CERTIFIED ISLAMIC FINANCE PROFESSIONAL (CIFP)

PART 1 FINAL EXAMINATION

MODULE CODE DATE TIME

WEALTH PLANNING AND MANAGEMENT

TK1001 14 OCTOBER 2006 (SATURDAY) 2.30 A.M. 5.30 P.M. (3 HOURS)

Instructions to candidates 1. This Examination paper consists of two (2) parts: PART A (2 Questions); and PART B (8 Questions). 2. 3. Answer ALL questions in Part A and choose FOUR (4) questions from Part B. Answer PART A and PART B in the Answer Booklet provided. Start each answer on a new page. Do not bring any material into the examination hall unless permission is given by the invigilator. Please check to make sure that this examination pack consists of : a. the Question Paper ; and b. an Answer Booklet Provided by INCEIF DO NOT TURN THIS PAGE UNTIL INSTRUCTED TO DO SO THIS QUESTION PAPER MUST NOT BE REMOVED FROM THE EXAMINATION HALL This examination paper consists of three (3) printed pages

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CONFIDENTIAL

TK 1001: WEALTH PLANNING AND MANAGEMENT

P AR T

BOTH questions are compulsory and MUST be answered 1. Islam allows wealth generation but not wealth accumulation. Discuss. [20 marks] 2. Explain the objectives of wealth planning in Islam and how it can impact the business of Islamic banking. [20 marks] P A R T B

Answer FOUR (4) out of the eight (8) questions

1.

Real estate is said to be one of the attractive investment for many investors. However, it is exposed to different kind of risks. Describe all related risks elements in real estate investing. [15 marks]

2.

Discuss how the Shariah Advisory Council (SAC) of the Securities Commission (SC) in Malaysia performs the quantitative screening of stocks listed in the Kuala Lumpur Stock Exchange (KLSE). [15 marks]

3.

Elaborate on the concepts of gharar, maisir and ribs. How do these elements appear in conventional insurance? [15 marks]

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4. Discuss how zakat payments are incorporated in tax assessments exercise in a country of your choice? [15 marks] 5. What is the role of waqaf in estate planning and describe three (3) examples of famous waqaf in Islamic history. [15 marks] 6. What are the consequences if financial planners do not have a full knowledge in
faraid?

[15 marks] 7. Compare and contrast the Chartered Financial Planners (CFP) Code of Ethics and the Islamic Code of Ethics. [15 marks] 8. Ahmad's retirement plan is to have a lump sum of $2 million. He is currently 36 years old and would like to retire at the age of 55. Assuming the preretirement rate of return to be 8%, calculate: i. The pre-retirement funding income stream needed at the beginning of the period, if the income streams are flat annually; and ii. The first income stream if such income stream increases by 10% per annum [15 marks]

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