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CSI Applied Financial Planning Certification Examination — AFP Exam 1 — Information & Free Practice

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About CSI Applied Financial Planning Certification Examination — AFP Exam 1

CSI Applied Financial Planning Certification Examination — AFP Exam 1 · CA

Key exam facts

Provider
Canadian Securities Institute (CSI)
Format
Stand-alone multiple-choice; four options per question; proctored remotely or in person at a test centre.
Exam questions
Total questions: 105.
Time limit
3 hours
Passing score
Scaled score of 60 or greater on a 1–100 scale. The raw passing score is not published.
Exam fee
Official AFP Certification Examination enrolment: $750, plus applicable taxes; this is combined AFP enrolment, not a published separate Exam 1 price. The reviewed enrolment page does not expressly identify the dollar currency; employer discounts may apply.

Topics covered

  • Professional Conduct and Regulatory Compliance (10%)

    • Adhere to the PFP® Code of Ethics
    • Comply with federal and provincial laws and regulations relevant to the profession of a financial planner
    • Maintain knowledge of changes in the political, economic, and regulatory environments
    • Explain the role of a financial planner and the meaning of the PFP® credential
    • Act in the best interest of the client in providing financial planning services
    • Follow through on one’s commitments
    • Demonstrate ethical judgment and behaviour in all situations
    • Treat all individuals in a non-discriminatory manner
    • Disclose potential conflict of interest to maintain the integrity of the professional relationship
    • Protect the confidentiality of the client’s information
    • Explain how the client’s information will be used
    • Deal effectively with the client’s concerns, objections, and complaints
    • Identify the need for referral to prevent practicing outside of the limits of one’s competence
    • Pursue professional development activities to update one’s knowledge and skills

  • Client Relationship and Practice Management (6%)

    • Build rapport and maintain a relationship with a diverse group of clients
    • Treat the client with utmost care, empathy, and respect
    • Manage the client’s expectations regarding financial planning while respecting life situation and financial cycle needs
    • Communicate a value proposition for financial planning services
    • Provide full disclosure of compensation structure and fees associated with financial planning services
    • Converse with the client to discover the client’s goals and objectives
    • Use active listening to fully understand the client’s needs and to confirm understanding
    • Communicate quantitative and qualitative information logically, clearly, and concisely
    • Adapt communication (in-person and virtual) based on the client’s age, needs, and life circumstances
    • Asses the client’s non-verbal behaviour
    • Examine the client’s values, personality, lifestyle, and relationships that may influence financial planning
    • Assist the client in prioritizing short-term and longterm financial goals and objectives
    • Prepare a letter of engagement
    • Maintain the accuracy, relevance, and currency of the client’s documentation for compliance and follow-up purposes
    • Seek feedback on the financial planning experience to implement improvements

  • Asset and Liability Management (11%)

    • Identify the client’s asset and liability management goals and objectives
    • Assess the client’s financial knowledge and experience
    • Identify the client’s attitudes toward debt and spending and saving habits
    • Identify the client’s sources of income and expenses
    • Obtain relevant and accurate information on the client’s personal and business assets, debt, and other liabilities
    • Examine the impact of the client’s personal, family, and work circumstances on financial planning
    • Determine the client’s legal issues that may influence financial planning
    • Prepare personal financial statements
    • Analyze financial statements
    • Create financial projections for future cash flow, net worth, and budget
    • Advise on the features and benefits of credit products and borrowing options
    • Explain the impact of credit standing on the ability to borrow
    • Determine appropriate asset and liability management strategies
    • Analyze advantages and disadvantages of asset and liability management strategies in relation to the client’s goals and objectives
    • Recommend the optimal asset and liability management strategy
    • Implement the recommended asset and liability management strategy as part of the client’s financial plan
    • Periodically review the asset and liability management strategy to determine the need for updates
    • Update the asset and liability management strategy to ensure its relevance to the client’s goals, objectives, and life circumstances

  • Risk Management and Insurance (12%)

    • Evaluate unexpected changes to circumstances and their implications for the client’s financial plan
    • Assess the client’s financial ability to deal with changes to circumstances
    • Identify reasons why the client may need insurance
    • Conduct an insurance needs analysis
    • Explain the features and benefits of insurance products
    • Determine appropriate risk management strategies
    • Analyze advantages and disadvantages of risk management strategies in relation to the client’s goals and objectives
    • Assess tax implications of insurance products and risk management strategies
    • Recommend the optimal risk management strategy
    • Implement the recommended risk management strategy as part of the client’s financial plan
    • Periodically review the risk management strategy to determine the need for updates
    • Update the risk management strategy to ensure its relevance to the client’s goals, objectives, and life circumstances

  • Investment Planning (17%)

    • Assess the client’s investment knowledge and experience
    • Examine the client’s return expectations and time horizon
    • Assess the client’s investment risk tolerance
    • Discuss investment goals and objectives based on the client’s needs and priorities
    • Determine an appropriate asset allocation based on the client’s investment profile
    • Advise on the features and benefits of investment products
    • Analyze statements of investment holdings
    • Calculate risk-adjusted ratios for investments and portfolios
    • Calculate the required rates of return for investments and portfolios to meet the client’s goals and objectives
    • Determine appropriate investment strategies
    • Analyze advantages and disadvantages of investment strategies in relation to the client’s goals and objectives
    • Recommend the optimal investment strategy
    • Implement the recommended investment strategy as part of the client’s financial plan
    • Periodically review the investment portfolio to determine the need for updates
    • Update the investment portfolio to ensure its relevance to the client’s goals, objectives, and life circumstances

  • Tax Planning (14%)

    • Identify parties relevant to the client’s tax situation
    • Identify the taxable nature of assets and liabilities
    • Identify current, deferred, and future tax obligations
    • Analyze implications of different taxation structures
    • Identify deductions, credits, and taxes payable
    • Determine appropriate tax planning strategies
    • Analyze advantages and disadvantages of tax planning strategies in relation to the client’s goals and objectives
    • Recommend the optimal tax planning strategy
    • Implement the recommended tax planning strategy as part of the client’s financial plan
    • Periodically review the tax planning strategy to determine the need for updates
    • Update the tax planning strategy to ensure its relevance to the client’s goals, objectives, and life circumstances

  • Retirement Planning (17%)

    • Determine the client’s retirement goals and objectives
    • Assess the implications of the client’s longevity and healthcare costs for the retirement plan
    • Identify the client’s family dynamics and business ownership that may influence retirement planning
    • Create financial projections based on the client’s current position
    • Conduct a retirement income needs analysis
    • Identify compromises (if any) required to meet the client’s retirement goals and objectives
    • Advise on the features and benefits of retirement accounts
    • Advise on the features and benefits of government benefit plans
    • Determine small business succession strategies for retirement
    • Determine appropriate retirement planning strategies
    • Analyze advantages and disadvantages of retirement planning strategies in relation to the client’s goals and objectives
    • Recommend the optimal retirement planning strategy
    • Implement the recommended retirement planning strategy as part of the client’s financial plan
    • Periodically review the retirement planning strategy to determine the need for updates
    • Update the retirement planning strategy to ensure its relevance to the client’s goals, objectives, and life circumstances

  • Estate Planning (13%)

    • Identify the client’s estate planning goals and objectives
    • Identify the client’s family dynamics and business relationships that may influence estate planning
    • Collect legal documents that have implications for estate planning
    • Advise on the features and benefits of estate planning vehicles
    • Explain different types of the Power of Attorney
    • Assess the liquidity of estate at death
    • Assess the structure of the client’s estate plan and its implications for taxation
    • Assess the needs of beneficiaries
    • Consider the implications of small business ownership on estate planning strategies
    • Determine appropriate estate planning strategies
    • Analyze advantages and disadvantages of estate planning strategies in relation to the client’s goals and objectives
    • Recommend the optimal estate planning strategy
    • Implement the recommended estate planning strategy as part of the client’s financial plan
    • Periodically review the estate planning strategy to determine the need for updates
    • Update the estate planning strategy to ensure its relevance to the client’s goals, objectives, and life circumstances

How to prepare

Work through the topics, read the explanation after each answer, and revisit the areas where you miss questions. Use the official outline and reference materials below to guide your study.

These independent practice questions are not actual exam items and do not guarantee a passing result.

Frequently asked questions

What is the exam format?

Stand-alone multiple-choice; four options per question; proctored remotely or in person at a test centre.

How many questions are on the exam?

Total questions: 105.

How long is the exam?

3 hours

What is the passing score?

Scaled score of 60 or greater on a 1–100 scale. The raw passing score is not published.

How much does the exam cost?

Official AFP Certification Examination enrolment: $750, plus applicable taxes; this is combined AFP enrolment, not a published separate Exam 1 price. The reviewed enrolment page does not expressly identify the dollar currency; employer discounts may apply.

Official sources and references

Confirm current exam arrangements with the exam provider.