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Education Program
The program has been accredited
by Hong Kong Council for Accreditation of Academic and
Vocational Qualifications (HKCAAVQ) for the period from
June 2002 to June 2009.
Title of Activity: Professional
Diploma in Financial Planning
Reference No. 80/36/02
Target Participant: Fee-paying participants who are practicing financial
planners or those who intend to pursue a career in this field.
|
Module Title
|
Number of Core
credits granted
|
Number of Non-core
credits granted
|
| Financial Planning |
12.0
|
9.0
|
| Insurance Planning |
7.5
|
14.5
|
| Investment Planning |
0.0
|
21.0
|
| Tax Planning |
0.0
|
21.0
|
| Best Practices for Financial Planners |
2.5
|
17.5
|
| Total: |
22.0
|
83.0
|
In terms of the number
of core and non-core credits granted, this program is one of the
activities that have been granted the highest credits to meet the
Continuing Professional Development requirements of the Insurance
Intermediaries Quality Assurance Scheme.
| COURSE
: |
FP 3010 Financial Planning |
| LEVEL
: |
3 |
| MODE
OF STUDY : |
Lectures 21 hours
Other study 70 hours |
| PRE-REQUISITES
: |
Nil |
| ASSESSMENT
SCHEME : |
2 and 1/2 hours unseen
MC examination 100% |
AIMS
This course introduces
the concepts of total personal financial planning and provides an
overview of the major areas of personal financial planning following
a case study and project approach.
LEARNING OUTCOMES
The student would learn
how to conduct a comprehensive financial planning for individuals.
The subject focuses on the formulation, communication, and implementation
of the comprehensive personal financial plan. Required skills concerning
the principles of financial planning such as foundation of financial planning,
insurance, investment and risk management, tax planning, retirement plans
and employee benefits will be reviewed. A research project and case study
with oral presentations are expected.
SYLLABUS
| I. |
Principles of financial planning |
| ¡@ |
1.1 Who provides financial planning?
1.2 The forces creating demand for financial planning
1.3 General Principles of financial planning
1.4 Introduction to Insurance policies and risk management
1.5 Introduction to Investment planning
1.6 Introduction to Tax planning
1.7 Retirement plans and employee benefits |
| II. |
Estate Planning and strategies |
| ¡@ |
2.1 The Estate planning Process
2.2 Introduction to Estate duty.
2.3 Wills, intestacy and the Probate Process
2.4 Trusts and their uses in Estate Planning
2.5 Form of property Ownership and the valuation of properties
2.6 Will substitutes |
| III. |
Corporate Governance |
| ¡@ |
3.1 Memorandum and Articles of Association
3.2 Duties and responsibilities of Directors and Secretary
3.3 Maintenance of Capital and Dividends
3.4 Majority Rule and Protection of Minorities |
| IV. |
Corporate Finance |
| ¡@ |
4.1 Takeover and Merger
4.2 Initial Public Offer
4.3 Listing rules for Growth Enterprises Market and Main Board.
4.4 Corporate Governance |
| V. |
Finance Markets |
| ¡@ |
5.1 Investment advisers
5.2 Listing rules under Chapter 21 of the Hong Kong Exchanges and Clearing
Corporation
5.3 Anti-Money Laundering Guidelines |
LEARNING MATERIALS
Essential Reading
Personal Financial
Planning Guide: Take Control of your Future and Unlock the Door
to Financial Security, Ernst & Young, John Wiley & Sons, 2010.
Introduction to Financial
Planning DFP1, Financial Planning Association of Australia
Limited.
Recommended/Supplementary Readings
Sidney Sze, et al, "Q & A Financial Planning Examinations
2007", Sunny Wave International Limited.
"Guide for Directors
of Listed Companies", The Stock Exchange of Hong Kong,
1997.
"Companies Ordinance",
The Hong Kong SAR Government publisher, 2010
Michael Dalton, et al., Dalton
CFP Examination Review Outlines and Study Guides.
Gitman, L. Joehnk, Personal
Financial Planning, Dryden Press, 1999, 8th edition.
Dora Lee & Ho Chi
Ming, Advanced Taxation in Hong Kong, Longman, 9th
edition
Hong Kong Master
Tax Guide, CCH Asia Pte Limited, 2010, 10th edition.
AJ Halkyard and PG Willoughby, Encyclopaedia
of Hong Kong Taxation), 2010.
George E. Rejda, Principles
of Risk Management and Insurance, Addison Wesley, 2007
edition.
Williams, Smith & Young, Risk
Management and Insurance, Irwin McGraw-Hill, 2005 edition.
Kapoor, Dlabay, and Hughes, Personal
Finance, Irwin, July 2007.
Bodie, Kane & Marcus, Essential
of Investments, Irwin McGraw-Hill, 2005 edition.
| COURSE : |
FP 3020 Insurance Planning |
| LEVEL : |
3 |
| MODE OF STUDY : |
Lectures 21 hours
Other study 70 hours |
| PRE-REQUISITES : |
nil |
| ASSESSMENT SCHEME
: |
2 and 1/2 hours unseen MC examination
100% |
AIMS
This course aims to provide
students with general knowledge of insurance both in principle and
in practice.
OBJECTIVES
1. To provide students
with concepts of the principles of insurance in the context of economics,
risk management, finance cost control, relevant legal aspects of
insurance contracts, and insurance coverage analysis. In this section,
students should learn the theory of insurance and thus, understand
what insurance is, why insurance works and how to determine insurance
needs.
2. To provide students
with practical knowledge of insurance operation: functions of insurance,
insurance markets, insurance regulation and financial assessment.
In this section, students should learn how insurance works along
with its practical operation procedures.
3. To provide students
with knowledge of major insurance products, such as life insurance,
health insurance, property and liability insurance. In this section,
students should learn to evaluate various kinds of insurance plans
as well as the contract selection criteria from a cost-benefit point
of view.
LEARNING OUTCOMES
It is designed to help
students understand the theory, the practical operation procedures,
and the major products of insurance.
LEARNING OUTCOMES -
SKILLS
After successful completion
of this course, students should be able to use insurance as a tool
for financial consultation to manage personal and/or group assets.
This course provides a complement to the course Foundation of Financial
Planning.
SYLLABUS
Part A: Principles and Practice of
Insurance
| AI |
Risk Management |
| ¡@ |
1.1 Introduction to Risk
1.2 Insurance
1.3 Risk Management Techniques |
| AII |
Functions and Benefits of Insurance |
| ¡@ |
2.1 Application of Insurance
2.2 Legal Principles
2.3 Insurance Policy Provisions |
| AIII |
Insurance Industry |
| ¡@ |
3.1 Functions and Organization of
Insurers
3.2 Pricing of Insurers |
| AIV |
Insurance Regulation |
| ¡@ |
4.1 Government Regulation
4.2 Self-Regulation
4.3 Ethical and Other Related Issues |
Part B: General Insurance
| BI |
Personal Risk Management |
| ¡@ |
1.1 Household Insurance
1.2 Motor Insurance
1.3 Personal Liability Insurance |
| BII |
Commercial Risk Management |
| ¡@ |
2.1 Commercial Property Insurance
2.2 Commercial Liability Insurance
2.3 Theft Insurance |
Part C: Long-term and Health Insurance
| CI |
Long-term Insurance |
| ¡@ |
1.1 Introduction to Life Insurance
1.2 Types of Life Insurance
1.3 Life Policy Provisions
1.4 Applications of Life Insurance
1.5 Business Continuation
1.6 Estate Planning
1.7 Retirement Planning and Annuities |
| CII |
Health Insurance |
| ¡@ |
2.1 Health Insurance
2.2 Disability Insurance |
LEARNING MATERIALS
Essential Readings
Insurance Intermediaries Quality Assurance
Examination Scheme Study Notes 1: Principles and Practice of Insurance,
Office of Insurance Commissioner, Hong Kong, 2005.
Insurance Intermediaries Quality Assurance
Examination Scheme Study Notes 2: Long-term Insurance, Office
of Insurance Commissioner, Hong Kong, 2005.
Insurance Intermediaries Quality Assurance
Examination Scheme Study Notes 3: General Insurance, Office
of Insurance Commissioner, Hong Kong, 2005.
Recommended Readings
Sidney Sze, et al, Q & A
Financial Planning Examinations 2007, Sunny Wave International Limited.
Graydon G. Watters, Financial Pursuit,
Financial Knowledge Inc., 1996.
Edward E. Graves & Burke A. Christensen, McGill's
Legal Aspects of Life Insurance, The American College, 1997.
Ted Kurlowicz, James F. Ivers III and
John J. McFadden, Planning for Business Owners and Professionals,
The American College, 1999.
Edward E. Graves & Lynn Hayes, McGill's
Life Insurance, The American College, 2007.
George E. Rejda, Principles of Risk
and Insurance, seventh edition, Addison-Wesley, 2005.
| COURSE : |
FP 3030 Investment Planning |
| LEVEL : |
3 |
| MODE OF STUDY : |
Lectures 21 hours
Other study 70 hours |
| ASSESSMENT SCHEME
: |
2 and 1/2 hours unseen MC examination
100% |
AIMS
This course introduces
students to different types of financial securities, the analysis
and valuation of these investment products, and the assessment of
the relationship between risk and return.
OBJECTIVES
1. To enable students
to understand the nature of different types of investment products
and apply the investment techniques in light of risk-return trade-offs.
2. To provide students
with the analytical skills and techniques required to effectively
manage institutional and individual portfolios of securities and
other investment products.
3. To provide students
an understanding of the role of personal risk management so that
they are able to use all tools available to control a client' s exposure
to financial risk related to insurance, interest rates, exchange
rates, commodities and securities.
LEARNING OUTCOMES
Students will be familiar
with basic finance concepts such as the time value of money, the
role of financial statements, and the concept of equity ownership.
This course focuses on individual investors more than large institutional
investors.
SYLLABUS
| I |
Investment environment and instruments |
| ¡@ |
1.1 Financial markets and market
structure
1.2 Financial instruments
1.3 Security market indexes
1.4 Hong Kong stock market
1.5 Financial institutions and mutual fund |
| II |
Investment diversification concepts |
| ¡@ |
2.1 Measures of returns
2.2 Measures of risks
2.3 Diversification
2.4 Markowitz portfolio theory
2.5 Capital assets pricing model
2.6 Efficient market hypothesis |
| III |
Valuation of equity investments |
| ¡@ |
3.1 Fundamental analysis
3.2 Dividend discount model
3.3 Earning model
3.4 Technical analysis |
| IV |
Valuation of fixed-income investments |
| ¡@ |
4.1 Bond features
4.2 Bond pricing and yields
4.3 Bond interest rates and risks |
| V |
Valuation of derivation securities |
| ¡@ |
5.1 Forward contracts and futures
5.2 Call and put options
5.3 Valuation of options
5.4 Arbitrage using options |
| VI |
Portfolio management measures and
investment process |
| ¡@ |
6.1 Measuring portfolio returns
6.2 Performance evaluation
6.3 Performance attribution
6.4 International diversification
6.5 Investors and the investment process |
LEARNING MATERIALS
Essential Reading
Harold Evensky, Wealth Management - The
Financial Advisor's Guide to Investing and Managing Clinet Assets,
McGraw-Hill, 1997.
Recommended/Supplementary Readings
Sidney Sze, et al, Sunny Wave Q & A for
Financial Planning Examinations 2007,
Sunny Wave International Limited.
Bodie, Kane & Marcus, Essential
of Investments, Irwin McGraw-Hill, 2009, 5th edition.
Reilly, Brown, Investment Analysis and
Portfolio Management, Dryden Press 6th edition
Cohen, Zinbarg, Zeikel, Investment Analysis and Portfolio Management, McGraw
Hall, 5th edition.
Gitman, Joehnk, Personal Financial Planning,
Dryden Press 8th edition
McGuinness, A Guide to the Equity Market
of Hong Kong, Oxford University Press, 1999.
Securities Ordinance, Laws of Hong
Kong.
| COURSE : |
FP 3040 Tax Planning |
| LEVEL : |
3 |
| MODE OF STUDY : |
Lectures 21 hours
Other Study 70 hours |
| ASSESSMENT SCHEME
: |
2 and 1/2 hours unseen MC examination
100% |
AIMS
The course is to ensure
that students achieve a good understanding of the basic concepts,
principles of the taxation and practices of tax planning in Hong
Kong. The concepts of international tax planning will be introduced.
LEARNING OUTCOMES
Students will learn profits
tax, salaries tax, and property tax plus estate and stamp duties.
They also acquire invaluable insight into all practical aspects of
dealing with tax issues generally and the Inland Revenue Department
in particular.
SYLLABUS
| I. |
Introduction to the Hong Kong tax
system |
| ¡@ |
1.1 The tax system and administrative
organizations
1.2 The sources of Hong Kong tax law |
| II. |
Profits Tax |
| ¡@ |
2.1 Scope of charge
2.2 Computation of assessable Profits
2.3 Deductible expenses and losses
2.4 Basis of Assessment
2.5 Special types of business |
| III. |
Depreciation Allowances |
| ¡@ |
3.1 Industrial buildings
3.2 Commercial buildings
3.3 Plant and machinery |
| IV. |
Salaries Tax |
| ¡@ |
4.1 Scope of charge
4.2 Computation of assessable salaries
4.3 Deductible expenses
4.4 Basis of assessment |
| V. |
Property Tax |
| ¡@ |
5.1 Scope of charge
5.2 Owners of properties
5.3 Basis of assessment |
| VI. |
Personal assessment |
| ¡@ |
6.1 Election of personal assessment
6.2 Computation of total income
6.3 Calculate tax liabilities |
| VII. |
Tax Investigation |
| ¡@ |
7.1 Tax avoidance and evasion
7.2 Process and methods of tax investigation
7.3 Offences and penalties |
| VIII |
Anti-avoidance rules |
| ¡@ |
8.1 Substance against form
8.2 General anti-avoidance provisions
8.3 Specific anti-avoidance provisions
8.4 Sale and leaseback
8.5 Service companies |
| IX. |
Other Duties |
| ¡@ |
9.1 Stamp Duty
9.2 Estate Duty |
| X. |
International Tax Planning |
| ¡@ |
10. Elements of International Tax
Planning
10.1 Transfer pricing
10.2 Treaty Shopping |
LEARNING MATERIALS
Essential Readings
Dora Lee and Ho Chi Ming,
Advanced Taxation in Hong Kong, Longman, 9th Edition 2010
CCH Asia Pte Limited, Hong
Kong Master Tax Guide, 10th edition, 2009.
David Flux and David G.
Smith, Hong Kong Taxation Law & Practice. The Chinese
University Press 2010 Edition.
Recommended/Supplementary
Readings
Sidney Sze, et al, "Sunny
Wave
Q & A Financial Planning Examinations 2007 " Sunny Wave International Limited.
Michael Dalton, et al., "Dalton
CFP Examination Review Outlines and Study Guides".
AJ Halkyard and PG Willoughby, Encyclopaedia
of Hong Kong Taxation, 1998.
Colin Farrell, Understanding
Tax in Hong Kong, 2nd edition, EEP International (HK) Limited
1998.
Christopher H Sherrin,
Probate, FT Law & Tax Asia Pacific, 1996.
PG Willoughtby and AJ
Halkyard, A Guide to Hong Kong Estate Duty, 2nd edition, Butterworths,
1996.
CCH Asia Pte Limited,
Hong Kong Tax Manual
CCH Asia Pte Limited,
Hong Kong Revenue Legislation
Jefferson VanderWolk,
Source of Income - Tax Law and Practice 1994, 3rd edition
A. Halkyard & J.P.
VanderWolk, Hong Kong Tax Law- Cases and Materials 1999
Inland Revenue Ordinance
Chapter 112
Estate Duty Ordinance
Chapter 111
Stamp Duty Ordinance Chapter
117
| COURSE : |
FP 3050 Best Practices for Financial
Planners |
| LEVEL : |
3 |
| MODE OF STUDY : |
Lectures 21 hours
Other study 70 hours |
| PRE-REQUISITES : |
None |
| ASSESSMENT SCHEME
: |
2 and 1/2 hours Unseen MC Examination
60% plus a written report on financial plan for a given case
40%. |
AIMS
This subject explores
all major practice issues that financial planners encounter. It presents
a model of effective client relation management. This course is designed
to prepare individuals who intend to be practicing financial planners.
It is the final subject of a five-subject education program required
to be qualified as a registered financial planner.
Students should learn to conduct personal financial planning business;
develop client relations management, providing due diligence and develop
practice documents. In addition, knowledge of ethical financial planning
practice and Hong Kong financial markets' regulations are discussed.
LEARNING OUTCOMES
Students will acquire
knowledge of best practices for financial planners. They will learn
to establish financial planning business, prepare financial planning
proposal and analyze the pros and cons of different plans.
SYLLABUS
| I. |
Introduction |
| ¡@ |
1.1 Background and General Principles
1.2 What is a financial Planner?
1.3 How Financial Planners Get paid?
1.4 Ethical and professional considerations in financial planning |
| II. |
Law |
| ¡@ |
2.1 Accepting a fiduciary role
2.2 Conflict of interest
2.3 Professional liability
2.4 Central records and opening administration |
| III. |
Building a Financial Planning Practice |
| ¡@ |
3.1 Clients
3.2 Bringing in clients
3.3 Working with clients
3.4 Meeting client's need.
3.5 Providing Due Diligence |
| IV. |
Documentation for financial planning
practice |
| ¡@ |
4.1 Engagement letter
4.2 Checklist for new clients
4.3 Permanent file
4.4 Working file
4.5 Register of documents |
| V. |
The outline of process of financial
planning |
| ¡@ |
5.1 Establishing client-planner relationship
5.2 Determining objectives and expectations
5.3 Collecting clients data
5.4 Determining the client's current financial status
5.5 Developing the financial plan
5.6 Presenting the financial plan
5.7 Implementing the financial plan
5.8 Monitoring the financial plan |
5 Code of Ethics and
Professional Responsibility
The HKRFP has adopted the code of ethics and professional responsibility
(Code) to provide principles and rules to its members and students and
certified to use the HKRFP certification mark and the marks HKRFP.
LEARNING MATERIALS
Essential Readings
a) Financial Planning
Practice
Jeffrey H. Rattiner, Getting
Started as a Financial Planner, 2005.
Mary Rowland, Best
Practices for Financial Advisors, Bloomberg Press, 1997.
b) HKRFP Licensee Standards
Code of Ethics and
Professional Responsibility, Society of Registered Financial
Planners.
Recommended/Supplementary Readings
Sidney Sze, et al, "Sunny
Wave
Q & A Financial Planning Examinations 2007" Sunny Wave International Limited.
Michael Dalton, et al., "Dalton
CFP Examination Review Outlines and Study Guides".
Jim Ainsworth, How
to become a Successful Financial Consultant, John Wiley & Sons.
Inc.
Garratt and Robinson, Ethics
for Beginners, Icon, 1996.
George, Business Ethics,
Prentice Hall, 1995, 4th edition.
Green, The Ethical
Manager: A New Method for Business Ethics, Macmillan, 1994.
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Society of Registered Financial Planners. ©2001-2011 All Rights Reserved.
