Candidates should be able to understand the:

• Purpose and structure of the UK financial services industry
• Different financial asset classes and product types
• Process of giving advice and the main areas covered
• Ethics, regulatory processes, rule and legislation underpinning UK financial services
• Use of the FSA’s regulatory powers and responsibilities to protect the market's integrity and the impact on individuals and firms of the FSA’s regulatory powers

Candidates should be able to understand the:

• Economic and other factors affecting investment returns
• Key features of the different asset classes and product types and the role of ethical investment in financial advice
• Risks involved in investments, how risks affect returns and the risk profile of investors
• Taxation considerations in the investment process
• Importance of asset allocation in investment decisions
• Effect of other issues on investment planning

Candidates should be able to understand the:

• Purpose and scope of financial protection products and how they interact with State benefits
• Main features and functions of the different types of contracts and how they are arranged in order to meet the individual client’s protection needs
• Main protection needs of businesses

Candidates should be able to understand the:

• Effect that retirement planning has on clients before, at and after retirement
• Impact that taxation and legislation have on retirement planning
• Different types of individual, occupational and State pension schemes
• Main options for drawing benefits at retirement
• Use of alternative investments in retirement planning
• Effect of divorce on retirement planning

Candidates should be able to apply:

• Their knowledge and understanding of the financial services industry and its regulation
• Their knowledge and understanding of the products and processes tested in CF1-4

Candidates should be able to understand the:

• House buying process, from making an offer to completion and the key parties involved
• Different types of borrowers and how to meet their individual mortgage needs
• Different types of mortgage product and repayment options and their suitability for the client
• Legislative and regulatory position of mortgages and the requirements of a mortgage adviser

Candidates should be able to understand the:

• Definition, purpose and scope of long term care contracts and how they interact with State benefits and State funded long term care
• Main features and functions of the different types of contract that can be used to fund long term care and how they can be arranged to meet an individual’s needs
• Principal legal, taxation and regulatory issues that are relevant to advice on long term care insurance
• Importance of regular reviews to ensure that long term care insurance cover remains appropriate

At the end of this unit, candidates should be able to understand the:

• Principles of equity release and the types of schemes available
• Suitability and affordability of the different types of equity release products
• Risks to the consumer associated with equity release
• Application of suitable equity solutions according to the circumstances of different customers

Candidates should be able to understand the:

• Key features, risks and benefits of home reversion plans
• Suitability and affordability of the different types of home reversion plans and the principal products and services that are alternatives to home reversion plans
• Application of suitable equity release solutions according to the circumstances of different customers

At the end of this unit, candidates should understand the:

• Basic product types, including group life
• Principles of financial and medical underwriting
• Policy issues likely to arise with life policies
• Administration of life policies, including the different payment methods and consequences of non-payment
• Handling of life policy claims

At the end of this unit, candidates should understand:

• The regulatory and legislative environment governing pensions
• The basic principles of pension taxation and administration
• The basic pension product types, including group pensions
• With profits and unit linked investments
• The different pensions and options available when taking benefits

Candidates should be able to demonstrate an understanding of:

• The basic structure of the tax system and self assessment
• The main taxes on income and capital that may be charged on individuals, the self assessment system and how tax liabilities are computed
• Impact of residence and domicile on an individual’s liability to UK tax

Candidates should be able to demonstrate an understanding of the:

• Legal principles associated with the creation and management of a trust
• Main types of trusts that are common in the UK
• Taxation considerations relevant to trusts

Candidates should be able to demonstrate an understanding of:

• The main legal forms of business and how they are set up and managed
• The consequences of bankruptcy or insolvency
• Business accounts and financial controls
• The taxation of each type of business entity, its owners and employees
• The main legal responsibilities businesses have to employees

Candidates should be able to demonstrate an understanding of the:

• Main tax and legal frameworks that govern the accumulation phase of building up retirement benefits under registered pension schemes
• Features of defined contribution and defined benefit pensions
• Choices faced by early leavers and use of transfer value analysis
• State retirement benefits available, including the risks and suitability of contracting out of the State Second Pension

Candidates should be able to demonstrate an understanding of the:

• Process of decumulating pension funds and the main issues for clients and advisers
• Main choices facing members of pension schemes during decumulation
• Features, risks and tax treatment of the secured pension option
• Features, risks and tax treatment of the unsecured pension option
• Features, risks and tax treatment of phased retirement
• Features, risks and tax treatment of the alternatively secured pension option

Candidates should be able to demonstrate an understanding of:

• How the economic environment and individual company performance affects investment performance and investment decision making
• How risk is measured and managed
• The main principles governing how to construct an investment portfolio
• The range of investment management services, how their performance is evaluated and their regulatory environment

Candidates should be able to demonstrate an understanding of:

• The supervisor’s role in a regulated organisation
• Recruitment, training, attaining competence, maintaining competence and supervising competence
• Management information and performance standards
• Financial Services Authority rules and guidelines in respect of competence and supervision
• The legal and regulatory aspects of employment and supervision

At the end of this unit, candidates will be able to advise clients on a range of taxation and trust issues, including:

• The tax system and self assessment
• Main taxes on income and capital
• How tax liabilities are computed
• Tax treatment of various investments
• Types of trusts
• Powers of attorney
• Taxation of trusts

At the end of this unit, candidates will be able to advise clients on a range of business planning issues, including:

• The main legal forms of business
• The consequences of bankruptcy and insolvency
• Business accounts and financial controls
• Taxation of business entities, its owners and employees
• Main legal responsibilities of businesses
• Business protection insurance
• Pensions for business planning

At the end of this unit, candidates will be able to advise clients on a range of pension planning issues, including:

• The tax and legal framework of pensions
• Legacy issues arising from the previous regime
• Defined contributions and defined benefit pension schemes
• State retirement benefits
• Transfer value analysis and transfer advice
• Various options for drawing income
• Needs of personal and corporate customers

At the end of this unit, candidates will be able to advise clients on a range of investment issues, including:

• The investment environment
• Various types of investments
• The measurement and management of risk
• Investment portfolio construction
• Investment management services
• Performance evaluation