Education Program
The program has been accreditated 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 Participants: 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 |
|---|---|---|
| Total: | 22.0 | 83.0 |
| FP 3010 Financial Planning | 12.0 | 9.0 |
| FP 3020 Insurance Planning | 7.5 | 14.5 |
| FP 3030 Investment Planning | 0.0 | 21.0 |
| FP 3040 Tax planning | 0.0 | 21.0 |
| FP 3050 Best Practices for Financial Planners | 2.5 | 17.5 |
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.
FP 3010 Financial Planning
| Course: | FP 3010 Financial Planning |
|---|---|
| Level: | 3 |
| Mode of study: | Lectures 21 hours; Other study 70 hours |
| Pre-requisities: | 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 presentation are expected. | |
| SYLLABUS | |
| 1. 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 2. Estate planning and strategies 2.1 The Estate planning process 2.2 Introduction to Estate duty, Wills, intestacy and the probate process 2.3 Trusts and their uses in Estate planning 2.4 Form of property ownership and the valuation of properties 2.5 Will substitutes 3. 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 4. Corporate finance 4.1 Takeover nad merger 4.2 Initial Public Offer 4.3 Listing rules for Growth Enterprises Market and Main Board 5. Finance markets 5.1 Investment advisers 5.2 Listing rules under Chapter 21 of the Hong Kong Exchange and Clearing Corporation 5.3 Anti-Money laundering guidelines |
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| LEARNING MATERIALS - ESSENTIAL READINGS | |
| Personal Financial Planning Guide: Take Control of your Future and Unlock the Door to Financial Security, Ernst & Young, John Wiley & Son. Introduction to Financial Planning DFP1, Financial Planning Association of Australia Limited |
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| LEARNING MATERIALS - RECOMMENDED READINGS | |
| Sidney Sze, et al, Q & A for Financial Planning Professioanl Examinations, Sunny Wave International Ltd Guide for Directors of Limited Companies, The Stock Exchange of Hong Kong Companies Ordinance, The Hong Kong SAR Governement publisher Michael Dalton, et al, Dalton CFP Examination Review Outlines and Study Guides Gitman L. Joehnk, Personal Financial Planning , Dryden Press Dora Lee & Ho Chi Ming, Advanced Taxation in Hong Kong, Longman Hong Kong Master Tax Guide, CCH Asia Pte Ltd AJ Halkyard and PG Willoughby, Encyclopaedia of Hong Kong Taxation Geroge E. Rejda, Principles of Risk Management and Insurance, Addison Wesley William, Smith & Young, Risk Management and Insurance, McGraw-Hill Kapoor, Dlabay and Hughes, Personal Finance, McGraw-Hill Bodie, Kane & Marcus, Essential of Investment, McGraw-Hill |
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FP 3020 Insurance Planning
| Course: | FP 3020 Insurance Planning |
|---|---|
| Level: | 3 |
| Mode of study: | Lectures 21 hours; Other study 70 hours |
| Pre-requisities: | Nil |
| Assessment scheme: | 2 and 1/2 hours unseen MC examination 100% |
| AIMS | |
| This course aims to provide students with general knowledge of insurnace 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 legel 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; function 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 evalute various knids of insurance plans as well as the contract selection criteria from a cost benefit point of view. |
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| LEARNING OUTCOMES | |
| It is designed to help students understand the theory, the practical operation procedures, and the major products of insurance. 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. |
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| SYLLABUS | |
| Part A: Principles and Practice of Insurance 1. Risk Management 1.1 Introduction to Risk 1.2 Insurance 1.3 Risk Management Techniques 2. Functions and Benefits of Insurance 2.1 Application of Insurance 2.2 Legal Principles 2.3 Insurnace Policy Provisions 3. Insurance Industry: 3.1 Functions and Organization of Insurers 3.2 Pricing of Insurers 4. Insurance Regulation 4.1 Government Regulation 4.2 Self-Regulation 4.3 Ethical and Other Related Issues Part B: General Insurance 1. Personal Risk Management 1.1 Household Insurance 1.2 Motor Insurance 1.3 Personal Liability Insurance 2. Commercial Property Management 2.1 Commercial Property Insurnace 2.2 Commercial Liability Insurance 2.3 Theft Insurance Part C: Long-term and Health Insurance 1. 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 Consultation 1.6 Estate Planning 1.7 Retirement Planning and Annuities 2. Health Insurance 2.1 Health Insurance Management 2.2 Disability Insurance |
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| LEARNING MATERIALS - ESSENTIAL READINGS | |
| Insurance Intermediaries, Quality Assurance Examination Scheme Study Notes 1: Principles and Practice of Insurance, Office of Insurance Commissioner, Hong Kong. Insurnace Intermediaries, Quality Assurance Examination Scheme Study Notes 2: Long-term Insurance, Office of Insurance Commissioner, Hong Kong. Insurance INtermediaries, Quality Assurance Examination Scheme Study Notes 3: General Insurance, Office of Insurance Commissioner, Hong Kong. |
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| LEARNING MATERIALS - RECOMMENDED READINGS | |
| Sicney Sze, el al, Q & A Financial Planning Professional Examinations, Sunny Wave International Ltd Graydon G. Watters, Financial Pursuit, Financial Knowledge Inc., Edward E. Graves & Burke A, Christensen, McGill's Legal Aspects of Life Insurance, The American College. Ted Kurlowicz, James F. Ivers lll and John J. McFadden, Planning for Business Owners and Professionals, The American College. Edward E. Graves & Lynn Hayes, McGill's Life Insurance, The American College. George E. Rejda, Principles of Risk and Insurance, Addison-Wesley |
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FP 3030 Investment Planning
| Course: | FP 3030 Investment Planning |
|---|---|
| Level: | 3 |
| Mode of study: | Lectures 21 hours, Other study 70 hours |
| Pre-requisities: | Nil |
| 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-off. 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. |
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| 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 eauity ownership. This course focuses on individual investors more than large institutional investors. | |
| SYLLABUS | |
| 1. 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 2. Investment diversification concepts 2.1 Measures of return 2.2 Measures of risk 2.3 Diversification 2.4 Markowitz portolio theory 2.5 Capital assets pricing model 2.6 Efficient market hypothesis 3. Valuation of equity investments 3.1 Fundamental analysis 3.2 Dividend deiscount model 3.3 Earning model 3.4 Technical analysis 4. Valutaion of fixed-income investments 4.1 Bond features 4.2 Bond pricing and yields 4.3 Bond interest rates and risks 5. Valuation of derivation secutities 5.1 Forward contracts and futures 5.2 Call and put options 5.3 Valuation of options 5.4 Arbitrage using options 6. 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 |
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| LEARNING MATERIALS - ESSENTIAL READINGS | |
| Harold Evensky, Wealth Management - The Financial Advisor's Guide to Investing and Managing Client Assets, McGraw-Hill. | |
| LEARNING MATERIALS - RECOMMENDED READINGS | |
| Sidney Sze, et al, Q & A for Financial Planning Professional Examinations, Sunny Wave International Ltd Bodie, Kane & Marcus, Essential of Investments, Irwin McGraw-Hill Relly, Brown, Investment Analysis and Portfolio Management, Dryden Press. Cohen, Zinbarg, Zeikel, Investment Analysis and Portfolio Management, McGraw Hill. Gilman, Joenk, Personal Financial Planning, Dryden Press. McGuinness, A guide to the Equity Market of Hong Kong, Oxford University Press Secutity Ordinance, Law of Hong Kong. |
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FP 3040 Tax planning
| Course: | FP 3040 Tax planning |
|---|---|
| Level: | 3 |
| Mode of study: | Lectures 21 hours, Other study 70 hours |
| Pre-requisities: | Nil |
| 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 | |
| 1. Intoduction to Hong Kong tax system 1.1 The tax system and administrative organizations 1.2 The sources of Hong KOng tax law 2. 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 3. Depreciation Allowance 3.1 Industrial buildings 3.2 Commercial buildings 3.3 Plant and machinery 4. Salaries Tax 4.1 Scope of charge 4.2 Computation of assessments salaries 4.3 Basis of assessment 5. Property Tax 5.1 Scope of charge 5.2 Owners of properties 5.3 basis of assessment 6. Personal assessment 6.1 Election of personal assessment 6.2 Computation of total income 6.3 calculate tax liabilities 7. Tax investigation 7.1 Tax avoidance and evasion 7.2 Process and methods of tax investigation 7.3 Offences and penaliities 8. 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 9. Other Duties 9.1 Stamp Duty 9.2 Estate Duty 10. International Tax Planning 10.1 Elements of International Tax Planning 10.2 Trandfer pricing 10.3 Treaty shopping |
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| LEARNING MATERIALS - ESSENTIAL READINGS | |
| Dora Lee and Ho Chi Ming, Advanced taxation in Hong Kong, Longman. CCH Asia Pte Ltd, Hong Kong Master Tax Guide, David Flex and david G. Smith, Hong Kong Taxation Law & Practice, The Chinese University Press. |
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| LEARNING MATERIALS - RECOMMENDED READINGS | |
| Sidney Sze et al, Q & A for Financial Planning Professional Examinations, Sunny Wave International Ltd Michael Dalton, et al, Dalton CFP Examination Review Outline and Study Guides. Colin Farrell, Understanding Tax in Hong Kong, EEP Internatinal (HK) Ltd Christopher H Sherrin, Probate, FT Law & Tax Asia Pacific. PG Willoughtby and AJ Halyard, A Guide to Hong Kong Estate Duty, Butterworths. CCH Asia Pte Ltd, Hong Kong Tax manual. CCH Asia Pte Ltd, Hong Kong Reveneue Legislation Jefferson VanderWolk, Source of Income - Tax Law and Practice. A Halkyard & JP VanaerWolk, Hong Kong Tax Law - Cases and Materials Inland Revenue Ordinance Chapter 112 Estate Duty Ordinance Chapter 111 Stump Duty Ordinance Chapter 117 |
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FP 3050 Best Practices for Financial Planners
| Course: | FP 3050 Best Practices for Financial Planners |
|---|---|
| Level: | 3 |
| Mode of study: | Lectures 21 hours, Other study 70 hours |
| Pre-requisities: | Nil |
| Assessment scheme: | 2 and 1/2 hours Uunseen 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 planners. 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. |
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| LEARNING OUTCOMES | |
| Students will acquire knowledge of best practices for financial planners. They will learn to establish financial planning business, prepare financial proposal and analyze the pros and cons of different plans. |
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| SYLLABUS | |
| 1. 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 2. Law 2.1 Accepting a fiduciary role 2.2 Conflict of Interest 2.3 Prodessional liability 2.4 Central records and opening administration 3. Building a Financial Planninf 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 4. 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 5. 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 Dtermining the clients 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 |
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| 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 | |
| Jeffrey H. Rattiner, Getting Standard as a Financial Planner, Mary Rowland, Best Practices for Financial Advisors, Bloombery Press. Code of Ethics and Professional Responsibility, Society of registered Financial Planners. |
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| LEARNING MATERIALS - RECOMMENDED READINGS | |
| Sidney Sze et al, Q & A for Financial Planning Professional examinations, Sunny Wave International Ltd Michael dalton, et al., Dalton CFP Examination Review Outlines and Study Guides. Jim Ainsworth, How to become a Successful Financial Constultant, John Wiley & Sons Inc. Garratt and Robinson, Ethics for Beginners, Icon. Geroge, Business Ethics, Prentice Hall Green, The Ethical Manager, A New Method for Business Ethics, Macmillian |
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