A Look at Recent Past Papers for the CII AF4 Exam
In this article, we are taking a look at the questions asked in four past papers of the CII’s Advanced Diploma in Financial Planning AF4 exam – this is the unit that tests investment planning.
This article is correct as at 16 December 2022.
In the table below we show the questions that were asked in September 2022, October 2021, October 2020 and October 2019.
| Calculation using CAPM and theory | Calculation of alpha and its limitations | Calculation of Sharpe ratio/differences between Sharpe and Information ratio | Benchmark return and fund performance |
| Macaulay duration | Main types of investment risk | Qualification rules for a REIT and taxation | ISAs vs pensions |
| Using Investment Association sectors as benchmarks | Calculation of relative performance of a fund against a benchmark and theory | Main risks of equities | Diversification rules for a retail UCITS OEIC |
| Factors that affect interest rate increases | Lifetime ISAs and Help to Buy ISAs | Behavioural finance | ATR and capacity for loss |
| Alpha | Additional Permitted Subscriptions | Investment trusts vs OEICs | Modern portfolio theory |
| Correlation | OEICs vs Investment Trusts | Alpha and beta | Use of a DFM and the potential risks |
| Risks of using ETFs | Using a GIA for retirement planning vs a workplace pension | Calculation of TWR | Behavioural finance |
| Factors for active management | Benefits of a platform | TWR vs MWR | Risks of investing in alternative income products |
| Current and capital account | CGT deferral relief on an EIS | Marriage taxation | Preference shares |
| Conditions to qualify as a PAIF | Calculation of Income Tax and CGT reliefs on a SEIS | Single theme vs thematic basis | Pros and cons of platforms |
| Herding and endowment effect | Behavioural finance | Due diligence and platforms/cash accounts | Main categories of benchmark |
| Thematic-based funds | Stochastic modelling | Target income shortfall | MO and M4 and interest rates |
| Compound annual returns | Calculation of ROE and quick ratio | Sequencing risk | P/E ratio and ROCE |
| SRI and examples | Balance sheets | Interim and final dividends | Factors that affect share prices |
| Sharpe Ratio | Capital account | Correlation | SEIS - CGT and initial income tax treatment |
| Volatility managed funds | OCF for a collective | Current account | Momentum and contrarian investment styles |
| Platforms | Ethical investment | ||
| ROCE | Dividend yield/cover | ||
| Interim/final dividends | Value and growth fund management | ||
| Dividends vs bonuses | Business cycle | ||
| EIS - tax benefits and qualifying rules | ROE and ROCE |
Here we take a look at the questions asked in four past exam papers for #CII #AF4. Share on X
The AF4 exam is challenging as not only is the information within J10 and R02 assumed knowledge, it is also important to keep up to date with changes in the economy as questions on this will often appear.
Using as many past exam guides as possible will ensure that the level of detail needed is appreciated and that answers should always be related to the information given in the case study. The main calculations that appear throughout the syllabus should also be practised in full before attempting this exam.
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