The results from the September R06 sitting were released this morning, a little over five weeks after the exam sitting. While many of our candidates are cracking open the champagne in celebration of a pass, the team at BTS are not resting on our laurels. Reflecting on our analysis of the case studies and the questions that appeared on the paper on the day is a key part of how we keep our support as relevant and exam-standard as possible. So, after all the analysing BTS carried out, what was the exam paper like on the day?
The paper was the usual mix of questions and areas we had predicted and built into our analysis, plus a few curved balls questions. Let’s take another look at the September case studies, the technical areas predicted within them, and the questions asked on the R06 exam paper.
Key factors identified from the case study:
* Younger couple with dependent kids
* Imminently moving house with the help of a mortgage
* John is weighing up self-employment versus an employer offer from his current sole client
* John has a deferred DB and a PPP invested in a lifestyle fund
* Karen has a small PPP
* John is looking to retire at 60
* concerns about tax efficiency of their current income and assets
Possible technical areas BTS recommended candidates revised:
* House buying expenses
* Capital repayment and interest only mortgage mechanics, benefits and drawbacks
* Level term assurance – features, factors and benefits
* IR35 and how this could affect John
* Deferred DB scheme – PPF protection
* Cautious lifestyle fund mechanics, pros and cons
And loads more….
Questions that came up for CS1 John and Karen included:
* Explain why LISAs could help with their long term savings needs.
* Why could John have some tax problems if he remains self-employed.
* Benefits/drawbacks of John accepting the employed position on offer.
* Pension Protection Fund (PPF) coverage for John’s DB scheme.
* Benefits and drawbacks if the couple switch their current level term assurance policy for decreasing term assurance.
* Disadvantages of using a computer based risk profiler.
* Advantages of using a financial adviser to carry out a financial review.
Key factors identified from the case study:
* They have a son, Harry, who has serious learning difficulties
* Looking to semi-retire shortly with two personal pensions and a workplace pension scheme between them
* Mix of higher and basic rate tax payer
* Taxable investments all in the name of the higher rate taxpayer (Steve)
* Interested in retirement planning, passing their estate tax efficiently and tax efficient financial arrangements.
Possible technical areas BTS recommended candidates revised:
* Possible DWP benefits – PIP / ESA and Carer’s allowance
* Stocks and shares ISAs
* UFPLS versus FAD
* Mechanics / benefits and drawbacks of phasing retirement
* IHT calculation
* Benefits of having a will / the process
* Bed / ISA-ing collective investments
And loads more…
Questions that came up for CS2 Steve and Trish included:
* Marriage tax allowance 10 marks!!! (nasty)
* Additional information required to give investment advice – 8 marks
* Recommend and justify to immediate reduce their IHT liability – 8 marks
* Benefits/drawbacks of Steve deferring his state pension – 6 marks
* Factors to consider before advising Steve about consolidating his personal pensions
* Reasons why Steve’s current pensions may not meet his objectives
* Explanation of why the couple need a will
An R06 pass requires three things:
If one of these elements goes awry, then a candidate is likely to have to resit the R06 exam. To help you to build your R06 study plan, again we have put together a range of study and training options in our BTS R06 Study Toolkit.
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