April 2017’s CII AF3 exam was unsurprisingly challenging – but fair
Last updated on September 25th, 2019 at 4:30 am
It’s time to focus our attention on the CII AF3 Pension Planning module, as we scrutinise the April 2017 exam paper – of interest to those planning to sit AF3.
If you haven’t seen it yet, here is the link:
http://www.cii.co.uk/media/7495538/af3_april_2017_qp.pdf
As an initial summary, this paper seemed a fair one; anyone sitting this exam knows it is a challenging exam with one of the lowest pass rates of the CII exams. It’s hard for good reason though; anyone who works as a pension transfer specialist, must hold this exam, so it needs to be of a high enough standard to carry out this type of work.
Question 1
This question varied covering LTA, transitional protection, death benefits, use of class 3 NICs to increase State pension, FAD, cash-flow forecast and stress testing.
Question 2
Question 2 covered the expected question on GMP re-valuation, the PPF, factors to consider when transferring from a DB scheme into a SIPP as well as the process and regulatory guidelines for transferring.
Question 3
Question 3 kicked off with calculations: one on threshold income and one on annual allowance, continuing with factors to take into account when recommending a personal pension contribution and investment strategy.
The CII have released results for AF3 - here's a review of the April paper. Share on X
A Fair Paper For Those Working in the Field
All in all, it seemed to us like a well-rounded fair paper for anyone working in this field.
Historically the pass rates for AF3 have been low – see the table below to see what they’ve been since 2012.
Pretty soon we will find out how 2016 results look, and with only two more sittings of the AF3 paper left, we look forward to seeing what the replacement pension transfer CII material looks like.
Grab the resources you need!
If you’re studying for your CII AF3 exam, and you’re wanting to overcome that feeling of dread about exam day, you’ll need to practise, practise, practise! Grab our free taster to try out one of Brand Financial Training’s resources for yourself. Click the link to download the AF3 mock paper taster now!
Over to You…
If you’re planning on sitting AF3 in October, which areas do you think will pose the biggest challenge for you?
