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CSI Canadian Securities Course AFP-Exam-1

AFP-Exam-1

Exam Code: AFP-Exam-1

Exam Name: Applied Financial Planning Certification Exam 1 (AFP)

Updated: Aug 31, 2026

Q & A: 120 Questions and Answers

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CSI Canadian Securities Course AFP-Exam-1 Applied Financial Planning Certification Exam 1 (AFP) Exams

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CSI AFP-Exam-1 Exam Syllabus Topics:

SectionWeightObjectives
Technical Competencies84%- Risk Management and Insurance
- Asset and Liability Management
- Tax Planning
- Investment Planning
- Retirement Planning
- Estate Planning
Enabling Competencies16%- Professional Conduct and Regulatory Compliance
- Client Relationship and Practice Management

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

Question 1

During implementation, a client agrees to update her will, purchase disability insurance, and increase RRSP contributions. Which statement best describes the planner's role?

A. Assume the client will implement everything without follow-up.
B. Complete the will without involving a lawyer.
C. Clarify responsibilities, timelines, and any required referrals or product steps.
D. Focus only on the RRSP contribution because it creates an investment transaction.


Question 2

A client refuses to provide details about debt balances, tax returns, and monthly expenses but asks the planner to confirm whether retirement at age 55 is achievable. What should the planner do?

A. Use generic assumptions and present the plan as reliable.
B. Explain that the conclusion will be limited or unreliable without the missing information.
C. Proceed only with investment recommendations.
D. Estimate the figures secretly from the client's age and income.


Question 3

Demario, age 28, has just started his own law firm. He met with his financial planner, Ivy, and she told him that he needs insurance, but Ivy did not specify which type. Demario is single and owns his own home. At this point in his career, his greatest asset is his human capital. Which type of insurance should Ivy have specified to purchase in order for Demario to best protect this asset?

A. Term Life.
B. Disability.
C. Extended health care.
D. Critical Illness.


Question 4

Dianna is visiting with Karen, her Financial Planner, and is excited to report that she has just bought her dream home. She has also let Karen know she Is meeting with an insurance representative to purchase a whole life insurance to cover her 20-year mortgage. Why might Karen suggest Dianna consider term life insurance instead?

A. It is better suited for long term insurance needs.
B. The term policy has a cash value, which can be borrowed against.
C. The cost of premiums is lower than whole life.
D. The client's health may deteriorate as she gets older.


Question 5

Rob, age 42, is married with three children in elementary school. He works as an operations supervisor at a small manufacturing company, earning $70,000 annually. Rob asks his financial planner, Wendy, to liquidate his GIC investments worth $55,000 in order to use the sale proceeds to purchase a gold stock referred to him by his friend who expects the stock to appreciate significantly. Rob has not purchased stock before. What should be Wendy's reaction to Rob's query?

A. Refuse the order and tell Rob to manage his own investments.
B. Review Rob's risk tolerance, time horizon, and objectives.
C. Refrain from questioning Rob's judgment because the order is unsolicited.
D. Delay placing the order, advise Rob to take some time to reconsider.


Solutions:

Question 1
Answer: C
Question 2
Answer: B
Question 3
Answer: B
Question 4
Answer: C
Question 5
Answer: B

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