TFSA Attributes

KNOWLEDGE EXPECTED OF: QAFP® Professionals

Highest Knowledge Level: Understanding

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Define a Tax-Free Savings Account.1
  • Explain advantages associated with a Tax-Free Savings Account. 
  • Define the parties to a Tax-Free Savings Account.
    • Holder 2
    • Designated Beneficiary 3
    • Successor Holder 4
    • Issuer / Provider 5
  • Explain the role of each of the parties to a Tax-Free Savings Account.
  • Define the types of Tax-Free Savings Accounts.6
    • Deposit
    • Annuity Contract 
    • Trust Arrangement 
  • Identify the requirements to establish a Tax-Free Savings Account.7

  • Identify the importance of making a valid successor holder / beneficiary designation

REFERENCES

KNOWLEDGE EXPECTED OF: CFP® Professionals

Highest Knowledge Level: Understanding

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Define a Tax-Free Savings Account.1  
  • Explain advantages associated with a Tax-Free Savings Account. 
  • Define the parties to a Tax-Free Savings Account.
    • Holder 2
    • Designated Beneficiary 3
    • Successor Holder 4
    • Issuer / Provider 5
  • Explain the role of each of the parties to a Tax-Free Savings Account.
  • Define the types of Tax-Free Savings Accounts.6
    • Deposit
    • Annuity Contract 
    • Trust Arrangement 
  • Identify the requirements to establish a Tax-Free Savings Account.7
  • Identify the importance of making a valid successor holder / beneficiary designation
Additional Knowledge Expected of CFP Professionals
  • Identify qualified investments as prescribed by the Canada Revenue Agency that may be held in a Tax-Free Savings Account.8
  • Identify non-qualified investments as prescribed by the Canada Revenue Agency that may not be held in a Tax-Free Savings Account.9
  • Explain the tax that may be imposed by the Canada Revenue Agency when a Tax-Free Savings Account contains a non-qualified investment.10
  • Identify prohibited investments as prescribed by the Canada Revenue Agency that may not be held in a Tax-Free Savings Account.11
  • Explain the tax that may be imposed by the Canada Revenue Agency when a Tax-Free Savings Account contains a prohibited investment.12

REFERENCES

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