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Investment principles and risk

R02 (20 Diploma credits)

The objective of this unit is to develop knowledge and understanding of investment products and the application of the investment advice process.

Download 2017-2018 syllabus »

Study material testing period

2017–18 editions are applicable to exams sat from 01 September 2017 to 31 August 2018.

Important notice

You can only purchase the study text as part of the unit registration. Please refer to the related FAQs for more information: www.cii.co.uk/about/faqs/changes-to-unit-registration/.

Membership

Members get access to a range of benefits, including quality CPD and discounts on CII exams.


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Unit registration – 2017–18 edition (applicable to exams sat 01 Sep 17 to 31 Aug 18)

Members
£185.00
Non-members
£265.00
Study text (printed and ebook) with updates, RevisionMate, exam guide and exam entry

This includes a printed study text and ebook (available on RevisionMate) with electronic updates. Updates will be made available for the examination period to which the study text relates (further details are included on the title page of the study text). Developed to assist you in understanding and learning the exam syllabus, the text breaks down the syllabus into concise sections, with each chapter containing clearly defined learning outcomes and a series of self-test questions.

RevisionMate
You will have access to an unrivalled suite of online services to support your studies through our RevisionMate study tool. Please note: Access is granted until 31 Aug 2018 when this study text enrolment expires.

Support typically includes a study planner, a knowledge check (multiple-choice test) facility covering each chapter, student discussion forum, the latest examination guide and hints and tips on how to pass the exam. Full details will be provided with your study text.

Exam entry
Exams can be booked at the point of enrolment or at a later date.

ebooks
ebooks are compatible with most portable electronic devices including Android tablets/smart phones, Kindles and iPads/iPhones. They can also be viewed on desktop and laptop computers using appropriate EPUB/Kindle reader software (required).

Please note:

  • ebooks are not pdf files and cannot be printed.
  • the reading experience will depend on the portable device used or the reading software installed, if viewed on a computer.

Sample chapter download
To check that the file formats are compatible with your device/chosen e-reader software, click on the link below to download a sample.

• Free sample chapters

Examination guide

This consists of a specimen examination (with multiple-choice questions), answers and useful hints on how to prepare for the examination.


Study text (printed and ebook) with updates, RevisionMate, exam guide and exam entry

This includes a printed study text and ebook (available on RevisionMate) with electronic updates. Updates will be made available for the examination period to which the study text relates (further details are included on the title page of the study text). Developed to assist you in understanding and learning the exam syllabus, the text breaks down the syllabus into concise sections, with each chapter containing clearly defined learning outcomes and a series of self-test questions.

RevisionMate
You will have access to an unrivalled suite of online services to support your studies through our RevisionMate study tool. Please note: Access is granted until 31 Aug 2018 when this study text enrolment expires.

Support typically includes a study planner, a knowledge check (multiple-choice test) facility covering each chapter, student discussion forum, the latest examination guide and hints and tips on how to pass the exam. Full details will be provided with your study text.

Exam entry
Exams can be booked at the point of enrolment or at a later date.

ebooks
ebooks are compatible with most portable electronic devices including Android tablets/smart phones, Kindles and iPads/iPhones. They can also be viewed on desktop and laptop computers using appropriate EPUB/Kindle reader software (required).

Please note:

  • ebooks are not pdf files and cannot be printed.
  • the reading experience will depend on the portable device used or the reading software installed, if viewed on a computer.

Sample chapter download
To check that the file formats are compatible with your device/chosen e-reader software, click on the link below to download a sample.

• Free sample chapters

Examination guide

This consists of a specimen examination (with multiple-choice questions), answers and useful hints on how to prepare for the examination.

Book exam without a unit registration or redeem exam voucher or book re-sit

Prices displayed apply to those who wish to book an exam without a unit registration or wish to purchase an exam re-sit. You can also book here if you have a valid exam voucher for which you will not be charged.

Members
£110.00
Non-members
£150.00
Unit R02 exam
 

Revision aids – 2017–18 editions (applicable to exams sat 01 Sep 17 to 31 Aug 18)

Members
£27.00
Non-members
£32.00
Key fact booklet (printed and ebook) – 2017–18 edition (applicable to exams sat 01 Sep 17 to 31 Aug 18)

Summarising the key information contained in the study text, key fact booklets and e-key fact booklets are perfect for studying when travelling to and from work or in situations when reading a study text is impractical. As part of your purchase a free ebook version of this key fact booklet is included on RevisionMate.

e-key fact booklets
e-key fact booklets are compatible with most portable electronic devices including Android tablets/smart phones, Kindles and iPads/iPhones, using appropriate ereader software.

They can also be viewed on desktop and laptop computers using appropriate EPUB/Kindle reader software (required).

Please note:
• e-key fact booklets are not pdf files and cannot be printed.
• the reading experience will depend on the portable device used or the reading software installed, if viewed on a computer.

Sample chapter download
To check that the file formats are compatible with your device/chosen e-reader software prior to purchase, click on the link below to download a free sample.

• Free sample chapters

Key fact booklet (printed and ebook) – 2017–18 edition (applicable to exams sat 01 Sep 17 to 31 Aug 18)

Summarising the key information contained in the study text, key fact booklets and e-key fact booklets are perfect for studying when travelling to and from work or in situations when reading a study text is impractical. As part of your purchase a free ebook version of this key fact booklet is included on RevisionMate.

e-key fact booklets
e-key fact booklets are compatible with most portable electronic devices including Android tablets/smart phones, Kindles and iPads/iPhones, using appropriate ereader software.

They can also be viewed on desktop and laptop computers using appropriate EPUB/Kindle reader software (required).

Please note:
• e-key fact booklets are not pdf files and cannot be printed.
• the reading experience will depend on the portable device used or the reading software installed, if viewed on a computer.

Sample chapter download
To check that the file formats are compatible with your device/chosen e-reader software prior to purchase, click on the link below to download a free sample.

• Free sample chapters

Members
£27.00
Non-members
£32.00
Question pack 1 – 2017–18 edition (applicable to exams sat 01 Sep 17 to 31 Aug 18)

Delivered online through RevisionMate, packs contain 300 questions and provide comprehensive, flexible and interactive self-testing of the unit syllabus.

Note: Two packs are available for this unit – each contains different sets of questions.

This edition is based on the 2017/18 tax year and exam syllabus which is examined from 01 September 2017 to 31 August 2018. Please note, access to the questions will not be granted after this period.

Instructions on how to access the online question pack will be sent to your registered email address within two working days of your order being placed.

Please note, questions are designed to test knowledge of the unit syllabus in preparation for the exam but are not a product of the same development process as the actual CII examination question bank.

Find out more »

Non-EU candidates should note: if buying this option from outside the EU, you will be charged a fee without VAT. The price you will see throughout the web checkout process will be inclusive of VAT, however if you are outside the EU, your card will be charged the 'ex VAT' price and this will be reflected in the receipt you receive when payment is complete.

 

Question pack 1 – 2017–18 edition (applicable to exams sat 01 Sep 17 to 31 Aug 18)

Delivered online through RevisionMate, packs contain 300 questions and provide comprehensive, flexible and interactive self-testing of the unit syllabus.

Note: Two packs are available for this unit – each contains different sets of questions.

This edition is based on the 2017/18 tax year and exam syllabus which is examined from 01 September 2017 to 31 August 2018. Please note, access to the questions will not be granted after this period.

Instructions on how to access the online question pack will be sent to your registered email address within two working days of your order being placed.

Please note, questions are designed to test knowledge of the unit syllabus in preparation for the exam but are not a product of the same development process as the actual CII examination question bank.

Find out more »

Non-EU candidates should note: if buying this option from outside the EU, you will be charged a fee without VAT. The price you will see throughout the web checkout process will be inclusive of VAT, however if you are outside the EU, your card will be charged the 'ex VAT' price and this will be reflected in the receipt you receive when payment is complete.

 

Members
£27.00
Non-members
£32.00
Question pack 2 – 2017–18 edition (applicable to exams sat 01 Sep 17 to 31 Aug 18)

Delivered online through RevisionMate, packs contain 300 questions and provide comprehensive, flexible and interactive self-testing of the unit syllabus.

Note: Two packs are available for this unit – each contains different sets of questions.

This edition is based on the 2017/18 tax year and exam syllabus which is examined from 01 September 2017 to 31 August 2018. Please note, access to the questions will not be granted after this period.

Instructions on how to access the online question pack will be sent to your registered email address within two working days of your order being placed.

Please note, questions are designed to test knowledge of the unit syllabus in preparation for the exam but are not a product of the same development process as the actual CII examination question bank.

Find out more »

Non-EU candidates should note: if buying this option from outside the EU, you will be charged a fee without VAT. The price you will see throughout the web checkout process will be inclusive of VAT, however if you are outside the EU, your card will be charged the 'ex VAT' price and this will be reflected in the receipt you receive when payment is complete.

Question pack 2 – 2017–18 edition (applicable to exams sat 01 Sep 17 to 31 Aug 18)

Delivered online through RevisionMate, packs contain 300 questions and provide comprehensive, flexible and interactive self-testing of the unit syllabus.

Note: Two packs are available for this unit – each contains different sets of questions.

This edition is based on the 2017/18 tax year and exam syllabus which is examined from 01 September 2017 to 31 August 2018. Please note, access to the questions will not be granted after this period.

Instructions on how to access the online question pack will be sent to your registered email address within two working days of your order being placed.

Please note, questions are designed to test knowledge of the unit syllabus in preparation for the exam but are not a product of the same development process as the actual CII examination question bank.

Find out more »

Non-EU candidates should note: if buying this option from outside the EU, you will be charged a fee without VAT. The price you will see throughout the web checkout process will be inclusive of VAT, however if you are outside the EU, your card will be charged the 'ex VAT' price and this will be reflected in the receipt you receive when payment is complete.

Members
£45.00
Non-members
£50.00
Learn interactive tutorial – 2017–18 edition (applicable to exams sat 01 Sep 17 to 31 Aug 18)

The Learn online tutorial provides highly interactive study, backed by an assessment tool to check understanding as you progress with your studies.

This edition is based on the 2017/18 tax year and exam syllabus which is examined from 01 September 2017 to 31 August 2018. Please note, access to the Learn course will not be granted after this period.

Try the course demo here »

Please note that this revision aid is designed to complement, not replace, the primary study text. It provides visually engaging and therefore memorable learning, but it covers only key and difficult topics, not the entire syllabus.

Minimum system requirements:

  • Operating system: Windows/OSX/Android/iOS devices
  • Web browser: Latest versions of IE/Safari/Firefox/Chrome
  • Computer/laptop users: Latest version of Adobe Flash player.

Non-EU candidates should note: if buying this option from outside the EU, you will be charged a fee without VAT. The price you will see throughout the web checkout process will be inclusive of VAT, however if you are outside the EU, your card will be charged the 'ex VAT' price and this will be reflected in the receipt you receive when payment is complete.

 

Learn interactive tutorial – 2017–18 edition (applicable to exams sat 01 Sep 17 to 31 Aug 18)

The Learn online tutorial provides highly interactive study, backed by an assessment tool to check understanding as you progress with your studies.

This edition is based on the 2017/18 tax year and exam syllabus which is examined from 01 September 2017 to 31 August 2018. Please note, access to the Learn course will not be granted after this period.

Try the course demo here »

Please note that this revision aid is designed to complement, not replace, the primary study text. It provides visually engaging and therefore memorable learning, but it covers only key and difficult topics, not the entire syllabus.

Minimum system requirements:

  • Operating system: Windows/OSX/Android/iOS devices
  • Web browser: Latest versions of IE/Safari/Firefox/Chrome
  • Computer/laptop users: Latest version of Adobe Flash player.

Non-EU candidates should note: if buying this option from outside the EU, you will be charged a fee without VAT. The price you will see throughout the web checkout process will be inclusive of VAT, however if you are outside the EU, your card will be charged the 'ex VAT' price and this will be reflected in the receipt you receive when payment is complete.

 

Members
£45.00
Non-members
£50.00
Audio revision – 2017–18 edition (applicable to exams sat 01 Sep 17 to 31 Aug 18)

This MP3 audio material covers the key elements of each subject and is applicable to exams sat from 01 September 2017 to 31 August 2018. Please note, access to the audio course will not be granted after this period but downloaded files will never expire.

They last between 3-5 hours depending on the subject and provide an ideal way to reinforce the learning from the study text. Produced by Patterson Audio.

Instructions on how to download your audio material will be sent to your registered email address within 2 working days of your order being placed.

Non-EU candidates should note:  if buying this option from outside the EU, you will be charged a fee without VAT. The price you will see throughout the web checkout process will be inclusive of VAT, however if you are outside the EU, your card will be charged the 'ex VAT' price and this will be reflected in the receipt you receive when payment is complete.

Audio revision – 2017–18 edition (applicable to exams sat 01 Sep 17 to 31 Aug 18)

This MP3 audio material covers the key elements of each subject and is applicable to exams sat from 01 September 2017 to 31 August 2018. Please note, access to the audio course will not be granted after this period but downloaded files will never expire.

They last between 3-5 hours depending on the subject and provide an ideal way to reinforce the learning from the study text. Produced by Patterson Audio.

Instructions on how to download your audio material will be sent to your registered email address within 2 working days of your order being placed.

Non-EU candidates should note:  if buying this option from outside the EU, you will be charged a fee without VAT. The price you will see throughout the web checkout process will be inclusive of VAT, however if you are outside the EU, your card will be charged the 'ex VAT' price and this will be reflected in the receipt you receive when payment is complete.

Study text renewal

Members
£37.00
Non-members
£57.00
Upgrade your study text (printed and ebook) to the next edition

We offer the option for you to extend the life of your enrolment once your course has expired and receive the next edition of the study text together with electronic updates. This option is renewable on an annual basis.

Upgrade your study text (printed and ebook) to the next edition

We offer the option for you to extend the life of your enrolment once your course has expired and receive the next edition of the study text together with electronic updates. This option is renewable on an annual basis.

Introduction

CII qualifications involve the completion of one or more units, each covering an individually assessed topic. Assessment methods vary and depend on a unit's level and subject matter.


Assessment methods include:

  • Multiple-choice exams - the assessment method for Award, Certificate, and financial services 'R0' Diploma units assessed in the UK. Exams are delivered on-screen at a network of over 40 public centres across the UK. Sittings are available year-round, often on a weekly basis.
  • Written exams - the assessment method for some Diploma and Advanced Diploma units and all units examined outside the UK. Sittings are typically available twice-yearly in April and October at over 50 public centres throughout the UK and over 100 public centres outside the UK.
  • Coursework assessment - available for a select number of Advanced Diploma in Insurance units and the financial services unit (J09) Paraplanning, coursework assessment involves the completion of three written assignments during a 12 month period.
  • Mixed assessment - Initially introduced for unit (P92) Insurance business and finance, this has been extended to units (P05) Insurance law, (P80) Underwriting practice, (P81) Insurance broking practice and (P85) Claims practice from April 2015 and and will be extended to all Diploma in Insurance units by April 2018 (unit codes begin with the letter M). This involves the successful completion of both a coursework assignment and a multiple-choice exam. This has an 18 month enrolment period.
  • Dissertation assessment - available for the Advanced Diploma unit 991 London market insurance specialisation. This involves the submission of a dissertation proposal and an 11,000 word dissertation. This has an 18 month enrolment period. This unit should only be taken by those who have access to the necessary information and people in the London Market.

Find out more

It is essential that candidates familiarise themselves with the guidelines and instructions which are shown on the CII website under the relevant units. In addition candidates should familiarise themselves with the coursework and dissertation policies as well as exam policies (before the assessment) and notes to results (after the assessment).

Diploma in Regulated Financial Planning units

Exam guide update

The R02 Examination Guide for exams from 1 September 2016 to 31 August 2017 was first published in June 2016. Any questions which have been amended since the examination guide was first published will appear below.

Qualification update

Testing Position

  • Examinations are based on the published syllabus. Syllabuses are available free of charge on the CII website www.cii.co.uk or on request.
  • Candidates will be examined on the basis of law and practice in England unless otherwise stated. It should be assumed that all individuals are domiciled and resident in the UK unless otherwise stated.
  • The R02 examination consists of 100 multiple choice questions (MCQs): 72 standard format and 28 multiple response format. 2 hours are allowed for this examination.
  • The general rule is that the new tax year and changes arising from the Finance Act will be examined from 1 September each year. Other changes, not related to the Finance Act, will not be examined earlier than 3 months after they come into effect.
  • Candidates must keep up to date with legislative and industry changes that occur.

Tax year

  • The tax year 2017/2018 will be examined from 1 September 2017 until 31 August 2018.

2015 Emergency Budget

  • The emergency budget announced a number of changes proposed for the tax year 2017/18. Students should have an awareness of these announced changes in so far as they inform current thinking on financial planning, but students will not be expected to apply these rules in detail since they have yet to be effected and may be subject to change in the interim.  

EU referendum

On 23 June 2016, the UK voted to leave the European Union (EU).

The UK Government invoked 'Article 50' of the Lisbon Treaty on 29 March 2017. In doing so, the two-year negotiation period which will result in Britain leaving the EU began. This means that, at the time of publication, the UK's membership of the EU will cease on 29 March 2019.

Until this final 'withdrawal agreement' is entered into, the UK will continue to be a full member of the EU, compliant with all current rules and regulations, and firms must continue to abide by their obligations under UK law, including those derived from the EU, and continue with the implementation of all legislation that is still to come into effect.

The longer term impact of the decision to leave the EU on the UK's overall regulatory framework will depend, in part, on the relationship agreed between the UK Government and the EU to replace the UK's current membership at the end of the 'Article 50' negotiation period.

Please note: The UK decision to leave the European Union will have no impact on the 2017- 2018 CII syllabuses or exams. Changes that may affect future exam syllabuses will be announced as they arise. 

 

General Data Protection Regulation (GDPR) 

The General Data Protection Regulation comes into effect on 25 May 2018 and examinations will be reflective of the regulation from 25 May 2018.

 

MiFID II 

MiFID II comes into effect on 3 January 2018 and examinations will be reflective of the directive from 3 April 2018.

 

Stamp Duty Land Tax 

On the 22 November 2017, it was announced that first-time buyers would be relieved of Stamp Duty Land Tax for purchases up to a specified amount.  Examinations will be reflected of this change from 22 February 2018.

Please note that the tax tables and lender’s criteria provided in the examination will state the thresholds and rates for purchasers who are NOT first-time buyers.

 

Assessment information

It is important that candidates entering for a CII assessment familiarise themselves with our service, in particular the rules and procedures that are in place.