Home

  • CII Exams
    • AF Exams
    • CII AF1 Personal Tax and Trust Planning
    • CII AF4 Investment Planning
    • CII AF5 Financial Planning Process
    • CII AF7 Pension Transfers
    • CF Exams
    • CII CF1 UK Financial Services, Regulation and Ethics
    • CII CF6 Mortgage Advice
    • CII CF8 Long Term Care Insurance
    • ER Exams
    • CII ER1 Equity Release
    • FA Exams
    • CII FA1 Life Office Administration
    • CII FA2 Pensions Administration
    • IF Exams
    • CII IF1 Insurance Legal and Regulatory
    • CII IF2 General Insurance Business
    • CII IF3 Insurance Underwriting Process
    • CII IF4 Insurance Claims Handling Process
    • CII IF5 Motor Insurance Products
    • J0 Exams
    • CII J02 Trusts
    • CII J05 Pension Income Options
    • CII J07 Supervision in a Regulated Environment
    • CII J10 Discretionary Investment Management
    • CII J12 Securities Advice and Dealing
    • LP Exams
    • CII LP2 Financial Services Products and Solutions
    • R0 Exams
    • CII R01 Financial Services, Regulation and Ethics
    • CII R02 Investment Principles and Risk
    • CII R03 Personal Taxation
    • CII R04 Pensions and Retirement Planning
    • CII R05 Financial Protection
    • CII R06 Financial Planning Practice
    • CII R07 Advanced Mortgage Advice
  • CII Qualifications
    • CII Qualifications Overview
    • Advanced Diplomas
    • CII Advanced Diploma in Financial Planning
    • Awards
    • CII Award in Financial Administration
    • CII Award in Life and Pensions Foundations
    • CII Award in Long Term Care Insurance
    • CII Award in Regulated Pension Transfer Advice
    • Certificates
    • CII Certificate in Advanced Mortgage Advice
    • CII Certificate in Discretionary Investment Management
    • CII Certificate in Equity Release
    • CII Certificate in Financial Services
    • CII Certificate in Insurance
    • CII Certificate in Investment Operations
    • CII Certificate in Mortgage Advice
    • CII Certificate in Paraplanning
    • CII Certificate in Regulated Financial Services Operations
    • CII Certificate in Securities Advice and Dealing
    • Diplomas
    • CII Diploma in Financial Planning
    • CII Diploma in Regulated Financial Planning
  • Main Pages
  • Home
  • Blog
  • Corporate
  • FAQ
  • About
  • Contact
  • Home
  • Blog
  • Corporate
  • FAQs
  • About
  • Contact
Cart
Brand Financial Training
  • CII Exams
    • Exam-Col-01
      • AF Exams
      • CII AF1 Personal Tax and Trust Planning
      • CII AF4 Investment Planning
      • CII AF5 Financial Planning Process
      • CII AF7 Pension Transfers
      • CF Exams
      • CII CF1 UK Financial Services, Regulation and Ethics
      • CII CF6 Mortgage Advice
      • CII CF8 Long Term Care Insurance
      • ER Exams
      • CII ER1 Equity Release
      • FA Exams
      • CII FA1 Life Office Administration
      • CII FA2 Pensions Administration
    • Exam-Col-02
      • IF Exams
      • CII IF1 Insurance Legal and Regulatory
      • CII IF2 General Insurance Business
      • CII IF3 Insurance Underwriting Process
      • CII IF4 Insurance Claims Handling Process
      • CII IF5 Motor Insurance Products
      • J0 Exams
      • CII J02 Trusts
      • CII J05 Pension Income Options
      • CII J07 Supervision in a Regulated Environment
      • CII J10 Discretionary Investment Management
      • CII J12 Securities Advice and Dealing
      • LP Exams
      • CII LP2 Financial Services Products and Solutions
    • Exam-Col-03
      • R0 Exams
      • CII R01 Financial Services, Regulation and Ethics
      • CII R02 Investment Principles and Risk
      • CII R03 Personal Taxation
      • CII R04 Pensions and Retirement Planning
      • CII R05 Financial Protection
      • CII R06 Financial Planning Practice
      • CII R07 Advanced Mortgage Advice
      • Study Kit Box
  • CII Qualifications
    • Qual-Col-01
      • CII Qualifications Overview
      • CII Advanced Diploma in Financial Planning
      • CII Award in Financial Administration
      • CII Award in Life and Pensions Foundations
      • CII Award in Long Term Care Insurance
      • CII Award in Regulated Pension Transfer Advice
    • Qual-Col-02
      • CII Certificate in Advanced Mortgage Advice
      • CII Certificate in Discretionary Investment Management
      • CII Certificate in Equity Release
      • CII Certificate in Financial Services
      • CII Certificate in Insurance
      • CII Certificate in Investment Operations
      • CII Certificate in Mortgage Advice
      • CII Certificate in Paraplanning
      • CII Certificate in Regulated Financial Services Operations
      • CII Certificate in Securities Advice and Dealing
    • Qual-Col-03
      • CII Diploma in Financial Planning
      • CII Diploma in Regulated Financial Planning
Brand Financial Training > Advanced Diploma Level Exams > CII AF4: The October 2014 Exam Paper Uncovered
  • Previous
  • Next
CII AF4: The October 2014 Exam Paper Uncovered
March 23, 2015
CII AF4: The October 2014 Exam Paper Uncovered

CII AF4: The October 2014 Exam Paper Uncovered

Posted by The Team at Brand Financial Training on March 23, 2015 in Advanced Diploma Level Exams, AF4, Exam Paper Reviews
Last updated on September 25th, 2019 at 4:42 am
CII AF4: The October 2014 Exam Paper UNCOVERED

The exam paper for the October 2014 sitting of the CII AF4 exam has been released. In the following article we take a look at what was on the exam, what pitfalls there were and how you can avoid these if you’re planning on sitting AF4 in the near future.

A Surprise Omission

In 2013, the CII received a lot of flak about the format of the October AF4 exam.  Until then, the exam structure had followed a formula, and most candidates would have used the past papers to help them prepare, not least in making sure they could calculate the performance of a portfolio compared with a benchmark.  When those candidates opened the exam paper, they must have been distraught.  All that wasted effort.  The question simply wasn’t there.

In 2014, it was a relief to see that the CII reverted back to the way it was, and both papers in 2014 had the very question everyone had grown to expect.

Similar to a Maths Exam

It has been said by many a student that the AF4 exam is like a maths exam, and you really have to know all the formulas and ratios, because some of them are sure to come up. So divided cover, dividend yield, yields on bonds, alpha, Sharpe ratio, information ratio, CAPM – to name but a few – all need to be fully understood and up your sleeve, ready to retrieve in a second.

J10 is the Manual of Choice – But Watch Out for Benchmarking!

The exam should test the syllabus alone, and you definitely need to study J10, as R02 just doesn’t go into some of the detail necessary to pass AF4.  It could be argued J10 doesn’t either, in some areas.  If we had to choose which manual to use to prepare for AF4 it would be J10.  Neither text, though, covers the benchmarking question in enough detail, so using past papers to practise this, is an absolute must.

Previous Exam Papers

Last October’s paper can be found here:

http://www.cii.co.uk/media/5621525/af4_october_2014_qp.pdf

Question 1, 2 and 3

The first question was worth 25 marks and tested the student’s ability to analyse a portfolio against a benchmark – it was back!

Those people who spent the weekend before practising and practising this style of question would have heaved a big sigh of relief.  You also had to calculate bond yields and state the risks of holding overseas bonds – typical AF4 questions.  Question 2 was on commodities and the features of ETCs and also investment trusts.  Question 3 had, within it, questions on the economic cycle and more calculations around analysing equities.  The October 2014 AF4 definitely reverted to type.

Compare this to the April exam of 2014 (which can be found by clicking on the following link).

http://www.cii.co.uk/media/5345156/af4__april__2014_qp.pdf

Question 1

This question tested the ability to calculate money weighted rates of return – 9 points available here.  Then there were questions on alpha, Sharpe ratio, information ratio and standard deviation, a 10-point question on part of the investment advice process and recommendations, charges, and reviews.  Lots of standard AF4 questions.

Question 2

This started with testing economics – inflation rates, interest rates etc and finished with more calculations on company analysis – working capital ratios and liquidity ratios.

Question 3

Question 3, this time, was home to the benchmarking question – not so many marks here – just 14.  The rest of this question was made up of ETF detail and the pros and cons of collectives as opposed to direct investment.  Interestingly, the questions on ETFs were answered poorly, and in October we saw that another member of the Exchange Traded Product family was the focus – in the shape of ETCs.  These products are growing in popularity so I wonder – will ETNs be the next ETP to be tested in April 2015?

Overall, this paper seemed like a very typical AF4 exam, and the well prepared candidate should have been pleased.

Anyone preparing for the forthcoming April exam should be aware of some of the examiner comments from previous years.

Common Pitfalls

Common pitfalls, as with many of the other AF exams, are that candidates do not answer the question specifically being asked. In April 2014, rather than explaining why the information ratio was valid in its use, some candidates answered by describing what it was and how it was worked out – maximum marks will never be achieved by doing this.

Saved by the Bullet

Also you must spend your time appropriately – and answer in enough detail.  A 10-point question needs at least 10 bullet points – and use bullet points if you can.  It really will save you time and is a totally acceptable (and encouraged) way to structure your answers.

Keeping Abreast of Changes

Keeping up to date is of course paramount for any good adviser – any changes in legislation are tested by the CII 3 months after they take effect.  It’s worth looking at the section on their website which has the amendments to all exams to ensure you know when testing will start. Using past papers is of course a really good way to prepare – but don’t limit it to just the last one – many of the older exam papers are available from the CII website with no charge.

Overall a Challenge

AF4 is a challenging exam – investments are a massive subject – you must know your formulas, you must know how to do performance attribution, you must know your investment products.  Using mind maps is a useful way of getting all the key facts on one page and are great for when you have 20 minutes for a quick bit of revision.

Grab the resources you need!

If you’re studying for your CII AF4 exam, and you’re stressing out, grab our free taster to try out one of Brand Financial Training’s mock exam papers for yourself.  Click the link to download the AF4 mock exam taster now!

Click here to download our free taster mock paper for CII AF4

 

Over to You…

Did you attempt the AF4 in October? Were you caught off guard by the omission of the ‘calculate the performance of a portfolio compared with a benchmark’ question?

Tags:A look at the October 2014 CII AF4 past paper, past exam paper for AF4, pitfalls to watch out for in CII AF4 exam

Related posts

  • The April 2015 CII AF4 Exam: Dampening the Spirits of the Ill-Prepared
    The April 2015 CII AF4 Exam: Dampening the Spirits of the Ill-Prepared

Subscribe

Get new blog posts delivered straight to your inbox!

By ticking this box you are giving your consent for us to email you when a new post is published on our blog. We may also email you with additional information and offers that we believe may be of interest to you. We take your privacy very seriously and we will never share your personal information. You can unsubscribe from our emails at any time. For information about how we handle your data, please read our privacy notice.

Please tick the box to give your consent for us to email you when a new post is published on our blog. We may also email you with additional information and offers that we believe may be of interest to you. We take your privacy very seriously and we will never share your personal information. You can unsubscribe from our emails at any time. For information about how we handle your data, please read our privacy notice at https://brandft.co.uk/privacy-policy/

Search

To search our blog just enter a keyword and click search.

Latest Posts

  • Friday Five Focus on Regulation – 5 Questions in 5 Minutes – 18 Jul 2025
    By The Team at Brand Financial Training
    July 18, 2025
  • National Insurance Employment Allowance
    By The Team at Brand Financial Training
    July 15, 2025
  • Friday Five Focus on Protection – 5 Questions in 5 Minutes – 11 Jul 2025
    By The Team at Brand Financial Training
    July 11, 2025
  • Chargeable Events on Bonds Held in Trusts
    By The Team at Brand Financial Training
    July 8, 2025

Follow us

Categories

Archives


All content © Brand Financial Training Ltd, 2008-2024. Unauthorised use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited.

Excerpts and links may be used, provided that full and clear credit is given to Brand Financial Training Ltd https://brandft.co.uk with appropriate and specific direction to the original content.

Contacts

Email :
Tel : +44 (0)345 680 1682
You can leave a voicemail for us but for the quickest response, please email our customer service team at the above email address, who will respond within 24 hours.

Calls are charged at the same rate as standard landline numbers. This rate will depend on your telephone provider and may be included in your tariff.

Newsletter

Stay up to date with our informative monthly newsletter tailored for you.

Learn more

We write for...

Logo: Money Marketing Logo: Professional Paraplanner Professional Paraplanner Awards 2021
Learn more

We support...

In Aid of Trussell Trust The Clothing Bank
Find out more about how we work to make a social impact.
Learn more

Home
About
Blog
Contact
Social Impact

Money back guarantee
Corporate
Help and FAQs
Learning Resource Updates

Email :
Tel : +44 (0)345 680 1682 (Voicemail only)

Calls are charged at the same rate as standard landline numbers. This rate will depend on your telephone provider and may be included in your tariff.

LinkedInLinkedInTwitter/XTwitter/X YouTubeYouTubeYouTubeYouTube

©2025 Brand Financial Training Ltd · Reg No: 7153959 · VAT No: 979 2499 45

Policies | Terms of use | Terms of sale | Privacy policy | Cookie policy