R06
Diploma in Regulated Financial Planning
Unit 6 – Financial planning practice
September 2022 examination
SPECIAL NOTICES
All questions in this paper are based on English law and practice applicable in the tax year
2022/2023, unless stated otherwise and should be answered accordingly.
It should be assumed that all individuals are domiciled and resident in the UK unless
otherwise stated.
, R06 September 2022
Unit R06 – Financial planning practice
Instructions to candidates
Read the instructions below before answering any questions
• Three hours are allowed for this paper.
• This paper consists of two case studies and carries a total of 150 marks.
• You are advised to spend approximately 90 minutes on the questions for each case study.
You are strongly advised to attempt all parts of each question in order to gain maximum
possible marks for each question. The number of marks allocated to each question part is given
next to the question and you should spend your time in accordance with that allocation.
• Read carefully all questions and information provided before starting to answer. Your answer
will be marked strictly in accordance with the question set.
• It is important to show all steps in a calculation, even if you have used a calculator.
• Tax tables are provided at the back of this question paper.
Subject to providing sufficient detail you are advised to be as brief and concise as possible,
using note format and short sentences.
2
, R06 September 2022
Attempt ALL questions for each case study
Time: 3 hours
Case Study 1
Read carefully all information provided in the case study before attempting the questions.
Your answers should take into account the clients’ circumstances as set out in the case study.
Read the following carefully, then carry out ALL of the tasks (a), (b), (c), (d), (e) and (f) which
follow.
Tom and Sara, both aged 64, are married and are planning to retire on Tom’s 65th birthday next
year. They have three adult children and five grandchildren. Tom and Sara are both in good
health at present but are aware of the risk of potential health problems in the future as their
respective parents died in their early seventies.
Tom is employed as an architect and earns £85,000 per annum gross. Tom is a member of his
employer’s workplace pension scheme and contributes 5% of his gross salary to the scheme.
His employer makes a contribution of 8% of gross salary to the scheme. The plan has a current
value of £60,000 and is invested in a range of equity tracker funds. Tom also has a deferred
benefit in a former employer’s defined benefit occupational pension scheme.
Sara is employed as a customer services manager. She earns £70,000 per annum gross. She is
a member of her employer’s workplace pension scheme and contributes 10% of her gross
salary to the scheme. This is matched by her employer. This pension plan has a current value
of £290,000 which is invested in a balanced managed fund.
Tom and Sara own their current home as joint tenants. The property is mortgage-free and is
valued at £500,000.
Tom and Sara are planning to gift lump sums from their existing investments to assist their
grandchildren with the purchase of their first homes in future years. Tom and Sara hold several
OEIC (open ended investment company) funds which have performed very well since they
were originally purchased from the proceeds of a redundancy payment that Tom received from
a former employer. Tom and Sara have used their ISA allowances for the current tax year.
Both clients consider themselves to be low to medium-risk investors. They have stated that
they have no particular concerns about socially responsible investments.
Tom and Sara do not have Wills or lasting powers of attorney but are planning to arrange for
these documents to be drawn up in the next few months.
3
Diploma in Regulated Financial Planning
Unit 6 – Financial planning practice
September 2022 examination
SPECIAL NOTICES
All questions in this paper are based on English law and practice applicable in the tax year
2022/2023, unless stated otherwise and should be answered accordingly.
It should be assumed that all individuals are domiciled and resident in the UK unless
otherwise stated.
, R06 September 2022
Unit R06 – Financial planning practice
Instructions to candidates
Read the instructions below before answering any questions
• Three hours are allowed for this paper.
• This paper consists of two case studies and carries a total of 150 marks.
• You are advised to spend approximately 90 minutes on the questions for each case study.
You are strongly advised to attempt all parts of each question in order to gain maximum
possible marks for each question. The number of marks allocated to each question part is given
next to the question and you should spend your time in accordance with that allocation.
• Read carefully all questions and information provided before starting to answer. Your answer
will be marked strictly in accordance with the question set.
• It is important to show all steps in a calculation, even if you have used a calculator.
• Tax tables are provided at the back of this question paper.
Subject to providing sufficient detail you are advised to be as brief and concise as possible,
using note format and short sentences.
2
, R06 September 2022
Attempt ALL questions for each case study
Time: 3 hours
Case Study 1
Read carefully all information provided in the case study before attempting the questions.
Your answers should take into account the clients’ circumstances as set out in the case study.
Read the following carefully, then carry out ALL of the tasks (a), (b), (c), (d), (e) and (f) which
follow.
Tom and Sara, both aged 64, are married and are planning to retire on Tom’s 65th birthday next
year. They have three adult children and five grandchildren. Tom and Sara are both in good
health at present but are aware of the risk of potential health problems in the future as their
respective parents died in their early seventies.
Tom is employed as an architect and earns £85,000 per annum gross. Tom is a member of his
employer’s workplace pension scheme and contributes 5% of his gross salary to the scheme.
His employer makes a contribution of 8% of gross salary to the scheme. The plan has a current
value of £60,000 and is invested in a range of equity tracker funds. Tom also has a deferred
benefit in a former employer’s defined benefit occupational pension scheme.
Sara is employed as a customer services manager. She earns £70,000 per annum gross. She is
a member of her employer’s workplace pension scheme and contributes 10% of her gross
salary to the scheme. This is matched by her employer. This pension plan has a current value
of £290,000 which is invested in a balanced managed fund.
Tom and Sara own their current home as joint tenants. The property is mortgage-free and is
valued at £500,000.
Tom and Sara are planning to gift lump sums from their existing investments to assist their
grandchildren with the purchase of their first homes in future years. Tom and Sara hold several
OEIC (open ended investment company) funds which have performed very well since they
were originally purchased from the proceeds of a redundancy payment that Tom received from
a former employer. Tom and Sara have used their ISA allowances for the current tax year.
Both clients consider themselves to be low to medium-risk investors. They have stated that
they have no particular concerns about socially responsible investments.
Tom and Sara do not have Wills or lasting powers of attorney but are planning to arrange for
these documents to be drawn up in the next few months.
3
