CSI AFP-Exam-1 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Risk Management and Insurance | 12% | - Risk Assessment - Risk Transfer Strategies - Disability and Health Insurance - Life Insurance |
| Topic 2: Professional Conduct and Regulatory Compliance | 10% | - Compliance Responsibilities - Regulatory Requirements - Ethics and Professional Standards |
| Topic 3: Retirement Planning | 17% | - Retirement Income Strategies - Pension Plans - Retirement Needs Analysis - Registered Retirement Savings Plans |
| Topic 4: Estate Planning | 13% | - Powers of Attorney - Estate Transfer Strategies - Trust and Beneficiary Planning - Wills |
| Topic 5: Client Relationship and Practice Management | 6% | - Client Discovery - Communication and Advisory Process - Practice Management |
| Topic 6: Investment Planning | 17% | - Portfolio Construction - Investment Products - Investment Theory - Asset Allocation |
| Topic 7: Asset and Liability Management | 11% | - Cash Flow Management - Debt Management - Personal Balance Sheet Analysis - Budgeting |
| Topic 8: Tax Planning | 14% | - Tax-Efficient Strategies - Income Tax Fundamentals - Registered Plans - Tax Deductions and Credits |
CSI Applied Financial Planning Certification Exam 1 (AFP) Sample Questions:
Question 1
A retiree receives income-tested benefits and needs occasional withdrawals for vacations and home repairs.
Which account is generally most efficient for withdrawals that do not increase taxable income?
A. Non-registered interest-bearing GIC.
B. RRSP.
C. TFSA.
D. RRIF.
Question 2
Miles tells Rasheed, his financial planner, that he would like to assign the growth assets in his portfolio to his children. Rasheed recommends Miles freeze his estate. What is the primary risk associated with an estate freeze?
A. The preferred shares taken back by the taxpayer may provide inadequate Income because of inflation.
B. Once the children hold the common shares, they can vote to withhold payment of the preferred dividend.
C. Once the estate freeze is in place, no future growth of the assets can occur.
D. It is easy to unwind an estate freeze, but the amount of income paid to the taxpayer will be inconsistent from year to year.
Question 3
Clara invested $150,000 with Roper Counsel, a member of CIRO. Her portfolio consists entirely of Canadian mutual funds. Roper Counsel recently became insolvent and declared bankruptcy. Where can Clara seek help to recover her financial losses due to this event?
A. MFDA Investor Protection Corporation.
B. Canadian Investor Protection Fund.
C. Assuris.
D. Office of the Superintendent of Financial Institutions.
Question 4
Leena and Harry are married and hold RRSPs with a value exceeding $500,000. They are concerned about their final tax liability and want to cover the taxes after they have both died. What would their financial planner recommend them to implement in order for the couple to achieve the objective?
A. Purchase a joint last-to-die permanent life insurance policy.
B. Set up a testamentary trust through their wills.
C. Update the beneficiary of the RRSP plans to each other.
D. Transfer the funds into an inter vivos trust.
Question 5
Harley is a novice investor who has just set up his first FHSA. He has a high-risk tolerance to market volatility and his primary investment objective is growth. He would like to invest $10,000 and will use the funds as part of the first-time home buyers plan within the next year. What investment should Harley purchase within this FHSA?
A. A one year locked-in GIC.
B. A high interest savings account.
C. An equity focused mutual fund.
D. An income-focused mutual fund.
Solutions:
| Question 1 Answer: C | Question 2 Answer: A | Question 3 Answer: B | Question 4 Answer: A | Question 5 Answer: B |
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