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CF2 Exam: Investment and Risk

CF2 Exam: Investment and Risk

The CII (Chartered Insurance Institute) financial services qualifications are aimed at anyone who wants to work in the financial services industry, from new entrants to experienced professionals. Candidates can choose from a wide range of qualifications to enable them to meet their career goals.  The CF2 exam (investment and risk) can be used towards the Certificate in Life and Pensions or the Certificate in Financial Planning.

The objective of the CF2 exam, which covers investment and risk, is to provide candidates with a solid understanding of the following:

  • Investment returns
  • The main features of different asset classes and product types
  • How ethical investment features in financial advice
  • The risks associated with investment
  • The effects of risks on returns
  • Individual investors’ profiles
  • Taxation elements of the investment process
  • The importance of asset allocation in investment decisions
  • The effects of any other issues on investment planning.

The Certificate in Life and Pensions is ideal for those seeking financial services careers in administration (such as those providing administrative support to financial advisers), customer support, compliance and technical guidance.

The Certificate in Financial Planning provides candidates with a solid general grounding in the financial services market, with a strong focus on financial planning advice. Financial planning topics include regulatory issues, the main investment options and the advice-giving process.

There is a recommendation of approximately 70 study hours for the CF2 exam, which is made up of 100 multiple choice questions. Candidates have 2 hours to complete the exam, which has a nominal pass mark of 70%. This unit is worth credits towards the Certificate in Life and Pensions or Certificate in Financial Planning. The CF2 is an online exam that can be taken at the student’s choice of city centre test locations throughout the UK.

Mock Exam Papers and Calculation Workbooks are available from Brand Financial Training to help candidates prepare for the CF2 exam. The Mock Exam Papers are three sets of 100 questions, written in the style of the CII’s mock papers. The Calculation Workbook deals with the calculations that make up part of the exam. Step-by-step answers are provided for over 50 pages of calculation questions.

Information in this article is correct as at September 2011