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.
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
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
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
Coursework and Test 40%
Final examination 60%
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.
a. Financial Planning
Introduction to Financial Planning DFP1, Financial Planning Association of Australia
Gokhale, Jagadeesh, Laurence J. Kotlikoff, and Mark Warshawsky, “Comparing the
economic and Convertional Approaches to Financial Planning”, working paper:
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
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,
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,
Bodie, Kane & Marcus, Essential of Investments, Irwin, 1998, 3rd ed.
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,
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)