October 2015 AF3 exam: Caveat Emptor

Here’s my best guestimate for October.
It’s all guess work; educated guesswork. You’ll have your favourites and each of us will have a rationale for choosing our top 10, but when the man with the cardigan says turn over and I take another slug of coffee, this is what I’m expecting to see…

Question 1
1. AA/Contributions
Forget anything to do with CF/CB tables and working out CF amounts (slim chance of that appearing as a result of 8 July changes).
Learn your tax relief with net pay, relief at source, salary exchange and net adjusted income inside out with scheme pays reporting dates.
And it’s time large employer contributions came up..

Transitional protection I’m expecting to be FP12 or IP14.
IP14 has to come up soon.
You must know both sides of the question; walking forward and looking back, with maybe an enhanced lifetime allowance from pension and divorce case (awarded between 2006/12 and with FP12)?

Question 2
This is not a hard one to predict….we’ve been talking about this most of the year:
BCE 5 (Dependants FAD/annuity)
BCE 7 (death benefits and nominations)
ANYTHING under those headings could appear with Capped drawdown; do you know your basis amount from your max GAD and critical yields A+B? I suspect capped will be mentioned…and then add in something about unauthorised payment charges from SIPP…

Question 3
TVAS process (with FCA assumptions)
GMP escalation 78-97 and post-97 RST/non-gmp
Advice factors on DB transfer
PPF (we haven’t forgotten about you….) with revaluation of PPF
Single tier and calculation of protected amount, with % increases split.

All members registered for the webinar will be sent a copy if the AF3 mock paper and I’ll post the answers in the forum on Monday.