R06
Diploma in Regulated Financial Planning
Unit 6 – Financial planning practice
April 2023 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 April 2023
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 April 2023
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), (f) and (g)
which follow.
Ken and Mary, both aged 68, are married and have been retired for the past three years.
They have two adult children and five grandchildren. Ken and Mary are both in good health.
They have been enjoying their retirement but have recently become concerned at the
increases in the cost of living and are worried that they may run into financial difficulties later
in their retirement.
Ken and Mary are both in receipt of their State Pensions. Mary also receives a pension from
the NHS Pension Scheme. Mary’s total pension income is currently £22,000 per annum gross.
Ken receives a State Pension of £9,400 per annum gross and also draws an income of £15,000
per annum gross from his self-invested personal pension (SIPP), using flexi-access drawdown
(FAD). The pension plan has a current value of £250,000. The pension fund has decreased in
value over the past year due to difficult market conditions. Ken consolidated all of his pension
arrangements into his SIPP on retirement.
Ken’s SIPP is invested in a range of UK and global equity funds. He has always chosen these
funds himself but he is now concerned that the current investment strategy may be the cause
of the recent decline in his pension fund value. He has asked for your advice in respect of the
future management of the investment holdings within his SIPP.
Ken and Mary own their home and it is mortgage-free. Ken took the maximum pension
commencement lump sum (PCLS) from his SIPP to repay the mortgage. The property is valued
at £420,000.
Ken has been offered the opportunity to return to part-time employment with his former
employer. This would provide an income of £20,000 per annum gross. Due to Ken and Mary’s
concerns about their longer-term financial security, Ken has decided to accept this job offer
and will start his new job next month. Ken’s employer offers a workplace auto-enrolment
pension scheme.
Ken and Mary have a range of stocks & shares ISA holdings which have performed poorly over
the past few months. They do not draw any income or capital from these holdings and intend
to retain them for the long term. They have asked for your views on the suitability of the
investment holdings within these ISAs.
Ken and Mary have a medium to high attitude to risk and neither of them has any particular
interest in Environmental, Social and Governance (ESG) investments.
3
Diploma in Regulated Financial Planning
Unit 6 – Financial planning practice
April 2023 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 April 2023
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 April 2023
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), (f) and (g)
which follow.
Ken and Mary, both aged 68, are married and have been retired for the past three years.
They have two adult children and five grandchildren. Ken and Mary are both in good health.
They have been enjoying their retirement but have recently become concerned at the
increases in the cost of living and are worried that they may run into financial difficulties later
in their retirement.
Ken and Mary are both in receipt of their State Pensions. Mary also receives a pension from
the NHS Pension Scheme. Mary’s total pension income is currently £22,000 per annum gross.
Ken receives a State Pension of £9,400 per annum gross and also draws an income of £15,000
per annum gross from his self-invested personal pension (SIPP), using flexi-access drawdown
(FAD). The pension plan has a current value of £250,000. The pension fund has decreased in
value over the past year due to difficult market conditions. Ken consolidated all of his pension
arrangements into his SIPP on retirement.
Ken’s SIPP is invested in a range of UK and global equity funds. He has always chosen these
funds himself but he is now concerned that the current investment strategy may be the cause
of the recent decline in his pension fund value. He has asked for your advice in respect of the
future management of the investment holdings within his SIPP.
Ken and Mary own their home and it is mortgage-free. Ken took the maximum pension
commencement lump sum (PCLS) from his SIPP to repay the mortgage. The property is valued
at £420,000.
Ken has been offered the opportunity to return to part-time employment with his former
employer. This would provide an income of £20,000 per annum gross. Due to Ken and Mary’s
concerns about their longer-term financial security, Ken has decided to accept this job offer
and will start his new job next month. Ken’s employer offers a workplace auto-enrolment
pension scheme.
Ken and Mary have a range of stocks & shares ISA holdings which have performed poorly over
the past few months. They do not draw any income or capital from these holdings and intend
to retain them for the long term. They have asked for your views on the suitability of the
investment holdings within these ISAs.
Ken and Mary have a medium to high attitude to risk and neither of them has any particular
interest in Environmental, Social and Governance (ESG) investments.
3
