Appendix B-Technical Knowledge

Transcription

1 Appendix B-Technical Knowledge The following is from the new CFP Professional Competency Profile. CFPs are expected to achieve the following knowledge standards within five years. The VisionWorks, CorpWorks, and TrustWorks planning suite is the most robust in Canada. We have highlighted in green the features the suite does not currently include. Most require only an A (Awareness) or U (Understanding). We have highlighted in yellow the Sections that do not apply to planning software such as Section 700: Economic and Regulatory Environment. A=Awareness U = Understanding D=Detailed E=Expert 100. Taxation Level Level 101. Assessment Rules Residency D Calculation of Net Capital Losses D Requirement to Self-Assess D Allowable Business Investment Losses A Reassessment U Use of Capital Losses D Administration and Enforcement U Capital Gains Deduction D Fiscal Year D Depreciable Assets (CCA, U Recapture, Terminal Loss) 102. Employment Income Principal Residence D Definitions D Personal Use Property U Remuneration U Listed Personal Property A Benefits U Eligible Capital Property A Deductions D Change of Use Rules U Reserves U 103. Business Income Definitions D 107. Deductions from Income Accounting Methods D Registered Plans E Deductions D Child Care Expenses D Moving Expenses D 104. Property Income Interest and Carrying Charges D Interest D Employment Expenses D Dividends D Other Deductions D Rental Income and Deductions U Deductibility of Interest Expense D 108. Tax Credits Non-Refundable Tax Credits U 105. Other Income Refundable Tax Credits U Taxable U Non-Taxable U 109. Tax Shelters Structure of Tax Shelters A 106. Capital Gains and Losses At-Risk Rules A Definition D Calculation of Taxable Capital Gains and Allowable Capital Losses D 110. Taxes Payable Tax Rates D Federal/Provincial Taxes D Federal/Provincial Surtaxes U Rules regarding AMT U 1

2 100. Taxation (continued) Level 200. Insurance Level 111. Income Splitting 201. Life Insurance Attribution Rules D Types of Policies D Methods D Features of Policies D Taxation of Life Policies D 112. lnter Vivos Transfers Transfer to Spouse/Partner D 202. Disability Insurance Transfer to Other Than Spouse/Partner D Types of Policies D Transfer of Qualified Properties U Features of Policies D Transfer of Qualified Small Business Corporation Shares U Taxation of Disability Policies D 113. Transfer of Company Shares 203. Health Insurance Beneficiaries of the Transfer U Types of Policies U Estate Freeze U Features of Policies U Post-Mortem Planning U Taxation of Policies U 114. Tax Consequences of Death 204. Critical Illness Insurance Taxation Year U Features of Policies U Types of lncome U Taxation of Policies U Types of Tax Returns U Deemed Disposition of Property D 205. Long-Term Care Insurance Tax Credits U Features of Policies U Post-Mortem Planning U Taxation of Policies U Transfer of Company Shares Upon Owner's Death U 206. Property, Casualty and Liability Insurance 115. Taxation of Other Legal Entities Types of Policies A Sole Proprietorship D Features of Policies A Partnership D Corporation U 300. Investments Trust U 301. Investment Vehicles 116. Particulars of Tax Planning for Owner Managers Cash D Transfer of Property to a Corporation U Fixed-Income D Salary-Dividend Mix U Equities D Shareholder Benefits U Real Estate U Purchase and Redemption of Shares U Derivatives U Commodities U 117. Employee Stock Options General Rules U 302. Investment Structures Canadian-Controlled Private Corporations A Mutual Funds D Public Corporations A Segregated Funds D Hedge Funds A 118. International Tax Issues Exchange-Traded Funds D U.S. Estate Tax U Pooled Funds D Foreign Income and Property Reporting A 302,06 Partnerships A Entering Canada U Investment Trusts U Leaving Canada U 2

3 300. Investments (continued) Level Level 303. Types of Investment Risk 404. Deferred Profit Sharing Plans (DPSP) D Business U Attributes D Market D Payment Options U Reinvestment D Death of a Member Interest Rate D Inflation Rate D 405. Supplementary Pension Arrangement Marketability D Supplemental Retirement Plans U Liquidity D Retirement Compensation Arrangement U Exchange Rate D Political U 406. Registered Retirement Savings Plans (RRSP) Default U Attributes E Types of Plans E 304. Measurement/Management of Investment Risk Beneficiary Designation E Standard Deviation U Contribution Limits E Beta U Deductibility of Contributions E Correlation U Qualified Investments D Home Buyers' Plan (HBP) D 305. Portfolio Management Lifelong Learning Plan (LLP) D Diversification D Retiring Allowance Rollover E Active Asset Allocation D Maturity of an RRSP E Passive Asset Allocation D Death of an Annuitant E Investment Product Analysis U 407. Registered Education Savings Plans (RESP) 306. Buying and Selling Methods Attributes E Buy/Hold D Contribution Limits E Leverage D 4A7.Og Canada Education Saving Grant E (CESG) Dollar Cost Averaging D Canada Learning Bond (CLB) D 306,04 Dividend Re-investment D Withdrawals E Systematic Withdrawal Plans D Short Selling U 408. Registered Disability Saving Plane (RDSP) Attributes D 400. Retirement, Savings and lncome Programs Contribution Limits D Canada Disability Saving Grant (CDSG) D 401. Registered Pension Plans Canada Disability Saving Bond (CDSB) D Pension Benefits Standards Act U Withdrawals D Attributes D Pension Adjustment (PA) and Pension Adjustment Reversal (PAR) D 409. Tax-Free Saving Accounts (TFSA) Attributes E 402. Defined Benefit Pension Plans Contribution Limits E Attributes D Withdrawals E Payment Options D Death of a Member U 410. Life Income Funds (LlF) Individual Pension Plan (lpp) U Attributes D Taxation D 403. Defined Contribution Pension Plans Attributes D 411. Locked-ln Retirement lncome Funds (LRIF) Payment Options D Attributes D Death of a Member U Taxation D 412. Registered Retirement lncome Funds (RRIF) Attributes E Taxation E 3

4 400. Retirement Programs (continued) Level Level 413. Annuities 507. Gontract Law Attributes D Principles of Contract Law A Taxation D 508. Trust 500. Law Parties to a Trust D Attributes of a Trust D 501. Family Law Infer Vivos Trusts D Marriage D Testamentary Trusts D Common-Law Relationships D Separation and Divorce D 600. Financial Analysis DomesticContracts A Child Support U 601. Analysis of Financial lnformation Spousal/Common-Law/PartnerSupport U Interest Calculations D Other Dependant Support A Time Value of Money D Return Calculations D 502. Wills Purpose of a Will D 602. Personal Financial Ratios Types of Wills U Debt-to-Equity D Clauses of a Will A Total Debt Service (TDS) D Duties of Executor D Gross Debt Service (GDS) D Multiple Jurisdictions A Probate D 603. Budgeting Intestacy D Cash Flow Analysis E Emergency Fund Analysis E 503. Power of Attorney for Property Purpose of a POA D 604. Personal Financial Statement Obligations of the Attorney D Net Worth Statement E Attributes D Cash Flow Statement E Fisks Associated with POAs D Budget E Alternatives to POAs D 700. Economic and Regulatory Environment 504. Power of Attorney for Personal Care Purpose of a POA D 701. Economic Environment Obligations of the Attorney D Economic lndicators U Attributes D Inflation and Deflation U Living Wills D Monetary Policy U Fiscal Policy U 505. Personal Property Ownership and Transfer Rules Economic Cycles U Sole Ownership D Foreign Exchange Rates U 505,02 Joint Ownership with Right of Survivorship D Gross Domestic Product (GDP) U Tenants-in-Common D Financial Markets U Beneficial Ownership U Term Structure of Interest Rates and U Yield Curves Global Economic Environment U 506. Business Ownership Structures Market Theories U Sole Proprietorship U Parlnership U Corporations U Trust U 4

5 Level 700. Economic Environment (continued) Government Benefit Plans Level 702. Regulatory Environment Canada Pension Plan/Quebec Pension Plan Regulatory Agencies for Financial Institutes U Eligibility for Benefits D Consumer Protection U Amount of Benefits U Stock Exchanges U Contribution Levels D Self-Regulatory Organizations U Tax Treatment of Contributions/Benefits D Securities Regulation U Application Requirements, Deadlines U Public Company Disclosure, Investor Rights U Types of Benefits D Insurance Regulation U Old Age Security 800. Ethics and Standards Eligibility for Benefits D Amount of Benefits D 801. Standards of Professional Responsibility for CFP Clawback of Benefits D Professionals and FPSC Registered Candidates Taxation of Benefits D FPSC Code of Ethics E Guaranteed Income Supplement (GlS) D FPSC Rules of Conduct E Application Requirements, Deadlines U 801,03 FPSC Fitness Standards E FPSC Financial Planning Practice Standards E Child Tax Benefit Eligibility for Benefits D 900. Debt Amount of Beneflts D Income Qualification D 901. Credit Child Disability Benefit U Line of Credit D Taxation of Benefits D Credit Card D Single Purpose Loan D Employment lnsurance Investment Loan D Eligibility for Benefits U lnsurance Policy Loan U Amount of Benefits U Loan from Employer U Premiums U Tax Treatment of Premiums/Benefits U 902. Mortgages Types of Benefits U Regular Mortgage D Reverse Mortgage U Universal Child Care Benefit (UCCB) Home Equity Line of Credit D Eligibility for Benefits U Amount of Benefits U 903. Refinancing and Debt Consolidation D Taxation of Benefits U 904. Leasing U Workers' Compensation Programs A 905. Insolvency and Bankruptcy lncome Assistance Programs A Consumer Proposal U Bankruptcy U Behavioural Finance Concept of Behavioural Finance Definition U Relevance to Financial Planning U Human Behaviour Biases U Decision-Makinq Process U Heuristics U 5