CFP EXAM SYLLABUS
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Financial Planning Process and Job Knowledge
Requirements: Topics and Level of Competence
B.6. INCOME TAX PLANNING (Sections 53 -
69)
B.6.a. CONSIDERATIONS (Sections 53 - 55)
53. Implications
of tax planning in financial planning
3.0
54. Personal income taxation
Level
A.
Fundamental terminology
3.0
B.
Sources of tax information
2.0
C.
Tax evasion vs.
tax avoidance (GAAR)
2.0
55. Compliance
Level
A.
T-1 General
2.0
B.
Filing of returns
(deadlines)
2.0
C.
Payment of instalments
(income tax and GST)
2.0
D.
Penalties
2.0
E.
Objections and
appeals
2.0
B.6.b. COMPUTATIONS AND CONCEPTS (Sections
56 - 58)
56. General
Concepts
Level
A.
Types of income
3.0
B.
Types of deductions
3.0
C.
Non-refundable
tax credits
3.0
D.
Items not subject
to tax
2.0
E.
Cash vs. accrual
2.0
F.
Accounting periods
2.0
G.
Clawback provisions
2.0
57. Computations
Level
A.
Total income
2.0
B.
Net income
2.0
C.
Taxable income
2.0
D.
Non-refundable
tax credits
2.0
E.
Federal taxes and
provincial taxes
2.0
F.
Federal and provincial
surtaxes
1.0
58. Disposition
of property
Level
A.
Types of property
2.0
B.
Adjusted cost base
concepts
2.0
C.
Recapture of CCA
and terminal loss rules
2.0
D.
Principal residence
rules and possible elections
2.0
E.
Offsetting capital
losses with capital gains
2.0
F.
Capital loss rules
G.
Capital gains exemptions
rules
2.0
H.
ABILs
2.0
I.
Deemed dispositions,
including change of use rules
2.0
B.6.c. STRATEGIES (Sections 59 - 64)
59. Income
splitting and attribution rules
3.0
60. Deferred
compensation plans
Level
A.
Stock option
2.0
B.
Salary deferral
arrangements
2.0
C.
Supplemental employee
retirement pensions, such as RCAs
2.0
61. Charitable
giving
2.0
62. Tax-effective
investment planning
Level
A.
Use of various
investment vehicles
3.0
B.
Allocation between
registered and non-registered plans
3.0
63. Tax sheltered
Investments
Level
A.
Limited partnerships
2.0
B.
Flow-through shares
2.0
C.
Types of income
trusts
2.0
64. Leverage
Level
A.
Deductible vs.
non-deductible interest
3.0
B.
Advantages and
disadvantages
3.0
B.6.d. OTHER TAX ISSUES (Sections 65 -
69)
65. Tax implications
of marriage dissolution
Level
A.
Alimony
2.0
B.
Child support
2.0
C.
Property settlement
2.0
66. Tax implications
of insurance and annuities
2.0
67. Alternative
minimum tax (AMT)
2.0
68. Home office
rules
2.0
69. Automobile
benefits
2.0
B.7. INVESTMENT PLANNING (Sections 70 -
94)
B.7.a. REGULATION (Section 70)
70. Regulation
of securities and sales professionals
Level
A.
Securities Commissions
2.0
B.
SRO/IDA
2.0
C.
Stock exchanges
2.0
D.
Federal/provincial
regulation of insurance
2.0
E.
Disclosure or items
such as compensation/prospectuses
2.0
B.7.b. INVESTMENT VEHICLES (Sections 71
- 84)
71. Money market
instruments/T-Bills/cash equivalents
3.0
72. GICs/term
deposits
3.0
73. Mortgage-backed
securities
2.0
74. Federal,
provincial government and crown agency securities
2.0
75. Corporate
bonds/debentures
2.0
76. Convertible
securities
2.0
79. Mutual
funds
Level
A.
Open-end investment
companies
3.0
B.
Closed-end investment
companies
3.0
C.
Unit investment
trusts
3.0
D.
Labour-sponsored
mutual funds
3.0
80. Insurance-based
investments
Level
A.
Segregated funds
3.0
B.
Annuities
3.0
C.
Universal life/whole
life
3.0
81. Real estate:
direct/indirect ownership
2.0
82. Options,
futures and derivatives
Level
A.
Concepts
2.0
B.
Types
83. Taxation
of investments
Level
A.
Stocks
2.0
B.
Bonds
2.0
C.
Mutual funds/segregated
funds
2.0
84. Miscellaneous
Level
A.
International investments
1.0
B.
Tangible assets
(collectibles)
1.0
A. B. B.7.c. INVESTMENT THEORY, ENVIRONMENT
AND FINANCIAL MARKETS (Sections 85 - 89)
85. Types of
investment risk
Level
A.
Business
3.0
B.
Market
3.0
C.
Reinvestment
3.0
D.
Interest rate
3.0
E.
Purchasing power
3.0
F.
Marketability
3.0
G.
Liquidity
3.0
H.
Political
3.0
I.
Exchange rate
3.0
86. Measurement
of risk
Level
A.
Standard deviation
2.0
B.
Beta (market risk)
2.0
87. Influence
of time on investment risk
Level
A.
Effects of time
3.0
B.
Duration and convexity
1.0
88. Stock valuation
methods
Level
A.
Dividend discount
model
2.0
B.
Price-earnings
2.0
89. Portfolio
performance measurement
Level
A.
Benchmarks
2.0
B.
Time vs. dollar-weighted
return
2.0
B.7.d. STRATEGIES AND TACTICS (Sections
90 - 92)
90. Formula
Investing
Level
A.
Dollar-cost averaging
3.0
B.
Dividend reinvestment
(DRIPs)
3.0
C.
Systematic withdrawal
plans (SWPs)
3.0
91. "Active"
and "passive" strategies
Level
A.
Market timing (tactical)
2.0
B.
Strategic asset
allocation
2.0
C.
Securities selection
2.0
D.
Indexed portfolios
2.0
E.
Maturity selection
2.0
F.
Buy/hold
2.0
G.
Short sales
2.0
92. Diversification
Level
A.
Importance
3.0
B.
B. Types
B.7.e. MODERN PORTFOLIO THEORY (Section
93)
93. Aspects
of modern portfolio theory
Level
A.
Theory (Markowitz)
1.0
B.
Correlation of
asset classes
2.0
C.
Efficient market
hypothesis
2.0
D.
Anomalies
2.0
B.8. SMALL BUSINESS CHECKLIST (Sections
94 - 101)
94. Employment
relationship
Level
A.
Self-employment
2.0
B.
Contract employee
2.0
C.
Commission employee
2.0
95. Forms of
organizations
Level
A.
Sole proprietorships
2.0
B.
General partnerships
2.0
C.
Limited partnerships
2.0
D.
Corporations
2.0
E.
Trusts
2.0
F.
Foundations/not-for-profit
organizations
1.0
G.
Professional associations/professional
corporations
1.0
H.
Joint ventures
1.0
I.
Franchises
1.0
96. Pros and
cons of various business structures
Level
A.
Legal
2.0
B.
Tax
2.0
C.
Accounting requirements
1.0
D.
Year-end options
1.0
97. Incorporation
process
Level
A.
Registration and
trademarks
2.0
B.
Share structures
2.0
C.
Legal requirements
2.0
98. Qualified
small business definitions
2.0
99. Capital
dividend account
2.0
100. Buy-sell
agreements
2.0
101. Business
valuation methods
2.0
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are certification marks