Nikita Phillips, Candidate Support & Business Development Adviser at BTS, says she knows why paraplanners may shy away from taking AF7 but there are good reasons to do the exam.
If you’re on the path to becoming Chartered, you will know that you have some flexibility in choosing which Level 6 exams to take. Whilst AF5 is a mandatory unit, you have the freedom to select any of the other AF exams to earn the necessary credits at Level 6. So, embrace the opportunity to tailor your journey and make the most of the options available to you!
We know that AF7 is a niche unit and one that doesn’t attract many candidates on their AF journey. In fact, we recently created a LinkedIn poll to understand why, and it became clear that most candidates steer clear of this unit due to it only carrying 20 credits. This means that if you don’t have any prior recognition of learning, you would need to take another Level 6 exam to make up for the 10-credit shortfall from the minimum 120 required at Level 6.
I totally get where candidates are coming from. When I first started my journey to becoming Chartered, I made the same decision to avoid AF7. But let me tell you, my perspective on exams has shifted a lot since then. In this article, I’m going to explain why AF7 is actually valuable, why I recently took this unit, and why you should seriously consider it too…
The exam
If you’re new to the AF7 exam, you’ll find that it has a slightly different structure compared to other AF exams. It’s a 2-hour exam that includes 3-4 short answer questions, as well as two case studies with 3-4 questions each. In total, there are 100 marks available, and you’ll need to secure at least 60 marks to pass.
The exam sits twice a year and is a written on-screen exam. The CII recommends dedicating 100 hours of study to AF7, although the actual time needed will vary depending on your existing knowledge in this area.
The focus of this exam is on the transfer of safeguarded pension benefits. You’ll gain a deep understanding of topics such as the regulation of Defined Benefit Transfers, Guaranteed Minimum Pension, Guaranteed Annuity rates, and much more!
Let’s add some value
I must admit, I was quite stubborn and determined to avoid AF7 because I didn’t want to tackle 5 Level 6 units. However, as fate would have it, I ended up sitting AF7 in February. Now, you must be wondering what made me change my mind and the simple answer is, I took time to reflect on the purpose of these exams.
While becoming Chartered is my ultimate goal, I realised that each exam I take should add value and enhance my knowledge. It has been a while since I sat R04, and I knew my understanding of pensions was not up to par. That’s when I saw AF7 as an opportunity to revisit and strengthen my knowledge in this weaker area.
As a paraplanner, I often had to request information about our client’s plans, including Defined Benefit arrangements. However, I would receive a statement of entitlement and struggle to fully understand it (imagine how our clients must feel!).
AF7 not only helps you grasp the other safeguarded benefits like Guaranteed Minimum Pension and Guaranteed Annuity Rates, but it also delves deeper into Defined Contribution Schemes. You’ll gain a thorough understanding of the risks, benefits, and tax implications associated with accessing benefits in a flexible manner. Even if you don’t work at a firm dealing with DB pension transfers, you’re likely to encounter Defined Contribution Schemes regularly, and this unit will equip you with a comprehensive understanding of these arrangements.
Be Brave
When it comes to exams, AF7 is a great choice. Whilst I’m still awaiting my results, I would definitely recommend this exam to others.
I would urge anyone pursuing Chartered to look at why we do exams in the first place, when mapping out their journey.
Sometimes what we feel is the easiest route, doesn’t always add the most value to what we do on a day-to-day basis.
So, when planning out your exams, be brave.
Bespoke Training Solutions have been supporting regulated exams for 20 years this year! Known as ‘the exam experts’ within the industry, BTS provide support for the CII regulated exams by way of study guides, e-learning resources, and workshops for the full R0 suite and many AF and J0 units.
Visit https://www.bespoketrainingsolutions.com and check out the brand-new Careers Zone for study plans, answers to exam FAQs and lots more to support your journey.
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