Exam Code: AFP-Exam-1
Exam Name: Applied Financial Planning Certification Exam 1 (AFP)
Certification Provider: CSI
Corresponding Certification: Canadian Securities Course
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CSI AFP-Exam-1 Exam Syllabus Topics:

SectionWeightObjectives
Tax Planning14%- Tax Deductions and Credits
- Tax-Efficient Strategies
- Registered Plans
- Income Tax Fundamentals
Asset and Liability Management11%- Budgeting
- Personal Balance Sheet Analysis
- Debt Management
- Cash Flow Management
Client Relationship and Practice Management6%- Practice Management
- Client Discovery
- Communication and Advisory Process
Investment Planning17%- Portfolio Construction
- Investment Products
- Asset Allocation
- Investment Theory
Risk Management and Insurance12%- Risk Transfer Strategies
- Life Insurance
- Disability and Health Insurance
- Risk Assessment
Professional Conduct and Regulatory Compliance10%- Regulatory Requirements
- Ethics and Professional Standards
- Compliance Responsibilities
Retirement Planning17%- Pension Plans
- Retirement Needs Analysis
- Registered Retirement Savings Plans
- Retirement Income Strategies
Estate Planning13%- Wills
- Estate Transfer Strategies
- Powers of Attorney
- Trust and Beneficiary Planning

CSI Applied Financial Planning Certification Exam 1 (AFP) Sample Questions:

1. Derek recently inherited $900,000. He asks his financial planner to invest the entire amount in a concentrated portfolio of junior mining stocks. Derek has never invested before, has two young children, and is still deciding whether to purchase a home. What should the planner do first?

A) Invest half immediately and hold half in cash without further discussion.
B) Refuse to work with Derek because he suggested a speculative portfolio.
C) Place the trades because Derek has given clear instructions.
D) Review Derek's objectives, risk tolerance, risk capacity, time horizon, and liquidity needs.


2. Suzy, age 45, is meeting with a financial planner as she has recently inherited $1.25 million from her late aunt. Suzy has poor spending habits and would like to review options that would safeguard and help her receive stable cash flows. She does not have a lot of experience investing and would like to avoid making day- to-day investment decisions. Which type of investment account is most appropriate for Suzy?

A) Discretionary fee-based.
B) Multi-mandate managed.
C) Straight life annuity.
D) Separately managed.


3. Ivan has been relocated to a new office by his employer and is considering moving to a home closer to his new workplace. What is the minimum distance Ivan will have to move in order to qualify for the work-related moving expenses income tax deduction?

A) 40 kilometers.
B) 25 kilometers.
C) 60 kilometers.
D) 15 kilometers.


4. A household has gross monthly income of $9,500. Their monthly mortgage payment is $2,100, property taxes are $425, heating costs are $175, car payments are $600, and minimum credit card payments are $250. What is their total debt service ratio?

A) 31.1%.
B) 44.2%.
C) 37.4%.
D) 28.4%.


5. Two shareholders sign a buy-sell agreement requiring the surviving shareholder to purchase the deceased shareholder's shares at fair market value. What planning tool most directly funds the death-triggered purchase obligation?

A) A shareholder RRSP.
B) Travel accident insurance.
C) Corporate-owned or cross-owned life insurance.
D) A personal line of credit in the surviving shareholder's name only.


Solutions:

Question # 1
Answer: D
Question # 2
Answer: C
Question # 3
Answer: A
Question # 4
Answer: C
Question # 5
Answer: C

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