Our Post-Exam Review of the January 2025 CII R06 Exam
Our Post-Exam Review of the January 2025 CII R06 Exam
The exam guide from the January sitting of R06 has been released by the CII, prompting us to see how we did in predicting the questions and model answers in our pre-exam analysis.
This article is correct as at 18 March 2025.
You can access the exam guide here.
Case Study 1
Case Study 1 introduced us to Kathy, a recently widowed lady aged 67.
Her financial aims were to:
- ensure she has sufficient income throughout retirement;
- review her investments to ensure they meet her ongoing needs;
- mitigate any potential IHT liability.
| Question | Our Analysis |
|---|---|
| State the additional information that a financial adviser would require to enable them to identify a suitable level of ongoing income for Kathy, following the death of Alan. | This R06 exam started with a more specific fact-finding question than usual, focusing on the information needed to determine a suitable income level. We hope candidates were not caught off guard by this. As highlighted in our analysis, specific fact-finding questions that focus on a single product or objective are often tested. Most answers relevant to a broader fact-finding question would still be applicable and as there is no negative marking, as we always say, if in doubt write it down! |
| Outline the benefits for Kathy of using the services of a financial adviser on an ongoing basis to monitor her financial arrangements. | While the case study did not specifically indicate a question on the benefits of using a financial adviser, this is a topic that has been asked in previous R06 exams. As a result, we included model answers in the generic section of our analysis. |
| Explain to Kathy how she could use her uncrystallised pension plan to provide her with further guaranteed sustainable income in retirement. | The key to this question was recognising that the CII was looking for an approach where the Pension Commencement Lump Sum is used to purchase a Purchased Life Annuity, while the remaining pension funds are used to buy a Lifetime Annuity. Candidates who identified this could then refer to the model answers in our analysis to outline the benefits of both a Lifetime Annuity and a Purchased Life Annuity. |
| Recommend and justify the actions that Kathy could take to generate a tax efficient income in retirement from the ISA and OEIC portfolios. | We had covered most of the points on offer here in our recommend-and-justify question on improving tax efficiency of Kathy’s savings. |
| Identify the key reasons why an equity release arrangement may not be appropriate for Kathy in meeting her long-term objectives. | Using equity release was something clearly signposted in the case study. We had covered this exact question in our analysis, providing full model answers. |
| Explain to Kathy the conditions that must be met for regular gifts to be effective for IHT purposes using the normal expenditure out of income exemption. | In our analysis we had suggested using ‘gifts from normal expenditure’ and provided a brief overview. However, to secure full marks, candidates needed in-depth knowledge of the specific conditions for IHT exemption. |
| Explain to Kathy how she can use the Additional Permitted Subscription to preserve the favourable tax status of Alan’s ISA portfolio and the benefits for her of doing this. | We had anticipated a question on the Additional Permitted Subscription since Alan’s ISA had not been transferred to Kathy. Our analysis included full model answers to address this. |
Case Study 2
Onto case study two where we met Bartek and Zofia.
Their financial aims were to:
- assess the affordability of purchasing their first home;
- improve their current financial protection arrangements;
- build up a portfolio of investments to assist with their retirement objectives.
| Question | Our Analysis |
|---|---|
| Outline the additional information that a financial adviser would need to obtain to provide retirement planning advice to Bartek and Zofia. | A nice fact-finding question to start Case Study 2 we hope candidates were able to make a strong start here. |
| Identify six advantages and six disadvantages for Bartek and Zofia of purchasing a property, rather than remaining in their current rental property. | As it was clearly stated that Bartek and Zofia were considering whether to buy a property or continue renting, we had analysed the advantages and disadvantages of both options in detail. |
| Outline the key family and financial issues that a financial adviser should take into account when identifying Bartek and Zofia’s protection needs. | Assessing protection needs is a frequent focus in R06 exams, so our analysis included full model answers on this subject. |
| Recommend and justify a range of actions that Bartek and Zofia could take to help them meet their objective of retiring at age 60. | Another straightforward question aligned with Bartek and Zofia's objective of retiring at age 60. In our analysis, we had covered a range of actions to meet this goal in full. |
| Explain to Bartek and Zofia the financial benefits for tax purposes of their new married status. | We hadn't specifically covered the tax implications of being married. However, we hoped candidates could apply their knowledge of interspousal transfers, APS, and IHT for married couples to gain marks. |
| Explain to Zofia why an investment into a global Real Estate Investment Trust (REIT) fund within her pension is likely to be more suitable than a traditional UK commercial property fund. | We had covered, in depth, the benefits of investing in REITs . |
| Identify eight key issues that a financial adviser should discuss with Bartek and Zofia at their next annual review. | As usual, the R06 exam finished with a question on discussions with the client at the next annual review. We hope the well-prepared candidates were able to finish the exam on a high with full marks here. |
Chartered Insurance Institute (2025). R06 – Financial planning practice: January 2025 Examination Guide. Retrieved from www.cii.co.uk.
This paper was typical for R06, featuring the usual questions along with some less obvious twists on certain topics, though these were low-mark questions. Well-prepared candidates typically find the fact-finding, annual review, and recommend-and-justify questions straightforward. With five such questions in total, plus questions on clearly signposted subjects like APS, equity release, and property purchase, the exam seemed to be a fair test of financial planning issues for these clients based on the information provided.
Grab the resources you need!
If you’re studying for your CII R06 exam, and you’re wanting to feel more confident on exam day, grab our free taster analysis to try out one of Brand Financial Training’s resources for yourself. Click the link to download the R06 case study analysis taster now!
