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Frequently Asked Questions (FAQ)
 Who
awards the CFP certification?
What
is the criteria for initial certification?
Is
the candidate authorized to use the CFP marks after completion?
What
is the eligibility criteria for admission?
What
are the course contents of the CFP programme?
When
are the admissions open?
When
are the examinations held?
What are the
modules covered in the respective examinations and what is the
duration?
What are the benefits of CFP?
What does a Financial Planner do?
What specific services does a Financial Planner provide?
In which area can a Financial Planner get a Job?
1. What is CFP?
Ans. CFP
stands for Certified Financial Planner. A person who acquires
a certification from The Financial Planning Services Board,
India
is called a CFP.
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2.
Who awards the CFP certification?
Ans. The CFP certification is awarded by the Financial Planning
Services Board , FPSB who is the sole principal licensing body
that awards CFP Certification in India through an agreement
with FPSB, US.
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3.
What is the criteria for initial certification?
Ans. CFP
Certification worldwide is awarded by FPSB Affiliates to
competent & qualifying candidates fulfilling the 4 E Criteria
of CFP Certification i.e. Education, Examination, Experience,
Ethics.
Education :
A candidate has to undergo the 6 Module CFP Certification
Education Program and pass the corresponding Exam 1-4
facilitated by NSE. Considering their higher qualifications &
work experience of candidates applying through the Challenge
Status Pathway, they are exempted from the Education Program
Examination :
A candidate , by passing the CFP Certification Examination,
exhibits his capabilities to handle the financial planning
situations in real life.
Experience :
Either Pre or Post CFP Certification Exam(3 Years for
Graduates & 6 Years for Non-Graduates) is required to achieve
the CFP certification. This is to provide and assurance to the
public that the candidate fully understands the basic
analytical nature of financial planning.
Ethics :
After meeting the above three requirements the candidate has
to agree to abide by FPSB India’s Code of Ethics, Rules of
Professional Conduct, Practice Standards & Disciplinary Rules
& Procedures.
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4.
Is the candidate authorized to use the CFP marks after
completion?
Ans. A
candidate, on completion of the course and on payment of the
Annual CFP Certification fee, is authorized by FPSB India to
use CFP, CERTIFIED FINANCIAL PLANNERCM
& CFP flame logo collectively known as CFP Marks in his/her
publishing material and communications. The details of the CFP
Certificants are published on the website of website to allow
customers to verify the authenticity of the CFP.
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5.
What is the eligibility criteria for admission?
Ans.
Graduate or Candidates pursuing
Graduation from a recognized University. CFPCM Certification
is offered on completion of Graduation and acquiring the
relevant work experience.
|
S. No. |
Qualification |
Work Experience |
|
1. |
10+2 Pass or equivalent from recognized Board/ Universty |
6 |
|
2. |
Graduation |
3 |
*Experience in Finance Department/Division/or personal
Financial Planning services/related employment or self
employment, wherein the candidate’s job-profile has been to
interact/interface directly with the client and/or his
portfolio.
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6.
What are the course contents of the CFP programme?
Ans. The
course of CFP certification consists of the five modules.
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
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7.
When are the admissions open?
Ans. Admission process is open round the year.
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8.
When are the examinations held?
Ans. The
examinations are held in the first week of February, April,
June, August, October and December every year.
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9.
What are the modules covered in the respective examinations
and what is the duration?
Ans.
|
Module |
Modules |
Examination |
Modules
Covered |
Duration |
|
1. |
Introduction to Financial Planning |
Nil |
Nil |
Nil |
|
2. |
Risk Management and Insurance Planning |
Exam-1 |
1 and 2 |
2 Hrs |
|
3. |
Retirement Planning and Employees Benefits |
Exam-2 |
1 and 3 |
2 Hrs |
|
4. |
Investment Planning |
Exam-3 |
1 and 4 |
2 Hrs |
|
5. |
Tax Planning and Estate Planning |
Exam-4 |
1 and 5 |
2 Hrs |
|
6. |
Advance Financial Planning |
Exam-5 |
6 |
4 Hrs |
|
|
Total Test |
5 |
|
|
Total Hrs |
12 Hrs |
This Schedule is subject to change.
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10. What are the benefits of CFP?
Ans.
Expertise and Credibility as a Financial Planner is
instantly Communicated.
-Career and Professional Development Opportunities are
enhanced.
- Become a Coach and Problem Solver.
- Client Satisfaction.
- Earnings Reflect Personal Status.
- Tested Against the Best, and Met the Challenge.
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11. What does a Financial Planner do?
Ans. Financial Planner determines client's short, medium and
long term aspirations, then develop and apply the plan agreed
upon. All practicing members of Financial Planning Standards
Board use a six-step process to help clients and take overall
view at where they are and where they want to be financially.
Using this process financial planner can help their clients
work out what needs to be done and where they want to be
financially:
- Establishing and defining the client-planner relationship
- Gathering client data, including goals
- Analyzing and evaluating the client's financial status
- Developing and presenting financial planning recommendations
and/or alternatives
- Implementing the financial planning recommendations
- Monitoring the financial planning recommendations
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12.
What
specific services does a Financial Planner provide?
Ans.
A Financial Planner can offer general wealth-creation advice
and assistance across all financial markets or specialize in
areas such as:
- Retirement Planning
- Superannuation
- Estate Planning
- Small Business Financial Management and planning
- Trusts
- Tax
- Stock broking and investments
- Debt and risk management
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13.
In which area can a Financial Planner get a Job?
Ans.
Financial Planners often choose to establish their
own financial planning practice either by themselves or
together with other planners. Others areas of Job are:
- Banks
- Financial planning organizations
- Life insurance companies
- Accounting or law firms
- Stocks and securities brokers
- Funds managers
- Credit counseling organizations
- Large companies to look after employee benefits
- Wealth Management
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