FP1 FULL PRACTICE EXAM QUESTIONS
2025-2026 WITH 100% CORRECT
ANSWERS
Which statement regarding the traits or values of financial advisors is correct?
A. Professionalism is displayed by being competent and knowledgeable.
B. Diligence is displayed by being honest with clients.
C. Objectivity requires respecting clients' privacy.
D. Confidentiality requires the advisor to make impartial recommendations. - ANSWER -A.
Professionalism is displayed by being competent and knowledgeable.
Professionalism is displayed by being competent and knowledgeable by keeping up to date regarding
key aspects of the financial services industry.
By and large, what statement below is true in regards to the current landscape in Canada for financial
advisors?
A. There has been a dramatic shift to fee based advice as it's perceived as unbiased.
B. The role has shifted to a client driven model where building a strong client relationship is key.
C. The business is now product driven where it's all about selling higher commissioned products.
D. The industry is focusing on reducing costs and finding the most inexpensive investments for clients. -
ANSWER -B. The role has shifted to a client driven model where building a strong client relationship is
key.
The role of the Advisor in the financial services industry has changed in recent years from one that is
product driven to one that is client driven. Reference: Module 1, Section 1
Which statements about the evolution of the role of financial advisors is/are correct?
FP1 FULL PRACTICE EXAM QUESTIONS 2024-2025 WITH 100% CORRECT ANSWERS
,[I] The financial services industry has moved towards an integrated market and so have advisors.
[II] Advisors have fewer products and services to offer to clients.
[III] Advisors require a greater level of knowledge to recommend sophisticated alternatives to clients.
A. I only.
B. I and III only.
C. II and III only.
D. I and II only. - ANSWER -B. I and III only.
Advisors have to work within a highly integrated financial services market and must possess a much
higher level of knowledge than before to satisfy increasingly sophisticated clients.
Select the first step in the financial planning process.
A. Analyzing a client's data and information.
B. Recommending strategies to meet goals.
C. Establishing a relationship with the client.
D. Collecting a client's data and information. - ANSWER -C. Establishing a relationship with the client.
The first step in the financial planning process is for an advisor to establish a relationship with the client;
everything else follows.
Select the item that would provide you with quantitative data about your new client.
A. Profit sharing plan statement.
B. Risk tolerance assessment.
C. Goal setting questionnaire.
D. Fees and services agreement. - ANSWER -A. Profit sharing plan statement.
FP1 FULL PRACTICE EXAM QUESTIONS 2024-2025 WITH 100% CORRECT ANSWERS
,Only the profit-sharing statement would provide you with quantitative data, i.e. numeric or other
specific data that can be quantified. The other options would provide qualitative data. Reference:
Module 1, Section 2.
Your sclient's sgoal sis sto simprove sher scash sflow. sSelect sthe sstrategy sthat swill sbe smost seffective sin
shelping sher sto sreach sher sgoal.
A. sImprove sinvestment sreturn. s
B. sReduce sflexible sexpenses sand slengthen stime sframe sfor sinvestments. s
C. sIncrease sincome sand sreduce sexpenses. s
D. sContribute sregularly sto san semergency sfund. s- sANSWER s-C. sIncrease sincome sand sreduce
sexpenses.
Cash sflow sis sthe samount sof smoney savailable sfor sinvestment sor sother spurposes. sIn sthis sscenario,
sthe sclient sis sbest sable sto sfree sup smoney sfor sinvestments sby sincreasing sthe samount sof smoney
scoming sin s(income) sand sreducing sthe samount sof smoney sgoing sout s(expenses). sWhile s(b) swould
simprove scash sflow sby sreducing ssome sexpenses, sthe saddition sof sthe sincrease sin sincome sin s(c)
smakes sit smore seffective.
Kim sdoes snot srecommend san sinvestment sfund sto sher sclients sthat sis sheavily spromoted sby sher
sown sfirm's smarketing sdepartment sbecause sher sanalysis sdemonstrates sthat sit sis snot sconsistent sfor
sher sclients' sgoals. sSelect sthe stype sof sresponsibility sthat sshe sis sdemonstrating.
A. sIntegrity. s
B. sProfessionalism. s
C. sObjectivity.
D. sDiligence. s- sANSWER s-C. sObjectivity.
Kim sis sfulfilling sthe sresponsibility sof s"Objectivity" swhich sstates sthat san sadviser smust snot smake
srecommendations sthat sbenefit sthe sadviser sor sthe sadviser's sinstitution swhen sthere sare sother
sproducts sand sservices sthat smight sserve san sadviser's sclients sbetter. sReference: sModule s1, sSection
s2.
FP1 FULL PRACTICE EXAM QUESTIONS 2024-2025 WITH 100% CORRECT ANSWERS
, Select sthe smost suseful sgoal sfor ssetting sinvestment spriorities.
A. s"I'm snot ssure swhen swe'll sretire, sbut swe swant sto sbe sable sto stravel sfor s10 sor sso syears sat sthat
stime." s
B. s"We swant sto sbuy sa sbig shouse sin sa snice sneighbourhood" s
sC. s"We swill sneed s70% sof sour scurrent sincome slevel sto sretire sand smaintain sour slifestyle." s
D. s"I swant sto sbe sable sto sretire scomfortably sbased son smy scurrent slifestyle." s- sANSWER s-C. s"We
swill sneed s70% sof sour scurrent sincome slevel sto sretire sand smaintain sour slifestyle."
General sFeedback:
Options sa, sb, sand sd sare snot smeasurable sor squantifiable; sonly sc sis smeasurable sand squantifiable.
sThus, sonly s"c" sis susual sfor ssetting spriorities. sEncouraging sclients sto sset sspecific, smeasurable
stargets sinstead sof svague sand sgeneral sgoals sserves stwo sfunctions:
It shelps sto sclearly sand sexplicitly sdefine sfinancial sobjectives.
It shelps sto smeasure sand smonitor sthe sperformance sof sthe sfinancial splan.
Reference: sModule s1, sSection s2
Nabila, san sadvisor, sreceives sa scall sfrom san sinsurance sbroker sasking sfor sinformation sabout sthe
sassets sshe smanages sfor sa sclient. sNabila srefuses sto sspeak sto sthe sbroker sabout sher sclient swithout
sthe sclient's spermission. sWhat stype sof sresponsibility sis she sdemonstrating?
A. sIntegrity. s
B. sProfessionalism. s
C. sConfidentiality.
D. sDiligence. s- sANSWER s-C. sConfidentiality.
General sFeedback: sNabila sis sfulfilling sthe sresponsibility sof sConfidentiality, swhich sstates sthat san
sadviser smust srespect sa sclients' sprivacy sand streat stheir sinformation swith sconfidentiality. sReference:
sModule s1, sSection s2.
FP1 FULL PRACTICE EXAM QUESTIONS 2024-2025 WITH 100% CORRECT ANSWERS
2025-2026 WITH 100% CORRECT
ANSWERS
Which statement regarding the traits or values of financial advisors is correct?
A. Professionalism is displayed by being competent and knowledgeable.
B. Diligence is displayed by being honest with clients.
C. Objectivity requires respecting clients' privacy.
D. Confidentiality requires the advisor to make impartial recommendations. - ANSWER -A.
Professionalism is displayed by being competent and knowledgeable.
Professionalism is displayed by being competent and knowledgeable by keeping up to date regarding
key aspects of the financial services industry.
By and large, what statement below is true in regards to the current landscape in Canada for financial
advisors?
A. There has been a dramatic shift to fee based advice as it's perceived as unbiased.
B. The role has shifted to a client driven model where building a strong client relationship is key.
C. The business is now product driven where it's all about selling higher commissioned products.
D. The industry is focusing on reducing costs and finding the most inexpensive investments for clients. -
ANSWER -B. The role has shifted to a client driven model where building a strong client relationship is
key.
The role of the Advisor in the financial services industry has changed in recent years from one that is
product driven to one that is client driven. Reference: Module 1, Section 1
Which statements about the evolution of the role of financial advisors is/are correct?
FP1 FULL PRACTICE EXAM QUESTIONS 2024-2025 WITH 100% CORRECT ANSWERS
,[I] The financial services industry has moved towards an integrated market and so have advisors.
[II] Advisors have fewer products and services to offer to clients.
[III] Advisors require a greater level of knowledge to recommend sophisticated alternatives to clients.
A. I only.
B. I and III only.
C. II and III only.
D. I and II only. - ANSWER -B. I and III only.
Advisors have to work within a highly integrated financial services market and must possess a much
higher level of knowledge than before to satisfy increasingly sophisticated clients.
Select the first step in the financial planning process.
A. Analyzing a client's data and information.
B. Recommending strategies to meet goals.
C. Establishing a relationship with the client.
D. Collecting a client's data and information. - ANSWER -C. Establishing a relationship with the client.
The first step in the financial planning process is for an advisor to establish a relationship with the client;
everything else follows.
Select the item that would provide you with quantitative data about your new client.
A. Profit sharing plan statement.
B. Risk tolerance assessment.
C. Goal setting questionnaire.
D. Fees and services agreement. - ANSWER -A. Profit sharing plan statement.
FP1 FULL PRACTICE EXAM QUESTIONS 2024-2025 WITH 100% CORRECT ANSWERS
,Only the profit-sharing statement would provide you with quantitative data, i.e. numeric or other
specific data that can be quantified. The other options would provide qualitative data. Reference:
Module 1, Section 2.
Your sclient's sgoal sis sto simprove sher scash sflow. sSelect sthe sstrategy sthat swill sbe smost seffective sin
shelping sher sto sreach sher sgoal.
A. sImprove sinvestment sreturn. s
B. sReduce sflexible sexpenses sand slengthen stime sframe sfor sinvestments. s
C. sIncrease sincome sand sreduce sexpenses. s
D. sContribute sregularly sto san semergency sfund. s- sANSWER s-C. sIncrease sincome sand sreduce
sexpenses.
Cash sflow sis sthe samount sof smoney savailable sfor sinvestment sor sother spurposes. sIn sthis sscenario,
sthe sclient sis sbest sable sto sfree sup smoney sfor sinvestments sby sincreasing sthe samount sof smoney
scoming sin s(income) sand sreducing sthe samount sof smoney sgoing sout s(expenses). sWhile s(b) swould
simprove scash sflow sby sreducing ssome sexpenses, sthe saddition sof sthe sincrease sin sincome sin s(c)
smakes sit smore seffective.
Kim sdoes snot srecommend san sinvestment sfund sto sher sclients sthat sis sheavily spromoted sby sher
sown sfirm's smarketing sdepartment sbecause sher sanalysis sdemonstrates sthat sit sis snot sconsistent sfor
sher sclients' sgoals. sSelect sthe stype sof sresponsibility sthat sshe sis sdemonstrating.
A. sIntegrity. s
B. sProfessionalism. s
C. sObjectivity.
D. sDiligence. s- sANSWER s-C. sObjectivity.
Kim sis sfulfilling sthe sresponsibility sof s"Objectivity" swhich sstates sthat san sadviser smust snot smake
srecommendations sthat sbenefit sthe sadviser sor sthe sadviser's sinstitution swhen sthere sare sother
sproducts sand sservices sthat smight sserve san sadviser's sclients sbetter. sReference: sModule s1, sSection
s2.
FP1 FULL PRACTICE EXAM QUESTIONS 2024-2025 WITH 100% CORRECT ANSWERS
, Select sthe smost suseful sgoal sfor ssetting sinvestment spriorities.
A. s"I'm snot ssure swhen swe'll sretire, sbut swe swant sto sbe sable sto stravel sfor s10 sor sso syears sat sthat
stime." s
B. s"We swant sto sbuy sa sbig shouse sin sa snice sneighbourhood" s
sC. s"We swill sneed s70% sof sour scurrent sincome slevel sto sretire sand smaintain sour slifestyle." s
D. s"I swant sto sbe sable sto sretire scomfortably sbased son smy scurrent slifestyle." s- sANSWER s-C. s"We
swill sneed s70% sof sour scurrent sincome slevel sto sretire sand smaintain sour slifestyle."
General sFeedback:
Options sa, sb, sand sd sare snot smeasurable sor squantifiable; sonly sc sis smeasurable sand squantifiable.
sThus, sonly s"c" sis susual sfor ssetting spriorities. sEncouraging sclients sto sset sspecific, smeasurable
stargets sinstead sof svague sand sgeneral sgoals sserves stwo sfunctions:
It shelps sto sclearly sand sexplicitly sdefine sfinancial sobjectives.
It shelps sto smeasure sand smonitor sthe sperformance sof sthe sfinancial splan.
Reference: sModule s1, sSection s2
Nabila, san sadvisor, sreceives sa scall sfrom san sinsurance sbroker sasking sfor sinformation sabout sthe
sassets sshe smanages sfor sa sclient. sNabila srefuses sto sspeak sto sthe sbroker sabout sher sclient swithout
sthe sclient's spermission. sWhat stype sof sresponsibility sis she sdemonstrating?
A. sIntegrity. s
B. sProfessionalism. s
C. sConfidentiality.
D. sDiligence. s- sANSWER s-C. sConfidentiality.
General sFeedback: sNabila sis sfulfilling sthe sresponsibility sof sConfidentiality, swhich sstates sthat san
sadviser smust srespect sa sclients' sprivacy sand streat stheir sinformation swith sconfidentiality. sReference:
sModule s1, sSection s2.
FP1 FULL PRACTICE EXAM QUESTIONS 2024-2025 WITH 100% CORRECT ANSWERS
