Tag Archives: r02

CII exam results

CII R0 exam results

Which are the easiest R0 exams?

The latest CII R0 exam results show which are hardest, and which are the easiest. The R0 exam results will be of interest to anyone who is looking to sit these CII exams so go into them with your eyes open.

Are all the CII R0 exams the same style or format?

You could be forgiven for thinking that this should be a straightforward question. It isn’t. Some of the variation in pass rates is not solely due to the subject matter, but how it is examined.

Only R05 (Financial Protection) use just the standard format multiple choice question. This means that you will be given a question followed by four options and only one of these will be correct.  R06 (Financial Planning Practice) is a written paper without a single multiple choice question to be seen anywhere. In addition, the R06 case studies are issued 2 weeks before the exam so the examiners expect you to prepare and read-up around on the potential technical areas that are likely to be tested before the exam.

The other subjects – R01, R02 R03 and R04 all use the standard format multiple choice questions, and the much harder variant – the multiple response question. So how does this format of question differ? Instead of four options, you will get usually 5 or 6 options and more than one answer will be correct. To get a mark, you have to identify all the correct answers.

R07 (Advanced Mortgage Advice) is not covered by this analysis.

What are the CII R0 exam results?

Here are the results for 2022 (the latest available):

R01 – 68% (-1% on the previous year)

R02 – 70% (+5% on the previous year)

R03 – 54% (-3% on the previous year)

R04 – 57% (No change on the previous year)

R05 – 78% (No change on the previous year)

R06 – 71% (-3% on the previous year)

What conclusions can we draw from this?

First of all, most of the 2022 pass rates are worse than those for 2021. As these are very established exams that have been sat by 1000’s of people, this suggests that they are not as well prepared as they have been in the past.

R01 – Financial Services, Regulation and Ethics.

In terms of CII R0 exam results, this is the third hardest R0 exam. This is partly because the regulations side of things – particularly to people new to the profession – is quite wide ranging. Many students find the content on the FCA a little dull.  The exam also has 100 questions and 13 of these are those pesky multiple response questions. This makes the exam harder.

For many people, this will be the first R0 exam they complete. As some of the content on products and legal aspects are also covered in more depth in the other R0 exams, this is a sensible strategy.

Click here to get a students point of view of R01.

R02 – Investment Principles and Risk.

This is the forth hardest exam statistically although there will be many people who would say it is harder than this. Again, the syllabus is huge and you will need to get your head around it. Like R01, this exam is also 100 questions but 28 of these are multiple response. Many people regard a 50% success rate with this type of questions as being good going. So you can start to see why it is a difficult exam.

Click here to view the 5 myths of R02.

R03 – Personal Taxation.

Statistically, this is THE hardest exam. There are 50 questions and 11 of these are multiple response questions.  With R03, you won’t be leaving the exam early! Of all of the R0 exams, this is the one that is most likely to put you under time pressure. There is a lot to do in an hour so you need to be well prepared and practised at answering calculation questions.

Click here to view the 5 myths of R03.

R04 – Pensions and Retirement Planning.

In terms of CII R0 exam results, this is the second most difficult exam.  Like R03, it’s a one hour exam, there are 50 questions and 11 of these are multiple response questions.  The challenge with R04 is the subject matter – pensions is a subject that causes confusion for many new and more experienced people alike. Unfortunately, you’ll struggle to get through this without a decent knowledge of the HMRC rules such as annual allowance and the transitional protections.

Click here to view the 5 myths of R04.

R05 – Financial Protection.

From the hardest exam, to the easiest. For some people, this is a good place to start their R0 exam journey. There’s still a broad syllabus but protection products such as critical illness and income protection are relatively straightforward. And, of course, there are no multiple response questions. That said, you’ll still need to have some knowldege of subjects like state benefits, and long term care so it isn’t all plane sailing.

Click here to view 10 free R05 practice questions

R06 – Financial Planning Practice.

The statistics say that this is the second easiest R0 exam. It is, but only if you get your head around the technique that you will need. This is a written exam that is based on two case studies that are issued 2 weeks before the exam. I’ve met very few people who walked out of this exam thinking they’d failed yet 29% still do.  Be prepared to not only put in some hard yards in the two weeks before the exam, but also before then.

Click here to access our MP3 material which looks at past R06 questions.

If you want our thoughts on what is the best order to sit your CII R0 exams, click here

If you want to know more about our R0 exam audio books, click here

If you want to access or study and revision hub (which has lots of R0 exam-specific articles, click here)

Prepare well and pass first time.

Ian Patterson

Ex-examiner and author of the current CII CF8 J07 and AF6 study texts

r02

R02 exam: FREE practice questions

Are you revising for the CII’s R02 exam? Know someone who is? Want to test your R02 knowledge? Then read on…..!

We’ve put together 10 single-response multiple choice questions for you as a taster of what you can expect in the R02 exam. With this exam, your main challenge isn’t completing it in the time allowed (like R03). It’s more about understanding a very wide range of investments solutions – some of which, you probably won’t have come across before.

We’ve helped over 6,000 people prepare for the CII R0 exams over the past 12 months. We don’t sell multiple choice questions but we are here to help as much as we can with your R02 exam.

What we do offer is unique R02 MP3 audio material. This provides around 4 hours of dedicated material that enables you to fit your study around your business and social life – not the other way around.  Click here for further details.

Now, onto the practice questions. These are based on the 2023/24 tax year. See how well you do on these R02 exam style questions. You’ll find the answers at the end.

Here goes……..

10 R02 questions

1. In a period when interest rates have fallen substantially, the nominal value of a conventional fixed interest security at maturity will:

A. increase significantly.

B. decrease significantly.

C. remain constant.

D. increase in line with inflation.

2. A government can use fiscal measures to address declining GDP by:

A. reducing the Bank of England’s target inflation rate.

B. increasing the rate of Value Added Tax.

C. increasing the level of gilt issues.

D. reducing Corporation Tax rates.

3. A financial adviser has recommended collective investments which are negatively correlated to each other to ensure that they:

A. are capable of generating both income and growth.

B. have a degree of diversification.

C. have a combined beta of 0.

D. have an alpha with a negative value.

4. Portfolio X consists of blue chip ordinary shares and portfolio Y consists of unlisted shares. What type of risk is likely to be significantly higher for portfolio Y when compared to portfolio X?

A. Market risk.

B. Event risk.

C. Inflation risk.

D. Liquidity risk.

5. If a client has a collective investment where the share price is currently at a significant discount to the net asset value, what type of investment is it?

A. Investment trust.

B. OEIC.

C. Exchange Traded Fund.

D. Unit trust.

6. Alicia has fully surrendered an onshore single premium investment bond with a chargeable gain of £20,000 after 5 years. If she has no other savings income and her income after reliefs and allowances is £36,000, she should be aware that:

A. the full gain would be subject to 20% income tax.

B. the full gain would be subject to an additional 25% income tax.

C. she would have a personal savings allowance of £1,000.

D. she would have a personal savings allowance of £500.

7. A client who invests in a new issue of VCT shares would benefit from its tax treatment because:

A. the proceeds on death will be free of inheritance tax.

B. income tax relief is available at 30% up to a maximum of £200,000 per tax year.

C. shares must only be kept for three years to benefit from income tax relief.

D. an investor can potentially carry back income tax relief to the previous tax year.

8. Neil has agreed to have his portfolio managed on a passive basis. This means that he:

A. believes active fund managers will consistently outperform the benchmark index.

B. believes active fund managers will consistently underperform the benchmark index.

C. has increased his risk profile.

D. has reduced his risk profile.

9. What is the running yield on a corporate bond that has a clean price of £114, a par value of £100 and pays 5.2% income?

A. 4.56%.

B. 5.2%.

C. 7.85%.

D. 8.6%.

10. When agreeing the benchmark for an investment portfolio with a client, what is it always important to do?

A. Select the lowest risk benchmark from the available choices.

B. Use one constructed using Modern Portfolio Theory.

C. Use one that matches the mix of assets in the portfolio.

D. Select a benchmark that is positively correlated with the portfolio’s underlying assets.

R02 Resources

Here are some other tips and information you might find useful:

CII R02 exam: the 5 myths. Click here

How to pass R02. Click here

Answers: 1: C; 2: D; 3: B; 4: D; 5: A; 6: D; 7: B; 8: B; 9: A; 10: C.

Remember, good preparation is the key. Hope that you found this useful. Until the next time

Ian Patterson

Author of the current CF8, J07, and AF6 CII study texts and ex-examiner

R0 exam: technique

It will hopefully go without saying that if you are sitting a R0 exam – well any exam really – it is also important to know about exam technique.

In a recent conversation, I was told that because most of the R0 exams are multiple choice, there is no such thing as exam technique. I don’t agree with this; technique will still make a difference for many people.

You should look at exam preparation as two parts; what you do before the exam and what you do in the exam itself.  I’ll now look at both of these areas in more detail.

Pre-exam preparation

Here are five tips on how to approach your pre-R0 exam preparation:

  1. Look at the syllabus and the learning outcomes.  This covers the scope of the exam and tells you what you should be able to do. It is important because the exam questions are based on the learning outcomes in the syllabus, not the study text. In R01, for example, there are 11 learning outcomes and the number of questions on each one varies from 29 to 2. Each learning outcome is not treated the same way and because of this, some areas should receive more study time than others.
  2. Study the CII Exam Guide. This is available on the CII website, just Google ‘cii, r01’ or something similar and you’ll find it on the right hand side of the page for each R0 exam. The Exam Guide will give you the opportunity to see a complete exam paper. You should complete this at least twice under exam conditions; at the start of your preparation to establish a benchmark and towards the end to ensure you are ready for the exam.
  3. Read through elements of the CII study text. Unless you are new to the subject, just focus on the areas you don’t know. Look at the questions within the text and the useful summaries at the end of each chapter.
  4. Use the RevisionMate knowledge checker practice questions. Many people will get access to these as part of your exam entry. These are based on each chapter of the CII study text and they’re intended to help you check you’ve remember what you’ve read. These are similar to the standard expected in the actual exam so make sure you use them.  
  5. Familiarise yourself with the tax tables. These can be found at the back of an Exam Guide. A lot of information will be provided such as the main allowances, tax rates and the main social security benefits.  The exam isn’t really about having to remember this information, it’s about using and applying it. So don’t spend time trying to remember stuff that you don’t need to.

To get a student’s point of view on R01, click here.

In the R0 exam: technique

Now, moving on, let’s look at some tips in the exam itself.  If you have revised thoroughly, an R0 exam shouldn’t be a problem.  That’s the theory.  Although there is not a huge amount of exam technique involved in answering multiple choice questions, most people will drop marks as a result of poor technique. Others will fail the exam because of it.

Here are seven golden rules to remember in a R0 exam:

  • Rule 1 – read the question carefully and consider all of the options before attempting to answer. It sounds so basic doesn’t it?  But from past experience, we know that candidates often get questions wrong because they didn’t read the question carefully, or didn’t understand all of the options, before answering it. Remember, if information is provided in the question, it’s there for a reason. You will be expected to use it in some way.
  • Rule 2 – Pay attention to words in bold type and words in capital letters.  For example, negative words will always be in bold capital letters. If is says ‘most likely‘, this means that more than one answer could be correct. So the answer the exam is looking for should clearly be more correct than the other options.
  • Rule 3 – do not spend too long on any one question.  You will have just over one minute per question. So keep an eye on the time – you should complete 12 or 13 questions every 15 minutes. The R03 exam, in particular, is a challenge to complete in the time available.
  • Rule 4 – decide how you are going to attempt the questions before the exam.  You can work through all of the questions methodically answering each one in turn, or you may wish to concentrate on those you know best first.  It is possible to flag questions that you want to leave and return to them later, but make sure that you leave sufficient time to do so if you use this approach. Use a practice exam paper before the exam to work out what is best for you.
  • Rule 5 – if in doubt about an answer, then use a process of elimination. Often one or more of the alternative answers will immediately strike you as being incorrect or implausible.  Even if you only have a small amount of knowledge on a topic, you will often be able to eliminate one or even two of the possible answers – and this increases your odds of successfully answering the question.
  • Rule 6 – make sure that you answer every question, even those where you have no idea of the correct answer.  The law of averages should mean that you get some marks for guessing!
  • Rule 7 – if you have time at the end, run through your answers or ‘flagged questions’ again to make sure that nothing has been missed and to check for obvious errors.

Further resources

Visit our dedicated revision hub if you want to access a free video or look at tips on a specific R0 exam. Click here.

If you want to work smarter rather than harder, why not listen to our audiobooks so you can learn on the go. These cover the technical content and also R0 exam technique.

Good luck with your exam and prepare well.

Ian Patterson

Ex-examiner and author of the CF8, J07, and AF6 CII study texts

R0 exam

R0 exams: the power of using the ‘link method’


When studying for your R0 exams, here’s how the ‘Link Method’ can help you

If you’ve ever had a spontaneous thought, triggered by something else; maybe something you see or hear… or a particular smell? You’ll realise that there must be all sorts of ideas connected in your brain that you’re blissfully unaware of, until all of a sudden…  out one pops!

It’s how your brain works. Connections. And, contrary to what I was taught many decades ago at school, we now know that the brain continues to make new brain cells and create new connections throughout life. Providing you give it reason to!

If you are revising for your R0 exams, you’ll need to be efficient and effective with your time. The brain learns by associating new information with that which you already know. One popular method that maximises the benefits of this is the link method.

The link method could help you to pass your R0 exams. So what is it? There are three elements to it:

  1. Break down complex ideas and find substitute words or parts of words to represent them.
  2. Create vivid mental images of those ideas by using your amazing imagination
  3. Find associations between those visual images

So lets have a closer look at each step.

Step 1. Substitute words. You’re aiming for a clear and distinct image associated with the idea it’s representing. If the word naturally lends itself to an image you can go straight to the next step. If not, break the word up into syllables and play ‘word association football’, paying attention to the sound blocks, to create memorable pictures associated with those sounds.

In some cases, a list of information may lend itself to you making up a story which includes all of the elements on the list.

It also works if you create an acronym. In the R06 exam, for example, we use the acronym PATHETIC WINE to provide a template to ensure that an answer to to a question covers all the bits that the CII might give you a mark for. In most R06 exams, you’d get around 10% more marks if you SELECTIVELY included the following areas in your answers: Pension death benefits, affordability or budget; taxation; health; emergency fund; trusts; ISAs or National Savings Certificates; capacity for loss and attitude to risk; Wills and guardianship clauses;  inheritances that are expected; nomination forms for pensions and ethical considerations.

In the R01 exam, you can remember what makes a valid trust by using SOW: the Subject (beneficiaries) must be clear, there must be an Object (another name for the trust property), and Words. Although there is no particular prescribed form of trust wording, it must be clear that a trust was intended.

2. Vivid pictures. Since you’ll need to build strong connections between the ideas to use the Link Method, you will need memorable images, so don’t go for the obvious. Instead, go for something that stands out. At the very least, make sure that it’s an odd colour, bigger or smaller than normal. Make it outrageous, rude, exaggerated, funny etc etc, because we know that it’s more likely to stick in your head. This makes it more likely to help you pass your R0 exams.

3. Association. Now you need to imagine the first image doing something to the next image, which in turn does something to the next, etc etc, linking the ideas together like a string of pearls.

Use your imagination and run through the sequence a number of times until you can see that chain of events clearly in your mind, flowing just like a story. If nothing else, try and associate what you are learning with a client or work related scenario that you have, or might encounter.

And that’s the Link Method.

If you want to try our unique R0 exam talking books, click here

If you are interested in exam technique, click here for our video on top revision techniques.

Give it a go and let me know how you get on.

Ian Patterson

Ex-examiner and author of the CII texts CF8, J07 and AF6.

Based on an article by Memory and Mindset Coach, Lysette Offley, Genius Material. Click on the link for other useful study tips and to read the original article.

r0 exam revision

R0 exam revision: the most important tip ever

With R0 exam revision, you’ll need to retain a wide range of information.  Despite numerous tips and techniques that can help study to be more effective, most people find studying for any exam to be hard work. But if you just had to pick just one tip that will make the biggest difference, what would it be? Here’s what gets our vote.

Exercise

I’ll start with an exercise that should make this point. Here are 20 different numbers between 1 and 75. I’ll ask you to look at these for 30 seconds, turn away, and see how many numbers in sequence you can remember. Here they are:

5,   18,   3,    9,   44,   11,   16,    36,    31,    72,    24,    9,    32,    41,    4,    59,    1,    63,    25,    71

How did you do? People tend to remember around six numbers in the correct sequence – typically the first three and the last three. You might have remembered slightly more or slightly less than this. Usually it will be the numbers at the beginning and the end of the list that you’ll remember. So why is this so important?

Primacy and recency

This phenomenon is referred to as primacy and recency.  When you take in any information, you tend to remember the bits at the beginning and the end. The bit in the middle becomes a blur or gets forgotten. And this is something that we all do. If you are studying for an R0 exam, how can you use this valuable insight?

Small chunks

At the Patterson Group, we believe that exam success is about working smarter and not harder. And this is why this principle is so important. When revising, you can use this. Let me explain. Many people tend to block out a prolonged period of time to revise, often close to the exam date. Most people will have done at least some ‘cramming’ in the past. But just how effective is it?

The following diagram looks at concentration levels and how these change with time.

The important thing to remember is that it’s not how much study you do, but how much information you retain as a result.  If we apply primacy and recency to this, it suggests that a two hour block of revision is unlikely to be effective for most people. Like the exercise you’ve just done, you are likely to remember the beginning and the end, and some bits in the middle. That’s great for the 15 minute periods at the start and end. It also means that much of the 1 ½ hours in between is wasted for most people.

What does good look like?

Now, you might know people who are good at cramming. If so, they are either gifted, or they probably still break their revision into smaller chunks. In other words, it’s not a solid undiluted period of revision – but a two-hour period with a number of breaks built in. It’s these breaks that are important. We would recommend a 10 minute break every 20-30 minutes of study. And when we say break, it should be just that. Walk around,  talk to people, listen to music – anything; but give your brain a break from your R0 exam study.  Give yourself a proper break; give yourself regular breaks.

How does this impact on your concentration levels? If we look at this as a diagram, it should look like this:

You are still benefiting from primacy and recency. By studying for shorter periods, you’ve managed to cram more beginnings and ends into the your study time. As a result, your overall level of concentration is that much higher and you will remember more. More learning and the same amount of study time.  What’s not to like?

20 minutes of study isn’t worth it

This is a comment we hear regularly. And nothing could be further from the truth. 20-30 minutes is probably the optimum period of time. You get high levels of concentration and better retention. Part of this is due to concentration levels being maintained. Part of this is also due to the fact that you will probably only focus on two or three core concepts in this period of time. The brain likes small chunks of information nearly as much as having short study periods.

We are the leading producer of audio R0 exam material and we are convinced that small chunks are best. Our R0 exam audio material allows you to learn, in small chunks, fitting it in around the rest of your life. Simple and effective.

Click here to see why over 6,000 people have bought this study material over the last year.

There are, of course, plenty  of other tips that can help you to work smarter and not harder. If you like what you’ve read, we have partnered with the leading learning specialist – Genius Material. There’s plenty more to learn about being studying effectively. We’ll look at these in subsequent blogs.

Click here for:

R01: a student’s point of view

How to pass R02 

Blogs on other subjects are also available. Click here for details

Prepare well and be successful

Ian Patterson

Ex-examiner and author of the current CII study texts for CF8, J07 and AF6

CII R06 exam

How to pass R02

The CII’s exam, R02  Investment Principles, is one of the CII harder exams. It has a pass rate of 68%. And do you know what, it will probably feel tough.

The CII R02 exam has 100 questions, and you have 2 hours to complete the exam. 28 questions are the harder multiple-response style questions that require more than one answer.

10 tips on how to pass R02 first time

  1. Put in the hard yards. The CII recommend 60 hours of study and most people will, unfortunately, need this and perhaps more. Why? Because R02 covers a very wide range of investments – including direct investments into shares and gilts. These are likely to be unfamiliar territory for most people.
  2. Work smarter, not harder. It’s not just about how much study you do, but it’s also about the quality of your study. Most people learn best by ‘doing stuff’, rather than just reading (which is passive). For example, use highlighter pens, write summary notes and use the CII online Knowledge Checker practice questions. You might also use our audio material so that you can learn on the go. Click here for details.
  3. Look at the R02 syllabus. You might think that this is a cure for insomnia but really, I’m serious. The CII R02 study text follows the sequence of the syllabus. The key point is that some chapters will have more questions in the exam than some others. Chapters 1, 7, 8, section L of chapter 10 and chapter 11 account for all of the multiple response questions and 46% of the remaining marks. If time is short, why wouldn’t you focus on these chapters? Click here to see the CII R02 syllabus.
  4. Focus on the content you don’t know. Most people will be familiar with some elements of the content. As few people will read the study text from cover to cover, focus your reading on the bits you are unfamiliar with. Why? The fact is that some knowledge goes a long way. Even if you don’t know the answer to a question, it’ll help you to eliminate one or more of the incorrect answers. This leads me on to the next tip.
  5. Guess! Questions in R02 are marked positively so if you guess and get it wrong, you don’t lose anything. If you get it right then, bingo, one mark closer to the pass mark. Use a process of elimination to reduce the likely number of options but if in doubt, guess. Never leave a question unanswered.
  6. Focus on chapters 1 and 6 CII R02 study text. I’ve already mentioned these chapters in tip number 3 but I want to make another point here. This is where the content of the pesky multiple-response questions can be found. These are much harder than the standard questions that require one answer from four answer questions. They typically account for 28 of the 100 questions in the R02 exam. It’s difficult to pass if you don’t get around half marks on these.
  7. Practice, practice, practice. There really is no substitute for answering R02 Knowledge Checker practice questions such as the ones you will find on the CII’s RevisionMate. Start using these early on in your preparation. Most people learn from their mistakes – so make lots of them during your prep so you don’t make them in the exam.  Don’t leave them until the last minute.
  8. Complete the R02 CII exam guide at least twice. Do this under exam condition so you get a feel about what it’ll be like in the exam. Also get familiar with the style of the questions – this is the best guide there is as to what your actual exam will look like.
  9. Read the exam questions twice. Trust me, if the question gives you information, you’ll need to use it somehow. The CII doesn’t give information to just ‘pad out’ a question. So read the question twice and ask yourself: ‘how do they expect me to use this information?’.
  10. Take a calculator into the exam. Around 19 of the first 72 questions typically will need a calculator. If you are lucky, some of the calculations will be around stamp duty land tax or how much a family can collectively contribute into ISAs. If you are unlucky, you may be asked to calculate dividend cover, running yields and the time value of money so make sure you practice these and be familiar with your calculator.

R02 Resources

Click here for our FREE practice questions

Click here for the CII exam guide

Be prepared. Good preparation leads to success. If you want to know how you can learn on the go and fit it in around everything else, click here for details.

Until the next time.

Ian Patterson

Ex-examiner and author of the current CF8, J07, and AF6 CII study texts

preparing for a CII R0 exam

When preparing for a CII R0 exam, what can you learn from the England football team?

Today is the 5th July 2021. Whatever happens in the remainder of the 2020 European Cup, it’s already been a good competition for the England football team.

We even managed to beat Germany. Dare I believe that we will cope well with penalties this time around if we need to? It feels like a different England side and, in many ways, it is. Forget about the youthfulness of the side or the formation used by the manager. The real difference is the team’s mindset and their preparedness.

There are some lessons here for anyone who is preparing for a CII R0 exam.

England taking penalties: the history

When it comes to England and penalty shoot-outs, it usually ends in tears. Before England defeated Colombia on penalties to reach the quarter-finals of the 2018 World Cup, England hadn’t won a shoot-out at a major tournament since 1996. They had never won a penalty shoot-out at a World Cup. Despite winning against Colombia, England still have the worst penalty record in senior world football. They have lost three out of four World Cup penalty shoot-outs.

Despite this awful record, there is a widely reported fact that would make any England football fan incandescent with rage. Most of the England teams historically did not practice taking penalties. Apparently they aren’t worth it because it’s impossible to replicate the pressure they face in a real game.

England taking penalties: what’s different this time?

Gareth Southgate has put an end to this nonsense. He has selected players and insisted that they practice taking penalties. To make it as realistic as possible, this practice takes place at the end of the normal practice session when the players are most tired. After all, in the real thing, you won’t usually go to penalties unless you’ve been running around for at least 120 minutes and are tired. In addition to this, all the players now have a routine. So even when under the greatest of pressure, they are able to replicate what they do on the practice ground.

You only have to look at Harry Kane to see how he holds the ball and carefully places the ball on the penalty spot. He then picks non-existent mud out of his studs, adjusts his left sock, takes three steps back, picks a spot, and then scores. All of this is fully rehearsed, practised, and perfectly executed (at least up until now!).

Finally, all of the England penalty takers have apparently been psychologically profiled to see how they stand up under the pressures of a penalty shootout. All in all, he hasn’t left anything to chance – and so far it’s worked.

What about preparing for a CII R0 exam?

What can we learn from this when preparing for a CII R0 exam? The simple message from the England football team is that success starts on the practice ground. When sitting a R0 exam, your practice pitch is what you do when you are studying. So you have to get this right and not leave anything to chance.

Whether you are sitting R01, R02, R03, R04 or R05, you will need to successfully answer enough multiple-choice questions to pass. It is a surprise to me that so many people who sit these R0 exams don’t do enough of this. They either leave exam practice until the last minute (when they feel they are fully prepared), or don’t practice at all. The danger is that this is preparing to fail.

Preparing for a CII R0 exam: what do we suggest?

  • If you already have some industry experience on the subject that you are sitting, then sit the CII exam guide at the start of your revision. Whether you are sitting R01, R02, R03, R04 or R05, you will get the exam guide when you enrol for your exam. Sitting this at the start of your revision might be a painful experience, but it gets you used to the style of the exam. It will reinforce what you know and identify where the gaps in your knowledge are.
  • Sit this exam paper again around a week away from your exam sitting. This makes sure you sit the CII exam guide at least twice. There is nothing else that is available that is likely to be as close to the standard in the actual exam that you will sit.
  • In addition, most people will also automatically get access to the CII RevisionMate multiple-choice Knowledge Checker questions. Although these are intended to test your learning, these aren’t a million miles away from exam standard. So make sure that you use them.
  • Make sure you attempt as many other additional practice questions as you can. These can be purchased from various training providers. Additional question packs are also available from the CII for R01, R02, R03, R04, and R05 for a relatively small additional cost. In our opinion, these are well worth the money.

The emphasis here is the need to complete practice questions under exam conditions. You might have noticed that nowhere, so far, have I talked about reading the study text from cover to cover. I accept that somebody with relatively limited experience of a R0 exam subject matter may need to read some of the study text first. For everyone else, we believe that the best way to prepare for the R0 exam is to practice as many questions as you can (using the study guide as a reference source to understand where mistakes have been made).

As the England football team have found, success is about investing time in what really matters. Success in your exam will be driven by not only how hard you work, but how effective it is. Practice makes perfect – and its surprising how many teams that practice hard manage to win things. The same applies to the R0 exams….

Click here for a link to our unique audio material (only to be listened to when the football isn’t on!).

Prepare well and be successful.

Ian Patterson

Ex-examiner and author of the study texts for CF8, J07 and AF6.

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CII R0 exams: the best order?

The CII R0 exams are a hugely popular way of achieving Diploma status. Some people have no other choice than to sit all six R0 exams; others sit some of the R0 exams to accumulate CII credits towards Chartered status.  Either way, it makes sense to think about the order you wish to sit them.

To achieve the CII’s Diploma in Regulated Financial Planning, you’ll need all six (or have credits from previous study). Going through from R01 to R06 in order might not always make sense. Here are the things to consider.

What is the easiest R0 exam?

This is a question we frequently get asked. It’s easy to answer and we’ll show the most recent exam results below. Whether it’s the right question is another matter!

The CII exam results for the main R0 exams in 2021 (the most recent results) are as follows:

R01: 69%

R02: 65%

R03: 57%

R04: 57%

R05: 78%

R06: 74%

There is clearly some variation between the different exams. But R06 is a very different exam to R03 as it is a ‘written exam’ and it is based on a case study that is issued two weeks before the exam.

Based on this analysis, the two easiest exams are R03 and R04 but we would caution against sitting these first. For most people, R04 (pensions) is a complicated area if you are not familar with it through your work. Many find that there are time pressures in the R03 (taxation) exam – you won’t have much time spare at the end!

Having said that, R05 (protection) has the highest pass rate. This is because ‘protection’ is less complex than some of the other areas, is generally more familiar to many students, and the exam does not have any of the beastly multiple-response questions where to get a mark, you have to get each of the options correct.

How do i decide which exam to take first?

We’ve just seen that exam results are a factor, but not the only factor. In reality, many people (especially those new to the profession) sit the R0 exams in order, i.e. they start with R01 and finish with R06. But this doesn’t need to be the case – you can sit them in whatever order you like. Here are our thoughts:

  1. Sit the subject you are most familiar with first. If you are working for a mortgage firm, you’ll probably be most familiar with protection so R05 might be a good place to start. If you work for an investment firm, you’ll be starting your study with some knowledge of investments (R02). Familiarity with a subject is a great way to ease yourself into the R0 exams. Remember that the syllabus to each subject is broad. Even if you are familiar with an area, there is likely to still be plenty in the exam that you are not familiar with so some study is almost always necessary.
  2. Don’t feel you have to leave R06 to the end. This tests broad financial planning scenarios. Contrast this with R02,3,4 and 5 which are specific planning areas where the knowledge you’ll need is narrow but deep. R06 will require knowledge that is broad but shallow. The case studies are issued two weeks before the exam so you can prepare on the technical areas that are most likely to be examined in advance which helps immensely. Our audio material gives the types of Q&As that have been asked previously in R06 for each client financial objective. Finally, there are only three R06 exam sittings in 2023 so if you leave R06 to your final exam, and you don’t pass, you will wait months before you can sit it again and get the result. The other R0 exams can generally be sat at any time.
  3. Regulation is not most people’s favourite topic! If you start with R01, it’s all about regulation (e.g. FCA, AML, GDPR), basic economic and legal background and an overview of financial services and providers. This isn’t what many students regard as exciting so why start with this? Besides, the more experience you gain in the workplace, the more you will inevitably become aware of FCA regulations so it makes sense if you leave this one.

Best order?

Subject to the above factors, here is what we suggest as an order to sit R01 to 6. Other training providers and students will have a different view but here goes…..

R05 – the most straightforward R0 exam with the highest pass rate

R03 – a tough exam but elements of it are also covered in R02, R04 and 6 so the knowledge you get in this exam will help with the other three to some extent

R02 – another tough exam but there is significant overlap with R03, i.e. investment products

R06 – sitting this isn’t really dependent on sitting the other exams first so you can be flexible when you sit it. Dovetail sitting this with when you sit other R0 exams and be aware that it’s only examined three times a year

R04 – leaving this until later on gives you time to prepare (if this is not a subject you are familiar with). It is the joint hardest R0 exam

R01 – you are unlikely to use much (if any) R01 content in the other R0 exams, and you’ve got to do it sometime!

How can we help with your exams?

We provide MP3 study material for R01-6 inclusive.  They should be used in conjunction with a study text and practice questions such as the CII’s RevisionMate questions. There’s never enough time to study for exams so our MP3s provide a convenient way of making use of time such as commuting, walking, in the gym… That’s why over 66,000 people have used our material in the past.

We also have a number of blogs for specific R0 subjects to help you pass first time:

R01, R02, R03, R04, R05, R06

Until the next time, prepare well.

Ian Patterson

Ex-examiner and author of the current CII study texts: CF8, J07 and AF6

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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

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You should be able to download to any device. If downloading to a phone please make sure that you are connected to WIFI. Our current R0 material is suitable for exams between 1 September 2023 and 31 August 2024. Please email us on info@pstgroup.co.uk if you have any queries.