Updated: Aug 01, 2026
No. of Questions: 120 Questions & Answers with Testing Engine
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| Certification Vendor: | Canadian Securities Institute (CSI) |
| Exam Name: | CSI Applied Financial Planning Certification Exam 1 (AFP) |
| Exam Number: | AFP-Exam-1 |
| Available Languages: | English, French |
| Exam Format: | Multiple choice, Case-based questions |
| Recommended Training: | CSI Learning Resources |
| Exam Registration: | CSI Official Registration Portal |
| Sample Questions: | CSI AFP-Exam-1 Sample Questions |
| Exam Way: | Computer-based proctored exam (online or authorized test centre) |
| Pre Condition: | Enrollment in the CSI Applied Financial Planning (AFP) program or equivalent eligibility as defined by CSI |
| Official Syllabus URL: | https://www.csi.ca |
| Section | Objectives |
|---|---|
| Investment Planning | - Asset allocation and portfolio basics - Investment products and risk-return profiles |
| Financial Planning Foundations | - Ethics and professional standards in financial advising - Financial planning process and client relationship management |
| Insurance and Risk Management | - Risk mitigation strategies in financial planning - Life and health insurance fundamentals |
| Taxation Concepts | - Tax-efficient investment strategies - Personal income tax principles |
| Retirement Planning | - Retirement savings vehicles and planning principles |
1. What financial information would Deandra a financial planner, analyze in order to increase her client's net worth by decreasing expenses?
A) Current cash flow statement
B) Expense report
C) Net worth statement
D) Budget
2. Sheeba is a financial planner and meeting with Ivana, a new client. She explains that part of her process is to recommend products and services, but prior to doing so, she will closely investigate the options to ensure they match up with Ivana's goals. Which professional responsibility has Sheeba demonstrated to Ivana?
A) Professionalism.
B) Objectivity.
C) Diligence.
D) Integrity.
3. Wendy, age 60, has a holding company whose sole asset is a commercial property. The property appreciated considerably in value over the last 10 years, and she expects the property value will continue to grow. Wendy is concerned about the tax implications this may have when she dies and leaves the property to her children.
What strategy should Wendy's financial planner recommend to her?
A) Sell the property to her children below market value.
B) Conduct an estate freeze.
C) Gift common shares to her children and retain majority ownership.
D) Transfer the common shares of the company into joint name with her children.
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) The client's health may deteriorate as she gets older.
B) The cost of premiums is lower than whole life.
C) It is better suited for long term insurance needs.
D) The term policy has a cash value, which can be borrowed against.
5. Sapphire, age 35, a recent widow, is still in the grieving stage. She has just received a large insurance payout.
She has limited savings, a long-term time horizon, and a high tolerance for risk. What investment strategy should her financial planner recommend until Sapphire is better able to understand her new situation?
A) Deposit the funds into a high-risk investment portfolio.
B) Deposit the funds into a moderate risk investment portfolio.
C) Deposit the funds into a high interest savings account.
D) Deposit the funds into a portfolio of traditional and index-linked guaranteed investment certificates.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: B | Question # 5 Answer: C |
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