CPD - Financial Services Exam

This online package is designed for qualified actuaries. It enables you to study for an online exam and gain up to 6 hours of verifiable CPD.

If you have qualified in the last 2-3 years, and passed a UK Practice Module test while doing so, then we are sorry but you are not eligible to earn CPD hours for this study package.

If you buy this package you will receive

• a copy of the study material for this exam, sent in the post to either your home or your work address.
  
  
• an email containing a username and password, which will give you access to an online testing system.

There are 4 progress tests, which test understanding of material in each of the four quarters of the course, and there are 2 full-course tests.

The confidential results of any tests that you have attempted are not shared with any other party, and the objective is to score at least 18 out of 25 on the first full-course test to demonstrate understanding of the material. When this is achieved, you will be able to register the number of hours that you spent studying the material in your personal CPD record on the Profession's website (a figure of about 6 hours is expected). A significant part of the course material relates to professionalism issues, and as such a substantial proportion of the hours earned could be classed as "professionalism skills". However, the material is generic in nature and cannot be classed as "relating to a subject area". For your records, ActEd will send out a certificate confirming your success. A second full-course test is available if a sufficient score is not obtained on the first attempt.

If you would like to order this package, please use our estore or download the
fax order form. The full cost of the product is £60 + VAT, or £70.50 in total. When you have completed a form we will send you a copy of the study material and a username and password for access to the online multi-choice system.

The material is of a general nature and covers the following subject areas:

Chapter 1 - the functions of the major financial institutions in the UK
Chapter 2 - the features of insurance contracts sold in the UK
Chapter 3 - the factors influencing the investment strategy of an institution
Chapter 4 - liability characteristics of institutions
Chapter 5 - designing investment strategy for individuals
Chapter 6 - the most common investments for individuals in the UK
Chapter 7 - the main regulatory bodies in the UK
Chapter 8 - investment advice under the FMSA 2000
Chapter 9 - regulation of financial services in the UK, including actuarial firms
Chapter 10 - consumer protection and handing complaints within the profession
Chapter 11 - the profession's recommended good business practice standards
Chapter 12 - other regulations including data protection etc.
Chapter 13 - professionalism and CPD
Chapter 14 - the professional conduct standards of the actuarial profession

In total, the material is about 150 pages in length, much of which will be familiar to you in your day-to-day work, and some of which may be new and informative.

All of the questions relate to the study material. Three examples are given below:

Q1: Which of the following would NOT be included in the Statement of Funding Principles (SFP) of a pension scheme?

A the ownership of surplus assets should they arise in the scheme
B any discretionary powers to increase benefits in the scheme
C the period over which the trustees aim to make good any shortfall
D the interval at which the trustees will obtain actuarial valuations

Answer: A

Explanation:

The ownership of surplus assets would be determined by the courts in the event of a wind up.

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Q2: Which of the following statements are correct? Data are covered under the Data Protection Act 1998 if:

I it is held only in non-paper form, eg on a computer database
II it is possible to identify the individual from an item of information held
III irrespective of whether the information relates to a large or small business entity.

A I only
B I and II only
C II only
D II and III only

Answer: C

Explanation:

The only business entities affected are sole traders where the business information might also be personal information.

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Q3: What is the function of the Board for Actuarial Standards (BAS)?

A To oversee education and professional standards
B To take responsibility for the Profession's technical Guidance Notes
C To oversee the disciplinary scheme for actuaries
D To act as an oversight body for the FRC and the POB

Answer: B

Explanation:

The Professional Oversight Board POB (rather than the BAS) oversees educational, professional and ethical standards as well as overseeing the disciplinary scheme.