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  1. 1. HONG KONG SHUE YAN COLLEGE SUBJECT : Introduction to Financial Planning COURSE CODE : Bus 407 YEAR OF STUDY : Year 3 or Year 4 CREDITS : 3 credits DURATIONS : 15 weeks PRE-REQUISITES : None CONTACT HOURS : Lecture (2 hours) PER WEEK Tutorial (1 hour) EXAM FORMAT : Multiple-choice questions COURSE AIMS AND OBJECTIVES Topics including all of the latest financial planning tools, major steps of financial planning process and the job knowledge requirements of a financial planner are covered. In particular, students should learn to conduct personal financial planning; evaluate financial goals for individuals; identify discrepancies between financial resources and needs; recommend appropriate financial and investment actions to meet the needs; and monitor and review the integrated financial plan. In addition, knowledge of ethical financial planning practice and Hong Kong financial markets’ regulations are discussed. CONTENT I. Basic concepts relevant to financial planning 1.1 What is a financial planner 1.2 The advantages of being a CFP 1.3 Requirements for CFP licensees 1.4 Ethical and professional considerations in financial planning II. Regulations and Code of Ethics 2.1 Regulatory framework of Hong Kong financial markets 2.2 Regulations of the securities, dealers, and advisors 2.3 Types of registration and membership 2.4 Theories, principles, and rules of Code of Ethics III. Basic investment concepts 3.1 Time value of money 3.2 Investment theories and strategies 3.3 Investment vehicles
  2. 2. IV. Basic risk management and insurance concepts 4.1 Types of investment risk 4.2 Risk assessment 4.3 Principles of insurance 4.4 Insurance products V. Tax planning 5.1 Tax framework in Hong Kong 5.2 Assessment of client’s tax liabilities VI. Other government benefits VII. Employee benefits 7.1 Employer sponsored life, medical, and disability benefits 7.2 Employer sponsored retirement scheme VIII.Retirement planning 8.1 Assessing client’s retirement needs 8.2 Government mandatory vs. employer sponsored retirement scheme IX. Estate planning and strategies X. Financial planning process 10.1 Establishing client-planner relationship 10.2 collection of client information 10.3 Determination of client’s goals and expectations 10.4 Assessment of client’s current financial status 10.5 Development of the financial plan 10.6 Presentation of the financial plan 10.7 Implementation of the financial plan 10.8 Monitoring the financial plan ASSESSMENT : Continuous Assessment Coursework and Test 40% Examination Final examination 60% _____ 100% TEACHING APPROACH The course will be taught in lectures and tutorials. Students will be introduced to a various Concepts and practice in financial planning. Lectures will be used to develop an in-depth understanding of the students in the subject. Tutorials will be used to help students master the techniques and its application in practice through discussion and exercises.
  3. 3. Required/Essential Readings a. Financial Planning Introduction to Financial Planning DFP1, Financial Planning Association of Australia Limited. Gokhale, Jagadeesh, Laurence J. Kotlikoff, and Mark Warshawsky, “Comparing the economic and Convertional Approaches to Financial Planning”, working paper: September 1999 b. Laws and Regulation of Hong Kong HKEX website www.hkex.com.hk/rulereg/rulereg.htm HKSFC website(Ordinance) www.hksfc.org/eng/reg/ordinan.htm HKSFC website(Regulations) www.hksfc.org/eng/reg/cod_guid.htm c. Code of Ethics and Professional Responsibility IFPHK website www.ifphk.org/licensee/licensee.html Recommended/Supplementary Readings a. Financial Planning Ernst & Young's Personal Financial Planning Guide: Take Control of Your Future and Unlock the Door to Financial Security, John Wiley & Sons, 1995. Kapoor, Dlabay, and Hughes, Personal Finance, Irwin, July 2000. Gitman, and Joehnk, Personal Financial Planning, Dryden Press, 1999, 8th ed. b. Ethical and professional considerations Garratt and Robinson, Ethics for Beginners, Icon, 1996. Bear and Maldonado-Bear, Free Markets, Finance, Ethics, and Law, Prentice Hall, 1994. George, Business Ethics, Prentice Hall, 1995 4th ed. Green, The Ethical Manager: A New Method for Business Ethics, Macmillan, 1994. c. Basis Concepts George, Rejda, Principles of Risk Management and Insurance, Addison Wesley, 1998, 6th ed. Bodie, Kane & Marcus, Essential of Investments, Irwin, 1998, 3rd ed.
  4. 4. Williams, Smith & Young, Risk Management and Insurance, 1998, 8th ed. Burton t. Beam, John J. McFadden, Employee Benefits, Irwin, 1998, 5th ed. Stephen R. Leimberg and John J. McFadden, The tools and techniques of employee Benefit and Retirement Planning, The National Underwriter Company, Cincinnati, Ohio, 1997. Everett T. Allen, Joseph J. Melone, Jerry S. Rosenbloom, Jack L. Vanderhei, Pensions, Profit-Sharing, and Other Deferred Compensation Plans, 1997, 8th ed. CCH Asia Pte Limited, Hong Kong Master Tax Guide, 2000, 9th ed. Ernst & Young, Taxation in Hong Kong, Longman, 1996. Eugene F. Brigham, Louis C. Gapenski, Michael C. Ehrhardt, Financial Management Theory and Practice, 1999, 9th ed. (Time value of money) http://www.teachmefinance.com/timevalueofmoney.html (Time value of money)