The right preparation is the key to passing the CII AF7 exam
The current pass rate for AF7 is around 50% – it’s certainly a challenging exam! However, there is a silver lining: there are only so many questions the CII can ask about pension transfers. By analysing past exam papers, it’s evident (more so than for any of the other AF exams) that certain questions come up time and time again, and this accounts for a large percentage of the exam. We believe that practising these ‘staple’ questions is key to AF7 revision. Here, we take a look at some of the most common AF7 questions.
This article is correct as at 15 October 2024.
The Fact-Finding Question
Expect a fact-finding question. It is important you read the question carefully and relate your answer to the question being asked. For example, if the question asks for ‘additional information, you require from the member in order to advise on the suitability of a pension transfer’, it’s vitally important you list the information you would obtain from the member NOT the information you would request from the scheme.
‘Factors’ Questions
Factors to consider when making a recommendation are also popular (e.g., factors to consider before advising the member to transfer). It’s worth practising these if you are not used to this style of question; they can be tricky!
Practising the ‘staple’ questions is key to #CII #AF7 revision. Here are some of the most common questions. Share on X
Other Typical Questions
- It goes without saying that candidates must be prepared for a question on the benefits and drawbacks of a transfer, and the question could include:
- Transferring full or partial benefits
- Transferring now or delaying the decision
- The transfer advice process – timescales/documentation/responsibilities of trustees/adviser or member
- CETV/TVC calculation process
- Reasons for a reduced or increased CETV
- Pension Protection Fund – level of benefits/criteria for entering
- Death benefits (including the tax treatment of death benefits) – this is sometimes a standalone question e.g., death benefits in the scheme compared to FAD, but you will be expected to include death benefits in some of the other questions e.g., benefits/drawbacks of transferring
- Cashflow forecasting
- Risks – sequencing risk, investment risks, risks of a DC scheme
- Appropriate Pension Transfer Analysis (APTA) – what needs to be included
Our feeling with AF7 is that the marking will be strict – it has to be because of the nature of the work that the adviser can then go on to practise. Candidates must ensure they are precise with their answers, as the examiner will have less flexibility when they are marking candidates’ papers, than perhaps with other AF exams.
To help prepare for this exam, we advise you to practise mock papers to understand the style and format of the exam. The questions and answers and mock papers will also give you a feel for the timings, which are tight! Also, you can get the much-needed practice of these ‘staple’ questions with our Core Knowledge resource. Do make sure you study the model answers and how they relate directly to the question being asked.
Grab the resources you need!
If you’re studying for your CII AF7 exam, and you’re wanting to feel confident on exam day, grab our free taster to try out one of Brand Financial Training’s resources for yourself. Click the link to download the AF7 mock paper taster now!
