What Is The CeFA Qualification?

CeFA stands for the Certificate for Financial Advisers which is an industry recognised qualification.  Every financial adviser in the UK needs to pass their CeFA exam in order to give advice to the public.

CeFA comprises three exams – CeFA 1, CeFA 2, CeFA 3 and CeFA 4. All CeFA exams are multiple choice.

CeFA 1 – Introduction to Financial Services & Products and UK Regulation

CeFA 1 gives an overview of the whole UK financial services market. Many people find the CeFA exam to be quite daunting as it covers many different aspects of the financial services industry.

The CeFA 1 consists of two units. In each unit there are 50 multiple choice questions to be answered in one hour.  The pass mark for each is 35 out of 50 (70%).

Unit 1 is an overview of the UK financial services market and covers taxation, savings, mortgages, investments and pensions. Unit 1 looks at the principles of providing financial advice and the law on financial services.

Unit 2 covers the regulation of the financial services industry and so it mainly looks at the role of the Financial Services Authority (FSA), data protection, money laundering, complaints and compensation.

To get the CeFA 1, you must pass both units.

CeFA 2 – Investments and Risks

There are two units within CeFA 2. Each unit lasts one hour and the pass mark for each unit is 70%.

Again, both units must be passed.

CeFA 2 covers in detail issues concerning taxation, investment returns, investor risk, assets, products and economic factors

CeFA 3 – Retirement Planning and Protection

There are two units within CeFA 3. Each unit lasts one hour and the pass mark for each unit is 70%

Again, both units must be passed.

CeFA 3 covers in detail the various types of insurance and protection products available and issues concerning pensions and retirement planning.

CeFA 4 – Synoptic Paper

For CeFA 4 delegates answer questions on case studies. The paper consists of 6 case studies.  There are 10 questions on each case study giving a total of 60 questions. To pass CeFA 4, you need to correctly answer 42 questions (70%). There is no separate subject content for CeFA 4. It is based on exactly the same information and content as CeFA 1, 2 and 3.