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100+ Free RFP Module 1 Practice Questions

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2026 Statistics

Key Facts: RFP Module 1 Exam

75

Exam Questions

MFPC Official Blueprint

2.5 Hours

Time Limit

MFPC Official Blueprint

50%

Passing Score

MFPC Official Blueprint

~RM 300

Exam Fee

MFPC 1st Portal

RM 100k

Insolvency Limit

Insolvency Act 1967

7 Years

Document Audit Trail

AMLA / Income Tax Act

MFPC RFP Module 1 is a 2.5-hour exam consisting of 75 MCQs with a passing mark of 50% and no negative marking. It is the core introductory module for the Registered Financial Planner designation in Malaysia, administered by the Malaysian Financial Planning Council.

Sample RFP Module 1 Practice Questions

Try these sample questions to test your RFP Module 1 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Which of the following best defines the primary objective of professional financial planning as promoted by the Malaysian Financial Planning Council (MFPC)?
A.To assist clients in achieving their life goals through the proper management of their financial resources
B.To maximize short-term investment returns through active trading of equities on Bursa Malaysia
C.To minimize the client's tax liability using aggressive offshore tax shelter schemes
D.To sell the maximum number of insurance and unit trust products to generate commissions
Explanation: Professional financial planning is a holistic process aimed at helping clients achieve their personal life goals (such as retirement comfort, children's education, or wealth preservation) through the systematic and realistic management of their financial resources.
2In the context of personal financial planning, what is the primary difference between active and passive wealth management?
A.Active management attempts to outperform the market index through timing and selection, while passive management seeks to match index performance
B.Active management involves buying bonds, while passive management involves buying speculative cryptocurrencies
C.Active management does not charge fees, whereas passive management has high administrative costs
D.Active management is only for institutional investors, while passive management is exclusively for retail clients
Explanation: Active management involves hands-on portfolio adjustments, stock picking, and market timing to beat a benchmark index. Passive management (like index funds) aims to replicate the performance of a specific index at lower costs.
3If inflation in Malaysia is expected to average 3.5% per annum over the next 10 years, what will be the approximate purchasing power of RM 100,000 at the end of the 10-year period in today's real terms?
A.RM 70,891.88
B.RM 65,000.00
C.RM 135,000.00
D.RM 73,662.39
Explanation: To find the real purchasing power, we discount the future sum of RM 100,000 by the inflation rate over 10 years: Real PV = FV / (1 + i)^n = 100,000 / (1.035)^10 = 100,000 / 1.410599 = RM 70,891.88.
4A rise in the Consumer Price Index (CPI) in Malaysia is most directly indicative of which of the following economic conditions?
A.An increase in inflation, leading to a decrease in purchasing power
B.A drop in interest rates, which lowers borrowing costs for home purchases
C.An increase in employment levels across all primary economic sectors
D.A decrease in the cost of importing goods and services
Explanation: The Consumer Price Index (CPI) measures the average change over time in the prices paid by consumers for a market basket of consumer goods and services. A rising CPI indicates inflation, which erodes the purchasing power of money.
5Under the life cycle financial planning model, a client in their early 30s with a young family is typically classified under which phase, and what is their primary financial planning focus?
A.Accumulation phase; focus on wealth creation, debt management, and basic family protection
B.Conservation phase; focus on wealth preservation, risk management, and estate tax reduction
C.Distribution phase; focus on post-retirement income generation and gifting strategies
D.Consolidation phase; focus on liquidating assets and shifting entirely into low-risk cash equivalents
Explanation: Individuals in their 20s to early 40s are typically in the Accumulation phase. Their focus is on building assets, managing mortgages/debts, saving for children's education, and securing basic insurance (life/health) to protect income.
6Under the Financial Services Act 2013 (FSA), which regulatory body is responsible for licensing and regulating corporate Financial Advisers (FA) in Malaysia?
A.Bank Negara Malaysia (BNM)
B.Securities Commission Malaysia (SC)
C.Federation of Investment Managers Malaysia (FIMM)
D.Malaysian Financial Planning Council (MFPC)
Explanation: Bank Negara Malaysia (BNM) licenses and regulates corporate Financial Advisers (FAs) and their representatives (FARs) under the Financial Services Act 2013 (FSA) and Islamic Financial Services Act 2013 (IFSA).
7To carry out financial planning services in Malaysia relating to capital market products (such as shares, unit trusts, and bonds), an individual must hold a valid representative's license issued under which Act?
A.Capital Markets and Services Act 2007 (CMSA)
B.Financial Services Act 2013 (FSA)
C.Securities Commission Act 1993 (SCA)
D.Companies Act 2016
Explanation: Financial planners who advise on capital market products must hold a Capital Markets Services Representative's License (CMSRL) for financial planning, issued by the Securities Commission under the Capital Markets and Services Act 2007 (CMSA).
8Which of the following regulatory pairings correctly identifies the licensing authority and license name required for independent financial advisers advising on insurance products in Malaysia?
A.Bank Negara Malaysia (BNM) — Financial Adviser's Representative (FAR) License
B.Securities Commission Malaysia (SC) — Capital Markets Services Representative's License (CMSRL)
C.Federation of Investment Managers Malaysia (FIMM) — Unit Trust Consultant (UTC) License
D.Life Insurance Association of Malaysia (LIAM) — Corporate Insurance Agent License
Explanation: Advising on insurance products independently in Malaysia requires a Financial Adviser's Representative (FAR) license issued by Bank Negara Malaysia (BNM) under the Financial Services Act 2013.
9Which body is recognized by the Securities Commission Malaysia as the self-regulatory organization (SRO) responsible for registering consultants selling Unit Trust Schemes (UTS) and Private Retirement Schemes (PRS)?
A.Federation of Investment Managers Malaysia (FIMM)
B.Malaysian Financial Planning Council (MFPC)
C.Association of Financial Advisers (AFA)
D.Financial Planning Association of Malaysia (FPAM)
Explanation: The Federation of Investment Managers Malaysia (FIMM) is the SRO recognized by the SC to regulate the marketing and distribution of Unit Trust Schemes (UTS) and Private Retirement Schemes (PRS) in Malaysia.
10Under the Islamic Financial Services Act 2013 (IFSA), which entity is responsible for ensuring that all financial planning activities involving Takaful and Islamic banking adhere to Shariah principles?
A.The Shariah Advisory Council (SAC) of Bank Negara Malaysia
B.The Securities Commission Shariah Advisory Council
C.The Malaysian Shariah Judiciary Department
D.The MFPC Shariah Advisory Panel
Explanation: The Shariah Advisory Council (SAC) of Bank Negara Malaysia is the authority on Shariah matters relating to Islamic banking, Takaful, and Islamic financial business regulated by BNM.

About the RFP Module 1 Exam

MFPC RFP Module 1: Fundamentals of Financial Planning forms the essential foundation of the Registered Financial Planner designation in Malaysia. The syllabus outlines the scope of professional financial planning, the regulatory landscape governed by BNM and the SC, standard personal financial calculations (net worth, cash flows, and ratios), tax reliefs, basic time value of money calculations (compounding, discounting, annuities, inflation, and mortgage amortization), and the ethical codes required of practitioners.

Assessment

75 multiple-choice questions (MCQs) in 2 hours 30 minutes. Passing score is 50%. No negative marking.

Time Limit

2 hours 30 minutes

Passing Score

50%

Exam Fee

~RM 300 (Malaysian Financial Planning Council (MFPC))

RFP Module 1 Exam Content Outline

25%

Financial planning environment & regulation

Financial planning definitions, scope, regulatory bodies (BNM, SC), statutory licensing (CMSA 2007, FSA 2013), PIDM limits, EPF/SOCSO guidelines, and insolvency procedures.

20%

Financial planning process & client relationships

The standard six-step planning process, letter of engagement requirements, setting SMART client goals, quantitative/qualitative data gathering, and risk profiling.

20%

Personal financial statement analysis & budgeting

Constructing personal balance sheets and cash flows, evaluating emergency ratios, debt service ratio (DSR), savings levels, debt repayment strategies, and basic tax calculations.

20%

Time value of money calculations

Formulas for compound interest, effective annual rate, PV/FV of lump sums and annuities, perpetuities, inflation-adjusted returns (Fisher Equation), and monthly home mortgage amortization.

15%

Ethics & professional conduct

MFPC Code of Ethics, ethical principles (Integrity, Objectivity, Competence, Fairness, Confidentiality, Professionalism, Diligence), disciplinary procedures, PDPA compliance, and AMLA rules.

How to Pass the RFP Module 1 Exam

What You Need to Know

  • Passing score: 50%
  • Assessment: 75 multiple-choice questions (MCQs) in 2 hours 30 minutes. Passing score is 50%. No negative marking.
  • Time limit: 2 hours 30 minutes
  • Exam fee: ~RM 300

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

RFP Module 1 Study Tips from Top Performers

1Master the standard DSR formula and understand bank credit benchmarks (DSR prefer <35-40% for new retail lending).
2Learn the exact PIDM protection limits: RM 250,000 per depositor per member bank for savings/deposits, and RM 500,000 for specific insurance claims under TIPS.
3Practice using your financial calculator daily. Ensure you can solve for NPV, IRR, PMT, and switch between ordinary annuity and annuity due modes easily.
4Commit the 7 core ethical principles of the MFPC (Integrity, Objectivity, Competence, Fairness, Confidentiality, Professionalism, Diligence) to memory.
5Memorize the legal bankruptcy petition threshold in Malaysia (RM 100,000) and the record-keeping standards (7 years for documents).
6Understand how to compute personal chargeable income: subtracting tax reliefs (such as the EPF RM 4,000 and Life Insurance RM 3,000 split) from total taxable income.

Frequently Asked Questions

What is the format and duration of the RFP Module 1 exam?

The official exam consists of 75 multiple-choice questions (MCQs) to be completed in 2 hours 30 minutes. It is a computer-based objective examination with four answer choices per question and no negative marking for wrong answers.

What is the passing mark for RFP Module 1?

The passing mark is 50%, meaning candidates must answer at least 38 out of 75 questions correctly to pass the module.

Are there any mathematical calculations in RFP Module 1?

Yes, approximately 20% of the exam covers time value of money calculations (PV, FV, PMT, compound interest, mortgage amortization, inflation adjustments) and personal financial statement analysis ratios (such as DSR or solvency ratios). Candidates should bring an approved financial calculator (like the HP 10bII+ or Texas Instruments BA II Plus).

What is the validity of the RFP designation, and how is it maintained?

The Registered Financial Planner (RFP) designation requires ongoing membership in the MFPC, compliance with the Code of Ethics, and accumulation of at least 30 Continuing Professional Development (CPD) hours annually.

Who regulates financial planners and financial advisers in Malaysia?

Financial planners advising on capital market products are licensed under the SC with a CMSRL. Financial advisers advising on insurance solutions are licensed under BNM as a Financial Adviser Representative (FAR).