CII Level 4 Diploma in Financial Planning

What you'll be able to do

• Understand how to establish client objectives and the processes involved.
• Understand how to meet client objectives through effective investment management.
• Understand the behaviour of key investment types in various market conditions.
• Understand the performance of key investment types over different time horizons.
• Understand the risk profile associated with different investment types.
• Understand the correlation between different investment types and their impact on portfolio diversification.
• Understand the role of the investment manager in achieving client financial goals.
• Understand the principles and practices of discretionary portfolio management.
• Understand the principles and practices of non-discretionary portfolio management.
• Understand the objectives of different types of investment fund.
• Understand the different approaches used by investment funds to achieve their objectives.
• Understand the fundamental economic principles that are applicable to investment management.
• Understand the relationship between investment returns and the level of investment risk.
• Understand the principles of portfolio theory and its application to investment management.
• Understand the limitations of portfolio theory in real-world investment scenarios.
• Understand the purpose and construction of various market indices.
• Understand how to measure investment performance using appropriate metrics.
• Understand the use of data in investment analysis and decision-making.
• Understand the application of regression analysis in investment modelling.
• Understand the principles of basic financial mathematics and their relevance to investment calculations.
• Understand the structure and content of company accounts.
• Understand how to interpret company accounts to assess financial performance and stability.
• Understand the various sources of information available to investment managers.
• Understand the disclosure obligations of investment managers and financial institutions.
• Understand the potential for bias in different information sources and how to mitigate its impact.
• Apply the principles of performance measurement to evaluate investment outcomes.
• Apply the principles of portfolio theory to construct and manage investment portfolios.
• Analyse financial information to assess the performance and financial health of companies.
• Interpret financial information to identify investment opportunities and risks.
• Compare financial information and financial ratios to benchmark company performance and identify trends.

What you'll be able to do

• Establish a professional and ethical adviser/client relationship.
• Establish client aims and objectives through effective communication and questioning.
• Establish the client's risk profile using recognised assessment methods.
• Conduct a thorough fact-find to gather relevant client information.
• Analyse client data to identify financial needs and opportunities.
• Formulate a comprehensive financial plan based on client data and objectives.
• Make suitable recommendations to the client based on the financial plan.
• Monitor client circumstances regularly to ensure the financial plan remains appropriate.

What you'll be able to do

• Obtain appropriate client information and understand clients' needs, wants, values and risk profile essential to the financial planning process, ensuring compliance with data protection regulations.
• Synthesise the range of client information, subjective factors and indicators to provide the basis for financial planning assumptions and decisions, considering both quantitative and qualitative data.
• Analyse a client's situation and the advantages and disadvantages of appropriate options, including investment, retirement, and protection strategies.
• Formulate suitable financial plans for action and explain and justify recommendations, ensuring they are aligned with the client's goals and risk profile.
• Implement, review and maintain financial plans to achieve the client's objectives and adapt to changes in circumstances, providing ongoing support and advice.

What you'll be able to do

• Understand the UK financial services industry in its European and global context.
• Understand how the retail consumer is served by the financial services industry.
• Understand legal concepts and considerations relevant to financial advice.
• Understand the regulation of financial services.
• Understand the financial regulators' responsibilities and approach to regulation.
• Apply the principles and rules as set out in the regulatory framework.
• Apply the regulatory advice framework in practice for the consumer.
• Understand the range of skills required when advising clients.
• Understand the financial regulators' use of principles and outcomes based regulation to promote ethical and fair outcomes.
• Apply the Code of Ethics and professional standards to business behaviours of individuals.
• Critically evaluate the outcomes that distinguish between ethical and compliance driven behaviours.

What you'll be able to do

• Analyse the characteristics, inherent risks, behaviour and correlation of asset classes.
• Understand the macro-economic environment and its impact on asset classes.
• Understand the merits and limitations of the main investment theories.
• Apply the principles of the time value of money.
• Analyse and explain the nature and impact of the main types of risk on investment performance.
• Analyse the characteristics, inherent risks, behaviours and relevant tax considerations of investment products.
• Apply the investment advice process.
• Understand the principles of investment planning.
• Analyse the performance of investments.

What you'll be able to do

• Understand the key factors within the economic environment that influence investment decisions.
• Understand how to assess investment performance using appropriate metrics and benchmarks.
• Understand the different types of direct financial investments available to investors.
• Understand the characteristics of direct financial investments, including their risk and return profiles.
• Understand the different types of collective investments available to investors.
• Understand the uses of collective investments in achieving different investment objectives.
• Understand the risks and potential returns associated with making other types of investments, such as property or commodities.
• Understand how to interpret company accounts to assess investment potential.
• Understand the main principles of portfolio construction, including diversification and asset allocation.
• Understand how to manage investment risk through various techniques and strategies.
• Understand the process of asset allocation and its importance in portfolio management.
• Understand the role of the investment manager in providing investment advice and managing client portfolios.
• Understand the range of investment management services available to investors, including discretionary and advisory services.

What you'll be able to do

• Explain the regulatory, legal and ethical frameworks of paraplanning, including relevant legislation and professional standards.
• Evaluate the customer’s personal circumstances, including their financial goals, risk tolerance, and time horizon.
• Analyse the financial position of the client and provide potential solutions, including investment strategies, retirement planning, and insurance options.

What you'll be able to do

• Understand current key pension accumulation issues, including demographic trends, investment risks, and regulatory changes.
• Understand the HM Revenue and Customs (HMRC) tax regime for pensions with particular reference to accumulation of retirement funds, including contribution limits and tax relief.
• Understand the legacy issues arising from the regimes operating before 6 April 2006, including protected rights and scheme-specific rules.
• Understand the State retirement benefits available, including the basic State Pension and the new State Pension.
• Understand the risks and suitability of contracting out of the State Second Pension, including the implications for future pension income.
• Understand the legal framework for pensions, including trust law, pensions legislation, and regulatory requirements.
• Understand the features of defined contribution pension schemes, including investment options, charges, and retirement options.
• Understand the features of defined benefit pension schemes, including accrual rates, pensionable service, and funding levels.
• Understand the choices faced by early leavers and the use of transfer value analysis, including the implications of transferring pension benefits.
• Understand the impact of divorce on pension provision, including pension sharing orders and earmarking.

What you'll be able to do

• Understand the rules that apply to retirement benefits at the date that they are crystallised
• Understand in detail the features of the secured pension option
• Understand in detail the tax treatment of the secured pension option
• Understand in detail the risks associated with the secured pension option
• Understand in detail the features of the unsecured pension available up to age 75
• Understand in detail the risks associated with the unsecured pension available up to age 75
• Understand in detail the tax treatment of the unsecured pension available up to age 75
• Understand in detail the features of phased retirement up to age 75
• Understand in detail the risks associated with phased retirement up to age 75
• Understand in detail the tax treatment of phased retirement up to age 75
• Understand in detail the features of the alternatively secured pension available at age 75
• Understand in detail the risks associated with the alternatively secured pension available at age 75
• Understand in detail the tax treatment of the alternatively secured pension available at age 75
• Understand the use of the critical yield in advising on Pension Fund Withdrawal
• Understand the implications of the critical yield for investment decisions
• Understand the benefits available when an investor is in ill health
• Understand the State retirement benefits available to individuals
• Understand the function of regular client reviews in pension planning

What you'll be able to do

• Understand the political factors which provide the context for pensions planning
• Understand the economic factors which provide the context for pensions planning
• Understand the social environment factors which provide the context for pensions planning
• Understand how the HMRC tax regime applies to pensions planning
• Understand the relevant aspects of pensions law to pensions planning
• Understand the relevant aspects of pensions regulation to pensions planning
• Understand the structure of Defined Benefit (DB) schemes
• Understand the characteristics of Defined Benefit (DB) schemes
• Understand the application of Defined Benefit (DB) schemes to an individual’s pension planning
• Analyse the range of Defined Contribution (DC) scheme options as they apply to an individual’s pension planning
• Analyse the factors to consider for drawing pension benefits
• Analyse the options available for drawing pension benefits
• Understand the structure of the State pension schemes
• Understand the relevance of the State pension schemes to an individual’s pension planning
• Understand the application of the State pension schemes to an individual’s pension planning
• Evaluate the aims and objectives of retirement planning
• Evaluate the relevant investment issues in retirement planning

What you'll be able to do

• Understand the basic structure of the UK tax system
• Understand the principles of self-assessment within the UK tax system
• Understand when and how Income Tax is applied to different types of income
• Understand when and how National Insurance contributions apply to employed income
• Understand when and how National Insurance contributions apply to self-employed income
• Understand when and how Capital Gains Tax (CGT) applies to an individual’s gains
• Understand the tax treatment of different kinds of investments
• Understand when and how Inheritance Tax (IHT) applies
• Understand the impact of an individual’s residence status on liability to UK tax
• Understand the impact of an individual’s domicile status on liability to UK tax

What you'll be able to do

• Understand the UK tax system as relevant to the needs and circumstances of individuals and trusts.
• Analyse the taxation of investments as relevant to the needs and circumstances of individuals and trusts.
• Analyse the role and relevance of tax in the financial affairs of individuals and trusts.
• Apply the knowledge of personal taxation to the provision of investment advice.

What you'll be able to do

• Understand the key characteristics of an effective supervisor in a regulated environment.
• Understand the role of a supervisor in ensuring compliance with regulatory requirements.
• Understand relevant legislation in connection with employment law, including discrimination, unfair dismissal, and data protection.
• Understand relevant legislation in connection with performance management, including appraisal processes and disciplinary procedures.
• Understand relevant legislation in connection with termination of employment, including redundancy and dismissal.
• Understand different leadership models and their application in a supervisory role.
• Understand different behavioural models and their impact on team dynamics.
• Understand how to make communication effective in a supervisory context.
• Understand a range of communication methods and their suitability for different situations.
• Understand the legal and regulatory aspects of selection and recruitment, including equal opportunities and background checks.
• Understand how learning takes place and the factors that influence learning effectiveness.
• Understand the coaching process and the role of the supervisor as a coach.
• Understand the counselling process and the role of the supervisor in providing support and guidance.
• Understand the assessing processes and the roles within them.
• Understand the role of compliance in the sales process and the supervisor's responsibility for ensuring compliance.
• Understand how to set clear and measurable objectives for team members.
• Understand how to measure performance against objectives and provide feedback.
• Understand the importance of management information in monitoring team performance and identifying trends.
• Understand quality standards and their application in a regulated environment.

What you'll be able to do

• Understand the main legal forms of business operating in the UK
• Understand the main principles of business accounting for each of the main legal forms of business
• Understand how to interpret business accounts for each of the main legal forms of business
• Understand the main internal options for financing a business
• Understand the main external options for financing a business
• Understand the principles and application of taxes in the business context
• Understand the impact of employment law on business operations
• Understand the main principles of business protection insurance
• Understand the purpose and application of key person insurance
• Understand the purpose and application of share protection insurance
• Understand the purpose and application of partnership protection insurance

What you'll be able to do

• Understand the structure of a trust, including the roles and responsibilities of the settlor, trustees, and beneficiaries.
• Understand how trusts are created, including the legal requirements and documentation involved.
• Understand the rules that govern the operation of trusts, including trustee duties and beneficiary rights.
• Understand the main uses of trusts in financial planning, such as estate planning and asset protection.
• Understand the rules covering the investment of trust assets, including the need for diversification and prudent management.
• Understand the administrative requirements of trusts, including record-keeping and reporting obligations.
• Understand the consequences of giving a power of attorney, including the scope of the attorney's authority and the potential for abuse.
• Understand the consequences of giving an enduring power of attorney, including its continued validity in the event of the donor's mental incapacity.
• Understand the consequences of making a will, including the distribution of assets and the appointment of executors.
• Understand the consequences of dying intestate (without a will), including the statutory rules of inheritance.
• Understand the bankruptcy rules and their impact on individuals and businesses.
• Understand the role of the trustee in bankruptcy in managing the assets of a bankrupt individual or company.
• Understand how trusts are subject to tax, including income tax, capital gains tax, and inheritance tax.
• Understand how life assurance policies can be placed in trust to provide benefits to beneficiaries.
• Understand how certain pension benefits can be placed in trust to provide benefits to beneficiaries.
• Understand the tax implications of placing life assurance policies and pension benefits in trust.
• Understand the other implications of placing life assurance policies and pension benefits in trust, such as creditor protection.
• Understand the need to review trusts regularly to ensure they remain appropriate and effective.

What you'll be able to do

• Assess the use of platforms in providing financial services to clients
• Explain the legal issues specific to using platform services in financial planning
• Assess the range of economic models used for platforms in the financial services sector
• Explain the specific regulatory issues impacting upon platform services
• Assess the suitability of platforms in meeting client requirements and financial goals
• Explain the corporate wrap platform proposition for pensions and other financial products and services