www.fpsb.co.in Financial Planning Standards Board : CFP Certification Education Program Syllabus

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CFP Certification Education Program Syllabus

Module I - Introduction to Financial Planning
Module II - Risk Analysis & Insurance Planning
Module III - Retirement Planning & Employees Benefits
Module IV - Investment Planning
Module V - Tax Planning & Estate Planning
Module VI - Advanced Financial Planning

http://www.fpsb.co.in/scripts/Syllabus.aspx

Introduction to Financial Planning :
COURSE DESCRIPTION : This module would serve as an introduction to Financial Planning. The module would cover the six-step process which includes Financial Planning process, client interactions, time value of money applications, personal financial statements, cash flow and debt management, asset acquisition, education planning, overview of risk management investment planning and retirement planning, special circumstances, plan integration, ethics, and business aspects of Financial Planning.

LEARNING OBJECTIVES :
At the end of this module, a student should be able to:
To implement the Financial Planning process, while following the CFP Board’s Financial Planning Practise Standards and Code of Ethics and Professional Responsibility.
Understand the economic, social, political, and technological environment and be able to determine how Financial Plans should accommodate those environments.

Understand the potential goals a client may have, help them enunciate their goals and evaluate strategies to help clients achieve their goals.
Understand basic investment topics (including investment types, risk and return, diversification, passive versus active management) and specific investment strategies necessary to allow clients a mechanism to achieve realistic goals.
To structure and choose the optimal business format for the delivery of Financial Planning services for services for specific for specific target client markets.

Financial Planning Process :
1. Establishing client- planner relationships
Explain issues and concepts related to overall Financial Planning process, as appropriate to the client Explain services provided, the process of planning, documentation required, and disclosure statements Clarify client’s and CFP licensee’s responsibilities and complaint handling mechanisms

2. Gathering client data and determining goals and expectations Obtain information from client through interview/questionnaire about financial resources & obligations Determine client’s personal and financial goals, needs and priorities Assess client’s values, attitudes and expectations
Determine client’s time horizons Determine client’s risk tolerance level
Collect applicable client records and documents

3. Analyse Client Objectives, Needs and Financial Situation
Analysis of relevant information
Need for specialist advice
Issues that require further clarification

4. Developing appropriate strategies and presenting the Financial Plan
Client's risk tolerance
Assessment of options
Research, analysis and modelling
Draft Financial Plan
Presenting and reviewing the plan with the client
Collaborating with the client to ensure that plan meets the goals and objectives of the client, and revising as appropriate

5. Implementing the Financial Plan
Assist the client in implementing and recommendations
Coordinate as necessary with other professionals, such as accountants, attorneys, real estate agents, investment advisors, stock brokers and insurance agents

6. Monitoring the Financial Plan
Monitor and evaluate soundness of recommendations
b. Review the progress of the plan with the client
c. Discuss and evaluate changes in client’s personal circumstances, (e.g., birth/ death, age, illness, divorce, retirement)
d. Review and evaluate changing tax law and economic circumstances
e. Make recommendations to accommodate new or changing circumstances

General principles :
7. Regulatory requirements for CFP Certificants
Registration and licensing
Sources of information
Other relevant legislature requirements

8. Ethical and professional considerations in Financial Planning
The Code of Ethics and Professional Responsibility
CFP licensee’s responsibilities to the public, clients and employers
Client agreements and confidentiality clauses
AFP Practice Standards

9. Assessment of risk and client behaviour
Client attitudes
Client knowledge
Client behaviour
Health of client
Occupation
Hazardous activities

10. Cash flow planning
Short term cash flow planning
Cash budgeting
Preparing monthly household budgets
Long term cash flow planning

11. Budgeting
Forecasting
Cash management
Emergency fund planning
Debt management/ users of debt
Liquidity
Monitor and evaluate budgets
g. Compliance

12. Personal use asset management
Home equity
Types of mortgages
Buy vs. lease
Refinancing
Hire- purchase, etc.
Consumer loans
g. Credit cards

13. Personal Financial Statement Analysis
14. Financial Mathematics
Calculate and interpret time value of money
Calculation of annuities
Loan repayment schedule
Inflation- adjusted interest rates

15. Economic environment and indicators
Inflation/ deflation
Interest rates/yield curves
Equity investment and real return
Government monitory and fiscal policy
The impact of business cycles
Key Indicators – lagging, concurrent and leading
Financial institutions

16. Forms of business ownership/ entity relationships
Sole proprietorships
Partnerships
Limited liability companies
Trusts
Foundations/ exempt organizations
Professional associations/ corporations
Cooperative societies
Others

17. Ways of taking title to property (sole, joint, community, etc.)
Characteristics
Implications

18. Legal aspects of Financial Planning
Contracts
Negotiable instruments
Torts
Professional liability
Fiduciary responsibility
Agency law
Consumer protection
Investor protection/li>