Self-study exam based on a thorough understanding of articles published in Volume 31, Issue 4 of Financial Services Review, the academic journal of the Academy of Financial Services. Topics that align with CFP Board’s Learning Objectives include: client and planner attitudes, values, biases; personality; couple’s financial planning; and investment planning.

After reading and understanding the two articles required for this exam, the planner will understand:

• Assist a client in identifying his/her investment objectives, time horizons and risk tolerances.
• Explain and apply investment strategies such as buy-and-hold, immunization, core and satellite, passive (indexed) and active management techniques such as tactical allocation, market timing, Environmental, Social, and Corporate Governance (ESG) investing, sector rotation, etc.
• Analyze a client’s degree of risk tolerance and loss aversion and ensure recommendations are consistent with a client’s risk propensity, attitudes, composure (e.g. past behaviors during market corrections), capacity, knowledge and needs.
• Explain how a client’s psychology, background, preferred learning style and values (socially conscious investor, etc.) impact the financial planning process.
• Identify how cognitive biases and heuristics can impact financial decision-making.
• Describe how a client's psychology, such as their financial comfort zone, socialization, money beliefs, and past financial experiences and behaviors impact their objectives, goals, understanding, decision making and actions.
• Identify areas of potential financial conflict between spouse and/or family.
• Identify solutions to unanticipated asset allocation changes, adjustment for changes in risk tolerance and adapting to new norms.
• Describe the advisor’s role in monitoring cognitive biases.