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CISI Financial Planning and Advice — Information & Free Practice

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About CISI Financial Planning and Advice

CISI Financial Planning and Advice · GB

Key exam facts

Provider
Chartered Institute for Securities & Investment (CISI), examination owner and awarding body.
Format
Computer-based multiple-choice examination, on demand at test centres; remote invigilation is also offered.
Exam questions
Total questions: 80–88; Scored questions: 80; Unscored questions: 0–8; The total includes the scored and unscored questions.
Time limit
2 hours standard answering time; proportionately more time is allowed if additional trial questions are included.
Passing score
70%: pass 56–80 marks; fail 0–55 marks. The published pass rate is distinct from the pass mark.
Exam fee
UK, 1 April 2026–31 March 2027: exam £304 (GBP); mandatory workbook £105 separately; saver package £424. One-off qualification registration fee £68 when registering the first qualification. Concessionary rates have separate eligibility conditions.

Topics covered

  • Financial Planning (21.25%)

    • Financial Planning Fundamentals
    • Nature of Professional Relationship
    • Collecting Client Information
    • Streamlined advice
    • Analyse the client’s financial status
    • Establishing priorities
    • Analyse existing arrangements
    • understand the key purposes of financial planning, and who is involved in the process
    • know the six-step financial planning process as defined by the Financial Planning Standards Board (FPSB): • establish and define client-planner relationship • collect client data, including personal and financial objectives, needs and priorities • analyse and evaluate the financial status • develop and present a financial plan and recommendations • implement the financial planning recommendations • review the client’s situation: o agree on responsibilities and terms for review of the client’s situation o review and re-evaluate the client’s situation
    • analyse the key components of a financial plan to include: • client objectives, needs, wants and values • client attitudes to risk • financial planning assumptions • analysis of client’s current financial situation • financial planning strategy • financial planning action plan and recommendations • review financial plan and recommendations • review strategy
    • understand the scope of the adviser’s authorisation including: • responsibilities • terms of business • nature of the advice process • ethical codes • authorised status and listing on the FCA register • limitations on the advice the adviser is authorised to give and circumstances in which client should be referred to a specialist
    • understand ethics and codes of practice as they relate to financial planning and financial planners: • professional bodies’ codes of practice and ethical codes • continuing professional development requirements
    • understand the application of appropriate techniques to collect client information: • elicit all relevant personal and financial information essential to the financial planning process • assessing a client’s risk tolerance
    • understand how to meet know your customer (KYC) requirements
    • evaluate affordability and other suitability considerations; environmental, social and corporate governance and religious preferences
    • analyse gaps, errors or inconsistencies in client information, subjective factors or indicators, including: • use of appropriate skills when questioning information or assumptions • gaining agreement on any reinterpretation
    • know what is meant by “streamlined advice”: • simplified advice • focused advice
    • understand the key considerations in verifying client information supplied by a third party
    • assess the client’s circumstances, including: • assets and liabilities • any foreseeable changes to their circumstances
    • calculate net worth: • during lifetime • on death • on specific events such as illness, disability or retirement
    • calculate net spendable income or income shortfall
    • calculate cash flow at key life stages including: • current • at retirement • on ill health • on death
    • evaluate and respond to the main drivers underpinning the client’s financial needs, objectives and aspirations by prioritising them in collaboration with the client: • identify differing client needs, realistic financial objectives and associated timescales • prioritise present and future needs • agree investment objectives, growth, income, time horizons • net disposable income
    • analyse gaps in the current financial provision and how the provision could be improved according to agreed priorities: • immediate liquidity • ongoing income and expenditure • protection • retirement provision • attitude to risk and growth / investment return assumptions • ethical values / environmental, social and corporate governance requirements
    • evaluate the performance and suitability of the client’s existing investments taking into account the client’s current financial provision
    • evaluate the performance and suitability of the client’s existing investments taking into account the client’s objectives
    • evaluate the performance and suitability of the client’s existing investments, taking into account the client’s: • risk appetite • risk required • capacity for loss
    • evaluate the performance and suitability of the client’s existing investments taking into account the client’s future tax status

  • Financial Protection (23.75%)

    • Market trends
    • Protection Planning
    • Sources of Financial Protection
    • Life Assurance Policies
    • Income Protection
    • Critical Illness Protection
    • Long-Term Care Planning
    • Insurance-Based Protection
    • Selecting Appropriate Protection Solutions
    • analyse consumer attitudes to and behaviours towards protection needs planning
    • know the factors relevant to consumer access to advice and/ or insurance cover
    • interpret trends in: • health and morbidity • longevity and mortality • employment
    • interpret the implications for product design and development
    • understand the intended target market defined by the product provider
    • evaluate personal, family income and capital protection needs relevant to health, incapacity and accident cover
    • evaluate personal, family income and capital protection needs relevant to income, mortgage and other debt
    • evaluate personal, family income and capital protection needs relevant to death and asset protection
    • evaluate the role of insurance in mitigating personal financial risk
    • know the areas of business protection needs – small and medium- sized enterprises (SMEs)
    • understand the role of State Benefits/ local authority funded solutions: • state pension and pension credit • housing, rent rebates, mortgage repayment and Council Tax benefits • incapacity, disability, sickness and maternity benefits • state benefits on death • social care provision • universal credit and other tax credits
    • analyse the limitations of State Benefits and state/local authority funded solutions for financial protection
    • analyse how state and other welfare benefits can be incorporated into a financial plan
    • understand the range of products available for financial protection needs: • types of policies, comparative costs, benefits and advantages • cost and premium calculation factors • legal requirements, ownership, uses and relevance of trusts • underwriting and claims • terminal illness benefit and other additional benefits • assignments, surrenders, paid-up policies, claims
    • analyse the structure and application of life assurance, and employment-based policies
    • interpret the taxation treatment of life assurance policies including: • qualifying and non-qualifying life insurance policies, offshore life insurance policies • taxation of life funds (onshore and offshore) • Capital Gains Tax (CGT) and life assurance policies • Inheritance Tax (IHT) and life assurance policies
    • understand the following: • definitions, exclusions, premium calculation factors • underwriting and claim • taxation treatment • special treatment of business income protection
    • evaluate: • the types of policies available • features and uses • comparative costs • advantages and disadvantages
    • know the range, structure and application of income protection insurance options relating to group policies
    • evaluate: • types of policies available • structure • comparative costs • advantages and disadvantages
    • know market developments for critical illness insurance
    • know the following: • definitions, conditions, exclusions • terms and amount of cover - factors, assessment • premium calculation factors • underwriting and claims: issues and processes • claims
    • evaluate the taxation treatment of critical illness protection
    • understand the interaction between critical illness insurance and life assurance, and between critical illness insurance and income protection
    • evaluate the range, structure and application of critical illness protection in relation to group policies
    • know the range, structure and application of long-term care insurance to meet financial protection needs including:: • political environment, social care policy, national factors
    • know the main product types and features
    • evaluate long term care protection taking in to account cost, resources and appropriate options
    • understand factors relating to: • immediate needs provision • long-term care planning process
    • know legal considerations relating to vulnerable clients: • The Mental Capacity Act 2005 definition of capacity • lasting power of attorney and the different types • deputy of the Court of Protection
    • understand the regulatory considerations that apply to long-term care insurance: • Financial Conduct Authority’s (FCA’s) packaged product/ retail investment products regime • roles of Financial Ombudsman Service and Financial Services Compensation Scheme • provision of pre- and post-sales information • claims handling rules
    • analyse the main features of personal accident, sickness insurance and unemployment insurance
    • analyse the main features of private medical insurance, hospital plans and dental insurance
    • analyse the main features of payment protection insurance - mortgage, credit
    • evaluate the relevant factors for individuals and business clients when it comes to planning their financial protection requirements: • priorities, risk and choices • existing arrangements • consequences of inadequate protection
    • calculate the current and future capital and income needs in real terms for: • family and personal protection • SME business protection needs - business loans, key person, partnership and shareholder protection
    • evaluate the relevant factors in selecting appropriate solutions taking account of: • similar types of products • client needs • identifying and matching suitable product solutions to needs • combinations of products • current and future affordability • property purchase
    • evaluate appropriate solutions in relation to: • cohabitation • marriage • civil partnership • birth of child • separation and divorce
    • evaluate appropriate solutions in relation to: • work • going overseas • retirement
    • analyse estate planning and its application in the financial planning process: • the basics of wills and will planning • the events that invalidate wills • laws of intestacy • importance of regular reviews • use of lasting power of attorney

  • Retirement Planning (30%)

    • Pension Provision in context
    • The main types and methods of pension provision
    • Pension Scheme Taxation
    • The regulatory landscape
    • Applying pensions law and regulation
    • Defined Benefit (DB) and Defined Contribution (DC) Schemes
    • State Retirement Benefits
    • Taking a Retirement Income
    • understand the social and macroeconomic factors influencing the development of pension policy: • role of government, policy direction, challenges • demographic trends, longevity and ageing population • registered pensions, main types of pension provision • incentives, disincentives and attitudes to saving, and economic factors and influences
    • understand State Pension benefits
    • understand defined benefit (DB) schemes
    • understand defined contribution (DC) schemes
    • interpret how the HMRC tax regime applies to pensions planning: • taxation of contributions to pension schemes, and relevant tax relief • taxation of retirement and death benefits from pension schemes • tax treatment of pensions on death • annual allowances, lump sum allowance (LSA) and lump sum death benefit allowance (LSDBA), transitional protections, money purchase annual allowance and other limitations on tax relief • tax treatment of non-registered pension in outline
    • know the role of the Financial Conduct Authority with respect to pensions regulation
    • know the role of the Pensions regulator with respect to pensions regulation
    • know the role and powers of relevant Ombudsman services
    • know the training and competence requirements for a Pension Transfer Specialist
    • interpret aspects of pensions law and regulation relevant to retirement planning: • employment law relevant to pensions • pensions, divorce and breakdown of family relationships • bankruptcy law and pension assets • The Pensions Regulator’s compliance requirements • Financial Conduct Authority rules • Pension protection schemes
    • understand the relevant aspects of pensions law and oversight: • trust-based and contract-based DC pensions • roles and duties of trustees, administrators and professional advisers
    • understand auto-enrolment schemes, employer duties, contributions, opt-in / opt-out, payroll and default issues
    • assess circumstances to identify and avoid pension scams
    • understand mis-selling issues
    • understand the key characteristics and application of DB pension schemes: • structure, characteristics, attributes and benefits • main types, variations and hybrids • rules and operation of DB schemes • funding methods and issues • membership eligibility criteria and top-up options • factors to consider and benefits of leaving, or transfers DB to DC • early and normal retirement • role of trustees, and other parties, and scheme reporting • the impact of employer covenants • benefits on ill health or death • private and public sector schemes
    • analyse the options available from DB pension schemes regarding retirement planning for individuals: • factors to consider and benefits on leaving; early, normal and late retirement • benefits on ill health and death • switching issues and considerations • public sector schemes • retirement benefits • leaving benefits • ill health benefits • Pension Commencement Lump Sum (PCLS) and interaction with pension income • death benefits before and after crystallisation
    • understand the main DC pension accumulation options: • main types of DC schemes, their features costs and benefits • the main differences between contract-based and trust-based DC arrangements • employer and employee and other individual contributions - the main methods and issues • switching between DC pension arrangements, safeguarded benefits and pensions consolidation • death and sickness benefits • investment choices and restrictions
    • understand the main DC decumulation rules and options in relation to retirement planning for individual customers: • flexi- access drawdown • uncrystallised funds pension lump sum (UPFLS) • annuity purchase • drawing the whole pension fund as cash • small Pots/ Trivial commutation rules
    • understand the structure, relevance and application of the state schemes in relation to an individual’s pension planning: • basic state retirement benefits; structures, state retirement ages (SRA), levels of benefit, link to national insurance records and SRA • Pension Credit framework • other relevant state benefit entitlements
    • evaluate the different ways of taking benefits: • reasons for taking or deferring state retirement benefits • considerations when taking income and/or lump sum benefits from a DB scheme • considerations when taking income and/or lump sum benefits from a DC scheme
    • analyse the advantages and disadvantages of different types of annuities
    • assess the eligibility for an enhanced or impaired annuity

  • Retirement Solutions (15%)

    • Financial Planning and Advice for Retirement
    • Post retirement investment strategies
    • understand the importance of the need to align planning and advice with a client’s essential needs and realistic financial aspirations and ensure recommendations are suitable
    • analyse retirement aims and objectives taking account of the following factors: • availability and prioritisation of savings and investments • limits on tax relieved contributions and their impact on accumulation methods • attitude and expectations as regards retirement and working in later life • assumptions and impact • conflict with other objectives • timescales and risk, including inflation and longevity risk
    • evaluate existing policies and alternative solutions available for pension income and long-term care requirements: • alternative sources of capital including non-pension investment assets • equity release products • proceeds from sale of a business or property • inheritance • buy to let, individual savings accounts (ISAs), unitised securities, alternative investments • Shariah - compliant solutions
    • evaluate the merits, limitations and suitability of investments available to meet stated objectives taking account of: • when and how retirement may occur • phased retirement • projected levels of investment risk and return • investment strategy and fund selection criteria • impact of fees and charges • product and wrappers, critical yield and optimal crystallisation dates • other sources of non-pension income
    • understand eligibility for pension liquidation and / or drawdown
    • evaluate phased retirement options, benefits and risks
    • analyse the options and factors to consider with regard to developing a post-retirement investment strategy for: • financial provision for care in later life • timing of decisions and implementation • provision for dependants • sequencing risk • sustainability of income in retirement

  • Financial Planning Recommendations (10%)

    • Develop Financial Planning Recommendations
    • Implement Financial Planning Recommendations
    • Review the client’s situation
    • understand how to develop recommendations; explain and justify outline recommendations to meet / address client needs, goals, objectives, and other issues or problems where appropriate; draft initial recommendations for a suitable financial plan
    • evaluate the advantages and disadvantages of different strategies
    • evaluate whether all recommendations are suited to the client’s situation and financial requirements, including: • appropriateness and relevance of proposed solutions, products and, where applicable, providers • alternative courses of action where no suitable product is available • whether they match the agreed risk / reward trade off • affordability
    • analyse the requirement to appropriately balance the interrelationship between protection, saving and investment, and other objectives such as liquidity and retirement
    • evaluate how the plan and/or recommendations meet the client’s specific needs, in a manner that the client can understand including: • explanation of appropriate financial protection products to the client and how they meet client needs • appropriateness and suitability • characteristics, correlation, advantages and disadvantages of different products • comparison of the different options available • implications of the different recommendations on other parts of the financial plan • advantages and disadvantages of the proposed recommendations including costs • how the recommendations take account of future needs • how the recommendations will be handled, including the need for monitoring and review
    • understand how to conduct financial planning reviews and review meetings, including: • purpose and frequency of reviews • process of reviewing a financial plan • initiating a review meeting and gathering the data required • what is discussed at a review meeting
    • analyse actions that may be required after the review, including: • reassessing and rebalancing asset allocation • review of existing financial solution

How to prepare

Work through the topics, read the explanation after each answer, and revisit the areas where you miss questions. Use the official outline and reference materials below to guide your study.

These independent practice questions are not actual exam items and do not guarantee a passing result.

Frequently asked questions

What is the exam format?

Computer-based multiple-choice examination, on demand at test centres; remote invigilation is also offered.

How many questions are on the exam?

Total questions: 80–88; Scored questions: 80; Unscored questions: 0–8; The total includes the scored and unscored questions.

How long is the exam?

2 hours standard answering time; proportionately more time is allowed if additional trial questions are included.

What is the passing score?

70%: pass 56–80 marks; fail 0–55 marks. The published pass rate is distinct from the pass mark.

How much does the exam cost?

UK, 1 April 2026–31 March 2027: exam £304 (GBP); mandatory workbook £105 separately; saver package £424. One-off qualification registration fee £68 when registering the first qualification. Concessionary rates have separate eligibility conditions.

Official sources and references

Confirm current exam arrangements with the exam provider.