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CSI FP2 Exam Syllabus Topics:

SectionWeightObjectives
Investment and Tax Planning10%- Investment Management
  • 1. Modern Portfolio Theory and Asset Allocation
    • 2. Portfolio Performance Measurement and Benchmarking
      • 3. Investment Selection and Risk Management
        - Tax Planning Strategies
        • 1. RESPs, RDSPs, TFSAs and In-Trust Accounts
          • 2. Income Deferral and Income Splitting
            • 3. Tax Shelters and Tax-Efficient Strategies
              • 4. Taxation of Business Structures
                Family Law15%- Fundamental Aspects of Family Law
                • 1. Marriage, Cohabitation, Separation and Divorce
                  • 2. Spousal Support and Child Support
                    • 3. Custody and Access
                      - Financial and Property Issues
                      • 1. Disclosure Requirements and Financial Obligations
                        • 2. Domestic Contracts
                          • 3. Impact of Divorce on Financial Planning
                            • 4. Property Division on Relationship Breakdown
                              Financial Planning Practice10%- The Personal Financial Planning Process in Canada
                              • 1. The Six Steps of the Financial Planning Process
                                • 2. Ethics and Financial Advisors
                                  • 3. Identifying Client Goals and Risk Profiles
                                    • 4. The Financial Planning Business Today
                                      • 5. Client Responsibilities and Professional Standards
                                        Estate Planning10%- Estate Distribution and Tax Planning
                                        • 1. Minimizing or Deferring Taxes at Death
                                          • 2. Will Preparation and Probate
                                            • 3. Probate Fee and Estate Administration Cost Reduction
                                              • 4. Estate Planning for Individuals, Families and Business Owners
                                                - Trusts and Powers of Attorney
                                                • 1. Taxation of Trusts
                                                  • 2. Powers of Attorney for Personal Care and Property
                                                    • 3. Types of Trusts and Trust Establishment
                                                      • 4. Incapacity Planning and Substitute Decision-Making
                                                        Financial Planning for Small Business15%- Business Law and Agency Relationships
                                                        • 1. Contract Termination and Discharge
                                                          • 2. Contract Formation and Types of Contracts
                                                            • 3. Agency Relationships
                                                              - Small Business Financial Planning
                                                              • 1. Business Valuation and Employment Law
                                                                • 2. Business Taxation
                                                                  • 3. Business Succession and Estate Freezes
                                                                    • 4. Business Structures and Entity Selection
                                                                      Savings Planning and Debt Management10%- Debt Planning and Mortgages
                                                                      • 1. Mortgage Planning and Real Estate Ownership
                                                                        • 2. Lease-versus-Buy Decisions and Borrowing to Invest
                                                                          • 3. Debt Refinancing and Debt Service Ratios
                                                                            • 4. Consumer Credit and Debt Management
                                                                              - Net Worth and Cash Management Planning
                                                                              • 1. Emergency Funding
                                                                                • 2. Net Worth and Cash Flow Analysis
                                                                                  • 3. Budgeting and Savings Strategies
                                                                                    Retirement Planning20%- Retirement Income Needs Analysis
                                                                                    • 1. Estimating Retirement Income Requirements
                                                                                      • 2. Managing Retirement Income Shortfalls
                                                                                        • 3. Old Age Security and Guaranteed Income Supplement
                                                                                          • 4. Canada Pension Plan and Quebec Pension Plan
                                                                                            - Registered Pension and Retirement Income Plans
                                                                                            • 1. Registered Retirement Savings Plans
                                                                                              • 2. Individual Pension Plans and Executive Retirement Arrangements
                                                                                                • 3. Registered Retirement Income Funds and Life Income Funds
                                                                                                  • 4. Registered Pension Plans and Deferred Profit Sharing Plans
                                                                                                    • 5. Annuities and Retirement Income Products
                                                                                                      Insurance Planning10%- Life Insurance
                                                                                                      • 1. Life Insurance Needs Analysis
                                                                                                        • 2. Insurance Contract Provisions, Riders and Taxation
                                                                                                          • 3. Personal and Business Applications of Life Insurance
                                                                                                            - General Insurance
                                                                                                            • 1. Homeowners and Automobile Insurance
                                                                                                              • 2. Liability and Professional Liability Insurance
                                                                                                                - Disability and Health Insurance
                                                                                                                • 1. Extended Health, Travel and Group Insurance
                                                                                                                  • 2. Critical Illness and Long-Term Care Insurance
                                                                                                                    • 3. Government Disability Benefits and Workers' Compensation
                                                                                                                      • 4. Disability Income Insurance

                                                                                                                        CSI Financial Planning II (FPII) Sample Questions:

                                                                                                                        When a Canadian works abroad for a Canadian employer, what proof must be provided to have that time qualify as residence in Canada for Old Age Security?

                                                                                                                        • A. Proof of paying Canadian Income Tax.
                                                                                                                        • B. Proof of employment from the Canadian employer and proof of physically returning to Canada within 6 months of ending employment.
                                                                                                                        • C. Proof of returning to Canada within one year of ending employment and proof of paying Canadian income taxes.
                                                                                                                        • D. Proof of Canadian Residency.
                                                                                                                        Reveal Solution  Discussion  0

                                                                                                                        Correct Answer: B  🗳️

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                                                                                                                        Kimberly, age 24, has few assets, and is single with no children. Kimberly has a 10-year-old niece Tanya who she would like her entire estate to be distributed to at death. She consults with her lawyer Jackie to write a will. What is the most important clause Jackie should add in Kimberly's will?

                                                                                                                        • A. Appointment of a guardian for a minor.
                                                                                                                        • B. Discretionary powers to divest assets, borrow from estate and to make investment decisions.
                                                                                                                        • C. Funeral instructions and requirement to pay all debts and obligations.
                                                                                                                        • D. Discretionary encroachment.
                                                                                                                        Reveal Solution  Discussion  0

                                                                                                                        Correct Answer: D  🗳️

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                                                                                                                        What is a disadvantage of a corporation?

                                                                                                                        • A. There are no government grants available to corporations.
                                                                                                                        • B. At death of a shareholder, there may be a potential for double taxation.
                                                                                                                        • C. Attribution rules apply to loans to a small business corporation.
                                                                                                                        • D. Owners are not able to limit their personal liability for business debts.
                                                                                                                        Reveal Solution  Discussion  0

                                                                                                                        Correct Answer: B  🗳️

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                                                                                                                        How long does an executor have to make a spousal Registered Retirement Savings Plan contribution on behalf of a deceased person?

                                                                                                                        • A. The executor may contribute up to 60 days after the year-end.
                                                                                                                        • B. The executor may contribute up to 60 days after the date of death.
                                                                                                                        • C. The executor may contribute up to 6 months after the date of death.
                                                                                                                        • D. The executor may contribute up to the end of the calendar year.
                                                                                                                        Reveal Solution  Discussion  0

                                                                                                                        Correct Answer: A  🗳️

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                                                                                                                        The following table outlines details for a life insurance policy issued in 1995:
                                                                                                                        Details
                                                                                                                        Amounts
                                                                                                                        Cash surrender value
                                                                                                                        $8,000
                                                                                                                        Premiums paid
                                                                                                                        $6,000
                                                                                                                        Dividends declared
                                                                                                                        $1,500
                                                                                                                        Net cost of pure insurance
                                                                                                                        $750
                                                                                                                        Marginal tax rate
                                                                                                                        30%
                                                                                                                        Assuming the policy is completely surrendered, what are the taxes payable?

                                                                                                                        • A. $1,275.
                                                                                                                        • B. $2,750.
                                                                                                                        • C. $825.
                                                                                                                        • D. $4,250.
                                                                                                                        Reveal Solution  Discussion  0

                                                                                                                        Correct Answer: A  🗳️

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