Checked 25 October 2026. The format, the learning-outcome question numbers and the edition dates were read on the CII’s R02 unit page, syllabus and examination guide on 25 October 2026. This syllabus applies to exams from 1 September 2026 to 31 August 2027; check the unit page before relying on a figure.
The CII R02 exam is 100 multiple-choice questions in two hours: 72 standard format and 28 multiple response. R02, Investment principles and risk, is in the CII’s words “a core unit for the Diploma in Regulated Financial Planning which meets the FCA’s qualification requirements for retail investment advisers.” The syllabus now in force is examined from 1 September 2026 to 31 August 2027, on the tax year 2026/27. This page sets out the two question formats, how many questions the syllabus gives each of its nine learning outcomes, the pass mark and how the CII adjusts marks, and the official practice material. ProSyllabus is an independent study site. It is not affiliated with the Chartered Insurance Institute (CII), and nothing here is official. Every format fact below is quoted or summarised from the CII’s own pages and documents, read on 25 October 2026.
CII R02 unit page, syllabus and examination guide for exams from 1 September 2026 to 31 August 2027, read 25 October 2026.
The two question formats
The examination guide describes both. A standard format question “consists of a problem followed by four options, labelled A, B, C and D, from which the candidate is asked to choose the correct response. Each question will contain only one correct or best response to the problem posed.” One mark is awarded for each correct response, and “No marks are deducted for candidates choosing an incorrect response.”
A multiple response question “consists of a problem, followed by between four to six options. For each question more than one option is correct. Candidates must select all the correct options to gain the mark.” Miss one of the correct options and the question does not gain the mark. The syllabus puts 11 in learning outcome 1 (asset classes), 7 in outcome 6 (investment products) and all 10 questions of outcome 9 (the performance of investments).
| Format | How many | Options | Correct options | To score the mark |
|---|---|---|---|---|
| Standard | 72 | Four, A to D | One (the correct or best) | Choose that option |
| Multiple response | 28 | Four to six | More than one | Select every correct option |
From the examination information in the CII’s R02 examination guide for 2026/27.
The syllabus: nine learning outcomes
The syllabus lists a number of questions for each learning outcome. Learning outcomes 1 and 6, asset classes and investment products, account for 50 of the 100 between them, so they carry half the exam on their own.
| Learning outcome | Questions (2026/27 syllabus) | What it covers (our summary) |
|---|---|---|
| 1. Analyse the characteristics, inherent risks, behaviour and correlation of asset classes | 17 standard + 11 multiple response | Cash, fixed interest (yields and yield curves), equities (P/E, EPS, dividend yield and cover, NAV), property, alternatives, transaction costs, indices, and correlation in asset allocation. |
| 2. Understand the macro-economic environment and its impact on asset classes | 6 standard | Long-term economic trends, globalisation, economic and financial cycles, key indicators, monetary and fiscal policy, inflation, interest and exchange rates, current and capital accounts. |
| 3. Understand the merits and limitations of the main investment theories | 7 standard | Modern portfolio theory and the efficient frontier, multi-factor models, the efficient market hypothesis, CAPM, alpha and beta, risk-adjusted returns, hedging and behavioural finance. |
| 4. Apply the principles of the time value of money | 3 standard | Compound interest and discounting, real and nominal returns, discounted cash flows. |
| 5. Analyse and explain the nature and impact of the main types of risk on investment performance | 5 standard | Liquidity, shortfall, volatility, currency, inflation, credit and default, interest rates and gearing, systematic and non-systematic risk, counterparty risk and bail-in. |
| 6. Analyse the characteristics, inherent risks, behaviours and relevant tax considerations of investment products | 15 standard + 7 multiple response | Direct and indirect investment; collective funds, ETFs, closed-ended funds and investment companies, ISAs, NS&I, life assurance investments, purchased life annuities, REITs and PAIFs, VCTs, EIS and SEIS, UCITS, derivatives, hedge funds, structured products, with-profits and Sharia-compliant investments. |
| 7. Apply the investment advice process | 11 standard | Know your client, vulnerable clients, objectives, risk profile and capacity for loss, affordability and ethical preferences, benchmarks and reviews, sustainable withdrawals and sequencing risk, asset allocation for accumulation and decumulation. |
| 8. Understand the principles of investment planning | 8 standard | Stochastic modelling, strategic and tactical asset allocation, passive and active management, portfolio construction, costs and charges, provider due diligence, ethical investment styles and platforms. |
| 9. Analyse the performance of investments | 10 multiple response | Methods of evaluating performance, choosing benchmarks, time-weighted and money-weighted returns, and the portfolio review process including rebalancing. |
Question numbers from the R02 syllabus examined from 1 September 2026 to 31 August 2027; the learning-outcome titles are the CII’s and the summaries are ours, from the CII’s indicative content for 2026/27. Read the syllabus and indicative content themselves for the full list.
From the R02 syllabus for exams from 1 September 2026 to 31 August 2027.
What is the R02 pass mark?
The CII’s R02 unit page states: “The standard pass mark is 65%”, and “The 2025 pass rate for this unit was 69.67%”. The standard is not a fixed raw mark on every paper. The CII’s guide “Understanding your exam result” explains that it uses information about how difficult each exam version is and, “where necessary, automatically adjust the marks that every candidate receives on that exam version to compensate them for the degree of difficulty encountered”. It adds that it “will always report to you the moderated number of marks/adjusted marks relative to the standard pass mark”. The examination guide adds that “A pre-defined quota of passes to be awarded does not exist. If all candidates achieve a score of at least the pass mark, then all candidates will be awarded a pass grade.”
So the standard pass mark is 65%, but the raw mark needed on a given exam version can be higher or lower. In the CII’s own worked example, where an exam version is judged slightly harder than the standard the pass mark is lowered (for example to 63) and candidates’ marks are adjusted up to match; on a slightly easier version the marks are adjusted down. The examination guide says your feedback also shows, for each learning outcome, the percentage of questions you answered correctly.
Which edition and tax year you sit
The 2026/27 R02 syllabus is examined from 1 September 2026 to 31 August 2027, and it says candidates “will be examined on the basis of English law and practice in the tax year 2026/2027 unless otherwise stated”. The examination guide sets out the general rule for tax: “the new tax year and changes arising from the Finance Act will be examined from 1 September each year. Other changes, not related to the Finance Act, will not be examined earlier than 3 months after they come into effect.” It also says that R02 examinations test the Financial Conduct Authority and Prudential Regulation Authority rules and regulations.
Extracts from tax tables are provided in the exam, and the CII publishes its tax tables for 2026/27 in advance. Two 2026/27 figures from those tables that matter for R02’s product questions: Venture Capital Trust income tax relief is 20% (it was 30% in 2025/26), and dividends above the £500 dividend allowance are taxed at 10.75% for a basic-rate taxpayer and 35.75% for a higher-rate taxpayer (8.75% and 33.75% in 2025/26).
| Figure | 2026/27 (CII tax tables) |
|---|---|
| ISA subscription limit (excluding Junior ISAs) | £20,000 |
| Lifetime ISA limit | £4,000 |
| Junior ISA / Child Trust Fund limit | £9,000 |
| VCT income tax relief (on up to £200,000) | 20% |
| Enterprise Investment Scheme (EIS) at 30% (on up to £2,000,000; above £1,000,000 must be in knowledge-intensive companies) | 30% |
| Seed EIS (SEIS) at 50% (on up to £200,000) | 50% |
| Capital gains tax annual exemption (individuals) | £3,000 |
From the CII’s tax tables 2026/27, read 25 October 2026. The CII’s tables also carry footnotes (for example on the EIS limit); read them in full.
The “Qualification update” panel on the CII’s R02 unit page, read on 25 October 2026, still names the 2025/26 tax year; the 2026/27 syllabus and examination guide name 2026/27. The same panel says the Financial Services Compensation Scheme deposit protection limit change that came into effect on 1 December 2025 is reflected in exams from 27 February 2026.
How the exam is taken
You can sit R02 at an exam centre or by remote invigilation. The examination guide points you to the CII’s familiarisation test for the exam layout, and says that once you have booked a remote-invigilation exam you can launch a tutorial from your MyCII/MyPFS dashboard, which “can only be accessed three times”. You may not bring your own tax tables. A calculator must be silent, battery or solar powered and non-programmable; a financial or scientific calculator is allowed if it meets those rules. You may make rough notes. With yields, returns and discounting in the syllabus, practise with the calculator you will take in.
Official practice from the CII
| Resource | What it holds | Where |
|---|---|---|
| R02 examination guide | The syllabus, examination information and a specimen examination with its answer key and the learning outcome each question covers | On the R02 unit page |
| Knowledge Checker | Multiple-choice questions to test your understanding of the study text | A CII revision aid |
| Revision Extra | A digital course with 11 hours of video support covering the syllabus, plus practice questions; not part of Enrolment plus | Bought separately from the CII |
From the CII’s R02 unit page and examination guide, read 25 October 2026. No prices were in the page text we read.
For more questions in the same format, our R02 practice questions page works through three questions from the ProSyllabus CII R02 practice test, an independent test of two full 100-question exams.
What we could not find
| Question | What we found |
|---|---|
| How far marks are adjusted on a given exam version | The pages we read give a worked example only, not the adjustment for any real exam version. |
| Whether the per-outcome numbers can vary | The R02 syllabus lists a number for each learning outcome; the text we read carries no note on how far an exam may differ from it. |
| R02 fees | No fee amounts were in the unit-page text we read, so none is quoted here. |
| Past R02 papers | None on the pages we read; the examination guide contains a specimen examination. |
Frequently asked questions
How many questions are in the CII R02 exam?
100 multiple-choice questions: 72 standard format and 28 multiple response, in two hours.
What is the R02 pass mark?
The CII’s R02 unit page states that the standard pass mark is 65%. Where necessary the CII adjusts marks for the difficulty of each exam version, and it reports your result against the standard pass mark. The page gives the 2025 pass rate as 69.67%.
How do R02 multiple response questions work?
Each has four to six options, more than one of them correct, and you must select all the correct options to gain the mark. There are 28 multiple response questions: 11 in learning outcome 1, 7 in outcome 6 and 10 in outcome 9.
Is there negative marking in R02?
No. The examination guide says no marks are deducted for choosing an incorrect response.
Which learning outcome has the most questions?
Learning outcome 1, the characteristics, inherent risks, behaviour and correlation of asset classes: 17 standard and 11 multiple response questions, 28 of the 100.
Which tax year does R02 examine?
For exams sat from 1 September 2026 to 31 August 2027, English law and practice in the 2026/27 tax year unless otherwise stated. Extracts from tax tables are provided in the exam.
Can I use a calculator in R02?
Yes, if it is silent, battery or solar powered and non-programmable. A financial or scientific calculator is allowed if it meets those rules.
More in this series
Sources
- official — CII: Investment Principles and Risk (R02), unit page with the testing position and exam guide updates (read 25 Oct 2026)
- official — CII: R02 Investment principles and risk, examination syllabus, examined from 1 September 2026 to 31 August 2027 (published June 2026)
- official — CII: R02 indicative content 2026/2027 (assessment criteria and indicative content per learning outcome)
- official — CII: R02 examination guide for exams from 1 September 2026 to 31 August 2027 (first published June 2026; current copy dated September 2026), with a specimen examination
- official — CII: tax tables 2026/27 (extracts are supplied in the exam)
- official — CII: Understanding your exam result (how marks are moderated)
official = a document published by the conducting body. reported = a news or coaching site we could not check against an original. Where sources disagree this page says so rather than picking one.
