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CII R06 exam

CII R06 April 2018 Exam

The case studies for the CII R06 April 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 16th April 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 R06 April 2018 exam?

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

Case Study 1: John and Kate

• Their overall protection needs
• Critical illness protections (and IPI to a lesser extent)
• Factors to take into account with an investment strategy for the £50K
• Benefits/drawbacks of repayment of the loan, e.g. by remortgaging
• Benefits/drawacks of John incorporating his business
• How the High Income Child Benefit Tax Charge works
• How do risk-profiling tools work or benefits/drawbacks of using them

Case Study 2: Felix and Sally

• How DB schemes work (including spouse benefits once in payment)
• What would happen to Felix’s DB pension if his employers scheme entered PPF
• Income options from Sally’s PPP
• Deferring the state pension
• Taxation of their investments and how this can be minimised, e.g. PSA, DA and CGT annual exemptions
• Share Incentive Plans
How with-profits bonds work, e.g. potential MVR
• Potential risks with their current investment portfolio

How does the CII R06 April 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 an ‘at retirement’ scenario. Both of these are familiar themes for R06.  Of the two, case study 2 is perhaps the hardest to predict because although the client’s have plenty of assets, they do not currently have an inheritance tax issue. This is unusual for R06.

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 using cashflow analysis, 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.

What do I need to do to pass the CII April 2018 R06 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 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.

Preparation is the key. Good luck.

The Diploma Doctor