Sample Case: Bryan’s Multiple Challenges [23 Marks]

1. Based on Sanjay’s meeting with Bryan, outline four red flags that will impact his ability to service Bryan as a client? For each red flag, outline the best course of action as a financial planner. [8 Marks]

Competency Area: Client Relationship and Practice Management
Competency Statement: Methods to deal with ethical dilemmas, suspicious activities and fraud
Knowledge Statement: Manage the client’s expectations regarding financial planning

Sample Case: Bryan’s Multiple Challenges [23 Marks]

2. Bryan has provided some useful information to Sanjay regarding his investment behaviour. Using behavioural finance studies, outline three biases that might be impacting Bryan’s ability to make better investing decisions. For each bias, explain them in relation to Bryan’s situation [6 Marks]

Competency Area: Client Relationship and Practice Management
Competency Statement: Behavioural Finance, Personality traits
Knowledge Statement: Adapt communication based on the client’s age, needs and life circumstances

Sample Case: Bryan’s Multiple Challenges [23 Marks]

3. Because Jason is eligible to receive the DTC, he is allowed to open a Registered Disability Savings Plan (RDSP). Assuming Jason only contributes the maximum amount to his RDSP to qualify for the maximum yearly Canadian Disability Savings Grant (CDSG) of $3,500 per year, what will his RDSP grow to by 65 if he earns 4% and makes his contributions at the beginning of the year? Note: Jason is not eligible to receive the Canadian Disability Savings Bond (CDSB) [9 Marks]

Competency Area: Asset and Liability Management
Competency Statement: Savings Planning
Knowledge Statement: Analyze the advantages and disadvantages of asset and liability management strategies in relation to the client’s goals and objectives

Competency Area: Financial Management
Competency Statement: Savings Planning
Knowledge Statement: Calculates required rate of return to reach client’s objectives