Mapping of Syllabus – CFPCM Certification Program. Critical Abilities mapped to
Exam Specification. Page 2. Education Standards of CFP Certification Program.
Mapping of Syllabus – CFPCM Certification Program Critical Abilities mapped to Exam Specification
Education Standards of CFP Certification Program •
The body of knowledge to cover learning outcomes in the Financial Planner Competency Profile − Financial Planner Abilities − Financial Planner Professional Skills − Financial Planning Body of Knowledge
•
To deliver Financial Planning to a client, a financial Planning professional needs to combine the ability to carry out the tasks of financial planning, by using appropriate professional skills, and drawing on knowledge of financial planning matters.
•
The Financial Planning Functions of Collection, Analysis and Synthesis are mapped on the following Financial Planning abilities: Financial Management Asset Management Risk Management (Insurance) Tax Planning Retirement Planning Estate Planning
Education Standards of CFP Certification Program •
Acceptable coursework should provide around 600 hours of education delivery and study: − 240 hours of classroom or equivalent, plus − 1.5 multiplier factor for preparatory and additional study (240 x 1.5 = 360 + 240 base hours = 600 total hours)
•
Coursework should be set at the European Qualification Framework (EQF) level 6 or equivalent. Level is defined as follows:
Knowledge
Skills
Competence
Example
Advanced knowledge of a field of work or study, involving a critical understanding of theories and principles.
Advanced skills, demonstrating mastery and innovation, required to solve complex and unpredictable problems in a specialized field of work or study.
Manage complex technical or professional activities or projects, taking responsibility for decisionmaking in unpredictable work or study contexts; take responsibility for managing professional development .
Honours Bachelor Degree, Vocational University German State-certified Engineer, Business Manager and Designer .
Slide 3
Testing of Competency – Exam Specification and Pattern Pattern of Question Bank Exam 1/2/3/4
Marks Category
Section-I
Section-II
Section-III
Section-IV
Section-V
No. of Items
Marks
No. of Items
Marks
No. of Items
Marks
No. of Items
Marks
No. of Items
Marks
1 2 3 4
12
12
7
7
4
4
6
6
9
9
5
10
2
4
2
4
3
6
3
6
0
0
6
18
6
18
2
6
0
0
0
0
1
4
6
24
3
12
0
0
Total
17
22
16
33
18
50
14
30
12
15
Total Items: 77 / Total Marks : 150
The weights of individual parts in each of Exam 1 – 4 along with distribution of marks is : Percentage Distribution
Section -I
Section-II
Section -III
Section -IV
Section -V
No. of Items
22%
21%
23%
18%
16%
Marks
15%
22%
33%
20%
10%
Part II, III & IV cover 62% of total items which account for 75% of total marks.
Testing of Competency – Exam Specification and Pattern Pattern of Question Bank Exam 1/2/3/4
Marks Category
Section-I
Section-II
Section-III
Section-IV
Section-V
No. of Items
Marks
No. of Items
Marks
No. of Items
Marks
No. of Items
Marks
No. of Items
Marks
1
12
12
7
7
4
4
6
6
9
9
2
5
10
2
4
2
4
3
6
3
6
3
0
0
6
18
6
18
2
6
0
0
4
0
0
1
4
6
24
3
12
0
0
Total
17
22
16
33
18
50
14
30
12
15
Mark Categories
3&4 Marks Category: 24 items (31% of total items) 82 marks (55% of total marks)
1 mark 2 marks 3 marks 4 marks
Segregation of question items (nos.) Introduction Module Component Module Introduction Module Component Module Introduction Module Component Module Introduction Module Component Module Total
10 28 3 12 2 12 2 8
Total Question items 38 15 14 10 77
Marks breaku p
28 6 24 6 36 8 32
10
Total Marks 38 30 42 40 150
Testing of Competency – Exam Specification and Pattern Indicative Difficulty Grade and Mapping of Exam Duration The mark categories would broadly determine the nature of question items contained in those categories along with a commensurate difficulty grade. Marks Category 1-mark 2-mark 3-mark 4-mark
Significance
Theoretical testing knowledge Theoretical (predominantly) testing clarity of concepts or Numerical testing basic skills Numerical testing analytical skills Numerical testing advanced analytical skills, strategy evaluation & synthesis Total
Total items
Total marks
Weight (%)
‘Grade 1’
38
38
25%
35 seconds
22 Minutes
‘Grade 2’
15
30
20%
90 seconds
23 Minutes
‘Grade 3’
14
42
28%
150 seconds
35 Minutes
‘Grade 4’
10
40
27%
240 seconds
40 Minutes
77
150
100%
Grade
Expected Time/Per Item
Total Expected Time
120 Minutes
Skills Development and Exam Mapping Theoretical related to Introduction to Financial Planning Theoretical Areas covered under “Introduction to Financial Planning” and asked to the extent of 20% in each of Exam 1 – 4 are: Financial Planning Process Code of Ethics and Professional Responsibility Model Rules of Conduct CFP marks usage Brief Overview to Financial Markets Economic Environment Analysis Behavioral Finance
12 marks
Pattern of Question Bank – 20% of ‘Introduction FP” Module embedded in Exam 1/2/3/4
Marks Category
Section-I
1 2 3 4
Total
No. of Items
2 1 0 0 3
Marks
2 2 0 0 4
Section -II No. of Items
4 0 1 0 5
Marks
4 0 3 0 7
Section -III No. of Items
1 0 1 2 4
Marks
1 0 3 8 12
Section -IV No. of Items
2 1 0 0 3
Marks
2 2 0 0 4
Section -V No. of Items
1 1 0 0 2
Marks
1 2 0 0 3
Skills Development and Exam Mapping Numerical related to Introduction to Financial Planning Numerical Areas covered under “Introduction to Financial Planning” and asked to the extent of 20% in each of Exam 1 – 4 are: Time Value of Money calculations Personal Financial Statement Analysis – Cash Flow Management Loan Schedules and Refinancing of Loans Net Worth Calculation Computation of Returns – CAGR, IRR, XIRR, etc. Savings Ratio and Liquidity Ratios
14 marks
Pattern of Question Bank – 20% of ‘Introduction FP” Module embedded in Exam 1/2/3/4
Marks Category
Section-I
1 2 3 4
Total
No. of Items
2 1 0 0 3
Marks
2 2 0 0 4
Section -II No. of Items
4 0 1 0 5
Marks
4 0 3 0 7
Section -III No. of Items
1 0 1 2 4
Marks
1 0 3 8 12
Section -IV No. of Items
2 1 0 0 3
Marks
2 2 0 0 4
Section -V No. of Items
1 1 0 0 2
Marks
1 2 0 0 3
Critical Areas – Financial Planning Abilities Numerical problems testing Analytical skills, Advanced Analytical skills, Strategy Evaluation & Synthesis 1. Risk Analysis & Insurance Planning
19 marks
68 marks
31 marks
18 marks
Section II: Insurance provisions – basis- Depreciation, Market/Reinstatement value Cost-benefit Analysis and Claim Settlement Section III: Economic value of human life Replacement of future income of the insured Replacement of expenses and financial liabilities of the family Provision in life cover of certain financial goals/ liabilities Review of coverage for changes in income, assets /liabilities Investment Linked Insurance and Insurance Linked Annuities Return on Savings Component
Section IV: Basis of property cover - Reinstatement, book or market value Personal umbrella policy- Mortgage cover Use of excess/deductible and franchise
Critical Areas – Financial Planning Abilities Numerical problems testing Analytical skills, Advanced Analytical skills, Strategy Evaluation & Synthesis 2. Retirement Planning & Employee Benefits
68 marks
19 marks
Section II: Pre-retirement (Accumulation) & Post-retirement phase (Distribution), Early retirement vs. Delaying retirement, Risk of living longer, Income generation using fixed assets, Supplementing retirement income through other sources.
31 marks
Section III: Estimate Retirement Corpus, Ascertain client’s Asset Allocation in accumulation phase, Optimize rate of return from chosen Asset Classes, Step increase in investment, Rebalance accumulated funds in line with defined Asset Allocation, annuity product to transfer fund near retirement, Reverse Mortgage.
18 marks
Section IV: PPF - Systematic accumulation for retirement corpus, Immediate vs. Deferred annuities, Annuities - Period certain, Life certain and Life with period certain.
Critical Areas – Financial Planning Abilities Numerical problems testing Analytical skills, Advanced Analytical skills, Strategy Evaluation & Synthesis 3. Investment Planning
19 marks
68 marks
31 marks
18 marks
Section II: Asset Allocation, Expected Rate of Return, Goal specific Asset Allocation, Asset Allocation changes near the goals, Selection of asset mix according to client’s goals. Section III: Additional lump sum vs. Systematic staggered investments, Monitoring portfolio progress for goals, Portfolio Beta, Variance, Semi-variance & Covariance, Standard Deviation, Correlation and Correlation Coefficient, Effect of diversification on portfolio risk & return, Yield to Maturity, Dividend Discount Model, Analysis of Growth, Dividend Payout & Reinvestment options (MF Schemes).
Section IV: Systematic Investment Plan, Systematic Withdrawal Plan and Systematic Transfer Plan, Risk and return on a portfolio - Sharpe, Treynor and Jensen’s Ratio, Capital Asset Pricing Module (CAPM).
Critical Areas – Financial Planning Abilities Numerical problems testing Analytical skills, Advanced Analytical skills, Strategy Evaluation & Synthesis 3. Tax Planning and Estate Planning
19 marks
68 marks
31 marks
18 marks
Section II: Salary – Allowances, Perquisites and Deductions, Income from Self Occupied/Let out House Property, Capital Gains – Long Term/Short Term, Indexed cost of acquisition/renovation and exemptions, Income from Other Sources - Chargeability, Exemptions, Deductions & Tax Liability, Clubbing of Income, Deductions under Chapter VI-A. Section III: Deferral of tax liability, Taxability of Equity, Debt and Insurance products, Transaction in the nature of Gifts/Prizes/Winnings, Dividend and Bonus stripping provisions, Agricultural income and Wealth tax Section IV: Estate Planning, Determine value of client’s estate and liquidity aspects, Trust structures for Tax Efficiency and Trust as Pass-through entity.
CFPCM, CERTIFIED FINANCIAL PLANNERCM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Financial Planning Standards Board India is the marks licensing authority for the CFP marks in India, through agreement with FPSB Ltd.
Financial Planning Standards Board India 702, 7th Floor, Leela Business Park Andheri Kurla Road, Andheri (E) Mumbai – 400059 Phone: +91 22 61712424, Fax: +91 22 61712444 Email:
[email protected], Website: www.fpsbindia.org
