Revisionmate. If you purchase the CII study text, you automatically get access to their on-line bank of test questions. This provides an invaluable and 'free' way of both learning (through making mistakes) and testing the knowledge of what you have learned.
To hear the thoughts on how to prepare for an R0 exam from first-time students, click here and here
What people say about us:
"The audio material was extremely useful in helping me pass the R01 exam. The information provided in this material was very clear and allowed me to easier understand certain concepts rather than just using the study text. The audio modules were also short and concise which made them perfect to fit in around work. Thank you very much for the help."
Matt Barker, trainee adviser
R01 exam - Financial Services, Regulation and Ethics. Size: 14 modules, over 6 hours of material
Download time: approx 2 minutes over high speed broadband
Please note: After purchase you will receive an email that includes the download link within just 5 minutes. If you don't receive this in your inbox, please check your spam folder.
Introduction (2 minutes)
Module 1 (10 minutes)
R01 exam: the exam and preparing for it CII Regulated Diploma exam structure | The R01 exam - Financial Services, Regulation and Ethics | multiple-choice questions | exam preparation | 7 golden rules for the exam
Module 2 (25 minutes)
The UK financial services industry The four functions of the financial services industry | how the financial services market operates | the role and structure of UK and International markets | the role and impact of the UK government | UK and post-Brexit EU regulation
Module 3 (29 minutes)
Financial services products and the needs of clients – part 1 Budgeting | managing debt | types of mortgages | types of protection
Module 4 (32 minutes)
Financial services products and the needs of clients – part 2 Savings and investment | retirement planning
Module 5 (27 minutes)
Financial services products and the needs of clients – part 3 Estate planning | tax planning | social security benefits
Module 6 (31 minutes)
Legal concepts relevant to financial advice Self-employed, partnerships, limited companies | capacity and contract | power of attorney | the ownership of property | insolvency and bankruptcy | wills and intestacy | trusts
Module 7 (26 minutes)
The regulation of financial services The UK regulatory authorities: the FCA, PRA and FPC | EU legislation | EU Supervisory bodies | other UK regulators, e.g. The Pensions Regulator
Module 8 (22 minutes)
The Financial Conduct Authority: its responsibilities and approach to regulation How firms are authorised | the Three Pillars | PRA regulation and the Proactive Intervention Framework | proactive and reactive supervision | enforcement | Financial Stability Board
Module 9 (37 minutes)
The FCA handbook The FCA Handbook, e.g. the Principles for Businesses, COBS, financial resources | The Consumer Credit Acts | The Consumer Rights Act 2015
Module 10 (30 minutes)
The FCA, principles and rules Authorised and exempt firms | approved persons | SM&CR | records | T&C | anti-money laundering | data protection | redress/complaints | FOS | FSCS
Module 11 (27 minutes)
The regulatory advice framework Money guidance, i.e. MaPs and MoneyHelper | the fair treatment of consumers | stakeholder products and basic advice | financial promotions | COBS rules that impact on the client, e.g. disclosure documents and cancellation rights | reviewing client needs
Module 12 (16 minutes)
Client advising skills Information v advice | A seven stage advice structure | know your customer, e.g. hard and soft facts | suitability reports
Module 13 (27 minutes)
Outcomes-based regulation and ethics Outcomes-based regulation | SM&CR, e.g. senior management functions and certified functions | code of conduct (COCON) | ethical behaviours | business culture | Bribery Act | ethics and ethical culture
Module 14 (29 minutes)
Crammer module It provides a recap of the key points from the full programme.
To hear the thoughts on how to prepare for the R01 exam from first-time students, click here and here
What people say about us:
"The audio material was extremely useful in helping me pass the R01 exam. The information provided in this material was very clear and allowed me to easier understand certain concepts rather than just using the study text. The audio modules were also short and concise which made them perfect to fit in around work. Thank you very much for the help."
Matt Barker, trainee adviser
