THE HONG KONG POLYTECHNIC UNIVERSITY

School of Accounting and Finance

AF4324 Financial Planning

Semester 1 (2022-23)

Instructor: Stanley Li
E-mail: stanley-sk.li@polyu.edu.hk
Office: M745, Li Ka Shing Tower
Phone: 2766-7103
Consultation: By appointment
Webpage: http://learn.polyu.edu.hk

ROLE AND PURPOSE

This is an introductory course on financial planning and a course that has been recognized
by the Institute of Financial Planners of Hong Kong (IFPHK) as a substitute for Module
One in its education program (i.e., those who have passed this course will not be required
to take Module One of the education program for Certified Financial Planners).
It contributes to the achievement of BBA Programme Outcomes by enabling students to
understand, analyze and apply the elements and steps relevant in practicing financial
planning services. This module will set the background of financial planning for students
and equip them with the essential knowledge and skills to perform financial planning
services for clients. Topics including the major steps of financial planning, job
knowledge requirement of CFPCM and the latest financial planning tools and techniques
will be covered.

LEARNING OUTCOMES
Upon completion of the subject, students will be able to:
a. Identify and resolve ethical issues relevant in the context of financial planning, by
complying with Code of Ethics (Outcome 5);
b. Identify roles of regulators and scopes of regulations that govern the financial services
industry, and interpret regulations of financial markets of Hong Kong;
c. Analyze real-life situations and problems encountered by financial planners by
applying conceptual frameworks drawn from the different context areas such as
investment planning and estate planning areas (Outcome 9);

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d. Carry out and act upon self-appraisal and reflective thinking in the areas of teamwork,
leadership and career selection to equip students with the skills and knowledge
(Outcome 6) for continuous development;
e. Apply the essential concepts in investment planning, insurance planning, risk
management, retirement planning, estate planning, and tax planning;
f. Apply the six-step financial planning approach to construct a financial plan in the
different personal planning areas, and analyze the means by which value is created in
delivery process of financial planning services (Outcome 6)

INDICATIVE CONTENTS
Fundamental Concepts of Financial Planning
The financial planning areas and the roles of financial planners
Overview of the Financial Planning Market

Ethical Financial Planning Practice

Practicing Ethics and Professional Responsibilities
Application of Time Value of Money concepts in financial planning
Basic concepts and applications in real-life examples

Regulatory Framework of the Financial Services Industry

Hong Kong Regulations Related to Financial Planning

The Planning Components and Life Cycle Analysis

The Concept of Life-Cycle Analysis
Short-term and Medium-term Investment Planning
Risk Management and Insurance Planning
Retirement Planning, Tax Planning, and Estate Planning

The Financial Planning Process

The Six-step approach in practice

Applications
Financial planning cases

AF4324 Financial Planning 2

Academic and Class Conduct

• Plagiarism and dishonesty in assignment and examination are serious offences and
may lead to disciplinary actions. You should read the chapters on “Plagiarism and
Bibliographic Referencing” and “Honesty in Assignment and Examination” in the
student Handbook for details.
• Attendance is mandatory
If you miss a class or a tutorial, you will be responsible for the materials covered that
day.
• Any non-teaching related use of electronic devices, including computers, mobile
phones and games are strictly prohibited.
• I expect you to seek help on a timely basis if you do not understand the course content
and analysis. It would be hard to understand everything a few days before the exams.
• Mutual respect
Should you arrive/leave the classroom in the middle of the class, you have to keep it
quiet to avoid any interruption and distraction to other students.

Plagiarism

Plagiarism refers to the act of using the creative works of others (e.g. ideas, words,
images or sound, etc.) in one’s own work without proper acknowledgement of the source.
According to the Webster’s Ninth New Collegiate Dictionary (1987), to ‘plagiarise’
means

[T]o steal and pass off (the ideas or words of another) as one’s own: [to] use (a
created production) without crediting the source: [to] commit literary theft: [to]
present as new and original an idea or product derived from an existing source.

The University views plagiarism, whether committed intentionally or because of

ignorance or negligence, as a serious disciplinary offence. Excuses such as “not knowing
that this is required” or “not knowing how to do it” are not accepted. It is the student’s
responsibility to understand what plagiarism is, and take action steps to avoid plagiarism
in their academic work. The golden rule is: “if in doubt, acknowledge”.

https://www.polyu.edu.hk/ar/docdrive/polyu-students/student-
handbook/Student_Handbook_202223_English.pdf#page=134

AF4324 Financial Planning 3

PRESENTATION & LEARNING APPROACH

Course material will be introduced via a combination of presentations (by both lecturer
and students), class discussions, class exercises and case studies.

Active participation in discussion is the key to learning in this subject. Students are
expected to participate in discussion and contribute their views on various issues related
to the topics under review.

COURSE ASSESSMENT

Group Project/Case Study 30%

Participation 5%
Individual Assignment 15%
Examination 50%
Total 100%

GROUP PROJECT (WITH PRESENTATION)/CASE STUDY (30%)

Each team will be required to conduct a client interview project and develop a personal
financial plan on the six-step approach in the personal financial planning. Each team will
prepare a 25 minutes presentation (20 minutes presentation and 5 minutes Q&A session)
and submit a 15-page (maximum) report to detail their client’s financial plan. Evaluation
will be based on quality of the presentation and the questions posed to other teams.

Active contribution by every member of the team is expected. A peer evaluation will be
conducted accordingly.

PARTICIPATION (5%)

You are required to read the assigned readings prior to the lecture. Constructive comments,
questions, and participation (inside and outside the classroom) are used to enhance your total
score. Students will NOT receive any class participation scores for showing up in the lecture
without active participation. To facilitate in-class participation, students are encouraged to
participate and make valuable contribution in class discussion and case study.

AF4324 Financial Planning 4

INDIVIDUAL ASSIGNMENT (15%)

The assignment is limited to 1000 English words and it is due in week 6.

[Note: I am looking for quality rather than quantity here; you do not have to write 1000
words to get a perfect score if your piece of writing is a well-written one. By the same
token, submitting a piece of junk with 1000 words will not get you a good score.]

Topic:
“As the world was confronted by the COVID-19 pandemic, economic, social, and
political challenges quickly became apparent across the United States and globally. The
abrupt spread of the virus shook the global economy as well, due to the closure of
industries and businesses arising from social distancing measures.”

Question:
Discuss the impact of COVID-19 on financial planning in Hong Kong.

(Source: https://www.pewresearch.org/social-trends/2021/03/05/a-year-into-the-
pandemic-long-term-financial-impact-weighs-heavily-on-many-americans/ )

With effect from the 2014/15 academic year, for any significant piece of written assignment
or essay in continuous assessment (i.e., accounting for 15% or more of total assessment),
each student is required to submit their own assignment via Turnitin, a plagiarism prevention
software programme built into Blackboard, and generate an Originality Report. A copy of
the report should be submitted along with the assignment.

FINAL EXAMINATION (50%)

A closed book examination with compulsory questions covering all the intended learning
outcomes. Details will be announced later.

SUGGESTED TEXTBOOKS
Cheng Louis, Leung Tak Yan and Wong Yiu Hing, Financial Planning & Wealth
Management An International Perspective, McGraw-Hill, 2009.
George, Rejda, Principles of Risk Management and Insurance, 6th Edition, Addison
Wesley, 1998.
Bodie, Kane and Marcus, Essential of Investments, 3rd Edition, Irwin, 1998.
Williams, Smith and Young, Risk Management and Insurance, 8th Edition, 1998.
Burton T. Beam and John J. McFadden, Employee Benefits, 5th Edition, Irwin, 1998.

AF4324 Financial Planning 5

TENTATIVE WEEKLY OUTLINE

Section 324S01-SEM002: Wed 12:30 −15:20 (Room Y416)

Section 324S01-SEM001: Thu 12:30 −15:20 (Room Y403)

Week Period Topics Readings

Sem 1, 2022-
23
1 Aug 31, Sep 1 Introduction to Financial Planning & Wealth Ch. 1
Management

2 Sep 7, 8 Basic Concepts, Professional Ethics, and Ch. 2

Practice Standards
3 Sep 14, 15 Essential Concepts in Economics and Finance Ch. 3

4 Sep 21, 22 Financial Planning Components (I) Ch. 4

5 Sep 28, 29 Financial Planning Components (II) Ch. 5

6 Oct 5, 6 Financial Planning: Interim Review

Individual Assignment (15%)
(Due date: 12 noon, 10 October 2022 Monday)
7 Oct 12, 13 Personal Profiling, Risk Profiling & Asset Ch. 6
Allocation and Life-cycle Analysis

8 Oct 19, 20 Financial Planning Process (I) Ch. 7 & 8

9 Oct 26, 27 Financial Planning process (II) Ch. 9, 10

& 11

10 Nov 2, 3 Group Project Discussion & Consultation

11 Nov 9, 10 Group Project Presentation 1/2 *
12 Nov 16, 17 Group Project Presentation 2/2 *
13 Nov 23, 24 Course Review/Consultation

*Dress Code: Business Attire

AF4324 Financial Planning 6

GRADING

Assessment grades shall be awarded on a criterion-referenced basis, and students are graded
according to their performance.

Overall

Performance Grade Criteria

▪ Demonstrates excellent achievement of intended subject learning
outcomes by being able to skillfully use concepts and solve complex
A+
problems.
Excellent A
▪ Shows evidence of innovative and critical thinking in unfamiliar
A-
situations, and is able to express the synthesis or application of ideas
in a logical and comprehensive manner.
▪ Demonstrates good achievement of intended subject learning
outcomes by being able to use appropriate concepts, and solve
B+ problems.
Good B ▪ Shows the ability to analyse issues critically and make well-
B- grounded judgements in familiar or standard situations, and is able to
express the synthesis or application of ideas in a logical and
comprehensive manner.
▪ Demonstrates satisfactory achievement of intended subject learning
outcomes by being able to solve relatively simple problems.
C+
▪ Shows some capacity for analysis and making judgements in a
Satisfactory C
variety of familiar and standard situations, and is able to express the
C-
synthesis or application of ideas in a manner that is generally logical
but fragmented.
▪ Demonstrates marginal achievement of intended subject learning
outcomes by being able to solve relatively simple problems.
D+
Pass ▪ Can make basic comparisons, connections and judgments and
D
express the ideas learnt in the subject, though there are frequent
breakdowns in logic and clarity.
▪ Demonstrates inadequate achievement of intended subject learning
outcomes through a lack of knowledge and/or understanding of the
Fail F
subject matter.
▪ Evidence of analysis is often irrelevant or incomplete.

AF4324 Financial Planning 7

Essay (Individual Assignment)

Performance Grade Criteria

▪ Demonstrates excellent achievement of intended subject learning
outcomes by being able to skillfully use concepts and solve complex
problems.
▪ Shows evidence of innovative and critical thinking in unfamiliar
A+ situations, and is able to express the synthesis or application of ideas in
Excellent A a logical and comprehensive manner.
A- ▪ Demonstrate an excellent understanding of all relevant knowledge and
concepts involved.
▪ Perform exceptionally well in integrating information from various
sources and analyzing the assigned case or issue.
▪ Write exceptionally clearly without English errors.
▪ Demonstrates good achievement of intended subject learning
outcomes by being able to use appropriate concepts, and solve
problems.
▪ Shows the ability to analyse issues critically and make well-grounded
judgements in familiar or standard situations, and is able to express the
B+
synthesis or application of ideas in a logical and comprehensive
Good B
manner.
B-
▪ Demonstrate a good understanding of all relevant knowledge and concepts
involved
▪ Perform well in integrating information from various sources and
analyzing the assigned case or issue.
▪ Write clearly with limited English errors
▪ Demonstrates satisfactory achievement of intended subject learning
outcomes by being able to solve relatively simple problems.
▪ Shows some capacity for analysis and making judgements in a variety
of familiar and standard situations, and is able to express the synthesis
C+ or application of ideas in a manner that is generally logical but
Satisfactory C fragmented.
C- ▪ Demonstrate a basic understanding of the relevant knowledge and
concepts involved.
▪ Show satisfactory performance in integrating information from various
sources and analyzing the assigned case or issue.
▪ Write clearly but with a notable number of English errors.
▪ Demonstrates marginal achievement of intended subject learning
outcomes by being able to solve relatively simple problems.
▪ Can make basic comparisons, connections and judgments and express
the ideas learnt in the subject, though there are frequent breakdowns in
D+ logic and clarity.
Pass
D ▪ Display a minimum understanding of the knowledge and concepts
involved.
▪ Show marginally acceptable performance in integrating information and
analyzing the assigned case or issue.
▪ Write in unclear manner and/or with a lot of English errors.
▪ Demonstrates inadequate achievement of intended subject learning
outcomes through a lack of knowledge and/or understanding of the
subject matter.
Fail F ▪ Evidence of analysis is often irrelevant or incomplete.
▪ Display a poor understanding of the concepts involved.
▪ Perform poorly in integrating information and analyzing the assigned case
or issue.

AF4324 Financial Planning 8

Presentation

Performance Grade Criteria

▪ Demonstrates excellent achievement of intended subject learning
outcomes by being able to skillfully use concepts and solve complex
problems.
▪ Shows evidence of innovative and critical thinking in unfamiliar
situations, and is able to express the synthesis or application of ideas in
A+
a logical and comprehensive manner.
Excellent A
▪ Conduct excellent analysis and present information that is highly value-
A-
added and relevant.
▪ Demonstrate a strong understanding of all relevant knowledge and
concepts involved
▪ Perform exceptionally well in integrating, organizing and presenting
information of selected topic.
▪ Demonstrates good achievement of intended subject learning
outcomes by being able to use appropriate concepts, and solve
problems.
▪ Shows the ability to analyse issues critically and make well-grounded
judgements in familiar or standard situations, and is able to express the
B+ synthesis or application of ideas in a logical and comprehensive
Good B manner.
B- ▪ Conduct good analysis and present information that is value-added and
relevant.
▪ Demonstrate a good understanding of all relevant knowledge and concepts
involved.
▪ Perform well in integrating, organizing and presenting information of
selected topic.
▪ Demonstrates satisfactory achievement of intended subject learning
outcomes by being able to solve relatively simple problems.
▪ Shows some capacity for analysis and making judgements in a variety
of familiar and standard situations, and is able to express the synthesis
or application of ideas in a manner that is generally logical but
C+
fragmented.
Satisfactory C
▪ Conduct some analysis and present information that is fairly value-added
C-
and relevant.
▪ Demonstrate a basic understanding of the relevant knowledge and
concepts involved.
▪ Show satisfactory performance in integrating, organizing and presenting
information of selected topic.
▪ Demonstrates marginal achievement of intended subject learning
outcomes by being able to solve relatively simple problems.
▪ Can make basic comparisons, connections and judgments and express
the ideas learnt in the subject, though there are frequent breakdowns in
logic and clarity.
D+
Pass ▪ Conduct little analysis and present information that does not go beyond
D
the lectures and the textbook.
▪ Display a minimum understanding of the knowledge and concepts
involved.
▪ Show marginally acceptable performance in integrating, organizing and
presenting information of selected topic.

AF4324 Financial Planning 9

 ▪ Demonstrates inadequate achievement of intended subject learning
outcomes through a lack of knowledge and/or understanding of the
subject matter.
▪ Evidence of analysis is often irrelevant or incomplete.
Fail F
▪ Present information that does not go beyond the lectures and the textbook
or is irrelevant.
▪ Poorly organize the presentation.
▪ Display a poor understanding of the concepts involved.

Participation
Participation marks are awarded for active participation in classes. Mere attendance will earn only a very
low score.

Performance Grade Criteria

A+
▪ Attend all classes and actively participate in class discussions with
Excellent A
significant contribution towards the class discussion.
A-
B+
▪ Attend most of the classes and actively participate in class discussions
Good B
with some contribution towards class discussion.
B-
C+
Satisfactory C ▪ Attend most of the classes with some class participation.
C-
D+
Pass ▪ Attend most of the classes with minimal class participation.
D

Fail F ▪ Did not attend most of the classes or no notable class participation

AF4324 Financial Planning 10

Quiz, Test and Examination

Performance Grade Criteria

▪ Demonstrates excellent achievement of intended subject learning
outcomes by being able to skillfully use concepts and solve complex
problems.
A+ ▪ Shows evidence of innovative and critical thinking in unfamiliar
Excellent A situations, and is able to express the synthesis or application of ideas in
A- a logical and comprehensive manner.
▪ Achieve a standard of excellent performance with a strong understanding
of all concepts and theories covered and a strong ability to apply them to
problems.
▪ Demonstrates good achievement of intended subject learning
outcomes by being able to use appropriate concepts, and solve
problems.
▪ Shows the ability to analyse issues critically and make well-grounded
B+
judgements in familiar or standard situations, and is able to express the
Good B
synthesis or application of ideas in a logical and comprehensive
B-
manner.
▪ Achieve a standard of good performance with a good understanding of
most concepts and theories covered and a good ability to apply them to
problems.
▪ Demonstrates satisfactory achievement of intended subject learning
outcomes by being able to solve relatively simple problems.
▪ Shows some capacity for analysis and making judgements in a variety
C+ of familiar and standard situations, and is able to express the synthesis
Satisfactory C or application of ideas in a manner that is generally logical but
C- fragmented.
▪ Meet a standard of acceptable performance with a good understanding of
most concepts and theories covered and a fair ability to apply them to
problems.
▪ Demonstrates marginal achievement of intended subject learning
outcomes by being able to solve relatively simple problems.
▪ Can make basic comparisons, connections and judgments and express
D+
Pass the ideas learnt in the subject, though there are frequent breakdowns in
D
logic and clarity.
▪ Demonstrate a standard of marginally acceptable performance, though
with some errors of understanding.
▪ Demonstrates inadequate achievement of intended subject learning
outcomes through a lack of knowledge and/or understanding of the
subject matter.
Fail F
▪ Evidence of analysis is often irrelevant or incomplete.
▪ Fail to demonstrate a standard of marginally acceptable performance and
there are major errors of understanding or omission of explanation.

AF4324 Financial Planning 11