CSI AFP-Exam-1 : Applied Financial Planning Certification Exam 1 (AFP)

  • Exam Code: AFP-Exam-1
  • Exam Name: Applied Financial Planning Certification Exam 1 (AFP)
  • Updated: Jul 29, 2026     Q & A: 120 Questions and Answers

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CSI AFP-Exam-1 Exam Syllabus Topics:

SectionObjectives
Topic 1: Financial Planning Foundations- Financial planning process and client relationship management
- Ethics and professional standards in financial advising
Topic 2: Insurance and Risk Management- Life and health insurance fundamentals
- Risk mitigation strategies in financial planning
Topic 3: Retirement Planning- Retirement savings vehicles and planning principles
Topic 4: Taxation Concepts- Tax-efficient investment strategies
- Personal income tax principles
Topic 5: Investment Planning- Investment products and risk-return profiles
- Asset allocation and portfolio basics

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

1. Edward's client is updating his will and is concerned what will happen to his and his wife's estates should they die within a short time of each other. Which clause in the will should Edward recommend the couple discuss with their lawyer?

A) Conversion.
B) Survivorship.
C) Life interest.
D) Successor.


2. A client, age 60, is in a low tax bracket today and expects a larger taxable pension after age 65. She has TFSA and RRSP room. Which contribution priority is generally more appropriate?

A) RRSP only after the client turns 72.
B) Non-registered account only, because registered accounts are unsuitable after age 60.
C) TFSA, because withdrawals will not increase taxable retirement income.
D) RRSP, because withdrawals are tax-free.


3. A client sends an email alleging that a mutual fund recommendation was unsuitable because the fund declined sharply after purchase. The client asks for compensation. What is the financial planner's first professional obligation?

A) Remind the client that all investments can lose money and close the matter.
B) Document the complaint and follow the firm's complaint-handling procedure.
C) Promise reimbursement to preserve the relationship.
D) Delete the email if the account forms were signed correctly.


4. Maya, a financial planner, is meeting with a new client who was recently referred to her. In determining the client's overall risk tolerance, what qualitative data should Maya capture as part of her process?

A) Past investment experiences.
B) Annual earnings data.
C) Personal net worth statement.
D) Stock option plan details.


5. Bruna is a senior financial planner. At 4 p.m. on Friday afternoon (an hour before closing), her manager asks her to complete the following:
Fix a mutual fund trade that was entered incorrectly by a junior financial planner.
Call her client to advise him that his account is overdrawn, and the bank will refuse recent payments unless he credits the account before 5 p.m.
Bruna determines she can only complete one of the two tasks before the end of the business day. How should Bruna address her supervisor's request?

A) Stay after hours until she completes both tasks.
B) Bruna should let the client's payments bounce since the client is unable to manage his cash flow and Bruna should prioritize correcting the trade.
C) Ask the manager which of the two problems should be prioritized. Then ask the manager to delegate the other task to a colleague.
D) Bruna should prioritize the client with the overdrawn account since he is one of her clients. She should then reverse the incorrect trade the following business day.


Solutions:

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

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