Post on 18-Aug-2020
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
Slide 3
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 decision-
making 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 .
Pattern of Question Bank Exam 1/2/3/4
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
Marks
Cate
go
ry
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
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%
Total Items: 77 / Total Marks : 150
Testing of Competency – Exam Specification and Pattern
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
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
Marks
Cate
go
ry
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 CategoriesSegregation of question
items (nos.)
Total Question items
Marks breaku
pTotal Marks
1 mark Introduction Module 10 38 10 38Component Module 28 28
2 marksIntroduction Module 3
156
30Component Module 12 24
3 marksIntroduction Module 2
146
42Component Module 12 36
4 marksIntroduction Module 2
108
40Component Module 8 32
Total 77 150
3&4 Marks Category:
24 items (31% of total items)
82 marks (55% of total
marks)
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
Significance Grade Total items
Total marks
Weight(%)
Expected Time/Per
Item
Total Expected
Time
1-markTheoretical testing knowledge
‘Grade 1’
38 38 25%35
seconds22
Minutes
2-markTheoretical (predominantly) testing clarity of concepts or Numerical testing basic skills
‘Grade 2’
15 30 20%90
seconds23
Minutes
3-markNumerical testing analytical
skills
‘Grade
3’14 42 28%
150 seconds
35 Minutes
4-mark
Numerical testing advanced
analytical skills, strategy
evaluation & synthesis
‘Grade
4’10 40 27%
240 seconds
40Minutes
Total 77 150 100%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
Section-I Section -II Section -III Section -IV Section -VNo. of Items
Marks No. of Items
Marks No. of Items
Marks No. of Items
Marks No. of Items
Marks
Marks
Cate
go
ry 1 2 2 4 4 1 1 2 2 1 1
2 1 2 0 0 0 0 1 2 1 2
3 0 0 1 3 1 3 0 0 0 0
4 0 0 0 0 2 8 0 0 0 0
Total 3 4 5 7 4 12 3 4 2 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:
14 marks
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
Pattern of Question Bank – 20% of ‘Introduction FP” Module embedded in Exam 1/2/3/4
Section-I Section -II Section -III Section -IV Section -VNo. of Items
Marks No. of Items
Marks No. of Items
Marks No. of Items
Marks No. of Items
Marks
Marks
Cate
go
ry 1 2 2 4 4 1 1 2 2 1 1
2 1 2 0 0 0 0 1 2 1 2
3 0 0 1 3 1 3 0 0 0 0
4 0 0 0 0 2 8 0 0 0 0
Total 3 4 5 7 4 12 3 4 2 3
Critical Areas – Financial Planning Abilities
Numerical problems testing Analytical skills, Advanced Analytical skills, Strategy Evaluation & Synthesis
Section II:
Insurance provisions – basis- Depreciation, Market/Reinstatement value
Cost-benefit Analysis and Claim Settlement
1. Risk Analysis & Insurance Planning
68
marks
19
marks
31
marks
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
18
marks
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
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.
68
marks
19
marks
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
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.
68
marks
19
marks
31
marks
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).
18
marks
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
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.
68
marks
19
marks
31
marks
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
18
marks
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: info@fpsbindia.org, Website: www.fpsbindia.org