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100+ Free CFP Exam (Canada) Practice Questions

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What is the primary risk that an inflation-indexed retirement income strategy is designed to address?

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2026 Statistics

Key Facts: CFP Exam (Canada) Exam

6 hours

Total Exam Length

FP Canada Exam Content and Format

3 x 2h

Exam Sections

FP Canada Exam Content and Format

70-80%

Constructed Response

FP Canada / PlannerPrep

3x / year

Exam Sittings

FP Canada Exam Dates

$950

Early-Bird Fee (CAD)

FP Canada Fee Schedule

71-81%

First-Time Pass Rate 2025

FP Canada Exam Results

The FP Canada CFP Examination is a six-hour computer-based exam split into three two-hour sections, offered three times a year (February, May/June, October) in person or via online proctoring. It mixes stand-alone multiple-choice questions (20-30%) with case-based constructed-response questions (70-80%) drawn from the FP Canada Competency Profile across financial planning, investment, insurance, tax, retirement, and estate areas. MCQ portions are computer-scored; constructed-response answers are scored by qualified CFP professionals against a criterion-referenced standard. The exam fee is CAD 950 early-bird or CAD 1,050 regular plus taxes (April 2026). This bank is MCQ-style knowledge prep; the real exam is majority constructed-response.

Sample CFP Exam (Canada) Practice Questions

Try these sample questions to test your CFP Exam (Canada) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under FP Canada's financial planning process, what is the FIRST function a planner performs after establishing the engagement with a client?
A.Collecting the client's qualitative and quantitative information
B.Implementing the financial planning recommendations
C.Analyzing the client's current situation
D.Presenting written recommendations to the client
Explanation: The FP Canada financial planning functions follow the sequence Collection, Analysis, and Recommendation. Collection of qualitative goals and quantitative data must precede any meaningful analysis or advice.
2A Canadian client earns $90,000 and contributes $6,000 to their RRSP. Ignoring other deductions, how does the RRSP contribution affect taxable income for the year?
A.It is a non-refundable tax credit worth 15% of the contribution
B.It reduces taxable income to $84,000 as a deduction
C.It has no effect until the funds are withdrawn
D.It increases the client's net income by the grossed-up amount
Explanation: RRSP contributions are deductible from income, lowering taxable income dollar-for-dollar up to the contribution limit. A $6,000 contribution reduces $90,000 to $84,000 of taxable income.
3Which account allows a Canadian resident to earn investment income and make withdrawals completely tax-free, with no deduction for contributions?
A.Registered Retirement Savings Plan (RRSP)
B.Registered Retirement Income Fund (RRIF)
C.Tax-Free Savings Account (TFSA)
D.Non-registered margin account
Explanation: TFSA contributions are made with after-tax dollars (not deductible), but all growth and withdrawals are tax-free. This makes the TFSA distinct from the RRSP, which gives a deduction but taxes withdrawals.
4In Canada, what portion of a capital gain realized on a non-registered investment is generally included in taxable income under the standard inclusion rate?
A.100% of the gain
B.75% of the gain
C.0% because capital gains are exempt
D.50% of the gain
Explanation: The standard capital gains inclusion rate in Canada is one-half (50%). Only that portion of a realized gain is added to taxable income and taxed at the client's marginal rate.
5A client receives $1,000 of eligible dividends from a Canadian public corporation. How is this amount treated for federal tax purposes before applying the dividend tax credit?
A.Grossed up by 38% to a taxable amount of $1,380
B.Included at 50% like a capital gain
C.Fully exempt because corporate tax was already paid
D.Treated as a return of capital reducing adjusted cost base
Explanation: Eligible dividends are grossed up by 38%, so $1,000 becomes a $1,380 taxable amount, after which the enhanced dividend tax credit is applied to offset corporate-level tax already paid.
6When does a deemed disposition of a deceased taxpayer's capital property generally occur for Canadian income tax purposes?
A.When the estate is fully distributed to beneficiaries
B.Immediately before death, at fair market value
C.Only when beneficiaries later sell the property
D.Three years after the date of death
Explanation: On death, the Income Tax Act deems the taxpayer to have disposed of capital property immediately before death at fair market value, triggering accrued capital gains on the final (terminal) return, unless a spousal rollover applies.
7A married client wants to defer tax on accrued gains when leaving their non-registered portfolio to their surviving spouse at death. Which mechanism achieves this?
A.The lifetime capital gains exemption
B.A charitable donation tax credit
C.A spousal rollover at adjusted cost base
D.The principal residence exemption
Explanation: Property left to a surviving spouse or a qualifying spousal trust transfers at adjusted cost base, deferring the accrued gain until the spouse disposes of the asset or dies. This is the spousal rollover.
8Which document allows a client to appoint someone to make financial decisions on their behalf if they become mentally incapable?
A.A living will or advance directive
B.A testamentary trust
C.A beneficiary designation form
D.A continuing (enduring) power of attorney for property
Explanation: A continuing or enduring power of attorney for property authorizes an attorney to manage financial and property matters and remains valid during incapacity. Personal-care decisions are covered by a separate health-care directive.
9A client dies without a valid will in a Canadian common-law province. How is their estate distributed?
A.According to the province's intestacy rules
B.Entirely to the provincial government by escheat
C.Equally among all surviving relatives regardless of relationship
D.According to instructions in their power of attorney
Explanation: When a person dies intestate, provincial intestate succession legislation determines distribution, typically prioritizing the spouse and children in a set order. Escheat to the Crown occurs only when no eligible heirs exist.
10What is the primary purpose of naming a beneficiary directly on a registered account such as an RRSP or TFSA (outside Quebec)?
A.To increase the contribution room available
B.To allow the asset to bypass probate and pass directly to the named person
C.To eliminate all income tax on the account at death
D.To convert the account into a trust automatically
Explanation: A valid beneficiary designation lets registered-plan assets pass directly to the named beneficiary outside the estate, avoiding probate fees and delays. It does not by itself remove the tax consequences arising on death.

About the CFP Exam (Canada) Practice Questions

Verified exam format metadata for CFP Examination (FP Canada) is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.