R02 Investment Principles and Risk – Top Tips for Success

Exam overview

If you are studying for the R02 exam you will know that the study text covers investments. Although this area may be familiar if you are already providing financial advice, there is still a lot of knowledge and understanding required to pass.

Our ‘Top Tips for Success’ are designed to help you get the best out of your study time and improve your chances of passing first time. With around 40% of candidates failing at each sitting, it is important to understand the structure and focus of the exam early.

• 100 questions in total
• 72 single-response multiple-choice questions
• 28 multiple-response questions
• Two hours to complete
• Nominal pass mark is 65%
• Recommended minimum study time: 60 hours
• View previous pass rates here

Common exam misconceptions

1. Only investment products are tested – Incorrect. You will also be examined on key concepts and formulas that underpin product performance.

2. All sections are equally weighted – Incorrect. Chapters 1 and 6 carry half of all exam questions.

3. Few calculations will appear – False. Over 20% of questions involve calculations. You must be confident with your calculator and functions.

4. Every formula must be memorised – Formulas are tested, but focus on understanding how they work and what they show rather than rote memorisation.

5. Don’t guess if unsure – Incorrect. There is no negative marking. Eliminate wrong answers to improve your chances.

Study time

The CII recommends a minimum of 60 hours, but more may be needed if investments are unfamiliar. Use a structured plan, vary your study methods, and keep sessions short with breaks. Recognise your progress to stay motivated.

Our Learning to Learn courses provide valuable strategies to help you study more effectively.

Do

• Use practice questions at the start, during and end of each study session
• Attempt CII mock exams under exam conditions
• Practise regularly to boost both knowledge and exam technique
• Focus on chapters with the most weightings
• Read questions carefully – the detail provided often helps identify the correct answer

Do not

• Leave any question unanswered – always guess if needed
• Spend longer than 1 minute per question – allow time to revisit more difficult ones

Practice questions

The R02 Gap Analysis and Assessment Tool provides 300 practice questions, closely mirroring the mix and weightings of the actual exam. Choose 25, 50 or 100-question tests in revision or exam style. Results show your performance by Learning Outcome, with explanations and references for incorrect answers.

Additional information

• Full training directory including R02 course and assessments: view here
• Further study FAQs: view here