As we start the 2024 exam season, Professional Paraplanner has teamed up once again with Brand Financial Training to answer your questions on the exams ahead. In the first of a week long series, the Brand team answer paraplanner questions specific to the imminent R06 exam.
1. What’s the most practical way to revise for R06 in the last few days before the exam?
A very timely question! We hope by this time you will have an understanding of the structure of the R06 exam, the style and type of questions and are familiar with the clients in your cases studies. I expect you have also been looking at the many, many potential questions that may be asked so it’s time now to put the final touches to your revision. Here is some advice from our R06 experts on the most productive way to spend those last few days of revision.
The devil is in the detail
Go through the case study word by word, and we mean every word. There are usually some hidden gems in there, be sure not to miss them.
Technical knowledge
Time to hone in on the technical detail too. The obvious areas raised in the case studies often get tested so make sure you are fully equipped to answer questions based on these subjects. Think around all the angles such as why a solution/product may be suitable, why they might not be, taxation, flexibility, processes involved and how it fits with the client’s views/objectives.
January’s case studies, as is often the case, raised the subject of protection needs. Obvious areas that could come up are PMI, ASU, IP, CIC or life cover so ensure you happy to recommend and justify any of these.
The older clients for the January exam are approaching retirement so pensions in the accumulation or decumulation phase could be tested- so no shot cuts here I’m afraid.
Investments look a little more straight forward with Premium Bonds, ISAs and deposit accounts taking centre stage. The R06 examiners love a question on Lifetime ISAs so again, ensure you know the ins and outs of this product.
We could see the CII throw a curveball around investments perhaps on investment bonds or UT/OIEC so a reminder of each of these products (particularly the taxation of them) would be worth a quick revisit.
Other areas could include first time buyer schemes and auto enrolment.
It sounds like a lot but it’s a lot less than you’d need to revise for one of the other R0 exams!
Fact-finding and review questions
Spend some time on the fact find and review questions. You’re pretty much guaranteed one of each so practise answering these yourself, compare your answers to the model answers then look at the examiner comments, particularly those on any areas of weakness.
Bring the clients to life
Move away from the questions and answers for a while and try to bring the clients to life in your mind. Consider their strengths and weaknesses, spend time listing them out. Then analyse how these align to their objectives and consider all the possible solutions an adviser could offer them.
The on-line system.
Be prepared for using the CII’s on-line exam system. It has a different look for written exams. Ensure you understand the login process and have run through the familiarisation test. This will take out a lot of the stress on exam day!
And finally, if you haven’t yet, invest in a training provider analysis –our experts have been studying this exam for over 10 years and we do a lot of the hard work for you!
2. What is your best tip to gain a pass in R06
Our number one tip for R06 (also applies to AF5) is to ‘understand what the question is asking’.
With R06, the danger is that your answer is answering the question you have prepared for, not the one you are faced with in the exam. It’s great that you receive the case studies before the exam so you know which technical subjects are likely to come up, but the danger is you’ve already decided on the answers and the advice you’re going to give the clients. The CII may have different ideas!
A prime example was in the September 2022 exam. The clients had an OEIC with potentially a large capital gain and they wanted to make gifts to their grandchildren for their house purchases. If we add two and two together, we get a discretionary trust and deferred gain, right? Wrong – the CII took a very different angle. The actual exam question asked for the actions required to ensure they can use the OIEC to provide tax-efficient lump sums for the grandchildren. We can see why candidates were tempted to make the trust solution work, but this is not what the CII were looking for. Firstly, they don’t mention trusts in the question, secondly the question is focused on taxation solutions not the practical solutions of a trust. The examiner was actually looking for ideas like exempt gifts, Junior ISA’s, interspousal transfers, and using CGT AEA annually etc. Only one mark was on offer for use of trusts!
If the question is focussing on taxation, or cost or related to a specific event only, make sure your answers relate to this only. Read and digest every word of the question and think about the path you are being sent down rather than the one you planned to take!
Ensuring you understand what the question is asking before you start your answer is pivotal to success in R06.
About Brand Financial Training
Brand Financial Training provides a variety of immediately accessible free and paid learning resources to help candidates pass their CII exams. Their resource range ensures there is something that suits every style of learning including mock papers, calculation workbooks, videos, audio masterclasses, study notes and more. Visit Brand Financial Training at https://brandft.co.uk
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