STUDY GUIDE for CFP CERTIFICATION TABLE of CONTENTS
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STUDY GUIDE for CFP CERTIFICATION TABLE OF CONTENTS –– –– Copyright © 2017 IFPHK All rights reserved I - 1 2017 STUDY GUIDE for CFP CERTIFICATION TABLE OF CONTENTS TABLE OF CONTENTS INTRODUCTION ................................................................................... ................................................................................................ ......................................................................................... ........................II --- 333 HOW TO USE THIS STSTUDYUDY GUIDEGUIDE................................................................................................................................................................................................................. ..................................II --- 444 CERTIFICATIONCERTIFICATION................................................................................................................................................................................................................... ......................................................................................... ........................IIII --- 111 I. About CFP Certification...................................................................................II - 2 II. Pre-Requisites.................................................................................................II - 3 III. The “4E” Requirements ...................................................................................II - 3 IV. Fees ................................................................................................................II - 9 V. Cross-Border CFP Certification .......................................................................II - 10 EXAMINATION HANDBOOKHANDBOOK................................................................................................................... ................................................................................................ ..................................................III...... III --- 111 I. Examination Structure ....................................................................................III - 3 II. Examination Content And Format ..................................................................III - 5 III. Examination Policy .........................................................................................III - 8 IV. Registration Procedures.................................................................................III - 11 V. Results And Certificates .................................................................................III - 14 APPENDIX 1. Information on Examination Papers and Examination Syllabus .....................III - 15 2. CFP Certification Examinations Regulations..................................................III - 22 3. Notice relating to the Personal Data (Privacy) Ordinance .............................III - 27 4. Cross-Border Examination .............................................................................III - 28 5. Sample of Information to be Provided in Examination Paper .........................III - 30 ESSENTIAL READINGS ................................................................................... ................................................................................................ ..............................................................IV............ IV --- 111 CFP Certification Examination (Foundation Level) 1. Financial Management .................................................................................. IV - 4 2. Personal Financial Planning.......................................................................... IV - 17 3. Retirement Planning...................................................................................... IV - 23 4. Investment Planning...................................................................................... IV - 31 5. Insurance Planning........................................................................................ IV - 51 6. Ethical and regulatory requirements for financial planners............................ IV - 68 7. Management of a financial planning practices............................................... IV - 76 ANSWER TO EXERCISE.............................................................................. IV - 79 CFP Certification Examination (Level 1) 1. Investment Planning and Asset Management ............................................... IV - 85 2. Insurance Planning and Risk Management................................................... IV -107 3. Tax Planning and Estate Planning ................................................................ IV -133 ANSWER TO EXERCISE.............................................................................. IV -157 CFP Certification Examination (Level 2) 1. Financial Planning Practice ........................................................................... IV -179 SAMPLE EXAMINATION QUESTIONS ................................................................................... ................................ ........................................................................................ ......................VV --- 111 I. CFP Certification Examination (Foundation Level)......................................... V - 4 II. CFP Certification Examination (Level 1)......................................................... V - 29 III. CFP Certification Examination (Level 2)......................................................... V - 48 ANNEXANNEX................................................................................................................................................................................................................... ...................................................................................... ......... ANNEX page 111 I. Pre-Requisite / Lists Of Challenge Status ...............................................................2 II. Syllabus- Descriptive content coverage...................................................................3 Copyright © 2017. Institute of Financial Planners of Hong Kong. All rights reserved. If there is any conflicting information or mistakes in this booklet, IFPHK reserves the right to make the final interpretation of the issues. For most updated information, please visit our web site at www.ifphk.org. Copyright © 2017 IFPHK All rights reserved I - 2 2017 STUDY GUIDE for CFP CERTIFICATION INTRODUCTION INTRODUCTION This study guide is designed to help candidates prepare to take CFP CM Certification Examina- tion . This study guide provides information about CFP Certification Examination and some help- ful tips for students to perform their best. About IFPHK: The IFPHK was established in June 2000 as a non-profit organization for the fast–growing financial industry. It aims to be recognized in the region as the premier profes- sional body representing financial planners that uphold the highest standards to benefit the pub- lic. The Institute is the sole licensing body in Hong Kong authorized by Financial Planning Standards Board Limited to grant the much-coveted and internationally-recognized CFP certifi- cation and AFP certification to qualified financial planning professionals in Hong Kong and Macau. It represents more than 7,500 financial planning practitioners in Hong Kong from such diverse professional backgrounds as banking, insurance, independent financial advisory, stock- broking, accounting, and legal services. Currently there are over 161,000 CFP professionals in 26 countries/regions; the majority of these professionals are in the U.S., Canada, China, Austra- lia and Japan, with more than 4,600 CFP professionals in Hong Kong. About CFP Certification: The CFP Certification is the world’s oldest, highest and most recognized advanced certification program for financial planners. CFP professionals are required to meet initial and ongoing competency, ethics and practice standards and agree to abide by professional conduct rules and ongoing competency and practice requirements. CFP Certification Examination are designed to assess the ability of examinees to apply financial planning knowledge to financial planning situations, thereby protecting the public by assuring that CFP certificants are at the appropriate level of competency required for practice. CFP Certification Examination consists of the 3 levels: Foundation Level, Level 1 and Level 2. Getting started: The HOW TO USE THE STUDY GUIDE section on page 4 outlines the con- tents in each section, lists the materials you should have available as you study for the CFP Certification Examination, and suggests some steps for preparing for the CFP Certification Ex- amination. Enquiries: IFPHK will update information about the CFP Certification Program from time to time. Please check IFPHK website for announcements. Website : www.ifphk.org Hotline : 2982 7888 Fax : 2982 7777 Email: General enquiry : [email protected] Examination enquiry : [email protected] Certification enquiry : [email protected] Copyright © 2017 IFPHK All rights reserved I - 3 2017 STUDY GUIDE for CFP CERTIFICATION HOW TO USE THIS STUDY GUIDE HOW TO USE THIS STUDY GUIDE This study guide is designed to help candidates prepare to take the CFP Certification Examina- tions. It gives candidates valuable information about the examinations, explains how to prepare to take the examination, and provides some opportunities to practice for the examinations. The study guide is organized into four major sections.