The Main Changes in the 2025-26 CII R01 Study Text
Over the coming weeks, our weekly blog posts will focus on the key syllabus changes across all units in the CII Diploma in Regulated Financial Planning. In this article, we take a look at the main updates to the CII’s 2025/26 R01 study text. This article is particularly relevant to the R01, R06, and AF5 exams.
This article is correct as at 26 August 2025 and is relevant to the 2025/26 examinable tax year.
There has been no major syllabus change. The majority of amends stem from the Autumn Statement 2024, the Spring Budget 2025, the turning of the tax year and regulatory updates.
R01, Chapter 1
General
The Payment Systems Regulator (PSR) is set to be disbanded, with its responsibilities to be transferred to the Financial Conduct Authority (FCA) and the Bank of England.
R01, Chapter 2
State Benefits
This section has been updated so that all figures relate to the 2025/26 tax year.
Both Child Tax Credits and Working Tax Credits have been removed as payments under both ended on 5 April 2025.
Detail on Statutory Neonatal Care Pay (SNCP) and Statutory Shared Parental Pay (ShPP) has been added:
- To qualify for SNCP, an employee must have 26 weeks’ continuous service and earn above the lower earnings limit. SNCP is available for up to 12 weeks within 68 weeks of the child’s birth.
- Under ShPP, new parents can share up to 50 weeks of leave and 37 weeks of pay within their child’s first year. Leave can be taken together, separately, all at once, or in blocks with work periods in between.
The ‘Winter Fuel Payment’ has been updated to reflect the fact it will now be paid to all eligible households, but will be clawed back where income is in excess of £35,000.
Inheritance Tax (IHT)
IHT may apply to worldwide assets of long-term UK residents (those resident for at least 10 of the past 20 tax years). UK assets are subject to IHT regardless of an individual’s residence status.
R01, Chapter 3
Economic Crime and Corporate Transparency Act 2023
This Act gives Companies House greater powers to check filings, reject inaccuracies, and enforce compliance. Directors and persons with significant control must verify their identity or risk fines or prosecution.
Powers of Attorney Act 2023
This Act modernises the Lasting Power of Attorney (LPA) process with a new digital system, optional paper format, and mandatory ID checks to prevent fraud. It expands objection rights, allows chartered legal executives to certify copies, and is set for full implementation in 2025 to improve security and accessibility.
Leasehold and Freehold Reform Act 2024
This Act strengthens leaseholder rights by cutting costs for buying freeholds, extending standard leases to 990 years, and improving service charge transparency.
Right to Shared Ownership scheme
This scheme lets eligible tenants buy a share of their rented home if they’ve lived in social housing for three years, with at least one year in a property built under the 2021–26 Affordable Homes Programme.
R01, Chapter 5
Polluter Pays
In January 2025, the FCA published “Redress liabilities: an update for firms”, warning against “polluting behaviour” – when firms try to avoid redress liabilities from regulated activities—causing consumer harm and straining the FSCS.
The FCA outlined key steps firms should take to address potential liabilities, including:
- Taking reasonable, verifiable action to identify and provide for actual and potential redress (including unresolved complaints).
- Securing appropriate run-off insurance when closing a firm.
- Setting aside capital or ring-fencing assets to cover liabilities.
Firms are also expected to conduct thorough risk assessments of their advice, including detailed file and ongoing advice reviews.
R01, Chapter 7
Consumer Duty Champion
From February 2025, the FCA no longer requires a named Champion, leaving it to Boards to decide whether to retain the role.
Reporting
From 2025, the FCA launched MyFCA, a unified portal for regulatory reporting, fees, and notifications. While it combines access to Connect and RegData, the underlying systems remain separate for now.
Training and Competence (T&C) rules
T&C rules apply not only to UK firms but also to employees of overseas firms working in their UK offices.
Anti-money laundering
References to Proliferation Financing (PF) have been added: Also known as Counter-Proliferation Financing, it involves preventing the financial system from being used to fund the development or delivery of nuclear, chemical, or biological weapons and related materials.
JMSLG Guidance
An Identity Card issued by the Electoral Office for Northern Ireland has been added to the list of acceptable identification documents.
Generative AI: Key Considerations for Firms
Firms using generative AI must ensure data security and comply with regulations. UK Government guidance outlines five core principles: safety, transparency, fairness, accountability, and redress. A voluntary AI code of practice supports these.
The FCA expects firms to:
- Prevent AI-driven bias and unfair outcomes
- Support vulnerable customers, including when using chatbots
- Comply with data protection laws
- Be transparent about AI use and decision-making
- Assign clear accountability for AI governance
- Remain responsible for any FCA breaches linked to AI
- Provide ways for clients to challenge or complain about AI decisions
R01 Chapter 8
Consumer Composite Investments
To reduce confusion over disclosure documents, the FCA proposes a unified framework for Consumer Composite Investments (CCIs), replacing PRIIPs and UCITS rules. The new regime aims to improve consumer understanding and align with the Consumer Duty, bringing major reforms to current disclosure requirements.
Targeted Support
To help Defined Contribution (DC) pension holders make informed decisions, the FCA’s Advice Guidance Boundary Review proposes a new service: targeted support. Aimed at closing the advice gap, this approach sits between general guidance and full financial advice.
- Guidance: Firms provide information only.
- Targeted Support: Firms suggest the same ready-made solution to customers within a defined segment.
- Simplified Advice: Still under review for retail investments.
- Holistic Advice: Personalised recommendations based on full financial circumstances.
As targeted support is currently treated as holistic advice under existing rules, new legislation will be needed to enable its use.
Sustainability Claims
Since 31 May 2024, all sustainability information must comply with ESG4.3.1 rules. Claims should be accurate, evidence-backed, clear to the target audience, complete (covering the full product lifecycle), and fair in comparisons with similar products or services.
Suitability Report: Income Withdrawals
Advisers must include in their suitability reports the key risks of income withdrawals, short-term annuities, or uncrystallised funds pension lump sums, such as potential capital erosion, lower returns than illustrated, future reduced annuity rates, unsustainable income levels, and possible tax consequences.
Unsuitable Transactions
When a pension transfer, conversion, or opt-out is recommended against, the arranging firm must confirm the client knows they’re acting against advice and understands the consequences. If the client doesn’t fully understand, the firm must refer them back to the advising firm for further explanation.
R01 Chapter 11
Environmental, Social and Governance (ESG)
ESG focuses on a firm’s social and environmental performance, similar to CSR, with both supporting sustainability and benefiting from materiality assessments. However, ESG is more data-driven, making it especially relevant to senior management, investors, and rating agencies.
Grab the resources you need!
If you’re studying for your CII R01 exam, and you nervous at the thought of exam day, grab our free taster to try out one of Brand Financial Training’s resources for yourself. Click the link to download the R01 mock paper taster now!
Alternatively, you can download the taster for AF5 or R06 if one of those exams is on your horizon.
