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Question: AF7 – The textbook feels like most of the information I’ll need is contained there as I’m constantly seeing references to ‘if you want to know more, refer to R04 but you don’t need the detail for AF7’. Am I right in this or is it just wishful thinking? It feels like I don’t need to know the R & J subjects to the same extent I did for the similar ones for AF1 and AF4, I just need them more for background detail – is this correct?
Answer: For AF7 I would tend to agree with you!
For most of the AF exams the textbooks are of limited benefit as they are very short when considering the breadth and depth of material that is covered in the exams. Most of the AFs require not just a strong knowledge of the material covered in the corresponding R0s/J0s but wider background reading and crucially the ability to apply the material in practice to detailed client scenarios. That’s where your AF tends to differ from your J0 and especially your R0, which are more knowledge tests with a few brief client scenarios thrown in for good measure.
However, for AF7, it’s tricky because there is no exact corresponding R0 or J0. Pensions is a very, very wide field of knowledge. Pension transfers is a smaller subset of that field, hence there is a lot of technical material in R04 (and J05) that simply isn’t going to be of any relevance to an exam that focuses on pension transfers. The amount of actual knowledge required is probably greater for R04 (though AF7 is more complicated).
AF7 concerns the relative features, benefits and disadvantages of defined benefit and defined contribution schemes, the advice process and the factors which should be considered when advising on a DB transfer. In the main, the AF7 study text goes into the required level of depth in each of these areas. There are occasionally some more left-field issues (but again these have, to date, been covered off in the AF7 study text).
Obviously, you have to have a base of knowledge, and if you are struggling with a particular concept referring back to the R04 study text may help with that core understanding. However, passing this exam is more about proving your ability to apply knowledge in each of the areas mentioned above and the AF7 study text spends a lot of time looking at the processes, adviser issues and application of the knowledge to client scenarios.
In terms of working out where the line lies, I would suggest paying close attention to the syllabus and also the past exam papers and exam guides and you’ll get access to all the historic papers through RevisionMate.
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