NZ CFS L5 Investment study plan

Map the full New Zealand investment product universe (cash, bonds, listed equities, managed funds, KiwiSaver, direct property, PIE structures) into a one-page taxonomy with a defining feature for each category.

Explain how NZX and offshore markets, pricing, settlement and liquidity work well enough to describe the trade lifecycle of a listed security to a client.

Distinguish the main managed fund structures (unit trusts, group investment funds, PIE funds) and state who supervises each.

Identify the principal risks attached to each product category and match each risk to a client scenario.

Calculate and interpret return, volatility, correlation and Sharpe-style risk-adjusted return from a small set of hypothetical return series.

Demonstrate how diversification reduces portfolio volatility using at least three asset classes with differing correlations.

Compare strategic, tactical and dynamic asset allocation and justify when each is appropriate.

Construct a model portfolio for a stated risk profile and defend the weights against an alternative.

Outline the regulatory architecture applying to NZ investment advice: the FMA, the Code of Professional Conduct, licensing and the role of the Financial Advice Provider.

Explain the duties owed to clients under the Code, including the duty to prioritise the client's interests and to disclose conflicts.

Distinguish permitted conduct from prohibited conduct using at least five short scenario tests.

Describe the complaints, dispute resolution and record-keeping obligations that attach to giving advice.

Apply an ethical decision-making framework to three conflicts-of-interest scenarios (commission, product bias, referral) and state the defensible course of action.

Design a structured discovery interview covering objectives, time horizon, liquidity needs, dependants, existing holdings and attitudes to risk.

Distinguish capacity for loss from tolerance for risk and explain why both must be assessed separately.

Select and justify a risk-profiling approach, noting the limitations of questionnaire-based scoring.

Translate a client's stated goals into measurable objectives with amounts, timeframes and priorities.

Match a client risk profile to a suitable asset allocation and document the reasoning trail from discovery to recommendation.

Write a suitability assessment for a worked case that links each recommendation to a specific client objective.

Identify when advice should be declined or referred on because the client's needs fall outside competence or product scope.

Explain how New Zealand taxes investment income across the main product types, including the treatment of dividends, interest and capital gains.

Describe the PIE regime, prescribed investor rates and how the tax treatment of a PIE fund differs from direct investment.

Explain the FIF rules at a conceptual level and identify when offshore holdings bring a client into that regime.

Calculate an after-tax return for a simple two-product comparison and show how tax changes the ranking.

Draft a written advice document that records the recommendation, the alternatives considered and the reasons for rejecting them.

Design a monitoring schedule with review triggers, rebalancing thresholds and event-based review points.

Prepare a client review agenda that covers performance against objectives, changed circumstances and any recommendation to adjust.

Write client communication that explains a market fall and a portfolio decline without prompting panic or misrepresenting the outlook.

Consolidate all seven domains into a single revision map with the three highest-risk knowledge gaps flagged for further study.

Complete timed practice across every domain and score each attempt by domain to expose weak areas.

Rehearse the full advice process end to end for one fresh client scenario within a time limit.

Finalise a personal exam-day plan covering question sequencing, time per question and how to handle uncertain items.