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
1. Carryforward and carryback
2. Superficial loss rule |
2.0
2.0 |
| 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
1. Options
2. Index-based investments
3. Index-linked GICs
4. Futures/swaps |
1.0
1.0
1.0
1.0 |
| 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
1. Asset classes
2. Company size
3. Industry
4. Geographic
5. Management style
6. Maturity re: fixed incomes
7. Credit risk |
3.0
3.0
3.0
3.0
3.0
3.0
3.0 |
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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