A Look at Recent Past Papers for the CII AF7 Exam
In this article, we are taking a quick look at the questions asked in the last four exam papers of the CII’s Advanced Diploma in Financial Planning AF7 exam paper – this is the exam on Pension Transfers.
This will be useful reading for you if you are preparing to sit this exam in the near future; it will help you to focus your revision on the areas that are likely to be examined.
| The drivers of vulnerability | Abridged advice process | Factors to consider regarding GMP when recommending a transfer | Proof of advice prior to transfer | |
| Impact of inflation and gilt yields on CETV calculation | Assessing capacity for loss | Employer covenants | Ill-health early retirement, PPF, and transfer values | |
| Information trustees must provide following CETV request | Additional information when advising on transfer of a RAC | Death benefits DB vs DC | Factors to consider regarding GMP when recommending a transfer | |
| Factors that may impact security of DB benefits | Factors to consider when assessing sustainable withdrawal rate | Factors to consider when providing abridged advice | Reasons why a CETV may increase | |
| Investment strategy for a transferred pension | Additional information required from scheme administrator | Factors to consider when deciding which pension to transfer | Transfer of pre- or post-97 benefits | |
| PCLS vs UFLS to make a gift | Factors to consider when recommending a transfer | Benefits and disadvantages of annuity vs FAD | Death benefits from scheme versus DC pension | |
| Voluntary class 3 NICs | Investment strategy – commercial property and equities | Justification for making class 3 NICs | Considerations when designing an investment strategy | |
| Fact-finding/ further information when recommending a transfer | One page summary | Contingent charging ban and carve-outs | Additional information required from scheme administrator | |
| Factors to consider when recommending a transfer | Reasons for the recommendation | Cashflow modelling – FCA requirements and importance of regular review | Factors that would support a transfer recommendation | |
| Rationale for cashflow modelling | PPF protection | Risks relevant to a specific recommendation | Reasons for death benefit nominations | |
| Transfer values and IHT planning | ||||
Here we take a look at the questions asked in the last four exam papers for #CII #AF7. Share on X
As you can see from the above, there are running themes which come up time and time again. It is odds on that you are going to be asked to justify a recommendation. Sometimes you will be asked to make the recommendation, at others you may be given the recommendation and asked to justify it. Fact-finding and factors to consider when making a recommendation are other regulars.
It is more likely than not that there will be something on death benefits, whilst practical skills such as cashflow modelling and development of an investment strategy also come up on a regular basis. There is quite often a COBS/general compliance question, and curveballs such as GMP and class 3 NICs have also come up on more than one occasion, as have the factors that impact transfer values.
Just occasionally, you may also get a composite question like October 2020 Question 2, which managed to test the requirements for ill-health early retirement, the PPF, and why a transfer value may represent good value to someone in poor health, all in one fell swoop.
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