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Business Financial Planning (AF2)

Business Financial Planning (AF2) develop in depth financial planning skills related to business.

AF2 has now been withdrawn, following the final exam session on 26 May

A resit opportunity is being arranged for the second half of 2021, which will only be available for students who have previously failed the unit. This will be based on the 2021/22 tax year and anyone sitting this exam session will have access to the AF2 practice texts (updated for the 2021/22 tax year).

Please note that the case study workbook will not be updated for the new tax year.

For further information please see our FAQs

The qualities that mean you are effective with clients are many and various – knowledge is important and so is an ability to express yourself clearly – but the people skills are equally important. In the AF2 exam it is your technical knowledge of business financial planning and its focused application to practical situations that counts. You therefore need excellent technical knowledge, strong analytical skills, the ability to write clearly and concisely, and you must be able to perform within a tight timescale.

You should appreciate the standard of the Advanced Diploma examination: candidates must demonstrate that they are capable of advising clients whose overall levels of income and capital require a more sophisticated range of advice than is normally prepared by a diploma/certificate level adviser. Clients who feature in the Advanced Diploma case studies require a critical appraisal of the various financial planning options available to them.

To score high marks you must be able to apply your technical knowledge to the scenarios posed in the exam questions and be able to explain the rationale behind your answers. As the application of knowledge is so crucial, it is considered that the case study approach to learning is highly appropriate in preparing for the Advanced Diploma. For each case study in this workbook a full model answer with learning points is provided.

Please note: It is assumed that the candidate already has the knowledge gained from a study of The Tax and Legal Aspects of Business (J03) or equivalent.


At the end of this unit, candidates will be able to evaluate the complex needs of clients and recommend appropriate solutions based upon detailed understanding and analysis of the:

  1. Main legal forms of business and how they are set up and managed;
  2. Consequences of bankruptcy or insolvency;
  3. Business financing, accounts and financial controls, investment options, sale and purchase of businesses;
  4. Taxation of each business type, its owners and employees;
  5. Main legal responsibilities businesses have to employees, suppliers and customers;
  6. Principles of business protection;
  7. Main uses of pensions in business.


  • 3 hour exam
  • Case study based with 3 compulsory questions
  • 55% nominal pass mark
  • The 2020 pass rate for this unit was 59%