DipFA Practice Papers
Harder

AFAP2 Mock Paper 3 — Advanced Suitability & Tax Traps

The toughest AFAP2 mock: mixed personal and business needs, tax inconsistencies, trust pitfalls, and scenarios where the correct answer is not to recommend cover. 30 marks, 45 minutes.

Questions
30
Minutes
45
Pass (70%)
21/30

Sit it timed

The timer starts when you press the button. You can still finish after it runs out — it is there to mimic exam pressure, not to lock you out.

Free preview: the first 5 of 30 questions, with a timer to match. Unlock the full paper

Answer options are shuffled on every attempt. Your progress is saved as you go, so a refresh won't lose it.

About AFAP2 Mock Paper 3

This is mock paper 3 of 3 for AFAP2, the Protection — Unit 2 unit of CeMAP. The 3 papers in this unit run easier → harder so you can build up to exam standard rather than being thrown in at the deep end. This one sits in the harder tier: it is deliberately pitched above the live exam, so passing it means you should clear the real thing with room to spare.

Every question carries a written explanation, so a wrong answer tells you which rule you have misread instead of just costing you a mark. Questions are original, written against the 2025/26 five-unit CeMAP syllabus, and cover the material the way the examiner tests it — precise recall where recall is tested, and judgement where the paper wants judgement.

Format, timing and pass mark

AFAP2 Mock Paper 3 follows the live AFAP2 format: 20 standalone questions + 2 case studies × 5 linked questions, in 45 minutes — about 90 seconds a question. Pass mark 21/30 (70%), as in the real assessment. There is no negative marking, so answer everything. 2 case studies carry linked questions: read each scenario once, carefully, before answering any part of it.

What this paper tests

The 30 questions in AFAP2 Mock Paper 3 break down across 8 topic areas:

  • Suitability6 questions
  • Trusts6 questions
  • Quantifying need5 questions
  • Taxation5 questions
  • Relevant life3 questions
  • Shareholder protection3 questions
  • Key person1 question
  • Partnership protection1 question

Try two questions from AFAP2 Mock Paper 3

These come from the free preview of this paper. Answer them, then reveal the explanation.

Suitability

When a client already has cover exceeding all quantified personal and business needs, the suitable recommendation is:

  1. ADouble all policies
  2. BAdditional whole-of-life immediately
  3. CCancel shareholder protection
  4. DDo not recommend further cover — document that existing arrangements are adequate
Reveal the answer

D is correct. AFAP2 frequently tests whether the adviser can stop selling. Over-insurance wastes premium and may create tax complications.

Relevant life

Multiple relevant life policies on the same director may:

  1. ABe challenged if total benefits are excessive versus remuneration — HMRC may question tax efficiency
  2. BAlways be unlimited
  3. CBe mandatory for all companies
  4. DCancel death-in-service automatically
Reveal the answer

A is correct. Relevant life must be justifiable as employee death benefit. Excessive cover relative to salary can attract HMRC scrutiny.

Scored under 70%? Revise these next

A near miss is almost always a calculation you cannot do under time pressure, a definition you half-know, or a rule you have never read in the examiner's words. Start with the topic areas above where you dropped marks, then:

  • Drill the calculations on the CeMAP formula sheet — LTV, income multiples, SDLT, APRC, ERCs and rental cover, each worked through.
  • Nail the terminology in the CeMAP glossary — a surprising share of wrong answers are a term you nearly knew.
  • Re-read the syllabus coverage on the AFAP2 exam guide, then sit the next paper in the ramp.

The other AFAP2 mock papers

3 timed mocks for this unit, running easier → harder. Sitting the whole ramp is what moves a borderline score to a comfortable pass.

AFAP2 Mock Paper 3 — DipFA mock exam