The Main Changes in the 2026-27 CII R01 Study Text
In recent weeks, we’ve been posting updates on the CII R02, R03, R04, and R05 syllabuses. In this article, we take a look at the main updates to the CII’s 2026/27 R01 study text. This article is relevant to the R01 and potentially R06 and AF5 exams.
This article is correct as at 29 August 2026 and is relevant to the 2026/27 examinable tax year.
There has been no major syllabus change. The majority of the updates stem from the Autumn Statement 2025, the Spring Budget 2026, new tax year and regulatory updates.
R01 – Key changes
Chapter 1 The UK financial services industry: an overview
The Payment Service Regulator is to be disbanded with its responsibilities taken up by the FCA. The PSR expects a transition of responsibilities to be complete in 2027.
Chapter 2 Serving the retail consumer
Numerous changes to benefit and State Pension rates have been made for the new tax year.
Statutory parental bereavement pay and leave has been added to the chapter along with the qualifying criteria.
The qualifying criteria for statutory sick pay have been widened, chiefly by removing the lower earnings limit and abolishing the three waiting days.
The cash ISA subscription limit for under 65s will reduce from £20,000 to £12,000.
From April 2027, the tax rate on savings income will raise by two percentage points across all tax bands to 22%, 42%, and 47%. Unused pension savings will be brought within the estate for inheritance tax purposes with effect from the same date.
Chapter 3 Laws and legal concepts relevant to financial advice
The small profits threshold for the purposes of self-employed national insurance has been increased to £7,105.
The Government has published a draft bill aimed at revitalising and reforming the commonhold and leasehold reform system. Measures proposed in the bill, which does not yet have the force of enacted law, include banning most new leasehold flats and making commonhold the default tenure.
The text has also been updated to reflect the Leasehold and Freehold Reform Act 2024 including removing the two-year ownership requirement to extend the lease or buy the freehold.
Chapter 4 The regulation of financial services
The Financial Services and Markets Act 2023 has been added to the study text with details of the Smarter Regulatory Framework designed to reform UK financial services legislation post-Brexit.
The 15-hour minimum CPD for insurance business is to be disapplied with firms responsible for staff competency through and outcomes-based approach.
A new section has been added relating to the Payment Services Directive and Open Banking. This also incorporates the EU and UK approach to crypto asset regulation.
Chapter 5 Responsibilities and approach to regulation
The FCA has announced that its intended proposals to include a capital deduction for redress (CDR) within its capital adequacy requirements will not be proceeding. However, firms will be expected to take responsibility for redress liabilities that they create.
Chapter 6 The FCA Handbook
New content has been added regarding the SYSC 28 requirements for insurance distribution.
FCA application fees have been increased from a minimum £2,500 to £2,790.
Consumer Composite Investment rules, which will replace the previous PRIIPS regime, are due to come into effect from June 2027. A transitional regime is in place in the meantime.
Chapter 7 Core regulatory principles and rules
A new section has been added on the UK Money Laundering Regulations 2024. Particularly the removal of the high-risk third countries list maintained domestically and the alignment with the Financial Action Task Force criteria for high-risk countries.
A new section incorporating data protection and AI, making clear that automated decision making must be governed as a customer outcomes issue and not just a technology risk.
Chapter 8 The regulatory advice framework
A new section has been added regarding the Product Summary Documents required under the new Consumer Composite Investments regime and the differences from the existing disclosure documents.
New content has also been added regarding FCA’s advice guidance boundary review, the introduction of Targeted Support from 2026 and the Money and Pensions Service.
Chapter 11 Ethics and professional standards
New content has been added in relation to algorithms, AI and the meet to manage ethical and regulatory risks alongside technical ones.
The FCA has introduced a new regime for tackling non-financial misconduct within the financial services industry. This is due to come into force on 1 September 2026. The chapter provides an outline of the measures due to take effect. There is also new content covering the role of ethics and culture in causing misconduct.
Further content has been added regarding psychological safety and the importance of a speak-up culture. There is also new content relating to the problem of cultural drift and other areas of professional ethics including the CII professional map. Finally, there is new content on diversity, equity, inclusion and belonging and ESG frameworks.
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.
