Tag Archives: r06 exam

CII R06 exam

R06 exam: April 2021

The case studies for the CII R06 April 2021 exam are now available. If you haven’t yet seen these, click here.

What do I do now?

The exam is Tuesday 20th April. The case studies are issued in advance of the exam for a reason – to let you to prepare for the exam. So if you have a limited knowledge of SSASs, IPDIs, divorce settlements, LPAs and the taxation of income from limited companies, for example, then now is the time to work on this.

The exam will test across a range of different aspects of financial planning that are based on two client case studies. You will not know the actual questions you will face until the exam day but it makes sense to prepare for any eventuality before then.

What areas should I focus on in the CII’s R06 April 2021 exam?

Based on the case studies, here are some of the areas (not exhaustive) that you should focus your preparation on in the CII’s R06 April 2021 exam:

Case Study 1: Jim and Helen

  • Suitable financial protection for Helen’s rent payments and/or using relevant life policies through their respective businesses to provide each other with protection
  • Describe the benefits of having a IPDI and/or how they work
  • Benefits of Jim’s business making pension contributions for him rather than drawing dividends and/or describe how both Helen and Jim can minimise their income tax liabilities for income taken from their businesses
  • How income can be drawn from Jim’s SSAS and/or the actions he could consider before retiring
  • Divorce settlements: pension attachment orders v pension sharing orders
  • Inheritance tax planning, for example: a fact finding question, how the RNRB works
  • Wills: problems with their existing arrangements and/or alternative will arrangements that meet their future needs
  • Review their financial circumstances (see past exam papers for examples of this type of question)

Case Study 2: Dante and Cara

  • Provide solutions to meet their protection needs, e.g. life cover /CIC for the shortfall of £150,000 on the interest-only mortgage (ignoring DIS) and IPI to provide income for Cara in the event of long-term sickness
  • Fact find question on protection, e.g. details of Dante’s existing IPI, whether nomination forms completed on DIS and existing pensions
  • Benefit and/or drawback of using different ways to repay the interest-only mortgage in 15 years, e.g. selling Dante’s rental property or encashing specific existing assets
  • Describe the characteristics or risks associated with some of their existing investments, e.g. rental property, commercial property fund in the Dante’s ISA, and Cara’s traditional with-profits fund
  • How suitable are their investments? Around half of their investible assets are in cash or bonds – this seem relatively high so this might be tested. These assets may not be held as tax efficiently as possible.
  • Part of one objective is to ensure their pensions are suitable. This means that you need to think about, for example, how the tapered annual allowance works
  • What are the benefits of arranging a health and care decisions LPA for Cara’s mother and/or how can one be set up? An outside bet would also be advance statements and decisions.

How does the CII’s R06 April 2021 exam compare with previous R06 exams?

Frankly, whoever wrote this exam did not have a great Covid lockdown! This R06 exam has a distinctly different feel about it. Unusually, case study 1 is a couple approaching retirement (rather than a young couple). Case study 2 is a more familiar ‘pre-retirement’ scenario but the client’s objectives are those usually addressed in case study 1.

These case studies are both high-octane. There is a lot of information provided – around double what you would expect and similar in quantity to that provided in AF5. In this exam, you’re going to need to read each case study multiple times to make sure you fully understand the nuances of the client’s circumstances.

The good news is that the client financial objectives in both case studies are mostly familiar ones. Having objectives such as ‘adequate income in retirement’, ‘mitigate inheritance tax’ and ‘protection in the event of death’ are all familiar and so we can learn from how these have been tested in the past.

Also, given the range of possible areas they could examine, the depth of knowledge required is more likely to be about breadth of knowledge, not depth.

The bad news is that both case studies are likely to be more ‘technical’ than the typical exam. Remember that R06 is, first and foremost, a planning exam so whilst this has the potential to test a range of technically demanding areas, hopefully it won’t. That said, anyone sitting this exam will need to prepare for any eventuality.

In a R06 exam, most of the questions will typically 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 only 6 which is on the low side. This means there may be more than one question against each of the clients’ financial objectives and/or the examiners will test some generic areas. Given the scenarios, people should prepare for the former.

What do I need to do to pass the CII’s R06 April 2021 exam?

  1. Familiarise yourself with the clients’ circumstances. If you are provided with information, you will usually be expected to use it in some way. You should 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, the CII R06 study text or use our useful R06 talking book.
  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 last R06 exam to see what a past paper looks like. Pay particular attention to the style of questions and model answers provided.

How we can help

If you want to know the types of question that have been asked previously in R06, it’s not to late to download our R06 talking book. If you do, just listen the the financial objectives that link in with this specific exam to hear the types of question and answers based on previous R06 exams. Click here for full details.


Download our FREE 7 minute podcasts that look at R06 exam technique. Most people who fail R06 will do so by less than 5 marks – make sure you aren’t one of them.

Prepare well and be successful.

Ian Patterson

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