How to master the CISI Advanced Financial Planning exam
Are you thinking about sitting the CISI’s Level 6 Advanced Financial Planning exam? Are you confused about what’s involved and what you need to know? If so, here’s a simple explanation.
Understanding the Advanced Financial Planning exam
The exam is a standalone Level 6 qualification in its own right. It also serves as a “bridge paper” between a Level 4 regulatory standard financial planning diploma and the CISI’s Level 7 Case Study report which if passed, can lead to the highly-prized and globally recognised CFP™ designation. The paper demonstrates high standards of detailed knowledge and expertise in financial planning.
The paper has been examined since 2019 and in that time, the pass rate has been reasonable – most recently 75%. On occasions however, it can dip lower than this.
Why is it that some candidates don’t pass when many students have a good level of either industry experience, academic experience, or both? Let us to explain.
1) Broad Syllabus
Firstly, many students don’t appreciate just how wide the scope of the syllabus is. It covers a large area including financial planning principles and processes, financial management, tax principles and optimisation, risk management and insurance planning, retirement planning, investment planning, trusts and their uses, estate planning and wealth transfer and finally, business financial planning.
It is quite unrealistic, if you’re studying this much at this level, to rely on a single course book to get you through the exam, regardless of who publishes it.
There are lots of other good books out there as well as other sources such as industry periodicals and the internet. Make sure you read as widely as possible particularly where covering unfamiliar ground. You adopt a very high-risk strategy with this paper when you learn only a few topics hoping that the rest won’t come up. Invariably they do!
2) Structured Learning Plan
Next, it is vital that you follow a structured learning plan and that you start this at the earliest possible opportunity. Allocation of quality learning time for this exam is essential, given the scope of this syllabus.
This can and has been achieved by students on their own, but often the process can be more successful if you add some formal quality training or coaching. Not only will this help to speed up the process of understanding the syllabus, it will also help with my next point – exam technique. Learn actively.
By that I mean note taking, creating learning aids such as diagrams, charts and tables and cement knowledge with revision questions. Passive reading at this level will not be enough.
3) Exam Technique
Exam technique is a vital and large piece of the jigsaw. With this module in particular, you have to get to grips with what the examiner is looking for. This is not rocket science. You don’t have to come up with the most ingenious and original answer to gain full marks. Answer the task set.
In this exam it is essential that you look out for the key words and phrases within the body of the question. If you are asked to analyse a topic or situation for instance, don’t just regurgitate everything you know about the subject.
You may have to introduce your answer with a brief summary of understanding and then you move on to your analysis.
- What are the pros?
- What are the cons?
- Can you give a relevant example to demonstrate your points?
If you are asked to assess the suitability of a suggested solution, your analysis must account for the particular circumstances provided rather than generic strengths and weaknesses.
4) Know your calculations
The Advanced Financial Planning exam syllabus covers a range of areas that require calculations. It is vital that candidates practise on as many scenarios as possible beforehand to ensure they have the flexibility to deal with new situations in the exam.
Examples include:
- Statements of financial position, income and expenditure analysis;
- Tax calculations to understand a client’s current position as well as recalculating liabilities once recommendations have been put in place;
- Compounding and discounting for a number of purposes such as calculating required savings contribution levels, absolute and risk adjusted investment performance, cash flow analysis and forecasting.
The three hours will seem a lot, especially if you choose to complete the paper writing by hand at an exam centre. However, many students still run out of time, even though they have prepared well.
There are three sections to the Advanced Financial Planning paper with different lengths of question. As is often the case, practice makes perfect. You won’t get everything right straight away. You will have to build your exam technique alongside learning the syllabus.
Over time, you will realise what is needed and importantly, how long it is going to take you in the exam. Again, ongoing guidance on technique from a reputable training organisation can help to speed up the whole process leading to first-time success.
Advanced Financial Planning Training Courses
At Glascow Consulting we offer a highly interactive CISI Advanced Financial Planning revision course over two days. This course gives you the tools and technique to pass first time!
What is included in the revision course?
- Revision of the syllabus
- Work in a group of a maximum of 12 people
- Practise key calculations so that you can do them quickly and accurately in the exam
- Sharpen your exam technique to maximise marks
- The opportunity to ask questions and join in with discussion about how to answer exam questions
- Email support from your tutor after the course until the exam dealing with any questions you may have.
If your business would like an in-company course please get in touch. In addition, we offer one-to-one coaching, email support and separate mock exams.
Read about our Advanced Financial Planning revision course here including scheduled dates and how to book your place. Any questions? Give us a call or send us an email.
Glascow Consulting Ltd is a CISI Premier Accredited Training Provider.