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Nature of the AFP Exam 2

Posted by David Gobeil on

The AFP Exam 2 is a constructed-response examination featuring three or four case studies, which reflect typical financial planning situations that you may encounter. You must provide a written response to the questions. Each case study has three or four related questions, which may include sub-questions to assess smaller pieces of information. The passing mark is 60%.

For each question, you are required to provide a written response in the examination booklet. The AFP Exam 2 will include charts or data sheets requiring completion, such as a cash flow statement or a statement of net worth. You have up to 3 hours to complete the AFP Exam 2.

Questions will present situations that require in-depth analysis, evaluation and integration across the various aspects of financial planning to formulate a response; formulating such responses can be aided by real-life experience.

AFP Exam 2 assesses your knowledge, skills and attributes to practice; and your ability to apply the professional competencies as set out in the PFP® Professional Competency Profile.

Although not required, you should successfully complete AFP Exam 1 prior to attempting AFP Exam 2. AFP Exam 2 builds on the content and depth examined in AFP Exam 1 with a greater expectation of you to analyze, evaluate and formulate strategies to present solutions for client situations.

The exam weighting of AFP Exam 1 is as follows:

Core Competency

Weighting

ENABLING COMPETENCIES

 

1. Professional Conduct and Regulatory Compliance

7%

2. Client Relationship and Practice Management

7%

TECHNICAL COMPETENCIES

 

3. Asset and Liability Management

15%

4. Risk Management and Insurance

12%

5. Investment Planning

15%

6. Tax Planning

15%

7. Retirement Planning

23%

8. Estate Planning

6%


Of particular note is the greatest weight is given to Retirement Planning, which suggests that you should spend at least a quarter of your study time focused on this area. Equal weight of 15% is given to Asset and Liability Management, Investment Planning and Tax Planning; which suggests that you should spend half of your study time focused on these three areas.

Feedback

“I did not find the questions particularly difficult but I just ran out of time.”

“Sometimes I found it difficult to understand exactly what the questions wanted me to answer. They were sometimes rather vague and I could have written many words.”

“Reading the case situations took lots of time and your suggestion about checking the questions first helped.”

Personal Financial Planner® and PFP® are registered certification marks belonging to CSI Global Education Inc. ("CSI"). The Applied Financial Planning (AFP) Certification Examinations 1 and 2 are trademarks belonging to CSI.


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