Your most difficult subject from the whole AF3 exam syllabus is transitional primary protection.
It’s the one most students, most of the time, have most difficulty with.
And it’s recognised by the CII examiners as an important part of the syllabus for the AF3.
It is so important, it was the BIG Q1 in October 2014. I wrote about it.
I’m not sure it will be a big question in April 2015, but it’s important we understand it; why?
Because it was so badly answered in the AF3 exam last time (October 2014):
The big Q1 (80 marks) was on primary protection and recognising registered TFC; it was the difference between passing and failing that AF3 exam.
You’d be kicking yourself if they asked it again in the AF3? Wouldn’t you?
I put a little question in our members forum, And I’ve reproduced it here for you, to help your revision: AF3 exam Primary protection revision
Transitional protection is a key part of this exam.
Get to grips with it and be able to recognise each protection and how to tackle them; it will pay dividends. I can assure you.
The chances of PP coming up again in April are slim (not nil, but slim); I don’t think there will be another BIG Q1 on transitional primary protection in the April 2015 AF3 exam. I’m thinking IP14 (Individual Protection) is the one this time, but what do I know?
Just in case, make sure you can nail this question AF3 exam example question:
Jim had £3 million of pension rights protected under primary protection on 5 April 2006.
He took benefits worth £1.8 million in 2011.
On 31 March 2014 he took the rest of his benefits that were worth £2 million.
What are his LTA charge(s)? (6 marks)
As part of that first £1.8M BCE there was both a BCE 1 and BCE 6; he took £500k from his registered TFC rights of £1.2M.
How much of his fund can he take to maximise his TFC entitlement on 31 March 2014? (6)
Want to know the answer?
There’s nothing like a video tutorial to show (and re-show, stop, pause and replay) over and over again until you get it and the penny drops, especially on this tricky subject.
This is one of FOUR new videos that have been added to module 3 within the AF3 structured study plan; members will see new videos on primary protection and BCE’s and TFC calculations, as well as a new and updated Q&A video tutorial.
Here’s hoping you find this video tutorial useful on your journey to an AF3 pass.