A Look at Recent Past Papers for the CII AF7 Exam – February 2025
In this article, we are taking a quick look at the questions asked in the last four exam papers of the CII’s Advanced Diploma in Financial Planning AF7 exam paper – this is the exam on Pension Transfers.
This article is correct as at 23 January 2025.
This will be useful reading for you if you are preparing to sit this exam in the near future; it will help you to focus your revision on the areas that are likely to be examined.
| Abridged advice. | Triage services. | Content of a personalised charges communication. | Contingent charging and carve-outs. |
| Employer covenants. | Factors to consider when assessing capacity for loss. | Factors to consider in terms of GMP benefits when recommending a transfer. | CETV calculation process and statutory right to transfer. |
| Attitude to transfer risk. | Impact of PPF on benefits. | Information trustees must provide for a CETV request. | Employer covenants. |
| Statutory timescales. | Information required when advising whether to accept guaranteed annuity rate. | Impact on CETV of increases in inflation and gilt yields. | Sequencing risk and mitigation. |
| Further information from the client. | Further information from the scheme administrator. | Information required from the customer to advise on transfer. | Means of meeting objectives. |
| Alternative means to meet objectives. | APTA and death benefits. | Factors which support a retain recommendation. | Reasons to transfer one scheme and not the other. |
| Death benefits and tax treatment. | Reasons for advice not to transfer. | Cashflow modelling and stress tests. | Cashflow modelling benefits and limitations. |
| Vulnerable clients. | Factors to consider when determining how best to meet income shortfall. | Reasons to transfer one scheme and not the other. | Information required to advise on a suitable investment strategy. |
| Additional information to recommend an investment strategy. | Reasons to transfer one scheme and not the other. | Partial annuity purchase with transfer value. | Further information from the scheme administrator. |
| Reasons to recommend a transfer. | Pros and cons of drawdown versus short-term annuity. | Drawdown death benefits. | Factors to consider when considering a transfer recommendation. |
| Sequencing risk. | Spousal bypass trusts. | Reasons to pay class 3 NICs. | Spousal bypass trusts. |
| Death benefit nominations. | Reasons to pay class 3 NICs. |
Here we take a look at the questions asked in the last four exam papers for #CII #AF7. Share on X
As you can see from the above, there are running themes which come up time and time again. The first question is invariably a compliance related one.
It is odds on that you are going to be asked to justify a recommendation. Sometimes you will be asked to make the recommendation, at others you may be give the recommendation and asked to justify it.
On several occasions recently, we have also seen case study clients with multiple DB schemes and been asked to justify transferring one and retaining the other.
Fact finding and factors to consider when making a recommendation are other subjects that are regularly tested, particularly fact finding in relation to the scheme itself, which has come up a few times of late. The calculation process for a CETV and statutory timescales is also regularly tested as are cashflow modelling and class 3 NICs. Candidates would also be well advised to ensure that they are up to speed with the death benefit situation and the new allowances.
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