The CII J11 October 2019 Exam in Review

The J11 exam (wrap and platform services) is the next exam paper from the October sitting to have a look at in our analysis of past papers. Planning to sit the next J11 exam? This will help you.

Two hours are allowed for this paper, which is made up of short-answer questions and two essay questions – carrying a total of 110 marks. Section A has 50 marks and Section B has 60 marks.

This was the penultimate sitting, with the exam being withdrawn after the last sitting in April 2020.

The paper from October 2019 can be found here.

Section A

The first section is comprised of 6 questions:

Question 1 asked for ways in which a platform can support an adviser in delivering a centralised investment proposition to their client bank.  This seemed a familiar start to the exam and was for 10 marks.

Next, delegates had to identify the risks of being able to transact on an execution-only basis both to the client and the adviser.

Question 3 asked for a description of the systems and controls that a platform should have in place to prevent money laundering and financial crime.

Next, candidates had to state the disadvantages of using a third-party wrapper for an IFA using a platform and outline the FSCS limits for collectives held in an ISA.

Question 5 asked for the benefits to employees of having a workplace ISA available to them compared to them holding it direct with a single fund manager.  Secondly, candidates had to explain the main risks a platform would face after dealing with issues migrating its technology.

The final question in the section was a straightforward one and asked for six transaction charges that might be applicable on platforms.

Section B

Onto Section B and the first case study involved a firm with mainly clients in decumulation looking to adopt a new platform.  The questions tested:

• business risk and how it could be mitigated
• pension withdrawal options and their tax treatment for clients
• factors the firm should take into account when moving the clients who are taking income to the new platform
• the main areas typically covered in a platform’s terms and conditions

The next case study involved a firm buying a sole trader IFA business who had a different type of client base and so were looking to offer a second platform for those clients.  The questions tested:

• the main areas that should be considered when undertaking due diligence on the potential new platform provider
• ways in which a platform could help increase engagement with the new client group
• the main benefits to the new client group of using a platform compared to directly held funds

All in all, this seemed like a fair paper testing a mixture of technical and advisory based knowledge.

Comparison with the April 2019 Paper

Let’s look at the paper from April and see what was tested then; the paper can be found here:

• Benefits to a firm of incorporating a platform into its overall proposition
• Custody services undertaken by a platform’s custodian
• Main legal and regulatory safeguards that would help protect client assets
• Main due diligence factors a firm would focus on relating to a technology provider
• The main rules governing the contributions to and withdrawals from a LISA
• How a platform could help meet a company’s workplace pension obligations
• The main platform features to be considered when assessing suitability
• The factors relevant when constructing an asset allocation to generate income
• Main risks to the adviser and the client from use of a platform’s income tool
• The income options available from wrappers and their tax treatment
• Ongoing fund charges that could be paid within the investments
• How a client can pay an IFA including how each operates

As mentioned already, there is only one more sitting of the J11 exam, so anyone thinking of taking it should prepare a comprehensive study plan, which covers all the learning outcomes, and as part of their study plan use as many of the past exam guides as possible.

Good luck to those planning on taking the last J11 exam!

Grab the resources you need!

If you’re studying for your CII J11 exam, and you’re concerned about the outcome, grab our free taster to try out one of Brand Financial Training’s mock exam papers for yourself.  Click the link to download the J11 mock exam taster now!