Use this syllabus as your checklist for WME-FP Exam 1 (knowledge-focused multiple-choice).
What’s covered
Getting to Know the Client and Assessing their Financial Situation (27%)
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Chapter 1 - Wealth Management Today
- Define wealth management and describe its role in Canada’s financial services landscape.
- Identify common wealth management services offered to clients (planning, investment, banking, insurance coordination).
- Describe key trends shaping the future of wealth management (technology, demographics, regulation, product innovation).
- Identify the regulatory environment’s high-level impact on advisor conduct and client relationships.
- Describe competencies of successful wealth advisors (technical knowledge, communication, judgement, process discipline).
- Describe the steps in the wealth management process from discovery through monitoring.
- Identify when to involve specialists and describe the value of coordinated advice.
- Recognize how a team-of-specialists model reduces client risk and improves plan quality.
- Differentiate wealth management from transactional product advice at a high level.
- Identify how regulatory expectations influence the advisor-client relationship (KYC, suitability, disclosure) conceptually.
- Describe how technology and demographics can change the delivery of wealth management services (conceptual).
- Identify common specialist roles (tax, legal, insurance) and when coordination adds value.
- Recognize the importance of defining scope, assumptions, and documentation within the wealth management process.
- Identify typical deliverables across the process (client profile, recommendations, monitoring notes) conceptually.
Chapter 2 - Ethics and Wealth Management
- Define ethics in the financial services industry and explain why it matters in wealth advice.
- Identify common types of ethical dilemmas faced by advisors (conflicts, pressure, confidentiality, suitability).
- Describe a structured approach to resolving ethical dilemmas (facts, stakeholders, rules, options, consequences).
- Identify elements typically found in a code of ethics and expected advisor behaviours.
- Describe trust, agency, and fiduciary duty concepts at a high level.
- Recognize how conflicts of interest can impair objectivity and client outcomes.
- Identify potential consequences when an advisor ignores ethics (client harm, sanctions, reputational loss).
- Recognize documentation and disclosure as practical tools for ethical decision making.
- Differentiate ethical obligations from minimum legal compliance in financial services (conceptual).
- Identify common sources of conflicts of interest (compensation, product bias, outside business activities) conceptually.
- Describe practical steps to manage conflicts (disclosure, avoidance, supervision, documentation) at a high level.
- Recognize confidentiality and privacy as ethical foundations and identify common boundary mistakes.
- Differentiate agency and fiduciary duty concepts at a high level and recognize when greater duty may apply.
- Identify appropriate escalation paths when an ethical issue cannot be resolved at the advisor level (supervisor/compliance).
Chapter 3 - Getting to Know the Client
- Identify information required by regulation and law during client discovery (KYC essentials).
- Describe how going beyond the regulatory minimum improves suitability and planning outcomes.
- Describe the steps in the client discovery process (goals, constraints, facts, analysis, recommendations).
- Identify key questions used to clarify objectives, time horizon, liquidity needs, and risk profile.
- Recognize common discovery gaps that create unsuitable recommendations (missing cash flow, vague objectives, stale KYC).
- Identify documentation that supports discovery and advice (notes, forms, client confirmations).
- Describe how to summarize discovery into a clear client profile and priorities.
- Recognize when client circumstances trigger an update to discovery and suitability.
- Define know-your-client (KYC) and suitability in plain language.
- Identify the core categories of client information to capture (goals, timelines, resources, constraints) conceptually.
- Differentiate risk tolerance, risk capacity, and required return as separate inputs to suitability.
- Describe how to prioritize competing goals when time and resources are limited (conceptual).
- Recognize red flags that require deeper discovery (inconsistent answers, unclear funding, unrealistic return needs).
- Identify how to confirm client understanding and consent during discovery (summaries, confirmations) conceptually.
Chapter 4 - Assessing the Client's Financial Situation
- Describe the purpose and components of personal financial statements (net worth statement and cash flow statement).
- Calculate net worth and basic cash flow from client-provided assets, liabilities, income, and expenses.
- Identify indicators of financial strength/strain (liquidity, leverage, debt service capacity) at a basic level.
- Describe how a savings plan links goals, time horizon, and required contributions.
- Calculate future value and present value using time value of money concepts (conceptual inputs).
- Recognize how compounding frequency and time horizon affect growth of savings.
- Identify how inflation affects real purchasing power in long-term planning.
- Recognize how cash flow constraints and debt obligations influence suitability and recommendations.
- Calculate a required savings contribution using time value of money inputs (conceptual).
- Differentiate nominal and real (inflation-adjusted) values in time value of money problems.
- Identify common personal finance ratios used to interpret statements (liquidity, leverage, savings rate) at a high level.
- Recognize how taxes and payroll deductions affect net cash flow available for saving or investing.
- Identify common data-quality issues in client statements (missing liabilities, double-counting, outdated values) conceptually.
- Recognize how scenario stress tests (rate/income shocks) can change affordability and suitability (conceptual).
Chapter 5 - Consumer Lending and Mortgages
- Describe credit planning and how borrowing fits within a client’s overall financial plan.
- Identify core features of residential mortgages (principal, interest, amortization, term, rate type).
- Describe key financial factors to consider when purchasing a home (down payment, affordability, closing costs, buffers).
- Calculate a basic mortgage payment or interest cost from simplified inputs (conceptual math).
- Identify methods of reducing interest costs and penalties (prepayment options, term selection, refinancing considerations).
- Recognize trade-offs between fixed and variable rates and between shorter and longer terms (conceptual).
- Describe related mortgage topics that affect planning (HELOCs, refinancing, insurance, renewal).
- Recognize common mortgage-related planning issues (liquidity risk, leverage risk, concentration in housing).
- Differentiate mortgage term versus amortization and recognize the planning implications of each.
- Identify how leverage and debt service constraints can reduce a client’s risk capacity.
- Recognize how interest-rate changes can affect affordability and mortgage renewal risk (conceptual).
- Describe how to evaluate whether prepayment or refinancing savings outweigh penalties (conceptual).
- Identify liquidity planning considerations when using HELOCs or refinancing (conceptual).
- Recognize the role of contingency reserves (emergency fund) in sustainable borrowing decisions (conceptual).
Investment Management and Asset Allocation (23%)
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Chapter 17 - Investment Management Today
- Describe fintech trends and how they affect wealth management service delivery.
- Identify characteristics of robo-advisory services and typical client use cases.
- Recognize limitations and risks of robo-advisory services (assumptions, suitability, behavioural factors) conceptually.
- Describe smart beta ETFs and how they differ from traditional passive and active approaches (conceptual).
- Describe responsible investment and common approaches (screening, integration, stewardship) at a high level.
- Recognize key due diligence questions when evaluating fintech tools and models (fees, methodology, governance) conceptually.
- Identify how technology can influence client communication, onboarding, and recordkeeping expectations.
- Recognize suitability considerations when implementing smart beta or responsible investing strategies.
- Define fintech and identify common wealth management use cases (digital onboarding, portfolio tools) conceptually.
- Differentiate robo-advisory services from full-service advice models at a high level.
- Identify common smart beta factor tilts (value, size, quality, momentum) conceptually.
- Recognize how factor concentration can change diversification even when an ETF appears broad (conceptual).
- Differentiate responsible investment approaches (screening vs integration vs stewardship) at a high level.
- Identify documentation and oversight considerations when using model-based or automated recommendations (conceptual).
Chapter 18 - Investment Management
- Describe steps in the portfolio management process from objective setting through monitoring.
- Identify trade-offs between using individual securities and managed products for implementation.
- Describe portfolio theory concepts at a basic level (diversification, efficient frontier, risk/return trade-off).
- Recognize how correlation and diversification affect portfolio risk.
- Describe international investing benefits and risks at a high level (diversification, currency, geopolitical).
- Identify common constraints that shape portfolio design (liquidity, horizon, taxes, concentration) conceptually.
- Recognize the difference between strategic design decisions and ongoing tactical adjustments (conceptual).
- Identify common portfolio risk measures used in practice (volatility, beta) at a high level.
- Define diversification and distinguish systematic versus unsystematic risk at a high level.
- Identify the purpose and typical contents of an investment policy statement (IPS) conceptually.
- Recognize when managed products may be preferred over individual securities (size, complexity, access) conceptually.
- Identify currency risk as a distinct international investing risk and describe hedged vs unhedged exposure conceptually.
- Calculate an expected return for a simple portfolio as a weighted average (conceptual).
- Recognize how client constraints (liquidity, taxes) influence implementation choices within the portfolio process.
Chapter 19 - Asset Allocation
- Describe the asset allocation process and why it is a primary driver of portfolio outcomes.
- Identify issues in asset allocation (risk profile, horizon, liquidity, taxes, behavioural constraints).
- Describe strategic asset allocation and its role in long-term planning.
- Describe tactical asset allocation and recognize when it may be used (conceptual).
- Recognize the purpose of rebalancing and common approaches to rebalancing (time-based vs threshold) conceptually.
- Identify how asset allocation choices affect expected return and risk.
- Recognize diversification benefits across asset classes and within asset classes.
- Identify triggers that prompt an allocation review (goal changes, drift, risk capacity changes).
- Differentiate asset allocation decisions from security selection decisions at a high level.
- Identify common asset classes (cash, fixed income, equities, alternatives) and their typical risk-return profiles conceptually.
- Calculate target dollar amounts for each asset class given portfolio value and weights (conceptual).
- Describe the mechanics of a simple rebalance back to target weights (conceptual).
- Recognize tax considerations in rebalancing (realized gains, after-tax impact) conceptually.
- Identify how tactical shifts differ from strategic changes and when each is appropriate (conceptual).
Equity and Debt Securities (25%)
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Chapter 20 - Equity Securities
- Describe characteristics of equity securities (ownership, voting, dividends, residual claim).
- Identify equity markets and common trading venues at a high level.
- Describe the purpose of equity analysis and common categories (fundamental vs technical).
- Describe industry analysis and why industry dynamics affect equity valuation.
- Describe company analysis and recognize common valuation inputs (earnings, cash flow, growth) conceptually.
- Recognize technical analysis concepts and common use cases at a high level.
- Identify equity strategy approaches (growth/value, income, defensive) conceptually.
- Recognize key risks of equity investing and how they influence suitability.
- Differentiate common versus preferred shares and recognize typical investor objectives for each.
- Define market capitalization and recognize how it relates to size categories (large/mid/small cap) conceptually.
- Calculate a simple equity total return from price change and dividends (conceptual).
- Define common valuation metrics (P/E, P/B, dividend yield) and recognize what each implies conceptually.
- Recognize how macro factors (rates, growth, inflation) can influence equity markets conceptually.
- Identify diversification considerations within equities (sector, geography, style) conceptually.
Chapter 21 - Debt Securities: Characteristics, Risks, Trading, and Yield Curves
- Describe characteristics of debt securities (coupon, maturity, issuer promise) at a high level.
- Identify types of debt securities (government, corporate, structured) conceptually.
- Describe risks of debt securities (interest rate, credit, liquidity, reinvestment) at a high level.
- Describe debt market trading mechanics (OTC structure, pricing, spreads) conceptually.
- Describe the term structure of interest rates and recognize common yield curve shapes.
- Recognize the inverse relationship between bond prices and yields.
- Calculate simple yield measures (e.g., current yield) from simplified inputs (conceptual).
- Recognize how duration relates to interest-rate sensitivity at a high level.
- Define yield to maturity (YTM) conceptually and distinguish it from current yield.
- Recognize how credit spreads reflect credit risk and liquidity conditions (conceptual).
- Differentiate nominal yield from real yield at a high level.
- Identify how embedded options (call/put features) affect yields and reinvestment risk conceptually.
- Recognize how yield curve shape can inform simple positioning ideas (ladder vs barbell) conceptually.
- Identify key transaction elements in bond trading (price, yield, spread, settlement) conceptually.
Chapter 22 - Debt Securities: Pricing, Volatility and Strategies
- Describe bond market pricing concepts (present value of cash flows) at a high level.
- Identify factors that drive bond price volatility (maturity, coupon, yield changes) conceptually.
- Recognize how interest rate changes affect bond price volatility and portfolio risk.
- Describe the purpose of duration measures and how they are used in risk discussions (conceptual).
- Identify common debt security strategies (laddering, barbells, immunization concepts) at a high level.
- Recognize trade-offs between yield, credit risk, and interest-rate risk in fixed income positioning.
- Describe how callable features and reinvestment risk affect bond strategy choices (conceptual).
- Identify how fixed income strategy can be matched to client objectives (income vs stability) conceptually.
- Calculate a bond’s total return conceptually as coupon income plus price change.
- Estimate approximate bond price change using duration and a yield change (conceptual).
- Define convexity conceptually and recognize when duration estimates may be less accurate.
- Recognize why lower coupon and longer maturity generally increase interest-rate sensitivity (conceptual).
- Identify when laddering versus barbells may be preferred given client objectives and rate views (conceptual).
- Recognize how after-tax yield considerations can change fixed income comparisons (conceptual).
Managed Products, Portfolio Monitoring and Evaluation (25%)
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Chapter 23 - Managed Products
- Describe the role of managed products in investment management and client implementation.
- Identify key features of mutual funds relevant to client discussions (structure, pricing, series) at a high level.
- Describe wrap products and recognize typical use cases (bundled advice, fee-based) conceptually.
- Describe exchange-traded funds (ETFs) and recognize key differences versus mutual funds (trading, pricing) conceptually.
- Describe hedge funds at a high level and recognize common risk/return considerations.
- Recognize how fees, portfolio turnover, and taxes can materially affect long-term returns.
- Describe overlay management conceptually and its purpose within portfolios.
- Describe outcome-based investments and recognize how outcomes, constraints, and limits are communicated to clients.
- Identify common fee types in managed products (management fee, MER, loads, trading costs) conceptually.
- Differentiate mutual funds and ETFs on trading, transparency, and tax efficiency at a high level.
- Identify due diligence considerations for managed products (strategy, holdings, risk, manager, benchmark) conceptually.
- Recognize how portfolio turnover can increase transaction costs and taxable distributions (conceptual).
- Identify suitability and liquidity considerations for hedge funds and alternative funds (conceptual).
- Recognize how outcome-based products communicate outcomes, buffers, and limits and what clients must understand.
- Describe portfolio monitoring and why monitoring is essential for suitability and goal tracking.
- Identify common triggers for portfolio reviews (client changes, drift, market events, withdrawals).
- Describe basic performance evaluation measures (holding period return, annualized return) at a high level.
- Calculate a simple holding period return from beginning value, ending value, and income.
- Recognize the importance of benchmarks and comparable time periods in performance evaluation.
- Identify common reasons portfolios underperform (fees, allocation drift, behaviour, market conditions) conceptually.
- Describe the difference between monitoring (process) and evaluation (measurement) conceptually.
- Recognize how monitoring results inform rebalancing and client communications.
- Differentiate time-weighted versus money-weighted returns conceptually and identify when each is relevant.
- Recognize how contributions and withdrawals can distort simple performance comparisons (conceptual).
- Describe performance attribution at a high level (allocation vs selection vs timing).
- Identify documentation expectations for monitoring and suitability updates (conceptual).
- Recognize how reporting frequency and communication style should match client preferences and volatility (conceptual).
- Identify when rebalancing is appropriate versus when the strategic plan itself should be revisited (conceptual).
Sources: https://www.csi.ca/en/learning/courses/wme-fp/curriculum and https://www.csi.ca/en/learning/courses/wme-fp/exam-credits