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Diploma in Regulated Financial Planning Alternative Assessment

Guide for Candidates

Version 1.0

This guide provides full details of the Alternative

Assessment option for candidates considering this

route as a means of completing the CII Diploma in

Regulated Financial Planning.

Alternative Assessment Guide for Candidates

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Contents

About the Diploma in Regulated Financial Planning ................................................................................................................................................. 4

Assessment process & procedures ........................................................................................................................................................................... 5

Pre-requisite knowledge ............................................................................................................................................................................................. 5

Learning outcomes ..................................................................................................................................................................................................... 5

Reasonable Adjustments ............................................................................................................................................................................................ 6

Assessment Dates and Locations ............................................................................................................................................................................... 6

Assessment process ................................................................................................................................................................................................... 6

Stage 1 – Self Diagnostic Tool ................................................................................................................................................................................ 7

Stage 2 – Application Process ................................................................................................................................................................................. 7

Previous Qualifications ............................................................................................................................................................................................ 8

Continuing Professional Development ..................................................................................................................................................................... 8

Portfolio of evidence ................................................................................................................................................................................................ 8

Code of Ethics ......................................................................................................................................................................................................... 9

Stage 3 – Assessment day ...................................................................................................................................................................................... 9

Format of the day .................................................................................................................................................................................................... 9

What to Expect ...................................................................................................................................................................................................... 11

Pass Criteria .......................................................................................................................................................................................................... 12

Result Notification ................................................................................................................................................................................................. 12

What to expect – candidates who pass.................................................................................................................................................................. 12

What to expect – candidates who don’t pass ......................................................................................................................................................... 12

Assessment fee ........................................................................................................................................................................................................ 14


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Appeals .................................................................................................................................................................................................................... 15

Grounds for an appeal ........................................................................................................................................................................................... 15

Circumstances not accepted as grounds for an appeal ......................................................................................................................................... 15

Appeal fee ............................................................................................................................................................................................................. 15

Appeals Procedure ................................................................................................................................................................................................ 16

Complaints ................................................................................................................................................................................................................ 16

APPENDIX – Learning Outcomes: Diploma in Regulated Financial Planning ....................................................................................................... 17


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About the Diploma in Regulated Financial Planning

The Diploma in Regulated Financial Planning meets the FSA’s new RDR exam standards in full. The examination route is suitable for

both new entrants and experienced advisers seeking to upgrade their qualifications ahead of the end of 2012 deadline.

The Alternative Assessment route offers a non-exam option for completing the Diploma, however, in contrast to the

examination route, this is only suitable for experienced advisers as it based on recognition of prior learning.

Alternative Assessment assumes that candidate selecting this option are already at the level required by the FSA and are able to

demonstrate this via alternative methods. The CII looks at candidates’ previous qualifications and evidence from their day-to-day work

and combines this with tests and verbal assessments to form the Alternative Assessment testing methodology.

Alternative Assessment involves two stages of assessment by the CII:

1. Assessment of the candidate’s application and prior learning evidence submission.

2. A one day assessment where candidates will be individually assessed by an independent assessor.

It is essential that candidates have sufficient knowledge to demonstrate they can meet all of the learning outcomes found within the R01–

R06 syllabi during the course of the Alternative Assessment process.

Successful completion of the Alternative Assessment results in the award of the CII Diploma in Regulated Financial Planning.


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Assessment process and procedures

Pre-requisite knowledge

Any adviser selecting the Alternative Assessment route must have extensive experience, and have ability to demonstrate knowledge of

all the learning outcomes applicable to the Diploma in Regulated Financial Planning, not just the areas that they practice in.

We envisage that candidates taking the Alternative Assessment route will be highly skilled and knowledgeable and able to fully

demonstrate their knowledge during the discussion with the assessor. For this reason it should not be necessary for suitable candidates

to undertake additional learning or revision in preparation for the assessment day.

Candidates must hold an existing benchmark qualification, i.e. the CII Certificate in Financial Planning or equivalent. Candidates are also

expected to use the ‘Self Diagnostic Tool’ (available at www.cii.co.uk/aa-diagnostic) to ascertain whether the Alternative Assessment is

suitable for them.

Learning outcomes

The Diploma in Regulated Financial Planning covers six subject areas as identified by the FSA/FSSC:

R01 – Financial services, regulation and ethics.

R02 – Investment principles and risk.

R03 – Personal taxation.

R04 – Pensions and retirement planning.

R05 – Financial protection.

R06 – Financial planning practice.

The individual learning outcomes as well as the accompanying assessment criteria for the Diploma in Regulated Financial Planning can

be found within this document’s appendix. Candidates should review these when determining whether the Alternative Assessment is

suitable for them, and also in preparation for the assessment itself. Successful candidates will meet all the learning outcomes by the end

of the assessment day.

http://www.cii.co.uk/aa-diagnostic


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Reasonable Adjustments

In accordance with the Equalities Act, candidates should provide details, within the Alternative Assessment application form, of any

reasonable adjustments that they believe they are entitled to.

Please note that requests for reasonable adjustments should be communicated to the CII at the time of application. Any requests made

after this time may not be granted and the candidate may have to proceed without the adjustment, or otherwise reschedule their

assessment.

Assessment Dates and Locations

Assessments will take place in London unless there is a demand for alternative locations. Candidates will have the option to indicate a

preference for location on the application form. Please note that whilst preferences will be taken into account, assessment at alternative

locations cannot be guaranteed.

A list of forthcoming assessment dates can be viewed at www.cii.co.uk/aa-dates

Please note that the final assessment date will be in July 2012.

Assessment process

There are three stages that candidates undertaking the Alternative Assessment will go through:

1. Self Diagnostic Tool

1.

2. Application Process

3. Assessment Day

http://www.cii.co.uk/aa-dates


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Stage 1 – Self Diagnostic Tool

Candidates should use the free Self Diagnostic Tool on the CII website to determine whether they are at the correct standard for

Alternative Assessment.

The tool contains a series of multiple-choice questions (MCQs); whilst MCQs are not used as part of the Alternative Assessment process itself, these are indicative of the level of questions candidates will face on the day.

Suitable candidates for the Alternative Assessment route should achieve 100% on the Self Diagnostic Tool. This is because 100% of the

learning outcomes will need to be met when testing via Alternative Assessment. The CII would recommend that candidates not achieving

100% carefully consider whether Alternative Assessment is the most suitable option for them.

The tool can be accessed at: www.cii.co.uk/aa-diagnostic

Stage 2 – Application Process

Candidates who conclude they are suitable for the Alternative Assessment, having used the diagnostic tool, should read through this

guide in full in order to fully understand what is involved. Candidates should then complete and submit the Alternative Assessment

application form, which can be downloaded at: www.cii.co.uk/alternative-assessment

The application form should be submitted to the CII two calendar months prior to the CII scheduled assessment date. On receipt of the

application, the CII will review the submission to ensure that the candidate is suited to Alternative Assessment, e.g. candidates should

have up to date CPD records, and they should not be the subject of any disciplinary action from the FSA, etc.

Important note: Once an application has been successfully processed, the assessment fee cannot be refunded. If an application does

not demonstrate suitability, the candidate will be notified in writing. The initial application review fee of £100 will be retained to cover

administrative costs and the remainder of the fee will be refunded to the candidate.

http://www.cii.co.uk/aa-diagnostic


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Previous Qualifications

When completing the application form, candidates should detail any relevant examination units passed so that their current knowledge

can be determined and may provide evidence of meeting some of the required learning outcomes.

On the assessment day, candidates will not need to evidence learning outcomes that they have already evidenced through the

application process.

For non-CII qualifications, evidence will need to be provided in the form of certified copies of transcripts and completion certificates.

Certified copies must be photocopies of original documents, certified as true copies of the originals by a current member of the CII or the

Personal Finance Society, or a local, associated or affiliated institute official, whose CII PIN should also be provided (where applicable).

Alternatively, a public notary may certify these documents as true copies, providing their full name and company address. Please note,

candidates may not certify their own documentation.

Continuing Professional Development

All candidates will be required to submit evidence of continuing professional development covering the past three years.

Portfolio of evidence

Candidates are recommended to submit a portfolio of evidence to assist them in demonstrating that they meet all of the learning

outcomes. Evidence submitted should be included with the application form and must be clearly reference to specific learning outcomes.

Candidates must provide clear and concise explanations on how the evidence demonstrates that they meet the learning outcomes. The

portfolio of evidence section in the application form must be completed for each source of evidence submitted.

Examples which may be appropriate to include in the portfolio of evidence could include:

1. Client recommendations e.g. investment/pension portfolios constructed/restructured

2. Client information sheets that the candidate has produced

3. Relevant industry articles that the candidate has written

4. Training courses that the candidate has designed/delivered.


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Code of Ethics

Candidates should provide information on any code of ethics they follow as part of membership of professional bodies, etc. For example

all CII members sign up to the CII Code of Ethics. This can be viewed at: www.cii.co.uk/code

Stage 3 – Assessment day

The CII will notify a candidate that their application meets the required standard so that they can progress to the next stage.

The Alternative Assessment format is an intensive and demanding one day assessment taking place at a location organised by the CII.

A variety of assessment methodologies will be used. This will benefit candidates by providing a range of opportunities for them to

demonstrate their knowledge.

On the day itself, there will be case study reviews and professional discussions with an independent assessor, overseen by a technically

competent scrutineer. Candidates will also be asked to complete calculation questions during the day.

Candidates should note that the case studies used for Alternative Assessment are much broader in scope than those used for CII

examinations, e.g. R06 – Financial planning practice.

Format of the day

Candidates will be given a timetable at the start of the day. There will be breaks between case studies which will allow time for alternate

candidates to be assessed.

Candidates must remain on the premises at all times except during their lunch break, during which a buffet lunch will be provided. In case

of any dietary requirements, please contact Accreditation Services by email at [email protected].

mailto:[email protected]


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The general outline of the day will be as follows:

AM

Opening briefing

Case Study A – 20 minutes reading

Case Study A – 35 minutes discussion with assessor and scrutineer

Case Study B – 20 minutes reading

Case Study B – 35 minutes discussion with assessor and scrutineer

PM

Case Study C – 20 minutes reading

Case Study C – 35 minutes discussion with assessor and scrutineer

Case Study D – 20 minutes reading

Case Study D – 35 minutes discussion with assessor and scrutineer

20–30 minute technical interview

Finish

Case study discussions will take place with a qualified assessor supported by a scrutineer. Both will be trained CII assessors and both

hold the Chartered Financial Planner title.

The assessor will lead the discussions and ask questions based on the case studies, whilst the scrutineer will take notes.

The assessor will be responsible for making recommendations and comments to the moderation panel. The scrutineer may assist in this

process.

The Assessment day will be overseen by a coordinator who will brief candidates on the schedule for the day and provide any further

information.


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An invigilator will be present to oversee the reading time for the case studies.

There may be, from time to time, observers from the CII and organisations such as the FSA present during case study discussions to

protect the interests of candidates and ensure that assessors and scrutineers carry out their roles effectively.

What to Expect

Candidates must be available for the whole day from 8.30–18.00. Mobile phones and other portable devices must be switched off for the

duration of the day and candidates must remain on the premises except during their lunch break. Candidates must not bring along or

consult any revision material on the day.

The case study reading will take place under invigilated exam conditions. Candidates will be given the case study and the corresponding

questions that will be asked by the assessor. Notes may be made at this stage and taken along to the case study discussion.

The case study discussions will take place in a private room where one assessor and one scrutineer will be present. Candidates will have

the opportunity to demonstrate their knowledge against all of the remaining learning outcomes and should attempt to keep all responses

relevant as no additional recognition is available for knowledge outside of the specified learning outcomes.

Candidates should also remember that there is a limited timeframe to evidence all the learning outcomes and should remain focussed on

the questions asked by the assessor. The assessor will ask further questions if they feel certain learning outcomes still need to be

evidenced.

The assessor collates the evidence and formally benchmarks this against the Diploma in Regulated Financial Planning learning

outcomes.

At the end of the day there will be a 20–30 minute technical interview with the same assessor and scrutineer to provide an opportunity for

the candidate to evidence any outstanding learning outcomes.


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Pass Criteria

Candidates must evidence all of the learning outcomes from all six units of the Diploma in Regulated Financial Planning. The CII will use

the evidence provided with the application form alongside the results of case study discussions and technical interview to fulfill this

requirement.

If candidates fail to answer questions relating to specific learning outcomes correctly on the first attempt, they will be given further

opportunities to evidence them. By the end of the assessment day candidates must have successfully evidenced all learning outcomes to

pass.

Result Notification

The assessor cannot confirm whether candidates have passed or failed, as the result will be decided by the CII Moderation Panel.

Candidates will be informed of the result within 15 working days of the assessment.

What to expect – candidates who pass

The candidate will receive written confirmation of their pass from the CII. The Diploma in Regulated Financial Planning will be issued

approximately 4–6 weeks after the written confirmation.

The credits will be automatically added to candidates' 'Learning Account', details of which can be accessed online at

www.cii.co.uk/learningstatement

What to expect – candidates who don’t pass

Any candidate who is unsuccessful will receive a feedback form indicating the learning outcomes that they failed to meet as well as those

that they only partially met.


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Example of candidate feedback:

Learning outcomes not evidenced

These were areas where no evidence was gathered:

R01 – Financial Services regulation and Ethics

Learning Outcome Detail

3 Understand legal concepts and considerations relevant to financial

advice

4 Understand the regulation of financial services

R04 – Pensions and Retirement Planning


7 Understand the structure, relevance and application of State

schemes to an individual’s pension planning


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Areas for development

These were areas where evidence was gathered, however gaps in knowledge existed.

Candidates that don’t meet required standards but wish to attempt Alternative Assessment again will have to restart the assessment

process and pay the full assessment fee.

Assessment fee

There are two parts to the assessment fee, which are payable in full at the time of making the application:

Application Review

Fee

£100

Application Fee £1,850

Total Application Fee £1,950

Important note: If as a result of the application review an application is unsuccessful, only the application fee of £1,850 will be refunded

– the initial application review fee of £100 will be retained to cover administrative costs. Payment can be made by cheque or credit/debit

card. See the Alternative Assessment application form (found at www.cii.co.uk/alternative-assessment) full details.

R03 – Personal Taxation


1 Understand the UK tax system as relevant to the needs and

circumstances of individuals and trusts

3 Analyse the role and relevance of tax in the financial affairs of

individuals and trusts


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Appeals

Any applicant whose application has been declined or who does not pass, may present an appeal to the CII Impartiality Committee.

The Impartiality Committee is the independent committee responsible for ensuring the impartiality of CII Certification Services operation

and is authorised to resolve any appeals on behalf of the CII’s Qualifications, Assessments and Examinations Committee. All members

are independent of the CII and will review the case on an impartial basis.

Candidates who are unsuccessful who wish to appeal their Alternative Assessment decision should note the following:

Grounds for an appeal

There are two main grounds for appeal:

1. Extenuating circumstances that were not revealed for valid reasons prior to receipt of the Alternative Assessment decision

2. Evidence to support that there has been a misinterpretation of the information provided to CII

Circumstances not accepted as grounds for an appeal

1. Claims of being unaware of, or not understanding the Alternative Assessment standards and requirements

2. An appeal against a decision made by the CII Disciplinary Committee.

Full details of the CII’s disciplinary procedures are contained in the Bye-laws and Board Regulations.

Appeal fee

An appeal fee of £250 is payable on submission of an appeal; this fee is refundable in the event that the Impartiality Committee finds in

favour of the appellant.

Should the Impartiality Committee request that a stage of the Certification review process is repeated in light of the evidence submitted

by the appellant the CII reserves the right to pass on the administration fee to the appellant e.g. should a further observation or face to

face assessment be required due to extenuating circumstances which were not previously disclosed, the CII reserves the right to charge

the appellant for this stage of the review; full fee details will be available to appellants.


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Appeals Procedure

A written appeal case must be submitted to the Chair of the Impartiality Committee c/o Accreditation Services no later than thirty days

from the Certification decision notification. All applications will be acknowledged within five days of receipt. In very exceptional

circumstances, the time limit may be extended by the Chair of the Impartiality Committee.

The appeal case and appellant file will be submitted to the Chair of the Impartiality Committee who will review the relevant documentary

information. If it is decided there is a case to hear, it will be referred to the full Impartiality Committee for review and the appellant will be

advised of the date of this.

Complaints

Should there be any complaints regarding CII Alternative Assessment please contact the CII Customer Services to register the complaint

at:

Customer Complaints

The Chartered Insurance Institute

42–48 High Road

South Woodford

London

E18 2JP

Tel: 020 8989 8464

email: [email protected]

We endeavour to respond to all complaints received within five working days and provide a full answer. Where this is not possible we will

give a deadline by which a full reply will be provided.

mailto:[email protected]


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APPENDIX – Learning Outcomes and Assessment Criteria: Diploma in Regulated Financial Planning

R01 – Financial Services Regulation and Ethics

1. Understand the UK financial services industry in its European and global context.

1.1 Describe the role, structure and context of the UK financial services market and international markets.

1.2 Explain the function and operation of financial services within the economy.

1.3 Describe the role and impact of government and the impact of the EU on UK regulation.

2. Understand how the retail consumer is served by the financial services industry.

2.1 Explain the obligations that the financial services industry has towards consumers.

2.2 Explain consumers’ main financial needs and how these may be prioritised and met.

3. Understand legal concepts and considerations relevant to financial advice.

3.1 Explain the concepts of legal persons, power of attorney, law of contract and agency, and ownership of property.

3.2 Explain relevant laws governing insolvency and bankruptcy.

3.3 Explain relevant laws governing wills, intestacy and trusts.

4. Understand the regulation of financial services.

4.1 Examine the role of the FSA, HM Treasury and the Bank of England in regulating the market.

4.2 Examine the role of other regulatory bodies and sources of additional oversight.

4.3 Examine the statutory framework of regulation, including the role of EU regulation and key directives.

5. Understand the FSA’s responsibilities and approach to regulation.

5.1 Explain the FSA’s statutory objectives and how it is structured to achieve these objectives.

5.2 Explain the main principles and rules in the FSA handbook.

5.3 Explain the approach to risk based supervision, discipline and enforcement, and sanctions to deal with criminal activities.


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6. Apply the principles and rules as set out in the regulatory framework.

6.1 Apply the FSA’s regulatory principles and rules.

6.2 Apply current anti-money laundering, proceeds of crime, and data protection obligations.

6.3 Apply the rules of relevant dispute resolution and compensation schemes

7. Apply the regulatory advice framework in practice for the consumer.

7.1 Apply client relationships, regulated advice standards, and the adviser responsibilities in terms of these.

7.2 Monitor and review client plans and circumstances

8. Understand the range of skills required when advising clients.

8.1 Examine the range of skills required when advising clients

9. Understand the FSA’s use of principles and outcomes based regulation to promote ethical and fair outcomes.

9.1 Examine the Principles for Businesses and the discretionary obligations these place on firms.

9.2 Examine the impact of corporate culture and leadership.

9.3 Examine the responsibilities of approved persons and the need for integrity, competence and fair outcomes for clients.

10. Apply the Code of Ethics and professional standards to business behaviours of individuals.

10.1 Apply the Code of Ethics and the professional principles and values on which the code is based.

10.2 Identify ethical dilemmas and apply the steps involved in managing ethical dilemmas.

11. Critically evaluate the outcomes that distinguish between ethical and compliance driven behaviours.

11.1 Evaluate the positive indicators of ethical behaviour.

11.2 Evaluate the negative indicators of limiting behaviour to compliance within the rules.

11.3 Critically evaluate the outcomes that distinguish ethical and compliant behaviours.


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R02 – Investment Principles and Risk

1. Analyse the characteristics, inherent risks, behaviour and correlation of asset classes.

1.1 Analyse the characteristics and inherent risks of the main asset classes.

1.2 Analyse the behaviour and correlation of asset classes and their relevance to asset allocation

2. Understand the macro-economic environment and its impact on asset classes.

2.1 Explain the key economic trends and their impact on asset classes.

2.2 Explain the key economic indicators, their trends and interpretation.

2.3 Explain the impact of monetary and fiscal policy

3. Understand the merits and limitations of the main investment theories.

3.1 Explain the main investment theories, their benefits and limitations.

3.2 Explain portfolio theory, diversification and hedging.

3.3 Explain behavioural finance and its impact on investment markets and individuals

4. Apply the principles of the time value of money.

4.1 Apply the principles of the time value of money.

4.2 Calculate compound interest, discounts, real returns and nominal returns.

5. Analyse and explain the nature and impact of the main types of risk on investment performance.

5.1 Explain the nature and impact of the main types of risk on investment performance.

5.2 Analyse the nature and impact of the main types of risk on investment performance.

6. Analyse the characteristics, inherent risks, behaviours and relevant tax considerations of investment products.


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6.1 Explain the advantages and disadvantages of direct investment in securities and assets compared to indirect investment through collectives and other products.

6.2 Analyse the characteristics, inherent risks, behaviours and relevant tax considerations of the main types of indirect investment products.

7. Apply the investment advice process.

7.1 Explain the Know Your Client requirements applied to the investment advice process.

7.2 Apply asset allocations to different client risk profiles and requirements.

8. Understand the principles of investment planning.

8.1 Explain the main approaches to asset allocation.

8.2 Explain the portfolio construction process.

8.3 Explain the principles of wraps and other platforms.

9 Analyse the performance of investments

9.1 Analyse portfolio performance using different benchmarks and other methods.

9.2 Apply an appropriate investment portfolio review process.


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R03 – Personal taxation

1. Understand the UK tax system as relevant to the needs and circumstances of individuals and trusts.

1.1 Explain the main features of Income Tax.

1.2 Explain the main features of National Insurance Contributions (NICs).

1.3 Explain the main features of Capital Gains Tax (CGT).

1.4 Explain the main features of Inheritance Tax (IHT).

1.5 Explain the implications of residence and domicile on tax liability.

1.6 Explain the main features of UK tax compliance.

1.7 Explain Stamp Duty Reserve Tax and Stamp Duty Land Tax.

1.8 Describe the rules and impact of Value Added Tax (VAT) and Corporation Tax.

2. Analyse the taxation of investments as relevant to the needs and circumstances of individuals and trusts.

2.1 Analyse the taxation of direct investments.

2.2 Analyse the taxation of indirect investments.

3. Analyse the role and relevance of tax in the financial affairs of individuals and trusts.

3.1 Analyse the impact of taxes on individuals, trusts and their investments in different situations.

3.2 Analyse the ways in which key elements of tax planning provide tax efficiency to individuals and trusts.

4. Apply the knowledge of personal taxation to the provision of investment advice.

4.1 Calculate common elements of Income Tax, NICs, CGT, and IHT, including the impact of lifetime transfers and transfers at death.

4.2 Recommend elementary tax plans in the context of investments and pensions advice.


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R04 – Pensions and Retirement Planning

1. Understand the political, economic and social environment factors which provide the context for pensions planning.

1.1 Examine the role of Government, policy direction, challenges and reforms.

1.2 Examine corporate responsibilities, their challenges and impact on pension planning.

1.3 Examine demographic trends, longevity and the ageing population.

1.4 Examine incentives, disincentives and attitudes to saving.

1.5 Explain the main pension provision scheme types and methods of pension provision.

2. Understand how the HM Revenue & Customs (HMRC) tax regime applies to pensions planning.

2.1 Explain how the HMRC tax regime applies to pension planning.

2.2 Explain how the annual allowance, lifetime allowance, special annual allowance, associated charges and transitional reliefs apply.

2.3 Outline the tax treatment of other types of schemes

3. Understand the relevant aspects of pensions law and regulation to pensions planning.

3.1 Explain the relevant aspects of pensions law and regulations.

3.2 Describe the role and duties of trustees and administrators of pension schemes.


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4. Understand the structure, characteristics and application of Defined Benefit (DB) schemes to an individual’s pension planning.

4.1 Describe the main types, attributes and benefits of DB pension provision.

4.2 Describe the rules and operation of DB schemes.

4.3 Describe funding methods and explore issues surrounding funding.

4.4 Explain the role of trustees and other parties, including scheme reporting.

4.5 Explain the factors to consider and the benefits on leaving, early and normal retirement.

4.6 Explain the benefits available on ill health and death.

4.7 Explain eligibility and top-up options.

4.8 Describe the main transfer issues and considerations in broad terms.

4.9 Describe the structure, main attributes and benefits of public sector schemes.

5. Analyse the range of Defined Contribution (DC) scheme options as they apply to an individual’s pension planning.

5.1 Analyse the types of DC schemes, their main attributes and benefits.

5.2 Explain the legal bases of DC schemes and their impact on an individual’s pension planning.

5.3 Outline the benefits on leaving, and death before crystallisation.

5.4 Explain to an individual the contracting out decision and rebates.

5.5 Outline transfer issues and considerations

6. Analyse the options and factors to consider for drawing pension benefits.

6.1 Analyse the options to consider in drawing State Retirement Benefits.

6.2 Analyse the options available from DB schemes for drawing pension benefits.

6.3 Analyse the options available from DC schemes for drawing pension benefits.

6.4 Analyse the suitability of phased retirement.

6.5 Explain the pension’s triviality rules.


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7. Understand the structure, relevance and application of State schemes to an individual’s pension planning.

7.1 Examine the structure, relevance and application of basic and additional State Retirement Benefits and the Pension Credit framework as part of an individual’s pension planning.

7.2 Explain the key considerations in relation to contracting in/out

8. Evaluate the aims and objectives of retirement planning, including the relevant investment issues.

8.1 Evaluate the aims and objectives of retirement planning in relation to:

• An individual’s aims and objectives

• Investments available to meet these objectives

• Alternative sources of retirement income

• Regular reviews and the factors affecting them

• Asset allocation factors

• The main characteristics of self-investment.

R05 – Financial Protection

1. Understand the consumer and retail market factors and trends relevant to financial protection.

1.1 Explain the role of insurance in mitigating personal financial risk.

1.2 Describe consumer attitudes and behaviours to protection needs planning.

1.3 Describe trends relevant to financial protection.

2. Understand the areas of need for protection planning and the main sources of financial protection.

2.1 Describe the need for protection planning for individuals and businesses.

2.2 Explain the relationship between insurance and assets and liabilities.


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2.3 Describe the sources of financial protection.

3. Understand the role and limitations of State Benefits and State/local authority funded solutions for financial protection.

3.1 Examine the role and limitations of State Benefits and State/local authority funded solutions for financial protection.

4. Understand the range, structure and application of life assurance and pension based policies to meet financial protection needs.

4.1 Describe the types of life assurance and pension based policies, their benefits, limitations, tax treatment and how they meet financial protection needs.

4.2 Describe the underwriting and claims issues and processes associated with life assurance and pension based protection policies.

5. Understand the taxation treatment of life assurance and pension based protection policies.

5.1 Describe the taxation treatment of life assurance and pension based protection policies.

6. Understand the range, structure and application of income protection insurance and options to meet financial protection needs.

6.1 Describe the types of income protection policies, their benefits, limitations, tax treatment and how they meet financial protection needs.

6.2 Explain the underwriting and claims issues and processes associated with income protection insurance.

7. Understand the range, structure and application of critical illness insurance to meet financial protection needs.

7.1 Describe the types of critical illness policies, their benefits, limitations, tax treatment and how they meet financial protection needs.

7.2 Explain the underwriting and claims issues and processes associated with critical illness insurance.

8. Understand the range, structure and application of long term care insurance to meet financial protection needs.

8.1 Describe the regulation which applies to long term care insurance.

8.2 Describe the main types of long term care insurance policies and their features.

8.3 Describe the long term care planning process


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9. Understand the main features of other insurance based protection policies.

9.1 Describe the main features of other insurance based protection policies

10. Evaluate the needs and priorities for financial protection and the relevant factors in selecting appropriate solutions

10.1 Identify the priorities, risks and choices for individuals or business clients.

10.2 Assess and quantify an individual’s or business’s future capital and income needs in real terms.

10.3 Determine the suitability of product types and options.

10.4 Explain planning considerations.

10.5 Explain the importance of regular reviews.

R06 – Financial Planning Practice

1. Obtain appropriate client information and understand clients’ needs, wants, values and risk profile essential to the financial planning process.

1.1 Apply appropriate techniques for asking about the client’s aims and objectives, their needs and wants,values and priorities.

1.2 Explain risk, and how the different types of risk apply to clients.

1.3 Establish the client’s risk profile and explain what this means in terms the client will understand.

2. Synthesise the range of client information, subjective factors and indicators to provide the basis for financial planning assumptions and decisions.

2.1 Recognise any potential errors and inconsistencies in client information, subjective factors or indicators.

2.2 Identify where additional information is required and ask appropriate questions.

3. Analyse a client’s situation and the advantages and disadvantages of the appropriate options.

3.1 Analyse a client’s situation using key financial planning data and approaches.

3.2 Identify gaps in a client’s current financial provision and identify how the client’s financial provision could be improved.


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3.3 Explain the options available and their respective advantages and disadvantages.

4. Formulate suitable financial plans for action and explain and justify recommendations.

4.1 Formulate a suitable financial plan and make recommendations.

4.2 Explain and justify your recommendations.

4.3 Explain any risks or limitations in the plan.

5. Implement, review and maintain financial plans to achieve the clients’ objectives and adapt to changes in circumstances.

5.1 Explain how the plan is to be implemented and serviced.

5.2 Conduct reviews at appropriate times using appropriate benchmarks and adapting to changes in circumstances.

diploma in regulated financial planning alternative ... · the diploma in regulated financial...

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