Facts Regarding Financial Planning (CFP)

8/7/2019 Facts Regarding Financial Planning (CFP)

1/11

Dear Student,

Greetings from ISBF !

It gives me immense pleasure to introduce INDIAN SCHOOL OF BUSINESS & FINANACE

(ISBF), as a leading education provider ofFINANCIAL PLANNING STANDARDS BOARDINDIA (FPSB) for CFP certification program. Read on to know more...

Who is a Certified Financial Planner?A Certified Financial Planner is one who assimilates the aspirations of their clients and draws a

road map to make them a reality and then guide them towards realizing them. A CFPCM advises

clients on how to manage their finances so as to achieve their life goals. Certified Financial

Planner (CFPCM) is an international certification program valid in 23 countries across the globe

being conducted in the country by Financial Planning Standards Board (FPSB) India & accepted

by 50 top financial companies, Banks, Asset Management companies, Insurance companies ofIndia & Abroad. Factually, the CFPCM mark is rated as the Gold Standard by the 'Wall StreetJournal' and Personal Financial Planning is rated as the number 1 profession in 2001 and

number 3 professions in 2003 in America by jobs Almanac based on factors like income, work

environment, career outlook and security. The backbone of commerce, finance and managing is akey service that covers a whole gamut of verticals like personal, industrial and commercial

finance. Industry reports suggest that while the sector is poised to grow at a staggering 28% overthe next 36 months, the availability of skilled professional is unlikely to keep pace - making

financial management an ideal career choice.A Certified Financial Planner in todays scenariois not only capable of practicing Financial Planning as an entrepreneur but is also required

by prospective corporates in client servicing, research & back office operations.

Curriculum of CFP Certification Program

The CFP certification is granted to those individuals who have demonstrated technical

competency tocreate a comprehensive and detailed financial plan (as per international

standards) for an individual. The certification covers six modules as follows: Module 1: Introduction to Financial Planning.

Module 2: Risk Management and Insurance Planning.

Module 3: Retirement Planning and Employee Benefits.

Module 4: Investment Planning.

Module 5: Tax Planning and Estate Planning.

Module 6: Advance financial planning.

Advantages of CFP Certification:

The advantages of getting the CFP mark are numerous and these can be broadly put in 3

categories; Knowledge, Personal Growth and Financial growth:-


2/11

Knowledge:

CFP Certification comprising of 4 Es (education, examination, experience, and ethics) gives

enormous weightage to the increase in knowledge and skills. This being so education is themajor factor in certification. Accordingly, a fairly extensive curriculum covering five very

technical subjects relevant to various financial needs of consumers has been prescribed. To

ensure that knowledge is really gained in the prescribed domain, an examination of fairly highstandard is made mandatory for all the modules (five examinations to test knowledge in all six

modules).

Personal growth:

1.Once knowledge is gained, the confidence level in the planner goes up considerably as it

equips him/her engage even a very qualified and confident client and play an advisory role.

He/she feels empowered by this acquisition.2.A message gets communicated instantly to a client that the planner is very knowledgeable and

that helps him establish a contact with him. Client is also impressed once he comes to know that

the planner has acquired a globally recognized qualification which again brings the client closer

to the planner.3.A qualified and knowledgeable person as a Certified Financial Planner is respected in the

society and enjoys a good status wherever he goes and whomsoever he meets.

Financial gains:

1.The earning capacity of an individual is enhanced proportionately in the normal course. His

quality of advice improves and as a result he is able to add value to his clients and increase thebusiness of the employers.

2.He can expect suitable placement/promotion in the organization. Thus, his quality of life

improves.3.One can have the choice to set up his own practice as well and earn higher income.

Duration:

CFP is a flexible program which can be completed in minimum 3 months and maximum 1 year

till a students registration is valid with FPSB, India. A student can appear for 1st Exam after 2months & can register for the rest of the exams anytime as there is no such rule to restrict them to

give the exams on the particular date . This time table is integrated through the current

instructions of FPSB India.

ISBF will impart intensive education during this period to enable you to effectively prepare forall the exams.

Course Books & Support:

Our Study Material for the course is one of the best in the Industry. It also consists of regularassignments to meet the crucial requirements of the student in terms of there

preparation. ( Enclosed pls find the list of deliverables) .

Course Fee:(For details & installment plans refer to attached annexure)

Examination:


3/11

Examinations for the certification are conducted after 60 days of their registration with FPSB,India at NSE's centers. Candidates are required to register online and book a seat for

themselves in the exams at www.nseindia.com.

Registration steps:

1. Get your NCFM number after registering at www.nseindia.com (its easy & free)2. Mention the NCFM no. generated on attached FPSB registration form.

3. Send us via courier the below mentioned documents along with requisite fees.

The following documents must accompany your application:1. 4 passport size photographs

2. Copy of last educational certificate (self attested)

3. Copy of 10+2 Certificate (self attested)

4. FBSB Registration Form duly filled5. ISBF Enrollment Form duly filled

6. ISBF & FPSB Fees as per the attached fee structure.

7. PDCs as per the desired fee structure

Please find enclosed herewith the CFP syllabus, Fee Structure, ISBF Registration form, FPSBStudent Registration Form and Guidelines for generating NCFM number. Kindly download and

fill both the attached forms and send them across to:C/o Miss Heena

Indian School Of Business & Finance

Add: 15A, Ring Road, Lajpat Nagar IV, New Delhi-110024

For further details/queries, please reply to this mail or call at the numbers given below:-Thanks & RegardsHeenaSr. CounselorIndian School Of Business & Finance

Add: 15A, Ring Road, Lajpat Nagar IV, New Delhi-110024Ph: 09953203656 / 09560890372 / 011-40430007

Email id: [email protected]

Website: http://www.isbf.edu.in
http://www.nseindia.com/http://www.nseindia.com/mailto:[email protected]://www.isbf.edu.in/http://www.nseindia.com/mailto:[email protected]://www.isbf.edu.in/http://www.nseindia.com/


4/11

Financial Planning

While one cannot predict the future, one can certainly be better prepared for it. All of ushave something to plan for. In fact, our financial situation influences almost every aspect of

our lives. Financial planning is a systematic approach whereby the financial planner

helps the customer to maximize his existing financial

resources by utilizing financial tools to achieve his financial goals.

What is financial planning?

Financial planning is a process that determines how you can best meet your life (Personal as

well as Professional) goals, through the proper management of your financial affairs. It is thisunique integration of knowledge and skills across a broad range of topics that distinguishes

professional financial planning from other related financial advice

Financial planning is simple mathematics. There are 3 major components :

Financial Resources (FR)

Financial Tools (FT)

Financial Goals (FG)

When you want to maximize your existing financial resources by using various financial tools to

achieve your financial goals, that is financial planning. Using these steps one can work out wherehe is now, what he may need in the future and what he must do to reach his goals.

Who is a Financial Planner?Financial planner is an expert who can help individuals achieve

their goals and aspirations of life by managing the finances of thepeople within the constraints that they have. For example: a

person who is in mid fifties will have a requirement in coming 10

year for

Marriage of his daughter/son

Study expenses for his son/daughter in Post Graduate

Education

Other needs

Now this person may be a government employee, a privatesector employee or a businessman. All may have the same needs

but their capacity to generate the cash flows is different and also the risk taking capacity is

also different.

Here the role of the financial planner becomes critical as he needs to take all these factors in

to consideration and provide a solution to the individual.


5/11

Protecting Oneself & Family against Financial Risks: The loss of a job, a serious illness, a

legal problem, a sudden death, an accident or a natural disaster will prompt seeking a financial

advice. Financial planning will help in analyzing ones insurance needs (disability and long-termcare) in relation to ones overall financial circumstances and goals. Moreover, in addition to all

these uncertain risks, all investments have certain risks as well, such as market risk, inflation

risk, interest rate risk & reinvestment risk. Financial Planning helps in reducing and managing allthese risks. Prevention is better than cure so its better to start planning.

What does a Financial Planner do?

A Financial Planner determines his client's short, medium and long-term aspirations, then

develops and applies the plan that has been agreed upon. Together the Financial Planner andthe client will review the plan at least once a year and revise it if the need arises.

All practicing members of Financial Planning Standards Board use a six-step process to help

them and their clients take overall view at where they are and where they want to befinancially.

Using this process financial planner can help their clients work out what needs to be done andwhere they want to be financially:

a. Establishing and defining the client-planner relationship

b. Gathering client data, including goalsc. Analyzing and evaluating the client's financial status

d. Developing and presenting financial planning recommendations and/or alternatives

e. Implementing the financial planning recommendationsf. Monitoring the financial planning recommendations

A Financial Planner can offer general wealth-creation advice and assistance across allfinancial markets or specialize in areas such as:

a. Retirement Planning

b. Superannuationc. Estate Planning

d. Small Business Financial Management and planning

e. Trustsf. Tax

g. Stock broking and investments

h. Debt and risk management

Why does one need to be a Financial Planner?

The best Financial Planners have two vital skills - people skills and analytical skills. If you

have good counseling skills and are driven by a genuine desire to help other people, FinancialPlanning offers a good career option. You need to fulfill a mandatory requirement of being a

graduate in any subject and three years' work experience in field of financial services by the

time you pass all the examinations.Financial Planners also need ability to take a 'big picture' approach to their clients' finances.


6/11

The ability to synthesize information and not miss the forest for the trees is part of the

Financial Planner's analytical skills.

Though a candidate with any background can strive for the CFPCM Certification, andworldwide a wide variety of Professionals have become very successful CFPCM Certificants, it

has been noticed that candidates with a background in the following areas stand a better

chance at being successful Financial Planners:

Counseling Accountancy

Law

Insurance

Investments

Finance

Taxation

Why are professional Financial Planners' required?Planning of personal Finance requires specialized skills, knowledge and experience in areas like

accounting, budgeting, investments (equity, debt, mutual funds, insurance, commodities and realestate), taxation etc.

The scope of the above mentioned fields is so vast that some Financial Planners choose to

advice their clients only whit a single area (e.g. investing in stocks or managing tax

issues).

When managed professionally the Financial Planning process can yield tremendous

benefits to individuals.

Professional Financial Planning has emerged as one of the most attractive avenues in

India and abroad. In India, Wealth management' has emerged as a lucrative career option, yet there is an

acute shortage of well-trained and certified professionals.

This has opened up attractive career opportunities for CFPCM Professionals.

What are the benefits of CFPCM Certification?

The CFPCM Certification is the most recognized financial planning certification in the world.CFPCM Certification is based on independently established standards designed to benefit the

public. Most people are now responsible for their own financial future and are looking to

professional advisors for assistance. The public is often confused about how to select a

professional financial planner and is looking for an advisor who has demonstrated acommitment to high standards of competency and ethical behavior that exceed the minimum

stipulated by legislation

What is Financial Planning Standards Board India?

FPSB India is a non-profit organization dedicated to benefiting the public by leading the

development of the Financial Planning profession in India.It sets, enforces and promotes the highest competency and ethical standards in Financial


7/11

Planning as defined by individuals who have earned the CFPCM credential. FPSB India grants

the use of the CFPCM marks (CFPCM, CERTIFIED FINANCIAL PLANNERCM, CFPCM flame

logo) to individuals who meet its standards.

Will the CFPCM Certification completed in India be recognized worldwide?

The 'CERTIFIED FINANCIAL PLANNERCM

' Certification is the highest professionalcertification in the financial planning profession. It is an international certification and well

recognized in most developed countries around the world including countries like U.S.A,

Canada, Australia, United Kingdom, Germany, and France etc. In order to provide financialadvisory services, a CFPCM Certification is a must in these countries. However, to practice,

one will have to go through country specific supplementary examination for country specific

recognition.

What is the best age to start financial planning?

While it is true that the younger you start the more beneficial the process will be, financialplanning is worthwhile at any age. Although younger people may have more decisions to

make regarding their financial lives, changing laws and circumstances can lead middle-aged

people and seniors to have to adjust their financial plans as well. Changes in tax law, forexample, may require many people to revisit certain investments or estate plans, and adequate

disability planning becomes more important as people age

Is there an entrance test for Joining CFPCM Certification?

For CFPCM Certification there is no entrance test, minimum qualification for join a CFPCM

Certification is 10+2.

Who should do a CFPCM Certification?

Ideally speaking, this course is meant for everyone, whether a finance person or not. As we all

earn money and we need to plan to spend and invest in future. And basic knowledge of theabove mentioned is required skill set for all of us. However, as a profession, its quite

synergetic, for all the undergraduates, graduates, and post graduates in any stream, as well asfor working professional.

How do I register for the CFPCM Certification?One needs to first register as a student of FPSB India. He then needs to get registered with a

FPSB India's authorized Education Provider. Financial Planning Academy is an authorized

Education Provider with FPSB India

What is the format of the examination?

All the examinations will objective, consist of multiple choice type questions. Theexamination for each module will be of 2 hours duration. Only the examination for Last

Module will be for 4 hours.

How does the CFPCM Certification Examination compare to other professional exams?

The CFPCM Certification Examination is a rigorous professional exam that tests bothknowledge and application. Currently, the exam is all multiple-choice. It is comprehensive

and tests knowledge of facts

How much time should I plan to study for the exam?

The exam will demand a great deal of time and effort. We recommend about 250-300 hours


8/11

of study time for good exam preparation. Attending our live instructional review should

reduce that time to around 200 hours. Note: Time required can vary based on your expertise

and experience in each area.

How many questions will there be in each module?

There will be approximately 75-80 questions in each module

What are the minimum passing marks?

A candidate who scores 60% or more (Mod- 1 to 4) & 50% or more (Mod-5) will pass theexamination. The exam is conducted online and consists no negative marking. Marks are not

declared to the students but grades are given based on the performance.

Why is work experience a requirement for getting the CFPCM Certification?

Three years of relevant work experience is mandatory under the international CFPCM

Certification system. The main purpose of FPSB India is to create high-quality Financial

Planners so that they can provide the best advice to their clients. In order to deliver value, one

needs to complement theoretical knowledge with practical knowledge. This is what weprovide here at FPA. The work experience can be gathered before, during or after the course.

If the three-years of work experience is gathered before or during the course, the Student willbe conferred the CFPCM Certification immediately on passing the Certification Examination,

i.e., the exam for Module VI - Advanced Financial Plan Construction

How do I know what is 'relevant' work experience?

Qualifying work experience in Financial Sector is based on a 35-hour workweek and is

defined as full-time (or equivalent part-time) personal Financial Planning services/ related

employment or self-employment. In the performance of their job, candidates must haveactively used the knowledge, skills and abilities required for the CFPCM Certification (for a

listing of topics, please refer to the Syllabus) and the experience gained should help the

candidate in the application of the personal Financial Planning process to meet client needs.This Experience can be gained in the following areas provided it meets the conditions listed

above.

Accounting

Banking

Consulting

Estate Planning

Financial Planning/Advisory

Stock broking/Investment advisory

Taxation

Journalism in Personal Finance

Law Insurance

Retirement/Pension Planning/Employee Benefit

Portfolio/Investment Management

Teaching at a post-secondary level

Wealth Management


9/11

Corporate candidates are Candidates who are employed with Banks, AMC, Insurance,

Financial Services, Broking Firm, Equity Research, Credit Rating, Taxation, Financial

Consultancy etc. Self Employed candidates are Candidates who are working as insuranceagent, stock broker, financial consultant, mutual fund distributor, income tax consultant etc.

Who employs Financial Planners?A CFPCM Professional having been through a rigorous education and experience process is

geared to boost client's confidence and satisfaction. Financial Planners often choose to

establish their own financial planning practice either by themselves or together with otherplanners. Others work for:

a. Banks

b. Financial planning organizations

c. Life insurance companiesd. Accounting or law firms

e. Stocks and securities brokers

f. Fund managersg. Credit counseling organizations

What are career Prospects of after CFPCM Certification Completion?

CFPCM Professionals are very much in demand, after completion of CFPCM Certification, a

candidate can earn a starting salary of around 4-5 lakhs per annum. The salary increases as thecandidate gains experience in the industry. A CFPCM Professional can even start his/her own

practice

What could I expect to earn and how are Planners paid?Financial Planning is one of the most lucrative job profiles in the west and the US. The

Financial planners are one of the most highly paid individual professional s in the developedeconomies. The financial planner can earn in a variety of ways depending upon the wayhe/she provides his/her services. Some of the ways in which the Financial Planners earn are as

follows:

In terms of Salary if they are employed by any financial institution/Bank etc..

Consultation fee is the Financial Planner is working as a freelance consultant. The feemay be charged from the client based on an hourly rate, a flat rate per plan, a percentage

of the value of the client's assets and / or income or a combination of these methods.

Commissions from investment or insurance companies for selling their financialproducts.

A combination of fees and commissions can also be a source of revenue

How difficult is the course of CFPCM Certification Compared to MBA Course?

CFPCM Certification is altogether a different from a MBA Program. In MBA program majoremphasis is on the different aspects of the Capital Market and other financial aspects which

are quite broader in nature, but in CFPCM Certification is all about 360 degree approach of

financial planning for ultimately reaching ones financial goals


10/11

Is there any other program similar to CFPCM Certification available in India?

No, CFPCM Certification is a unique program and there is no course closure to or look alike to

CFPCM Certification. The international recognition of this certification and acceptance by somany banks and institutions make it all the more unique.

What are the differences between CFPCM

Certification and CFA?Holders of the CFA designation are securities analysts, money managers and investment

advisors who focus predominantly on the analysis of investments and securities of particular

companies or industry groups. The 'big picture' approach is what sets the Financial Plannerapart. The CFPCM Certification is a broad based and comprehensive education program for

Financial Advisors. The Financial Planner uses the financial planning process to help a client

determine not only whether he/she can meet their life goals but also the means to achieve

them. The big picture view addresses a host of inter- related issues such as budgeting, taxplanning, investments and risk management, or by focusing on a limited number of financial

concerns within the context of the client's overall situation

what is the difference between CA, CS, ICWA and CFP

CM

Certification?CA's, ICWA's specialize in handling the accounts, bookkeeping and audit of firms and

corporate while the CS's deal with the secretarial matters relating to a corporate. A CFPCM

Certificates deals with the financial planning of an individual. Nevertheless, a Financial

Planner is like a family physician who works closely with his clients and his sole concern is

creation of wealth for the client through proper tax planning and adequate protection of the

client's interest so that his client's life goals are achieved.

If you are interested in being part of a profession that helps people gain control over their lives

and their futures; if you are a big picture thinker and a good listener; and if you are looking for a

career filled with opportunities and challenges - then choosing to become a CERTIFIED

FINANCIAL PLANNER practitioner is the career for you.

Whether you are already a financial planner or have recently decided to enter the profession,

going the extra step and obtaining CFP certification will identify you as a true professional in

one of the fastest growing and exciting careers today.

Financial Planning Process

The Financial Planning Process consists of six steps, using which, you can work out where you

are now, what you may need in the future and what you must do to reach your goals.

Step 1: Determine Your Current Financial Situation

Step 2: Develop Financial Goals

Step 3: Develop financial planning alternatives

Step 4: Evaluate Alternatives

Step 5: Create and Implement a Financial Action Plan

Step 6: Re-evaluate and Revise One's Plan


11/11

Education is a source of knowledge and knowledge is the source of power and success in

today's world. Indeed, the right education and training is critical for success in all walks

of life and more so ever in the financial services and advisory industry whererecommendations and decisions on financial matters often has great implications on one's

wealth.

Thus it has become a need for entrants in financial advisory services to implement thechallenge of RIGHT SELLING, for which adequate training is a prerequisite.

CFPCM, CERTIFIED FINANCIAL PLANNERCM and are certification marks owned outside the U.S. by Financial PlanningStandards Board Ltd. Financial Planning Standards Board India is the marks licensing authority for the CFP marks in India, throughagreement with FPSB.

For further queries you can call on the no mentioned below

Thanks & Regards

Heena Gupta

09953203656

Email Id : [email protected]

Facts Regarding Financial Planning (CFP)

Documents

Transcript of Facts Regarding Financial Planning (CFP)