CAREERS ZONE

Not logged in?
Login / create an account to access free content on the Careers Zone.

Login/create an account

CAREERS ZONE

AF7 Study Plan (March sitting)

Exam Information
AF7 Study Plan
BTS Approach
Exam Sitting

Exam Information

The AF7 Pension transfers unit looks at developing the specialist knowledge and skills needed for advising on the transfer of safeguarded benefits. This is a challenging exam with a narrow syllabus, focusing on the main areas of the advice process for pension transfers. Please note: The CII AF7 examiner assumes that candidates already have the knowledge gained from a study of units R04 Pensions and retirement planning and J05 Pension income options or equivalent. The BTS AF7 Study guide covers the technical revision of the core areas so you will notice some crossover with your BTS R0 and J0 texts. Due to the crossover between the J05 syllabus and AF7 syllabus, you could consider sitting the J05 exam either prior to or around the same time as your AF7 exam to maximise your credits towards Chartered / Fellowship.

Useful downloads:

Exam sitting:

This exam can be sat on two set dates throughout the year, usually in February/March and September.

  • CII Recommended study hours: 100
  • Credits: 20
  • Pass mark: 60%
  • Assessment: 2 hour on-screen written exam with short answer and case study questions

Suggested AF7 Study Plan

This study plan is based on 100 hours of study time over an 12 week period. The CII recommendation is 100 hours of study time, however this is only an indication of how long you will need. You may take more or less time than this depending on your prior knowledge and experience, and work/study/home commitments.

ASAP

Join the BTS AF7 forum

Our student-led forums are a space for you to chat to other candidates about all things study and exam.

Click on the ‘BTS Forums’ in the menu on the left and check out the AF7 forum.

ASAP
Mid November 2024

Watch the AF7 'kick-start' webinar

BTS have recorded a webinar to help kickstart your AF7 studies. Get a better idea of what the AF7 exam is like, listen to different strategies that can help you maximise your chances of a pass, and find out about how to build a robust study plan.

You can watch the recording from the Webinars page on the BTS Careers Zone.

Mid November 2024
Mid - end of November 2024

Self-study period - Starting approx. 12 weeks prior to the exam

Passing AF7 needs a very focused approach when it comes to your study plan. This is a challenging exam with a narrow syllabus, which means your knowledge levels and ability to apply this knowledge to short answer questions and case studies needs to be good. Last minute cramming will generally not result in an exam pass – a ‘little and often’ approach is recommended, as always with any advanced exam.

Start by working through the BTS study guide covering the full exam syllabus and guidance on the necessary exam question answering techniques.

We have provided a week by week study timetable for you to follow and keep you on track.

Mid - end of November 2024
Remember

The AF7 exam comprises 3-4 short answer questions worth a total of 32 marks and two case study questions worth 68 marks. The case studies are unseen until the exam sitting so your preparation needs to be based on mock case studies and past papers.

Remember
Mid - end of January 2025

Practise mock case studies

The BTS AF7 e-Learning module consists of five unique case studies, each with a full set of specimen exam questions and model answers. The module is designed to be worked through as a series of mock papers, attempting your own answer before self-marking using our marking grid. 

Some candidates use e-learning as an alternative to attending a workshop, others use both.

Mid - end of January 2025
Wednesday 19th February 2025

Exam booking deadline

Wednesday 19th February 2025
2-3 weeks prior to exam date

Practise potential questions 2-3 weeks prior to the exam

Alongside your revision, you need to prepare yourself for the exam experience. Use past papers as mock exam sittings. Complete the paper in exam conditions then self-mark using the examiner’s report. BTS recommend you self-mark by applying the examiner’s comments to the letter, only awarding yourself a mark if it is clearly there.

The examiner’s report is a useful document to study as it contains information on candidate performance in previous sittings including common mistakes. Completing as many past papers as you can will allow you to build up a picture of regularly asked question types, examiner favourites, and common pitfalls.

You can access free past papers from the CII website on the AF7 pages, these are also available to useful downloads section at the top of this page.

2-3 weeks prior to exam date
Thursday 6th March 2025

Sit your exam - Good luck!

Thursday 6th March 2025
Friday 2nd May 2025

Results day

Friday 2nd May 2025

Week by week study timetable

Click on the plus sign to discover more helpful tips on where to focus your study time.

Watch our AF7 'Kick Start' Webinar!

Are you ready to kick off your AF7 studies?

Understanding the best way for you to study will help you plan when and where to study and how to make the most of your time.

This 1-hour webinar will cover the key things you need to know to get off to the best start.

You can watch the recording from our Webinars page.

You can also access our AF7 Study Tips article by Clicking here!

Time to open up the BTS study guide and dive into Chapter 1 - The regulations that affect the pension transfer process.

This first chapter starts with all the rules and regulations that govern the financial services industry, focusing on those specifically that relate to pension transfers of safeguarded benefits. It’s safe to say, there are quite a few rules to cover!

In Week 2, we are going to be looking at three main areas:

  1. The Pensions Regulator
  2. The Financial Conduct Authority
  3. Conduct of Business Sourcebook

 

Learning Outcomes covered in this chapter:

LO1: Understand the fundamental aspects of the pension transfer process

1.1 Explain the key regulatory rules, requirements, and definitions relevant to pension transfers, opt outs, and conversions as set out by: the Financial Conduct Authority including relevant sections of the Conduct of Business Sourcebook; the Pensions Regulator; Legislation.

 

1.2 Understand the roles and responsibilities of the main parties involved in the pension transfer process; including but not limited to trustees, administrator, an actuary; Pension transfer specialist; Money and Pensions Service.

 

1.3 Explain the key elements of the pension transfer advice process including but not limited to: triage process and advice boundaries; Key stages of the advice process; Two adviser firms are working together; Know your client requirements; The process and assumptions used in the calculation of the cash equivalent transfer value (CETV); The process and assumptions used in the calculation of the Transfer Value Comparator (TVC); Appropriate pension transfer analysis (APTA); Requirements when providing a personal recommendation.

Time to tackle Chapter 2 - DB Schemes.

This chapter picks up the narrative in relation to DB pension schemes, how they are set up, how they are reviewed, and the different types of benefits they can provide. It will also return to the concept of safeguarded benefits and what that means in relation to pension transfers.

In this chapter, we are going to look at five main areas:

  1. Different types of safeguarded benefits
  2. What a DB scheme can provide
  3. Early leavers
  4. Security of a DB scheme
  5. Other types of DB scheme protection

 

Learning Outcomes covered in this chapter:

LO2: Understand the key issues that should be taken into account when advising on the suitability or otherwise of transferring pension benefits:

2.1 Demonstrate how the features of defined benefit (DB) schemes may impact a pension transfer recommendation including but not limited to: security of pension benefits; guaranteed minimum pension (GMP); Revaluation and escalation; Death and ill health benefits; Commutation and pension increase exchange; Level of pension commencement lump sum (PCLS) available; Protected retirement ages; Transfer club.

2.5 Understand how the following may impact the suitability or otherwise of a pension transfer recommendation: lifetime allowance and transitional protections; Funding and solvency including employer covenant and recovery plans; Pension Protection Fund (PPF); Financial Services Compensation Scheme (FSCS).

This week you will be studying Chapter 3 – Registered pension scheme options and benefits.

Having reviewed the workings and benefits built up in a DB scheme, this chapter now moves us on to consider the different options.

In this chapter, we are again going to work through five main areas:

  1. Taking benefits from a Registered Pension Scheme
  2. Secured income options
  3. Drawdown pension
  4. Taking a pension all as cash
  5. Investment Options

 

Learning Outcomes covered in this chapter:

LO2: Understand the key issues that should be taken into account when advising on the suitability or otherwise of transferring pension benefits:

2.3 Demonstrate how features of the receiving scheme may impact a pension transfer recommendation, including but not limited to; Level of PCLS available; Flexi-access drawdown, Uncrystallised funds pension lump sum; Annuity options including enhanced and impaired; Phasing benefits; Death benefits; Charges; investment options.

2.4 Understand the importance of the following factors when advising on a potential pension transfer: investment risk, Longevity risk and sustainability; Nomination of beneficiaries and bypass trusts; Matching income and investment strategies; Safe withdrawal rate; Sequencing risk; Economic risks such as inflation and changes in interest rates; Annuity risk; Taxation

We are now moving on to Chapter 4, to consider the variety of different factors that can affect pension transfers advice; from possible issues with the lifetime allowance and the annual allowance charge, through to the use of transitional protections. We will start by considering these factors.

In this chapter, we are going to look at six main areas:

  1. Transitional protection and the lifetime allowance
  2. Taxation factors relating to a Registered Pension Scheme
  3. Attitude to investment risk and capacity for loss
  4. Additional pension transfer risk factors
  5. The use of cashflow modelling
  6. Care of vulnerable clients in the pension transfer process

 

Learning Outcomes covered in this chapter:

LO2: Understand the key issues that should be taken into account when advising on the suitability or otherwise of transferring pension benefits:

2.4 Understand the importance of the following factors when advising on a potential pension transfer: investment risk, Longevity risk and sustainability; Nomination of beneficiaries and bypass trusts; Matching income and investment strategies; Safe withdrawal rate; Sequencing risk; Economic risks such as inflation and changes in interest rates; Annuity risk; Taxation

2.5 Understand how the following may impact the suitability of a pension transfer recommendation: lifetime allowance and transitional protections; Funding and solvency including employer covenant and recovery plans; Pension Protection Fund (PPF); Financial Services Compensation Scheme (FSCS).

LO3: Advise on pension transfers in a range of client specific circumstances and scenarios

3.1 Gather sufficient information to satisfy the ‘know your client’ requirements: reconciling client objectives and needs; Assets and liabilities; Hard and soft facts; Attitude to, and understanding of, transfer and investment risk, capacity for loss; previous investment experience.

3.2 Analyse the impact the following have in determining the suitability or otherwise of a pension transfer: health and longevity; Trade-offs between retirement needs and other factors; Wealth preservation and legacy planning; Taxation; Debt; Serious ill-health; Partial transfers; Cash flow modelling and stress testing.

So far, we have worked through FCA COBS rules, the working of DB schemes, other safeguarded benefits, pension freedom choices, and the different factors we have to consider in the pension transfer process.

In Chapter 5, which is the penultimate chapter, we will take a look at the pension advice process.

This week, we are going to be working through five main areas:

  1. Establishing the client / PTS relationship
  2. Data gathering, establishing client financial objectives and needs
  3. Analysing suitable options
  4. Delivering best advice and implementing it
  5. Keeping things under review

 

Learning Outcomes covered in this chapter:

LO1: Understand the fundamental aspects of the pension transfer process

1.3 Explain the key elements of the pension transfer advice process including but not limited to: Triage process and advice boundaries; Key stages of the advice process; Two adviser firms working together; Know your client requirements; The process and assumptions used in the calculation of the cash equivalent transfer value (CETV); The process and assumptions used in the calculation of the transfer value comparator (TVC); Appropriate pension transfer analysis (APTA); Requirements when providing a personal recommendation.

This chapter also covers some areas found in learning outcome 2, specifically syllabus points 2.1, 2.2, 2.3 and 2.4 and learning outcome 3 syllabus point 3.1. Rather than list all of these learning outcomes and syllabus points, we decided to just give you a bit of a street instead.

Chapter 6 - Suitable pension transfer advice. The final chapter in the BTS AF7 study guide, brings together everything we have covered so far. We will consider many different factors that affect the suitability of pension transfers advice. This chapter is a real analysis chapter to take you into your first specimen BTS exam, and then finally into your CII AF7 exam sitting. It is at this point, you can also start to look at the BTS AF7 e-Learning module. This e-Learning module will assist you in applying what you have learnt to mock case study questions.

In this final chapter, we are going to look at a variety of different factors that can affect transfers advice and weigh up their benefits and drawbacks as we go.

This week, we are going to work through four areas:

  1. The starting point for pension transfers advice
  2. Tax considerations
  3. Other factors that need considering
  4. Suitability of DB to DC and other safeguarded benefit transfers

 

Learning Outcomes covered in this chapter:

LO3: Advise on pension transfers in a range of client specific circumstances and scenarios

3.2 Analyse the suitability or otherwise of pension transfers in a range of scenarios: Defined benefit to Defined contribution; Other plans with safeguarded benefits to defined contribution; Transfer for future benefit crystallisation; Transfer for immediate benefit crystallisation 

3.3 Analyse the impact the following have in determining the suitability or otherwise of a pension transfer: Health and longevity; Trade-offs between retirement needs and other factors; Wealth preservation and legacy planning; Taxation; Debt; Serious ill-health; Partial transfers; Cash flow modelling and stress testing

3.4 Alternative solutions to meet client objectives, including but not limited to: Life assurance; Short-term borrowing; The use of other assets.

By this stage you should have completed your initial study of the AF7 study guide. Now is the time to start applying what you have learnt to mock case study questions.

The BTS AF7 e-Learning module consists of five unique case studies, each with a full set of specimen exam questions and model answers. The module is designed to be worked through as a series of mock papers, attempting your own answer before self-marking using our marking grid. A clear rationale is provided for each answer so you can learn as you go. 

Early February 2025

Past papers should be priority in the two weeks leading up to the exam. By sitting past papers under timed conditions you will get a clear indication on where you need to put in any extra effort and they will help you understand the different exam questions format. You will know how they are worded and how to interpret them to provide the correct answers.

You can access free past papers below:

Prior to your exam sitting, it is important that you are familiar with the software that you will be using for your exam. The CII have provided a demo for On-screen written exams, to ensure that you are familiar with the software. You can access this demo here!

On-screen exams can be sat remotely or at an exam centre. If you are sitting the exam remotely, you will need to check that the computer that you are using has everything you need to access the remote exam system. You can review the minimum system operating requirements by clicking here!

You will also need a special browser to access your exam. You can download the secure browser here before your exam date. 

If you are sitting your exam at a centre, make sure you plan your journey ahead of your exam date, ensuring you have enough time to make it to the centre on time and preventing any unnecessary stress! 

Finally, good luck with your exam! We hope the hard work and time that you have put into your studies pays off. 

The BTS approach to passing AF7

This AF7 study plan has been designed by the team at BTS. 

Our highly-qualified and experienced team sit the Chartered Insurance Institute (CII) Level 4 and Level 6 exams annually. This helps to ensure that the materials we produce areas up to date and ‘exam style’ as possible for our customers.  

Study

AF7 Study Guide

Work through the BTS study guide

What is the aim of this guide?
As you read each chapter of the guide you will gradually work through the AF7 syllabus and practise the necessary exam question answering techniques, using:

  • questions based on exam style case studies.
  • technical reviews on the pension transfers process.
  • diagrams and pictures to help ensure that the guide appeals to all learning styles.
Available in a choice of printed or digital format from the BTS shop.
FIND OUT MORE

e-Learn

e-Learn to practise exam standard questions

What is the aim of the e-Learning module?

The BTS AF7 e-Learning module consists of five unique case studies, each with a full set of specimen exam questions and model answers. The module is designed to be worked through as a series of mock papers, attempting your own answer before self- marking using our marking grid.

Use it to supplement your study as you work through your study guide, or as a full revision experience at the end of your self-study.

Available to order from the BTS shop.

FIND OUT MORE

Exam Sitting

Exam bookings are made directly with the CII.

Before booking an exam, candidates must purchase the unit from the CII website.

There is an option to purchase ‘assessment only’ which means just the exam sitting. This allows candidates to purchase study materials elsewhere, e.g. BTS.

Information and  guidance on booking and sitting your exam can be found in our Exam FAQs:

FIND OUT MORE

Registered Office: 3rd Floor, 20 Gracechurch Street, London, EC3V 0BG

Registered in England | Company No. 09063924

(C) Copyright 2025 Bespoke Training Solutions | All Rights Reserved

To view Careers Zone Content, Please sign in or Register
SIGN IN
REGISTER
Post a Vacancy

Sign in to Careers Zone

Register for Careers Zone