Certificate in Investment Planning (CIP)

Course Syllabus

Appropriate Examination 1

UK Financial Services, Regulation and Ethics (ApEx 1)

• U1 . The purpose and structure of the UK financial services industry
• U2 . The main financial asset classes and their characteristics, covering past performance, risk and return
• U3. The main financial services product types and their functions
• U4. The main financial advice areas
• U5. The process of giving financial advice, including the importance of regular reviews of the consumer's circumstances
• U6. The basic legal concepts relevant to financial advice
• U7. The UK taxation and social security systems and how they affect personal financial circumstances
• U8. The impact of inflation, interest rate volatility and other relevant socio-economic factors on personal financial plans
• U9. The FSA's approach to regulating firms and individuals
• U10. How the FSA's rules affect the control structures of firms and their relationship with the FSA
• U11. How the FSA's Conduct of Business rules apply to the process of advising customers / clients
• U12. How the anti-money laundering rules apply to dealings with private and intermediate customers
• U13. The main features of the rules for dealing with complaints and compensation
• U14. How the Data Protection Act 1998 affects the provision of financial advice and the conduct of firms generally
• K1 . The main aims and activities of the Financial Services Authority (FSA) and its approach to ethical conduct by firms and individuals
• K2 . How non-tax law and regulations impact upon firms and the process of advising clients

Appropriate Examination 2

Investment and Risk (ApEx 2)

• U1. The macro-economic factors that affect investment returns
• U2. The basic principles of taxation applying to the investments of UK resident and domiciled individuals
• U3. Different asset classes and their key features and suitability for different consumer circumstances
  • 3.1 Cash deposits
  • 3.2 Government securities and corporate bonds
  • 3.3 Equities
  • 3.4 Property - residential and commercial
• U.4. Different product types and their key features and suitability for different consumer circumstances
  •  4.1. OEICs and unit trusts
  • 4.2. Investment trusts
  • 4.3. Individual savings accounts (ISAs) and personal equity plans (PEPs)
  • 4.4. UK and offshore life assurance company products
  • 4.5. Offshore funds
• U5. The role of ethical investment and socially responsible investment in financial advice
• U6. How investment returns are related to investment risk and how that risk is measured
• U7. The risks faced by investors and how an investor's risk profile is determined
• U8. The importance of asset allocation in the investment process
• U9. How other issues affect investment planning
• U10. Tax planning strategies and tax calculation rules and procedures
• U11. The importance of keeping up to date with trends and changes in the legal framework for providing advice
• An1. Analyse consumers' circumstances and suitable investment products, taking account of any existing arrangements
• A1. Apply suitable investment product solutions to specific consumers' circumstances

Appropriate Examination 3

Protection and Retirement Planning (ApExes 3 and 4) & Integrated Learning Outcome (H 1)

Protection (ApEx 3)

• U1. The purpose and scope of financial protection and how the main types of state benefit and existing protection arrangements have an impact on protection planning
• U2. The main types of life assurance policy, their functions, how they are arranged, the tax rules and the use of life assurance in mitigating inheritance tax and estate planning
• U3. The use of trusts in life assurance
• U4. The main types of income protection insurance policies, their functions, how they are arranged and the tax rules
• U5. The main types of critical illness insurance policies, their functions, how they are arranged and the tax rules
• U6. The main features and functions of mortgage payment protection insurance (MPPI) and accident, sickness and unemployment (ASU) insurance
• U7. The main features and functions of personal accident insurance
• U8. The main features and functions of long-term care insurance and the context in which it is used
• U9. The main types of medical insurance and their uses
• U10. The main needs for business insurance protection and how they can be met
• An1 Analyse consumers’ circumstances and suitable protection products, taking account of any existing arrangements
• A1 Apply suitable protection product solutions to specific consumers' circumstances

Retirement Planning (ApEx 4)

•  U1. The main aims and strategies for retirement planning
• U2. The main tax treatment of pensions
• U3 . The main state pension benefits to which individuals may be entitled in retirement and the impact they may have on retirement planning
• U4. The basic principles underlying defined benefit pensions schemes
• U5. The basic principles underlying defined contribution pension schemes and how benefits are built up
• U6. How pension funds can be invested to provide capital and income in retirement
• U7. The main criteria that can be used in choosing pension contracts and providers
• U8. The main options for drawing retirement benefits for individuals with defined contribution schemes
• U9. The suitability of exempt approved pensions plans and other types of investments which can be used to provide retirement benefits
• U10. The legislation and tax regulations applying to retirement planning arrangements, including impending changes
• U11 . (in summary form) the main rules governing pensions and divorce
• An1. Analyse consumers' circumstances and products suitable to meeting retirement needs, taking account of any existing arrangements
• A1. Apply suitable retirement product solutions to specific consumers' circumstances

H1 - Integrated Learning Outcome

The Integrated Learning Outcome does not have any specific objectives other than the overall learning objective as follows:

• Combine and apply the knowledge and understanding achieved in ApEx1, ApEx2, ApEx3 and ApEx4, demonstrating a clear understanding of how all this knowledge and understanding may be applied to real life situations.