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 dclient's dgoal dis dto dimprove dher dcash dflow. dSelect dthe dstrategy dthat dwill dbe dmost deffective
din dhelping dher dto dreach dher dgoal.
A. dImprove dinvestment dreturn. d
B. dReduce dflexible dexpenses dand dlengthen dtime dframe dfor dinvestments. d
C. dIncrease dincome dand dreduce dexpenses. d
D. dContribute dregularly dto dan demergency dfund. d- dANSWER d-C. dIncrease dincome dand dreduce
dexpenses.
Cash dflow dis dthe damount dof dmoney davailable dfor dinvestment dor dother dpurposes. dIn dthis
dscenario, dthe dclient dis dbest dable dto dfree dup dmoney dfor dinvestments dby dincreasing dthe damount
dof dmoney dcoming din d(income) dand dreducing dthe damount dof dmoney dgoing dout d(expenses).
dWhile d(b) dwould dimprove dcash dflow dby dreducing dsome dexpenses, dthe daddition dof dthe dincrease
din dincome din d(c) dmakes dit dmore deffective.
Kim ddoes dnot drecommend dan dinvestment dfund dto dher dclients dthat dis dheavily dpromoted dby dher
down dfirm's dmarketing ddepartment dbecause dher danalysis ddemonstrates dthat dit dis dnot dconsistent
dfor dher dclients' dgoals. dSelect dthe dtype dof dresponsibility dthat dshe dis ddemonstrating.
A. dIntegrity. d
B. dProfessionalism. d
C. dObjectivity.
D. dDiligence. d- dANSWER d-C. dObjectivity.
Kim dis dfulfilling dthe dresponsibility dof d"Objectivity" dwhich dstates dthat dan dadviser dmust dnot dmake
drecommendations dthat dbenefit dthe dadviser dor dthe dadviser's dinstitution dwhen dthere dare dother
dproducts dand dservices dthat dmight dserve dan dadviser's dclients dbetter. dReference: dModule d1,
dSection d2.
FP1 FULL PRACTICE EXAM QUESTIONS 2024-2025 WITH 100% CORRECT ANSWERS
, Select dthe dmost duseful dgoal dfor dsetting dinvestment dpriorities.
A. d"I'm dnot dsure dwhen dwe'll dretire, dbut dwe dwant dto dbe dable dto dtravel dfor d10 dor dso dyears dat
dthat dtime." d
B. d"We dwant dto dbuy da dbig dhouse din da dnice dneighbourhood" d
dC. d"We dwill dneed d70% dof dour dcurrent dincome dlevel dto dretire dand dmaintain dour dlifestyle." d
D. d"I dwant dto dbe dable dto dretire dcomfortably dbased don dmy dcurrent dlifestyle." d- dANSWER d-C.
d"We dwill dneed d70% dof dour dcurrent dincome dlevel dto dretire dand dmaintain dour dlifestyle."
General dFeedback:
Options da, db, dand dd dare dnot dmeasurable dor dquantifiable; donly dc dis dmeasurable dand
dquantifiable. dThus, donly d"c" dis dusual dfor dsetting dpriorities. dEncouraging dclients dto dset dspecific,
dmeasurable dtargets dinstead dof dvague dand dgeneral dgoals dserves dtwo dfunctions:
It dhelps dto dclearly dand dexplicitly ddefine dfinancial dobjectives.
It dhelps dto dmeasure dand dmonitor dthe dperformance dof dthe dfinancial dplan.
Reference: dModule d1, dSection d2
Nabila, dan dadvisor, dreceives da dcall dfrom dan dinsurance dbroker dasking dfor dinformation dabout dthe
dassets dshe dmanages dfor da dclient. dNabila drefuses dto dspeak dto dthe dbroker dabout dher dclient
dwithout dthe dclient's dpermission. dWhat dtype dof dresponsibility dis dhe ddemonstrating?
A. dIntegrity. d
B. dProfessionalism. d
C. dConfidentiality.
D. dDiligence. d- dANSWER d-C. dConfidentiality.
General dFeedback: dNabila dis dfulfilling dthe dresponsibility dof dConfidentiality, dwhich dstates dthat dan
dadviser dmust drespect da dclients' dprivacy dand dtreat dtheir dinformation dwith dconfidentiality.
dReference: dModule d1, dSection d2.
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 dclient's dgoal dis dto dimprove dher dcash dflow. dSelect dthe dstrategy dthat dwill dbe dmost deffective
din dhelping dher dto dreach dher dgoal.
A. dImprove dinvestment dreturn. d
B. dReduce dflexible dexpenses dand dlengthen dtime dframe dfor dinvestments. d
C. dIncrease dincome dand dreduce dexpenses. d
D. dContribute dregularly dto dan demergency dfund. d- dANSWER d-C. dIncrease dincome dand dreduce
dexpenses.
Cash dflow dis dthe damount dof dmoney davailable dfor dinvestment dor dother dpurposes. dIn dthis
dscenario, dthe dclient dis dbest dable dto dfree dup dmoney dfor dinvestments dby dincreasing dthe damount
dof dmoney dcoming din d(income) dand dreducing dthe damount dof dmoney dgoing dout d(expenses).
dWhile d(b) dwould dimprove dcash dflow dby dreducing dsome dexpenses, dthe daddition dof dthe dincrease
din dincome din d(c) dmakes dit dmore deffective.
Kim ddoes dnot drecommend dan dinvestment dfund dto dher dclients dthat dis dheavily dpromoted dby dher
down dfirm's dmarketing ddepartment dbecause dher danalysis ddemonstrates dthat dit dis dnot dconsistent
dfor dher dclients' dgoals. dSelect dthe dtype dof dresponsibility dthat dshe dis ddemonstrating.
A. dIntegrity. d
B. dProfessionalism. d
C. dObjectivity.
D. dDiligence. d- dANSWER d-C. dObjectivity.
Kim dis dfulfilling dthe dresponsibility dof d"Objectivity" dwhich dstates dthat dan dadviser dmust dnot dmake
drecommendations dthat dbenefit dthe dadviser dor dthe dadviser's dinstitution dwhen dthere dare dother
dproducts dand dservices dthat dmight dserve dan dadviser's dclients dbetter. dReference: dModule d1,
dSection d2.
FP1 FULL PRACTICE EXAM QUESTIONS 2024-2025 WITH 100% CORRECT ANSWERS
, Select dthe dmost duseful dgoal dfor dsetting dinvestment dpriorities.
A. d"I'm dnot dsure dwhen dwe'll dretire, dbut dwe dwant dto dbe dable dto dtravel dfor d10 dor dso dyears dat
dthat dtime." d
B. d"We dwant dto dbuy da dbig dhouse din da dnice dneighbourhood" d
dC. d"We dwill dneed d70% dof dour dcurrent dincome dlevel dto dretire dand dmaintain dour dlifestyle." d
D. d"I dwant dto dbe dable dto dretire dcomfortably dbased don dmy dcurrent dlifestyle." d- dANSWER d-C.
d"We dwill dneed d70% dof dour dcurrent dincome dlevel dto dretire dand dmaintain dour dlifestyle."
General dFeedback:
Options da, db, dand dd dare dnot dmeasurable dor dquantifiable; donly dc dis dmeasurable dand
dquantifiable. dThus, donly d"c" dis dusual dfor dsetting dpriorities. dEncouraging dclients dto dset dspecific,
dmeasurable dtargets dinstead dof dvague dand dgeneral dgoals dserves dtwo dfunctions:
It dhelps dto dclearly dand dexplicitly ddefine dfinancial dobjectives.
It dhelps dto dmeasure dand dmonitor dthe dperformance dof dthe dfinancial dplan.
Reference: dModule d1, dSection d2
Nabila, dan dadvisor, dreceives da dcall dfrom dan dinsurance dbroker dasking dfor dinformation dabout dthe
dassets dshe dmanages dfor da dclient. dNabila drefuses dto dspeak dto dthe dbroker dabout dher dclient
dwithout dthe dclient's dpermission. dWhat dtype dof dresponsibility dis dhe ddemonstrating?
A. dIntegrity. d
B. dProfessionalism. d
C. dConfidentiality.
D. dDiligence. d- dANSWER d-C. dConfidentiality.
General dFeedback: dNabila dis dfulfilling dthe dresponsibility dof dConfidentiality, dwhich dstates dthat dan
dadviser dmust drespect da dclients' dprivacy dand dtreat dtheir dinformation dwith dconfidentiality.
dReference: dModule d1, dSection d2.
FP1 FULL PRACTICE EXAM QUESTIONS 2024-2025 WITH 100% CORRECT ANSWERS
