CFP CERTIFICATION PROGRAM HANDBOOK

Transcription

1 CFP CERTIFICATION PROGRAM HANDBOOK Effective January 2018

2 Table of Contents A warm welcome... 3 About the Program... 4 Background to the CFP Mark... 4 CFP Certification Process in Australia... 7 Unit outlines...11 Assessment snapshot...12 Learning tools...13 CFP 1 - FPA PROFESSIONALISM Overview...14 The assignment...15 Results...15 CFP 2 - APPLIED STRATEGIES Overview...17 The assignment...18 The examination...18 CFP 3 - APPLIED STRATEGIES Overview...21 Useful technical resources...47 Gwen Fletcher Memorial Award Applying for your designation Policies Students with special needs Enrolment and withdrawal policies...51 Assignment extensions...52 Submission...52 Assignment resubmission for CFP C only...53 Academic Misconduct Policy...54 Academic Progress Policy...56 Student Appeals Policy...56 Student Privacy Statement...57 Appendix A: Financial planning knowledge topic categories Appendix B: Mapping of the FPSB Financial Planning Competency profile Appendix C: Topic areas for CFP 2 to CFP The assignment...22 The examination...22 CFP 4 - INVESTMENT STRATEGIES...25 Overview...25 The assignment...26 CFP CERTIFICATION UNIT...27 Overview...27 Assignment - Case Study...28 Multiple-choice examination Observations...42 Record of experience Results Standard required for certification... 46

3 A warm welcome Thank you for your interest in our CERTIFIED FINANCIAL PLANNER education program. Our program is developed to help you deliver best practice financial planning. The program is challenging but your dedication will earn you a place at the forefront of your profession. More clients will be drawn to you, and most importantly, your new skills will enhance the service you provide your clients. As a student, you will benefit from tutorials, self-supported study groups, online materials and quizzes, plus other resources. You can be assured we will support you every step of the way. We are passionate about helping you successfully complete each unit. If you have any questions at all, you can contact our Education team at education@fpa.com.au or on Best wishes with your studies. Dante De Gori CFP CEO, Financial Planning Association CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 3

4 CFP CERTIFICATION PROGRAM The CFP designation is fast becoming the first choice for clients and employers and it s easy to see why. The highest designation in financial planning, coupled with commitment to the highest ethical standards, sets CFP professionals apart from the rest. With the CFP designation being recognised in 26 countries around the world, your designation goes with you wherever you choose to go. About the Program The FPA is the only professional body in Australia licensed to deliver the CFP Certification Program. As part of our licensee agreement with the Financial Planning Standards Board, we must ensure that the high standard of this global designation is maintained, and that the CFP marks are used correctly. Put simply, it is our role to protect the brand here in Australia. Background to the CFP mark The CFP mark is a certification mark that is represented by the marks of professional distinction CFP, CERTIFED FINANCIAL PLANNER and. The CFP marks were first registered in the United States in 1986, and there are currently over 170,000 CFP professionals worldwide in 26 countries, and over 5,600 in Australia. In 1990, FPA was the first international FPSB affiliate licensed to award CFP Certification. The brand is recognised in 26 countries, and therefore in some ways, is transportable. Who is the Financial Planning Standards Board Ltd (FPSB) Outside the United States, the CFP marks are owned by the Financial Planning Standards Board Ltd (FPSB). FPSB is a non-profit association that manages, develops and operates certification, education and related programs for financial planning organisations so that they may benefit the global community by establishing, upholding and promoting worldwide professional standards in personal financial planning. To administer the CFP Certification Program, FPSB enters into licensing and affiliation agreements with non-profit organisations that become FPSB affiliates. By meeting and maintaining FPSB s affiliation requirements and standards, FPSB affiliates are authorised to administer the CFP Certification Program in a country, or geographic or economic region, on behalf of FPSB. 4 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

5 FPSB Financial Planner Competency Profile In 2011, the FPSB published the FPSB Financial Planner Competency Profile, a comprehensive analysis that identified the abilities, skills and knowledge required to competently perform the tasks of a professional financial planner. Figure 1 FPSB Financial Planner Competency Profile Source: FPSB, Financial Planner Competency Framework, certificationandstandards/competencyprofile.html accessed July Functions The Competency Profile functions define the complete set of competencies required of a financial planning professional. They describe the various tasks that financial planning professionals should be able to carry out during financial planning engagements with clients, regardless of practice types, setting or location. Irrespective of whether the financial planning professional offers comprehensive financial planning or has been instructed by their client to limit the scope or level of services, they must be able to master the complete set of abilities required to competently deliver a comprehensive financial plan to a client. The financial planner functions are categorised into three functions that are defined by Core Financial Planning Competencies. COLLECTION Collects the quantitative information required to develop a financial plan. Collects the qualitative information required to develop a financial plan. ANALYSIS Considers potential opportunities and constraints to develop strategies. Assesses information to develop strategies. SYNTHESIS Develops and evaluates strategies to create a financial plan. Within this framework, the FPSB identifies Fundamental Financial Planning Practices that demonstrate a financial planner s ability to: integrate the various Core Financial Planning Competencies and Financial Planning Areas; and understand and master the interrelationships among the various competencies required to carry out a financial planning function. CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 5

6 Financial Planning Areas of Competence The Financial Planner Competencies are categorised into eight areas: 1. financial planning principles, process and skills 2. financial management 3. tax principles and optimisation 4. investment planning/asset management 5. risk management and insurance planning PROFESSIONAL SKILLS The FPSB Competency Profile identifies the professional skills that a financial planning professional must be able to draw on to deliver advice to clients in financial planning engagements. These are: professional responsibility practice communication cognitive. 6. retirement planning 7. estate planning and wealth transfer 8. integrated financial planning. These broad technical knowledge areas provide a framework within which the abilities and knowledge expected of a financial planner can be mapped. BODY OF KNOWLEDGE FOR AUSTRALIA IMPORTANT As the Program is at a Post Graduate (Masters Degree) level, we recommend you spend a minimum of 10 hours per week studying. Allow additional time for reading and research beyond the unit material. The ability to practise effectively as a financial planning professional requires the mastery of theoretical and practical knowledge in a broad range of financial planning and related topics. We categorise this body of knowledge into 11 areas: 1. taxation 2. insurance 3. investment 4. retirement, savings and income programs 5. law 6. financial analysis 7. debt 8. economic and regulatory environment 9. government benefits plans 10. behavioural finance 11. ethics and standards. These areas are further developed into Knowledge Topic Categories, which are published in Appendix A. 6 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

7 CFP Certification process in Australia The CFP Certification process assures the public that those whom the FPA has authorised to use the CFP marks have met rigorous professional competency, ethics and professional practice standards. To become certified, you are required to meet the FPA Professional Standards Framework of the four E s: ETHICS EDUCATION EXAMINATION EXPERIENCE Description Admission requirements Designation requirements ie. to enter the program ie. to sucessfully complete the program and use the CFP mark ETHICS Your capacity to make decisions in the best interest of your client and a formal commitment to ethical practice. Current voting FPA member and committed to the FPA Code of Professional Practice. Current voting FPA member and committed to the FPA Code of Professional Practice and successfully completed CFP 1. EDUCATION EXAMINATION The formal technical competencies, knowledge and capabilities required by the profession. The systematic and regular monitoring and testing of knowledge and capabilities to ensure your expertise is maintained. Approved degree OR Australian finance degree & Diploma of Financial Planning OR Non-finance related degree or international degree & Advanced Diploma of Financial Planning OR Advanced Diploma of Financial Planning & working towards a degree OR 8 subjects from an approved Master s (Graduate Diploma) Sucessfully completed technical units CFP 2 - CFP 4 or achieved Advanced Standing for CFP 2-4. Successfully completed the CFP Certification assessments including the examination. EXPERIENCE The practical, on the job learning and skills development that confirms professional practice. 12 months minimum relevant industry experience or completed an FPA approved degree. Three years full time or equivalent part time industry experience within the last five years, comprising: Two years full time or equivalent part time indirect experience; and A minimum of one year full time or equivalent part time direct client facing experience following the six steps of financial planning. CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 7

8 Program Structure The CFP Certification Program has four units plus a final capstone certification unit. Advanced standing (exemptions) can awarded to CFP 2-4. CFP 1: FPA PROFESSIONALISM CFP 2: APPLIED STRATEGIES 1 If you have successfully completed the Certified Financial Analyst (CFA) certification and hold the designation. (CFP 4 only) Students who have completed post graduate studies in Financial Planning. A list of pre-approved course are available on our website. Students who have completed post graduate studies in Financial Planning, and the course is not listed on our Approved Degree List. In such case, you can apply for a transcript review via Preadmission. Please note, there is no advanced standing for CFP 1 or CFP C. CFP 3: APPLIED STRATEGIES 2 CFP 4: INVESTMENT STRATEGIES Advanced standing and recognition of prior learning will be given for relevant learning completed within a period of 10 years. For further information, review the FPA approved degree list at fpa.com.au. CFP C: CERTIFICATION Compulsory units Advanced standing can apply Advanced Standing Academic Credits may be available for CFP 2, CFP 3 and CFP 4 or a combination. If you are a member of CPA Australia/Institute of Chartered Accountants in Australia and you have completed their professional financial planning specialisation education requirement and hold the designation. Learning approach Our learning approach is designed to develop the advanced skills and understanding required at a postgraduate degree level. To help you achieve this, our approach focuses on the following areas: Extension of existing and new learning through analysis of complex, modern-day case studies. The thinking processes involved in developing, selecting, presenting and reviewing client-focused, holistic strategies. Individual and independent research and reading, beyond your unit material. Thorough analysis of essential issues and fundamental ethical principles and a compliant approach, through discussion and decision-making tasks and activities. If you have successfully completed the Certified Investment Management Analyst (CIMA) certification, and hold the designation. (CFP 4 only) 8 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

9 Independent learning Your learning experience will be structured for you into sequential topics in order to assist you in planning your time. However, all of the topics are made available to you at the beginning of the unit, via hard copy unit materials and on FPA Learn enabling you to study at your own pace within a structured semester. To complete the Program successfully, you ll need to bring your experience and expertise to your studies, but also the motivation for self-directed and autonomous learning. External research is key to a successful result. Unit Materials The learning material which supports the Program has been developed by industry experts. The material is regularly reviewed and updated, keeping pace with today s regulations, trends and ideas. When studying at this level, you will need to have a combination of previous study and experience in financial planning. During your studies, you will have the opportunity to draw on this experience and bring to life many of the principles in the program. The unit materials will provide the foundation for your learning, however to achieve a deeper understanding of the strategies and case studies, you will be expected to undertake additional research. Student Resources You will have access to FPA Learn which is your main resource point for learning materials, schedules, tutorials, study groups and chat rooms. CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 9

10 Outcomes of the program The CFP Certification Program extends your knowledge, skill and professionalism to provide high-level comprehensive advice within a context of full compliance, sound organisational practice and ethical approach. CFP 1 outcomes CFP 2 outcomes CFP 3 outcomes CFP 4 outcomes Ethical decision Introduce the Consider issues Demonstrate the making and thinking process and strategies for detailed processes judgement. involved in clients leaving involved in The relationship between ethics, business and professional practice. Professional responsibility and professional accountability. developing, selecting, presenting and reviewing clientfocused, holistic strategies. Examine the main uses and interrelationship of structures. the workforce due to retirement, redundancy or illness/accident. Consider how superannuation fits into a client s strategy, including retail funds and SMSF. asset allocation and portfolio construction. Discuss current issues, new and existing products and platforms, how and when used in client investment strategies. The interrelationship between the law, professional standards, ethics and compliance. Professional compliance obligations for CFP practitioners. Demonstrate how and when salary packaging strategies can be applied. Consider debt management and risk management strategies as part of any Understand and apply Centrelink rules and policies as part of client strategy. Include appropriate estate planning advice in recommendations for clients at all Consider alternative investment strategies and methodologies. Make decisions based on critical analysis using an appropriate mix of strategy driving product solutions. Upholding the public interest. recommendations. stages of life. Recognise the issues that need to be considered Apply complex risk management strategies to client cases. when developing strategies for expatriate or inbound clients, including those involving foreign investments. 10 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

11 Unit outlines This unit provides the building blocks to best practice financial planning and world class professional standards. As such, the unit is compulsory for all students. CFP 1 FPA Professionalism Topic 1: Professionalism Introduction Topic 2: Professionalism and Ethics Topic 3: The CFP Practitioner: Client Relationship Topic 4: The CFP Practitioner: Stakeholder Relationship CFP 2 Applied Strategies 1 This unit is the first of three units on strategy development, a fundamental part of your role as a financial planner. You will learn to develop integrated strategies for each client and formulate recommendations based on the ethical and professional standards of the industry and regulatory framework. Topic 1: Introduction to Strategy Development Topic 2: Applied Structures Topic 3: Risk Management Strategies Topic 4: Debt Management Strategies Topic 5: Salary Packaging Strategies CFP 3 Applied Strategies 2 This unit focuses on strategy development, relating to leaving the workforce. Whilst the unit covers superannuation and estate planning, you will also cover specific issues relating to clients leaving the workforce, pension and benefit strategies, plus strategies for expatriate clients too. Topic 1: Leaving the Workforce: Issues and Strategies Topic 2: Superannuation Strategies Topic 3: Pension and Benefit Strategies Topic 4: Estate Planning Strategies Topic 5: Strategies for Expatriates This unit focuses on the development of investment strategies, based on the personal circumstances of your client. The topics within the unit cover a wide range of modern day strategies and the risks and benefits that come with each. Topic 1: Advice Process of Portfolio Construction CFP 4 Investment Strategies Topic 2: Asset Allocation and Risk Topic 3: Investment Strategies and Structures Topic 4: Investment Managers and Products Topic 5: Alternative Investments Topic 6: Exchange-Traded Products Topic 7: Applied Decision Making Successfully completing the CFP Certification unit will verify that you have mastered the knowledge and practical application required to become an accomplished CFP professional. CFP Certification Assessment This unit comprises: 1. a financial plan case study 2. a four hour multiple choice examination 3. supervised meetings with clients; and 4. a detailed record submission of your experience CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 11

12 Assessment snapshot CFP 1 CFP 2 CFP 3 CFP 4 CFP C Assignment Yes Yes Yes Yes Yes Final weighting 100% 40% 40% 100% Need to pass Assignment length 6,500 word count 5,000 word count 5,000 word count 5,500 word count 55 pages (excludes appendices) Pass mark 70% 70% 70% 70% 75% Examination Not applicable Yes Yes Not applicable Yes Final weighting Not applicable 60% 60% Not applicable Need to pass Examination type Not applicable Open book Short answers and online multiple choice test Open book Short answers and online multiple choice test Not applicable Open book Multiple choice Pass mark 70% 70% Observation Not applicable Not applicable Not applicable Not applicable Yes Record of Experience * (One year practising as a financial planner) Not applicable Not applicable Not applicable Not applicable Yes CPD hours 30 hours 40 hours 35 hours 37 hours 35 hours Timeframe 1 semester 1 semester 1 semester 1 semester 1 semester or 2 semesters GRADE RANGE Fail Pass Credit Distinction 69% or below 70% - 79% 80% - 89% 90% - 100% IMPORTANT You can enrol into CFP 1 to CFP 4 in any order. Before you commence CFP C you must successfully complete all other units. 12 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

13 Learning tools FPA Learn is our online learning platform. This will be the key area that you will access to engage with your learning materials, participate in chat rooms and submit assignments. Using FPA Learn, we offer a range of support mechanisms allowing you to interact with subject experts as well as other students. By leveraging these tools you will be able to expand and strengthen your learning. STUDY GROUPS You can form and take part in a study group with other students on the CFP Certification Program. CHAT ROOM We encourage you to communicate with other students, to exchange ideas and study techniques. You can post questions about the content, assignment or examination. Whilst we always encourage discussion and sharing ideas, any work you submit must represent your own interpretation and thinking. We recommend you visit the chat room regularly for the latest information. SUBJECT EXPERTS To help you understand the technical content of the learning material, we appoint a Subject Expert to each unit. The Subject Expert is available to assist you with any issues you have. Simply post your questions in the Chat Room and the experts will respond. Our experts are practising financial planners who are committed to giving back to the financial planning community. LIVE TUTORIALS You will have the opportunity to participate in online live tutorials with our subject experts. These sessions are designed to explore further the technical content of the unit while providing practical case studies. Tutorials are recorded and available to view again. LEARNING MATERIAL Your assignment and unit material can be downloaded from FPA Learn. You ll need your username and password for this. You will receive your hardcopy unit materials close to the start of the semester. In addition, we have reproduced the learning content into interactive modules on FPA Learn. These online modules are not compulsory but they are a useful way for you to track your progress throughout the semester. If you have not received your material we recommend you contact your local post office to check if the material is held there. If you cannot locate your material, or if your material is incomplete or damaged on arrival, please education@ fpa.com.au. The CFP Certification unit is a capstone unit and has no unit material. CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 13

14 CFP 1 FPA Professionalism Overview Semester 1 Semester 2 Summer Semester The material in this unit covers four main topics: mandatory standards, ethics and higher levels of accountability, the relationship a CFP practitioner has with their clients, and the relationship a CFP practitioner has with stakeholders, including the process for ethical decision making, professional practice, professional responsibility and professional accountability. TOPIC 1 Professionalism Introduction TOPIC 2 Professionalism and Ethics TOPIC 3 The CFP Practitioner: Client Relationship TOPIC 4 The CFP Practitioner: Stakeholder Relationship NO ADVANCED STANDING In CFP 1, case studies are used to get you thinking about your own ethics. The case studies are based on real situations experienced by financial planning professionals, and they demonstrate the practical situations that give rise to ethical, professional and compliance issues and discuss possible solutions. They cover complex situations and issues of concern in a financial planner s activities, and they demonstrate the level and type of thinking that you will be expected to be able to emulate at the completion of this unit. In most real-life situations, ethical, professional and compliance issues are interwoven. Is it ethical? Is it professional? Is it compliant with the law and the requirements of regulatory organisations? The case studies in this unit are complex and do not simply illustrate one view of a given situation. There are no easy right and wrong answers, but there are principles, rules and decision-making frameworks that can be used to make appropriate decisions. FPA Professional Dimensions ASIC Knowledge Areas 30 CPD HOURS Professional Conduct (Ethics) 4.75 hours Professional Conduct hours Generic Knowledge 12 hours Financial Planning 12 hours Skills 6 hours 14 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

15 The assignment The assignment is designed to encourage additional research and help you better understand the unit material. If you submit your assignment late without an approved extension, a maximum mark of 70/100 will be awarded if you pass. Assignments received more than one week after the due date without extension approval will not be marked and a fail grade will be awarded. Your assignment must be within the stated word limit. The ability to write succinctly is an important skill for a financial planner and the word count will enable you to develop your abilities in this area. We accept a word count of up to 10% over the word limit, however 10% of the total marks will be deducted if you exceed this threshold. For example, if you receive 80/100 and exceed the word count by 10%, your result will be reduced to 72/100. If your paper significantly exceeds the word limit, we will only mark your paper to the 10% word limit. For example, if All assignments must be submitted by 15:00 (Sydney time) on the due date, using the assignment template provided on FPA Learn. Assignments can only be submitted via upload on FPA Learn. the assignment word limit is 5,000 and your assignment word count is 10,000, then we will only mark up to 5,500 (5,000 plus 10%). The rest of your assignment will not be marked and this will affect your overall mark. Footnotes are not included in the word count provided, and are used only to give citations or brief information. If footnotes are used to provide commentary, then they will be counted. Tables with mostly calculations are not included in the word count; however tables containing commentary are included. The word limit does not include reference list/bibliography or appendices (if applicable). For more information about word count and referencing, please refer to the General Guidelines Handbook which is available on FPA Learn. Results Your final results will be released on the advertised date and you will be notified via FPA Learn. FEEDBACK Your assignment and the assessor s feedback will be available for you to review on FPA Learn. You will also have access to the Examiner s Report so that you can compare your achievement to that of your peers. STATEMENT OF RESULTS If you require a transcript of your results, complete the form on our website and send it to us. Please note there is a replacement fee. CPD CERTIFICATES Certificates will only be issued once you have successfully completed all assessments in the unit and these will be sent to you via . CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 15

16 CONCEDED PASS For CFP 1 a conceded pass may be awarded under extenuating circumstances prior to result release. Only one conceded pass is awarded for the CFP Certification Program. The FPA applies the conceded pass policy to eligible students as part of the result sign-off process. You cannot apply for a conceded pass after results are released. For more information regarding conceded passes, please contact education@fpa.com.au. When submitting your assignment, you must declare the accurate word count on the front page. Omitting or putting in the wrong word count on the front page may result in a penalty. 16 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

17 CFP 2 Applied Strategies 1 Overview Semester 1 Semester 2 Summer Semester This unit is based on strategy development. Strategy development is seen as a fundamental role of financial planners and the ability to develop integrated strategies for specific clients is one of the characteristics of a CFP practitioner. The strategies you develop for clients form the basis for your recommendations. The strategies and recommendations you formulate for clients should be firmly based on the ethical and professional standards of the profession, as well as its legislation and regulations. CFP 2 and CFP 3 should be seen together as covering the main areas of strategy development that a financial planner needs to address in order to provide holistic, integrated advice to a client. TOPIC 1 Introduction to Strategy Development TOPIC 2 Applied Structures TOPIC 3 Risk Management Strategies TOPIC 4 Debt Management TOPIC 5 Salary Packaging Strategies ADVANCED STANDING MAY APPLY The CFP 2 case studies examine the types of issues that can arise when developing client strategies and demonstrate ways to think about strategy development in a client context. When studying at this level you are expected to have a combination of previous study and practitioner experience that will enable you to understand the basics of financial planning without further explanation. CFP 2 - Applied Strategies 1 assumes you have prior knowledge of financial mathematics and the ability to use a financial calculator and a body of knowledge that includes the financial planning process, client communication and needs analysis, taxation principles including income tax, fringe benefits tax (FBT), goods and services tax (GST) and capital gains, basic insurance and the operation of loans. FPA Professional Dimensions ASIC Knowledge Areas 40 CPD HOURS Capability 20 hours Critical Thinking 20 hours Life Insurance 7.75 hours Financial Planning 1.75 hours Superannuation 4 hours Taxation hours Margin Lending 5 hours Skills 6.25 hours CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 17

18 The assignment The assignment is designed to encourage additional research and help you better understand the unit material. If you submit your assignment late without an approved extension, a maximum mark of 70/100 will be awarded if you pass. Assignments received more than one week after the due date without extension approval will not be marked and a fail grade will be awarded. (Your assignment result may not be available before your exam if you submit late). Your assignment must be within the stated word limit. The ability to write succinctly is an important skill for a financial planner and the word count will enable you to develop your abilities in this area. We accept a word count of up to 10% over the word limit, however 10% of the total marks will be deducted if you exceed this threshold. For example, if you receive 80/100 and exceed the word count by 10%, your result will be reduced to 72/100. All assignments must be submitted by 15:00 (Sydney time) on the due date, using the assignment template provided on FPA Learn. Assignments can only be submitted via upload on FPA Learn. If your paper significantly exceeds the word limit, we will only mark your paper to the 10% word limit. For example, if the assignment word limit is 5,000 and your assignment word count is 10,000, then we will only mark up to 5,500 (5,000 plus 10%). The rest of your assignment will not be marked and this will affect your overall mark. Footnotes are not included in the word count provided, and are used only to give citations or brief information. If footnotes are used to provide commentary, then they will be counted. Tables with mostly calculations are not included in the word count; however tables containing commentary are included. The word limit does not include reference list/bibliography or appendices (if applicable). For more information about word count and referencing, please refer to the General Guidelines Handbook which is available on FPA Learn. RESULTS AND FEEDBACK ON THE ASSIGNMENT Your assignment results will be released approximately one week prior to the exam so you are able to review the assessor s comments. Your final results will be released on the advertised date and you will receive notification through FPA Learn. Your assignment and the assessor s feedback will be available for you to review on FPA Learn. When submitting your assignment, you must declare the accurate word count on the front page. Omitting or putting in the wrong word count on the front page may result in a penalty. The examination Information about the logistics of your exam will be posted on FPA Learn closer to the exam date. It is your responsibility to regularly check for updates. If you fail to attend your examination, your result will be recorded as a Fail. We cannot offer you alternative dates and times if you have simply misread the information. 18 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

19 VENUE Exams are arranged in a centre located at a reasonable distance from the address you indicated on the enrolment form. These locations are indicative only and may be changed according to demand. In the case of a debilitating medical condition or unforeseen events, we may be able to offer you alternative exam arrangements. You will need to contact us within 24 hour of the exam date. Failure to do so may jeopardise your chances to sit the exam. All requests must include relevant supporting documentation. Circumstances where alternative exam arrangements will not be organised include holidays, workload issues, travel or minor medical ailments. If you need to change venue, please contact education@fpa.com.au three weeks prior to your examination. After this time we may not be able to accommodate your request. For more information about word count and referencing, please refer to the General Guidelines Handbook which is available on FPA Learn. Examination format 1. Written Examination The open book exam is three hours duration (plus 15 minutes reading time). The content will be based on the constructed response format and consist of several questions, some of which may be based around a case study. 2. Online multiple choice test This test comprises of 20 multiple choice questions covering all topics. You will need to complete this via FPA Learn. The test will be available one week prior to the written examination. You will have one hour to complete the test and only one attempt. Reading time should be used to check the structure and to consider the weighting of individual questions. During this time, you may not mark the exam paper in any way (completing personal details on the exam booklet) or use calculators. You will be asked to complete and sign the security declaration on the cover of the exam question booklet, declaring that you will not transcribe or copy exam questions or answers in any format for removal from the exam room. ITEMS TO BRING WITH YOU You are required to bring the following items to the exam: photographic identification (e.g. driver s licence, passport or a statutory declaration confirming your identification) black or blue pen No unauthorised material may be brought into the exam room. This includes mobile phones, laptop computers and smart watches. a hand-held, non-text-retrievable, non-programmable calculator and all material you require to assist in an open book examination. CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 19

20 DURING THE EXAMINATION When instructed by the exam supervisor, you must complete your personal details on the front cover of the question and answer booklet(s). You may not enter the exam room more than 45 minutes after the commencement of reading time, nor are you allowed to leave during the first 45 minutes or last 10 minutes of the exam. At the end of the exam, you must follow the instructions given by the exam supervisor after all exam materials have been collected and checked. If you fail to comply with any instructions, your results may be withheld. RESULTS AND FEEDBACK ON THE EXAM Your exam is designed to evaluate your knowledge and understanding of the unit. It is not designed to provide feedback concerning deficiencies in your knowledge. As such individual papers are not released. An individual analysis letter will be posted on FPA Learn if you fail the exam. This letter gives you a guide to your performance compared to that of other students. STATEMENT OF RESULTS If you require a transcript of your results, complete the form on our website and send it to us. Please note there is a replacement fee. CPD CERTIFICATES Certificates will only be issued once you have successfully completed all assessments in the unit and these will be sent to you via . CONCEDED PASS If you record a marginal fail in one assessment task and achieved an excellent result in the other assessment tasks, your overall grade may be upgraded to a pass. To be eligible for a conceded pass, you must have a combined final mark of 70 or greater and a mark of 60 or greater on the failed assessment task. Only one conceded pass will be award for the whole program. The conceded pass will be awarded prior to results release. For more information regarding conceded pass, please contact education@fpa.com.au. CARRY FORWARD RESULTS If you have failed one piece of assessment but you have passed the other piece, you can carry forward that assessment mark. The carry forward mark for the assessment in which you were successful is valid for a maximum of two semesters only. 20 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

21 CFP 3 Applied Strategies 2 Overview Semester 1 Semester 2 Summer Semester CFP 3 focuses on strategy development relating to leaving the workforce. While superannuation strategies and estate planning strategies should form part of your planning for all clients, we also discuss in this unit the specific issues relating to clients leaving the workforce, pension and benefit strategies, and strategies for expatriate clients. The strategies and recommendations you formulate for clients should be firmly based on the ethical and professional standards of the industry, as well as its legislation and regulations. CFP 2 and CFP 3 should be seen together as covering the main areas of strategy development that a financial planner needs to address to provide holistic, integrated advice to a client. TOPIC 1 Leaving the Workforce: Issues and Strategies TOPIC 2 Superannuation Strategies TOPIC 3 Pension and Benefit TOPIC 4 Estate Planning Strategies TOPIC 5 Strategies for Expatriates ADVANCED STANDING MAY APPLY The CFP 3 case studies examine financial issues and strategies relating primarily to leaving the workforce. You are expected to have some basic knowledge of superannuation funds, taxation, employment termination payments, income streams and social security. You are also expected to be able to calculate tax-free components and taxable components using the proportioning rule applied to superannuation lump sums (including rollovers) and superannuation income streams as well as other related data. This unit also assumes you have a basic understanding of the Departments of Human Services and Veterans Affairs benefits as well as of estate planning, wills and the use of powers of attorney and guardianship arrangements. FPA Professional Dimensions ASIC Knowledge Areas 35 CPD HOURS Capability 17.5 hours Critical Thinking 17.5 hours Financial Planning 4.75 hours Superannuation 6 hours Estate Planning 6 hours Taxation 5.5 hours Aged Care 2.5 hours Skills hours CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 21

22 The assignment The assignment is designed to encourage additional research and help you better understand the unit material. If you submit your assignment late without an approved extension, a maximum mark of 70/100 will be awarded if you pass. Assignments received more than one week after the due date without extension approval will not be marked and a fail grade will be awarded. (Your assignment result may not be available before your exam if you submit late). All assignments must be submitted by 15:00 (Sydney time) on the due date, using the assignment template provided on FPA Learn. Assignments can only be submitted via upload on FPA Learn. Your assignment must be within the stated word limit. The ability to write succinctly is an important skill for a financial planner and the word count will enable you to develop in this area. We accept a word count of up to 10% over the word limit, however 10% of the total marks will be deducted if you exceed this threshold. For example, if you receive 80/100 and exceed the word count by 10%, your result will be reduced to 72/100. If your paper significantly exceeds the word limit, we will only mark your paper to the 10% word limit. For example, if the assignment word limit is 5,000 and your assignment word count is 10,000, then we will only mark up to 5,500 (5,000 plus 10%). The rest of your assignment will not be marked and this will affect your overall mark. Footnotes are not included in the word count provided, and are used only to give citations or brief information. If footnotes are used to provide commentary, then they will be counted. Tables with mostly calculations are not included in the word count; however tables containing commentary are included. The word limit does not include reference list/bibliography or appendices (if applicable). When submitting your assignment, you must declare the accurate word count on the front page. Omitting or putting in the wrong word count on the front page may result in a penalty. For more information about word count and referencing, please refer to the General Guidelines Handbook which is available on FPA Learn. RESULTS AND FEEDBACK ON THE ASSIGNMENT Your assignment results will be released approximately one week prior to the exam so you are able to review the assessor s comments. Your final results will be released on the advertised date and you will be notified via FPA Learn. Your assignment and the assessor s feedback will be available for you to review on FPA Learn. The examination Information about the logistics of your exam will be posted on FPA Learn closer to the exam date. It is your responsibility to regularly check for updates. If you fail to attend your exam, your result will be recorded as a Fail. We cannot offer you alternative dates and times if you have simply misread the information. 22 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

23 VENUE Exams are arranged in a centre located at a reasonable distance from the address you indicated on the enrolment form. These locations are indicative only and may be changed according to demand. In the case of a debilitating medical condition or unforeseen events, we may be able to offer you alternative exam arrangements. You will need to contact us within 24 hour of the exam date. Failure to do so may jeopardise your chances to sit the exam. All requests must include relevant supporting documentation. Circumstances where alternative exam arrangements will not be organised include holidays, workload issues, travel or minor medical ailments. If you need to change venue, please contact education@fpa.com.au three weeks prior to your examination. After this time we may not be able to accommodate your request. Examination format 1. Written Examination The open book exam is three hours duration (plus 15 minutes reading time). The content will be based on the constructed response format and consist of several questions, some of which may be based around a case study. 2. Online multiple choice test This test comprises of 20 multiple choice questions covering all topics. You will need to complete this via FPA Learn. The test will be available one week prior to the written examination. You will have one hour to complete the test and only one attempt. Reading time should be used to check the structure and to consider the weighting of individual questions. During this time, you may not mark the exam paper in any way (completing personal details on the exam booklet) or use calculators. You will be asked to complete and sign the security declaration on the cover of the exam question booklet, declaring that you will not transcribe or copy exam questions or answers in any format for removal from the exam room. ITEMS TO BRING WITH YOU You are required to bring the following items to the exam: photographic identification (e.g. driver s licence, passport or a statutory declaration confirming your identification) black or blue pen No unauthorised material may be brought into the exam room. This includes mobile phones, laptop computers and smart watches. a hand-held, non-text-retrievable, non-programmable calculator; and all material you require to assist in an open book exam. CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 23

24 DURING THE EXAM When instructed by the exam supervisor, you must complete your personal details on the front cover of the question and answer booklet(s). You may not enter the exam room more than 45 minutes after the commencement of reading time, nor are you allowed to leave during the first 45 minutes or last 10 minutes of the exam. At the end of the exam, you must follow the instructions given by the exam supervisor after all exam materials have been collected and checked. If you fail to comply with any instructions, your results may be withheld. RESULTS AND FEEDBACK ON THE EXAM Your exam in designed to evaluate your knowledge and understanding of the unit. They are not designed to provide feedback concerning deficiencies in your knowledge. As such individual papers are not released back to students. An individual analysis letter will be posted on FPA Learn if you fail the exam. This letter gives you a guide to your performance compared to that of other students. STATEMENT OF RESULTS If you require a transcript of your results, complete the form on our website and send it to us. Please note there is a replacement fee. CPD CERTIFICATES Certificates will only be issued once you have successfully completed all assessments in the unit and these will be sent to you via . CONCEDED PASS If you record a marginal fail in one assessment task and achieved an excellent result in the other assessment tasks, your overall grade may be upgraded to a pass. To be eligible for a conceded pass, you must have a combined final mark of 70 or greater and a mark of 60 or greater on the failed assessment task. Only one conceded pass will be award for the whole program. The conceded pass will be awarded prior to results release. For more information regarding conceded pass, please contact education@fpa.com.au. CARRY FORWARD RESULTS If you have failed one piece of assessment but you have passed the other piece, you can carry forward that assessment mark. The carry forward mark for the assessment in which you were successful is valid for a maximum of two semesters only. Recommended reading for CFP 3 Taxpayers Australia, Tax Summary: Your Plain English Guide to Tax, Taxpayers Australia, East Kew, Victoria. (Also published as The Taxpayers Guide by John Wiley, Milton, Queensland.) Yogev, S. 2001, For Better or for Worse but not for Lunch, McGraw Hill/Contemporary Books, New York. (Also available as an e-book.) 24 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

25 CFP 4 Investment Strategies Overview Semester 1 Semester 2 Summer Semester This is the final unit on strategy development. Strategy development is a fundamental skill for financial planners, and the ability to develop integrated strategies for specific clients is one of the characteristics of a CFP practitioner. The strategies and recommendations you formulate for clients should be firmly based on the ethical and professional standards of the industry, as well as its legislation and regulations. CFP 4 concentrates on the development of investment strategies, which may be viewed as the final part of the financial planner s role. TOPIC 1 Advice process of Portfolio Construction TOPIC 2 Asset Allocation and Risk TOPIC 3 Investment Strategies and Structures TOPIC 4 Investment Managers and Products TOPIC 5 Alternative Investments TOPIC 6 TOPIC 7 Exchange-Traded Products Applied Decision Making ADVANCED STANDING MAY APPLY It is expected that students have practitioner experience and are capable of formulating a financial plan for a client. This involves at least a basic level of understanding of investment, insurance, superannuation, estate planning and taxation, and familiarity with the financial planning process, including the client interview and record-keeping and documentation requirements. In the CFP 4 case studies, more than one viable strategy may be developed, and you may be asked to consider which strategy you would choose and why, what asset allocation you would use in the portfolio and why, how you would justify your recommendations to the clients, and how you would ensure adequate implementation and review. FPA Professional Dimensions ASIC Knowledge Areas 37 CPD HOURS Capability 18.5 hours Critical Thinking 18.5 hours Financial Planning 13 hours Managed Investments 7 hours General Knowledge 2 hours Securities 5 hours Deposit Products 3 hours Skills 7 hours CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 25

26 The assignment The assignments are designed to encourage additional research and help you better understand the unit material. If you submit your assignment late without an approved extension, a maximum mark of 70/100 will be awarded if you pass. Assignments received more than one week after the due date without extension approval will not be marked and a fail grade will be awarded. All assignments must be submitted by 15:00 (Sydney time) on the due date, using the assignment template provided on FPA Learn. Assignments can only be submitted via upload on FPA Learn. Your assignment must be within the stated word limit. The ability to write succinctly is an important skill for a financial planner and the word count will enable you to develop in this area. We accept a word count of up to 10% over the word limit, however 10% of the total marks will be deducted if you exceed this threshold. For example, if you receive 80/100 and exceed the word count by 10%, your result will be reduced to 72/100. If your paper significantly exceeds the word limit, we will only mark your paper to the 10% word limit. For example, if the assignment word limit is 5,000 and your assignment word count is 10,000, then we will only mark up to 5,500 (5,000 plus 10%). The rest of your assignment will not be marked and this will affect your overall mark. Footnotes are not included in the word count provided, and are used only to give citations or brief information. If footnotes are used to provide commentary, then they will be counted. Tables with mostly calculations are not included in the word count; however tables containing commentary are included. The word limit does not include reference list/bibliography or appendices (if applicable). When submitting your assignment, you must declare the accurate word count on the front page. Omitting or putting in the wrong word count on the front page may result in a penalty. For more information about word count and referencing, please refer to the General Guidelines Handbook which is available on FPA Learn. RESULTS Your final results will be released on the advertised date and you will be notified via FPA Learn. FEEDBACK Your assignment and the assessor s feedback will be available for you to review on FPA Learn. You will also have access to the Examiner s Report so that you can compare your achievement to that of your peers. STATEMENT OF RESULTS If you require a transcript of your results, complete the form on our website and send it to us. Please note there is a replacement fee. CPD CERTIFICATES Certificates will only be issued once you have successfully completed all assessments in the unit and these will be sent to you via CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

27 CFP Certification Unit Overview Semester 1 Semester 2 Summer Semester This is the final, capstone unit of the CFP Certification Program. Students who are accepted for enrolment into the CFP Certification Assessment unit have satisfied the education criteria. There is no course material or content in the CFP Certification unit. Instead, students are expected to review the topic content from CFP 1-4 and their body of knowledge in preparation for the assessments. Following successful completion of the CFP Certification Assessment unit, students may submit an application for admission as a CFP practitioner, at which point their experience and ethics prerequisites will be evaluated. The assignment component of this unit involves the production of a 55 page Financial Plan (excluding appendices). Students also complete a multiple choice examination, submit documentation of two observed meetings with clients and a record of experience. Each assessment component can be mapped to the FPSB Financial Planner Competency Profile. The diagram below is a summary of the mapping. Appendix B contains a complete matrix that maps the FPSB Financial Planner Competency Profile to the components of the CFP Certification Assessment. NO ADVANCED STANDING FPA Professional Dimensions ASIC Knowledge Areas 35 CPD HOURS Critical Thinking 35 hours Financial Planning 21.5 hours Skills 10.5 hours Superannuation 2 hours General Insurance 1 hours CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 27

28 ABILITIES PROFESSIONAL SKILLS KNOWLEDGE Assignment Examination Observation Record of Experience Assignment COMPREHENSIVE FINANCIAL PLAN CASE STUDY The case study facts will be available on FPA Learn at the start of the semester. The financial plan assesses a student s abilities, knowledge and written communication skills. You are required to prepare a comprehensive financial plan (including a Statement of Advice (SoA)) for a fictitious client or clients based on case study information that is provided. The issues presented in the case study are complex and of a level that a CFP practitioner is expected to advise on. The issues presented in the case study may not be representative of the issues normally dealt with by you in your current role. Students are advised not to rely exclusively on an SoA template used by their licensee. ASIC has stated that the primary purpose of an SoA is as a disclosure document (ASIC 2005), and the SoA might not satisfy the requirements of a comprehensive financial plan. IMPORTANT Financial planning software may be used to provide projections to support your calculations. The software should be appropriately referred to in your reference list or as a footnote to the page on which it appears. Scenarios may be created by the software for you to discern what may be the best approach for your client. However, should only this material be used to generate your financial plan, or if indeed software has determined your strategy without any need for your input as a planner, this will be deemed unacceptable. You should ensure that the plan you submit demonstrates your understanding of the rationale required to make a recommendation that is appropriate to the client s situation, goals and concerns raised. Assessors will use a marking guide reflecting the relative importance of areas that need to be addressed in the financial plan. Students who do not meet the standard will be provided with feedback on the areas that were not to the standard required. Assignments will not be returned to those students who have passed. As a part of the CFP Certification unit, successful completion of this assignment is essential. You are expected to devote sufficient time to the preparation of the financial plan to cover each of the 15 essential steps (or elements) to be included in the body of the plan. The 15 steps are those required to develop a plan to CFP Certification Standard. Any appendices included as additions to the body of the plan must be relevant to the client s circumstances and must be crossreferenced from the relevant section of the plan. 28 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

29 KEY POINTS TO CONSIDER IN DEVELOPING THE FINANCIAL PLAN The financial fact finder is the basis for your recommendations. You are required to prepare a comprehensive financial plan (not a commercial SoA) that succinctly addresses the client s needs, concerns and financial objectives. Explanations must be clear and concise, in terms the client would understand. You must demonstrate your understanding of any related technical issues by referring to them as necessary at appropriate points in the plan. Your explanations must be clearly framed in the context of the client s situation. The inclusion of technical material of a generic or general nature - that is, material not clearly linked to the client s specific needs, concerns and financial objectives - will not be considered favourably. Appendices and attachments can be useful supports to your plan. You should use them sparingly so that they enhance the clarity of the proposed plan. They must, therefore, be clearly relevant and cross-referenced to the body of the plan. Appendices of a general nature (that are not relevant to the plan content or the client s situation) will not be considered favourably. IMPORTANT - inclusions not required Do not include any of the following in your plan: research profiles, investment memoranda, insurance quotations, product brochures, prospectuses or any product advertising material. To demonstrate your knowledge of the above documents, the first page of the appendices should provide a list of the documents that would ordinarily be provided to the client. The plan should still make reference to research reports provided, and so on, to satisfy the requirements of providing such material. Your Plan Compliance The plan must demonstrate a clear understanding of the following: all ASIC compliance requirements i.e. Corporations Act 2001 (Cwlth), including Financial Services Reform Act (Cwlth) all FPA ethical and compliance requirements. The licensee for this assignment Creative Planning Securities Ltd For the purposes of this case study you are to assume that you are an authorised representative of Creative Planning Securities Ltd, ABN , the holder of an Australian Financial Services licence (AFS licence number ), Australian Credit Licence The AFS licence authorisation conditions and the scope of your authorised representative status permit you to provide the financial services of advising clients and dealing in the following financial products on behalf of the licensee: deposit and payment products, including: basic deposit products non-basic deposit products non-cash payment products CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 29

30 derivatives restricted to old law securities options, contracts and warrants general insurance products, including business and health insurance government debentures, stocks and bonds interests in managed investments, including investor-directed portfolio services investment life insurance products life risk insurance products retirement savings accounts securities, including debentures of a body corporate margin lending and other gearing strategies superannuation. Creative Planning Securities Ltd is a wholly owned subsidiary of Gateway Life Ltd, ABN , AFS licence number 23354A. You have access to and are authorised to advise on and deal in a range of personal insurances including life, trauma, disability and income protection, as well as on general insurance products, such as house, contents, motor vehicle, health and business insurance. These insurances are from a range of companies, and while they include Gateway Life Ltd they are not necessarily limited to this. Creative Planning Securities Ltd authorises you to advise on and deal in products included on the licensee s approved product list. Creative Planning Securities Ltd holds an Australian credit licence under the National Consumer Credit Protection Act 2009 (Cwlth) (the National Credit Act), and you are also authorised by Creative Planning Securities Ltd to provide strategic credit advice. While it is not appropriate to provide advice regarding direct property acquisition or sale, such as that offered by a real estate agent (unless you hold appropriate accreditation), it is appropriate to provide general strategic advice regarding such an asset as part of your consideration of the strategy the client should adopt and their asset allocation. For instance, as part of self-managed superannuation fund (SMSF) strategic advice you could recommend that the client purchase a direct property, but you would then refer them to a real estate agent to complete the transaction because you cannot provide recommendations to specific properties or their location. Creative Planning Securities Ltd has also registered you with the Tax Practitioners Board as a tax (financial) adviser and your user name is: Recommended products For the purpose of product recommendation both investment and insurance products use products that you are familiar with, whether they are on the recommended list you work from or are products of which you have some knowledge. If you are not currently working with a recommended list and are unfamiliar with specific financial products, you may create products for the purposes of this plan. If you are to take this measure, be sure to make the products true to label in their product features, descriptions and, in the case of investment products, their asset allocation. Note that, due to Creative Planning Securities Ltd being a wholly owned subsidiary, you are not able to claim that your advice is independent. Also note that section 923A of the Corporations Act establishes strict criteria for the use of the words independent, impartial and unbiased by the providers of financial services. As an authorised representative of Creative Planning Securities Ltd, you may charge fees, a commission or a combination of both, using a placement fee. Commission may be rebated to the client where a fee is charged, but standard commission must first be shown, then the effect of the rebate. This is also the case where a portfolio monitoring or review service is offered. Creative Planning Securities Ltd is a Professional Practice, and may use the FPA s Professional Practice logo in any advertising or marketing material. 30 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

31 Referral to external professionals In normal commercial practice, if parts of your work require referral to external professionals (e.g. lawyers or accountants), it is expected that the strategic advice on the recommended structure of the client s situation resulting from this consultation will be provided in the body of the client s financial plan. Such advice must be integrated into the plan document as part of the recommendations to the client in a way that supports the assessment criteria of providing the client with a document that logically communicates your solutions. Please be aware that it is not acceptable to simply state that a matter will be referred to a professional without any direct discussion of the problem at hand or some form of solution to the problem identified. However, you do not need to prepare or provide a copy of referral letters to other professionals. Other sources of information The use of material from other sources must be appropriately acknowledged and referenced. Paraphrasing or quoting of a source without including an appropriate reference is plagiarism and will be penalised or investigated under the definition of assessment irregularity. The opinions or words of others should not be presented as if they were your own, and all sources must be acknowledged appropriately. For the purposes of estate planning, the client comes under the jurisdiction of your own state or territory. STEPS IN DEVELOPING THE PLAN The following is an outline of the steps you should take to cover the 15 essential elements that your developed plan should include. The associated questions are to give you an indication of the types of issues that should be addressed. Please note that the associated questions may not represent all of the considerations necessary for satisfactory coverage of each of the steps. There may well be other issues that need to be discussed. Similarly, some questions may not be directly relevant to the case in question. Also note that in developing a logical sequence for your plan, these steps might not necessarily occur in numerical order. The order will in part be determined by the strategy priorities established for the client. This assignment aims to assess your ability to put all of the 15 steps of plan preparation into practice, and to test your ability to give appropriate and focused advice. You must provide a comprehensive explanation of all pertinent issues. Marks will be deducted if information is included in your plan without an explanation of its relevance to these clients. CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 31

32 15 Essential Elements STEP Issues include: The interview you have with the client should initiate enough data to give you a Step 1 Gather client data comprehensive understanding of the client and their approach to a range of issues, in particular the development of a clear risk profile. a. What is the client s view of risk and investment preferences? b. How is the client data to be stored for compliance purposes? a. Are the client s goals realistic and achievable? Step 2 Goal and objective identification b. What are the true factors that motivate them? c. How much capital would be needed to meet their retirement goals? d. Is capital likely to remain intact or diminish in value in relation to the nominated life expectancy? e. Do they have the savings capacity and can it be increased? Step 3 Issue and problem identification a. What are the existing concerns? b. Are there any potential future problems? c. Does the client have a manageable debt level? d. Is the stated risk profile consistent with the expressed concerns? How do the following impinge upon the plan? a. tax rates (current financial year) Step 4 Assumptions (financial and technical) b. inflation (assume an annual CPI increase of 3%) c. average weekly ordinary time earnings (AWOTE) indexation (assume 3.5%) d. investment earnings (assumptions about rates of return must be realistic and reflect industry norms) e. Australian Life Tables , from the Australian Government Actuary. Note: These assumptions must be identified in the body of the plan, not on the A4 page where points of clarification regarding the client interview are to be recorded. Step 5 Balance sheet or net worth now In what ways will the following issues affect the construction of your plan? a. investment assets b. personal use assets c. loans a. What are the income needs of the client? Step 6 Cash flow b. Will the client s income needs be met over the next 12-month period? c. How will you demonstrate to the client that their continuing income needs will be met up to and throughout retirement? 32 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

33 What are the fundamental tax issues that need to be addressed? Step 7 Income tax a. current tax a. recommended tax structures a. proposals for reducing tax How will your plan reflect the key issues in risk management? Step 8 Risk management and insurance a. What are the insurance needs? b. How appropriate is their current insurance both level of cover and structure? c. What additions or modifications are required to their current insurance cover and why? What levels of cover are required? Have you considered all forms of personal risk and general insurance? How will you demonstrate that you appreciate the client s investment status and on what basis will you make recommendations? Step 9 Investments Aspects to include: a. analysis of current investments to meet nominated goals and issues b. description and analysis of recommended investments to meet nominated goals and issues c. consideration of asset allocation with respect to the client s risk profile. Step 10 Retirement planning The client wishes to retire within a specific time frame how best will you help them plan for this? Consider and demonstrate: a. current investment choices b. estimated outcomes of the recommended strategies over time c. eligibility for social security benefits. Questions, issues and strategies to consider include: a. Are there sufficient assets (e.g. investments, life insurances) to meet the client s wishes? Step 11 Estate planning b. Are there appropriate mechanisms in place to ensure that assets (in terms of ownership or control) are transferred to the appropriate person or entity? c. When should assets be transferred or sold, and by whom? d. What taxation implications are there (e.g. capital gains tax)? e. Are there appropriate powers of attorney? How will you rationalise and provide a strong argument that the recommendations you make have the capacity to meet the client s goals and objectives? Step 12 Recommendations Consider: a. cashflow strategy b. investments c. investor s risk tolerance and profile d. insurance needs. CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 33

34 Step 13 Implementation The plan must demonstrate how you will put the recommendations into place. An action list should provide a summary of what needs to be done, by whom and by what date. An Authority to Proceed should accompany the plan. You must indicate benchmarks to the client s current financial position and expected position at the time of review. Step 14 Periodic review a. What level of service is proposed? (And how will you justify this, given the client s needs and circumstances?) b. How often are reviews to be carried out? c. Are there any other features and benefits? d. What is the cost of the service? Your submission must comply with all legal and other standards. Step 15 Compliance and legal requirements It is imperative that you thoroughly familiarise yourself with ASIC policy statements on disclosure and other relevant matters. In addition, you should review the FPA Practice Standards, which can be found at Note: Failure to comply with either the Corporations Act, including the Financial Services Reform Act, as expressed through the ASIC policy statements and the FPA Code, or errors in dealing with compliance requirements, will be penalised. DISCLOSURE OF CAPACITY We recommend that you meet your obligation of disclosure of capacity (i.e. planner s identification, licensee identification and relationship between planner and licensee) through the cover sheet and accompanying letter (with appropriate letterhead). DISCLOSURE OF INTERESTS To meet the disclosure of interests requirement, we recommend that the plan contain a separate Disclosures section, identified as such in the Table of contents page. It is not only important to disclose all fees, commissions and so on they should also be clearly presented to the client in such a way that they can readily determine the total costs of the recommendations. Note: All commissions, even if fully rebated, must be disclosed. DISCLAIMER You are required to communicate clearly to the client any limitations to the advice given. You are advised to do this in your plan through a formal Disclaimer section. ADDRESSING THE CLIENT S RISK PROFILE It is imperative that the client be given a clear explanation of their risk profile and how this will affect appropriate investment strategies. You should address the relationship between the client s stated risk profile and their financial concerns, as well as the asset classes and products recommended. 34 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

35 A WORD ABOUT PROJECTIONS It is important that you base your projections on realistic assumptions about rates of return and economic factors. Such rates and information could be based on estimates from reputable research houses or other reliable sources recognised within the financial planning industry. However, it is preferable that they satisfactorily reflect expected rates of return in accord with risk profile parameters determined by your licensee. DIAGRAMS AND TABLES When included in the main text, diagrams and tables should be clearly and fully analysed and explained. Do not assume that the data supplied in diagrams and tables are self-evident. Always consider using tables or diagrams if they would add to a client s understanding. Diagrams and tables should be clearly titled and numbered sequentially. APPENDICES Some data is more conveniently placed in an appendix rather than included in the main text. Remember to be selective of the data included and indicate in the main text why an appendix is included and what it shows. If data is to be placed in an appendix, this must be clearly referenced in the body of the plan. It is not appropriate to place information in the appendices that should have been included in the body of the plan. Where this occurs, a penalty will apply. Presentation guidelines ORDER OF PAGES The pages of the assignment must be numbered consecutively (the executive summary should be numbered page 1) and arranged in the following order: Interview Points of clarification Covering letter Title page (cover sheet) Table of contents (separate page) Executive summary (start on a new page: page 1) Body of the plan Appendices (start each on a new page) References. INTERVIEW POINTS OF CLARIFICATION As you read through the financial fact finder and review the supplied client data, you may find that if you had performed the interview yourself you would have explored some points more fully and that further clarification is required for you to be able to complete the plan. Since there is no further information beyond the data provided, you may use the clarifications page to make assumptions that are appropriate (e.g. client consideration to dispose of an asset such as the principal residence). The overriding determinant is that the clarifications do not vary the parameters of the case study, such as discovering an inheritance. In order to clarify the situation upon which you will base your plan: set out clearly the points that clarify the situation in bullet point form, limited to one A4 page; this page should be headed Interview Points of clarification place your Interview Points of clarification in front of the first page of the plan. CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 35

36 This page does not form part of the plan and does not count towards the 55-page limit. If this page is used to resolve issues, such as the risk profile, that should be investigated, discussed and resolved in the body of the plan, a penalty may apply. Do not simply repeat given case study facts here. As these have already been identified, they do not require clarification. Material included must not only state what you want to know, but must also resolve those issues that are not clear to you. TABLE OF CONTENTS A table of contents lists all headings used in the assignment in the same order that the headings appear in the assignment. Next to each heading, the number of the page upon which the heading can be found is given. For example (incomplete): Table of contents Executive summary 1 Present position 3 Financial objectives 7 Appendix A - e.g Risk profile 56 Appendix b - e.g Financial Statements 59 Number pages of the SoA and appendices consecutively. Do not recommence numbering at the first page of the appendices. EXECUTIVE SUMMARY The financial plan must contain an executive summary (no more than two typed pages when formatted). This should be addressed under four subheadings: Statement of present position Objectives Strategies and recommendations Projections. The executive summary should be in précis form and be able to stand alone as a document of information to the client. BODY OF THE PLAN After the contents page and executive summary, the structure of the plan is a matter of professional judgment. Regardless of the way the information is presented, it must be logical and facilitate the client s understanding of the plan. All 15 essential elements must be included within the body of the plan as this is the criteria against which the plan will be marked. 36 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

37 APPENDICES AND ATTACHMENTS Appendices and attachments can be a useful support to your plan. You should use them sparingly so that they enhance the clarity of the proposed plan. They must be clearly relevant and cross-referenced to the body of the plan. Appendices of a general nature that are not relevant to the plan content or the client s situation will not be considered favourably. Note: Financial statement projections should normally be included within the appendices but can be shown within the SoA if desired. Formatting guidelines Paper All assignments should be typed on A4-size paper only. Line spacing Single-line spacing must be used throughout the assignment. Margins Use uniform margins of 2.5 cm at the top, bottom, left and right of every page. Fonts Use Times New Roman only and a minimum 12-point font. Numbering pages Number all pages consecutively. The executive summary should be numbered page 1. Layout Take particular note that use of generic layouts may not necessarily satisfy the requirements for a comprehensive financial plan, as there may be insufficient information for satisfactory quality and depth. You can submit your assignment in either Word or as a PDF. LENGTH The body of the plan is limited to 55 pages (based on single-line spacing, fonts and margins as previously stated, and appropriate use of tables, graphs or figures). The body of the plan does not include the clarification of the client interview, covering letter, title page (cover sheet), table of contents, appendices or the references page. All other material, including the executive summary, counts towards the 55-page limit. It is recommended that a maximum 20% of the plan should be allocated to investment strategies; however, this is only to be construed as guidance. A 10% penalty will apply where the body of a financial plan exceeds 60 pages. Students penalised for excess length will also forfeit the opportunity to gain a marginal review if they pass the assignment but receive a marginal fail for their examination. CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 37

38 PROOFREADING Proofread and spell check the assignment carefully (or ask someone else to do so) before submission. Do not rely on a computer spell-checking or grammar-checking program do this yourself. It is advisable that you, and preferably someone else as well, read your assignment thoroughly before submitting it. Students are assessed as either meeting the standard required or not meeting the standard required. DUE DATE It is essential that the financial plan be uploaded to FPA Learn by the date advertised. Submissions will be accepted and marked up to one week after the due date. However, please note that the marginal result review policy will not apply and you forfeit the right to an assignment re-submission if the submission is an unauthorised extension. Submissions received more than one week after the due date without extension approval will not be assessed. You will receive a result of CFP Certification Standard not satisfied. Additional parts of the financial plan inadvertently left out Just as it is unprofessional to forward additional bits of a financial plan after its completion and delivery to a client, it is considered unprofessional to forward an incomplete plan and expect that additions will be accepted. Therefore, amendments or parts of a financial plan inadvertently left out of the first submission and sent at a later date will not be accepted. The onus is on you to check and proofread your work thoroughly prior to submission. Copies of your plan Ensure you keep an electronic copy of the final version of your assignment for your records. Assessment criteria Assessors will look for the following: attention to all key areas (15 steps in preparing a plan to CFP Certification Standard) relevance and attention to the specific client situation depth of analysis of client-specific situation appropriateness of financial solutions demonstrated understanding of financial planning principles and concepts quality of presentation of the plan logical structure, language suited to the client, use of tables, diagrams and so on to aid client understanding accurate use of terminology accuracy of calculations compliance with all ASIC and FPA Code requirements. 38 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

39 SPECIFIC CRITERIA Below is a sample of the mark allocation which the assessors are looking for in your plan. Section Mark allocation Compliance 4 Contents page 2 Executive summary 5 Present position 4 Financial objectives 4 Risk profile and concerns 8 Investment strategies 18 Insurance 8 Estate planning 10 Investment product selection 5 Action to proceed 4 Ongoing service and review 4 Financial statements 8 Assumptions 4 Overall presentation 12 Note: No more than 20% of your plan should be related to investment strategies. ADDITIONAL SUPPORT On FPA Learn you will find a tutorial covering all the requirements needed for the assignment. You are invited to attend the tutorials, which will give you information about the requirements needed to complete the assignment. There are three live tutorials. The dates for these are on FPA Learn. CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 39

40 Examination MULTIPLE-CHOICE The CFP Certification examination is a four-hour multiple-choice examination (70 questions) that covers the following eight broad technical knowledge areas categorised by the FPSB as Financial Planning Components: 1. financial planning principles, process, and skills 2. financial management 3. tax principles and optimisation 4. investment planning/asset management 5. risk management and insurance planning 6. retirement planning 7. estate planning and wealth transfer 8. integrated financial planning. The questions also draw on the 11 Knowledge Topic Categories (see Appendix B). The examination is designed to measure your critical thinking, analytical and evaluative skills. You must be able to apply your technical knowledge to a variety of complex financial planning scenarios. If you do not deal with these technical areas as part of your current role or you have received advanced standing for CFP 2 to 4, you are strongly encouraged to access source material to cover the content of the exam. All students are advised to research and prepare for the examination. You can find the Topic areas covered in CFP 2 4 in Appendix C. You can download up to date course material for CFP 1-4 from FPA Learn. Since the examination is open book, preparation of your own notes for reference during the exam is recommended. Previously successful students have identified thorough preparation of reference notes as a key to success in the exam. The examination pass standard is set by the Professional Designations Committee. As the Certification Assessment is the highest level of assessment to achieve CFP status, the examination pass standard must comply with standards set by the Financial Planning Standards Board and is based on the level of skills and applied knowledge expected of a CFP practitioner. The pass standard is determined using accepted methodology for professional certification examinations. Students should expect a standard of around 70% in order to pass the examination component. Information about your examination, such as the start time, will be posted on FPA Learn. It is your responsibility to regularly check for updates. If you fail to attend your examination, your result will be recorded as a Fail. We cannot offer you alternative dates and times if you have simply misread the information. Reading time should be used to check the structure and to consider the weighting of individual questions. During this time, you may not mark the examination paper in any way (completing personal details on the exam booklet) or use calculators. You will be asked to complete and sign the security declaration on the cover of the examination question booklet, declaring that you will not transcribe or copy examination questions or answers in any format for removal from the examination room. Please note, you are only allowed three attempts at the CFP Certification examination. 40 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

41 VENUE Examinations are arranged in a centre located at a reasonable distance from the address you indicated on the enrolment form. These locations are indicative only and may be changed according to demand. In the case of a debilitating medical condition or unforeseen events, we may be able to offer you alternative examination arrangements. If you think this applies to you, please advise us urgently, and no later than the advertised examination date. Failure to do so may jeopardise your chances to sit the examination. All requests must include relevant supporting documentation. Circumstances where alternative examination arrangements will not be organised include holidays, workload issues, travel or minor medical ailments. Students are assessed as either meeting the standard required or not meeting the standard required. ITEMS TO BRING WITH YOU You are required to bring the following items to the examination: photographic identification (e.g. driver s licence, passport or a statutory declaration confirming your identification) black or blue pen a hand-held, non-text-retrievable, non-programmable calculator; and No unauthorised material may be brought into the examination room. This includes mobile phones, laptop computers and smart watches. all material you require to assist in an open book examination. DURING THE EXAMINATION When instructed by the examination supervisor, you must complete your personal details on the front cover of the question and answer booklet(s). You may not enter the examination room more than 45 minutes after the commencement of reading time, nor are you allowed to leave during the first 45 minutes or last 10 minutes of the examination. At the end of the examination, you must follow the instructions given by the examination supervisor after all examination materials have been collected and checked. If you fail to comply with any instructions, your results may be withheld. CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 41

42 Observations This assessment is to review your professional communication skills in line with the competencies outlined by the FPSB. The Board has identified the professional communication skills that are necessary to deliver financial planning at an appropriate level of competence and professionalism: Professional skills - Communication PS.301 Gives attention to what the client and others are saying and takes time to understand the points being made. PS.302 Establishes good rapport with the client and others. PS.302 Communicates information and ideas orally in a manner understandable to the client and others PS.304 Communicates information and ideas orally in a manner understandable to the client and others. PS.305 Presents logical and persuasive rationales. PS.306 Deals effectively with objections and complaints. PS.307 Gains agreement with the client and others. Students are assessed as either meeting the standard required or not meeting the standard required. THE OBSERVER Ideally, the internal assessor should hold CFP designation but we understand that this might not be practical. However, they must have knowledge and experience in the financial planning process. You will need to nominate your internal assessor and have the nomination approved before you begin your observations. Complete the nomination form and it to enrolments@fpa.com.au. The form is available on FPA Learn. Your nomination needs to be submitted within the first week of semester. FORMAT OF ASSESSMENT The assessment can take place during a meeting with a new or existing client. Your internal assessor must attend the meeting, observe your communication skills and complete the required documentation. There are two observations: one is a fact finder and the other is presenting a financial plan. It does not need to be the same client. The observations can take place at any time within the semester but all the documentation must be received at the FPA by the advertised due date in order for the result to be processed for the relevant semester. Any changes to these time frames need to be discussed with the education team. 42 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

43 Suggested client meeting and observation OBSERVATION ONE FACT FIND MEETING WITH CLIENT An observation is required where you can demonstrate compliance with industry regulations (such as the presentation and explanation of the financial services guide (FSG)), the ability to establish good rapport, and the ability to understand the needs of the client. OBSERVATION TWO PRESENTATION OF A FINANCIAL PLAN (SOA OR ROA) An observation is required, where you demonstrate the ability to communicate the strategies contained in the financial plan in a clear, concise and easily understood dialogue with the client. DOCUMENTATION The following documents can be downloaded from FPA Learn from the start of semester. guidelines for assessment your nominated internal assessor form Observation document 1 Fact find meeting with a client Observation document 2 Meeting to present a financial plan Validation of assessments The FPA may contact you or your internal assessor to discuss any aspect of the observations. CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 43

44 Record of experience As a prerequisite for admission as a CFP professional, you are required to complete a minimum of 12 months experience providing face-to-face comprehensive financial planning advice to clients covering the FPA s six steps financial planning process. Accordingly, the assessment of your professional communication skills can be completed as part of your day-to-day activities. In order to be awarded your CFP designation you will need to have three years full time or equivalent part time industry experience within the last five years, comprising: Two years full time or equivalent part time indirect experience; and A minimum of one year full time or equivalent part time direct client facing experience. You must also be authorised to give financial planning product advice for the period of the direct experience for a minimum of 12 months. This experience needs to be obtained in the five years immediately preceding the date of application for your CFP designation. The practical application in the workplace of the technical knowledge gained through formal study is a key characteristic in the development of a professional financial planner. Completion of work experience under supervision will provide you with the support, expertise and advice of an experienced member of the financial planning profession and provide further public confidence in the quality of the advice offered by CFP professionals. You will need to map your experience back to the FPA s Six Step Financial Planning Process which is outlined below: FPA s Six Step Financial Planning Process STEP ONE Gathering the data STEP TWO Identifying the client s goals STEP THREE Identifying financial issues STEP FOUR Preparing the financial plan (called an SoA) STEP FIVE Implementing the recommendations based on the financial plan STEP SIX Reviewing the plan The record of experience is maintained by you for CFP Certification Assessment and must be updated each time a change of employer or supervisor occurs. Where your activities do not vary substantially over a period of time, you must maintain a record of your activities for a minimum period of one month (or equivalent full time) if you have had over 12 months experience as an authorised representative giving direct advice. Your internal assessor can then verify that the record is indicative of your activities for a specified period. 44 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

45 VERIFICATION OF EXPERIENCE Ideally, your nominated internal assessor will verify your record of experience as well as your observation assessment. If this is not possible, please contact us. RECORD OF EXPERIENCE EXAMPLE Examples of how you might record activities for each of the steps in the FPA s Six-Step Financial Planning Process are available on FPA Learn. In addition to identifying the step of the financial planning process, you are required to state whether the activity relates to direct or indirect experience. GUIDELINES FOR ACCEPTABLE EXPERIENCE We recognise there are various situations and circumstances in our students work in the financial planning process and, as such, have developed the work experience requirement to account for this. The nature of the experience is classified as indirect experience or direct experience. DIRECT EXPERIENCE Direct experience is defined as experience gained in a position where you actively use knowledge, skill and ability to provide comprehensive face-to-face financial planning advice to clients in accordance with the FPA s Six-Step Financial Planning Process. You need to have a minimum of one year direct experience within the last five years. The critical principle in determining direct experience is confirmation that you have established and maintained a financial planning relationship with the client. INDIRECT EXPERIENCE Indirect experience is defined as experience gained in a position where you actively use knowledge, skill and ability to provide financial planning advice to clients in accordance with the FPA s Six-Step Financial Planning Process. You need to have a minimum of two years experience within the last five years. Generally, if the activity does not include direct contact with a client and the primary relationship is with a financial planner, the experience is classified as indirect experience. This could also be described as the activities that support a financial planner in the provision of comprehensive financial planning advice to a client. Examples are: preparation of an SoA (paraplanning) technical advice to a financial planner research on investment products updating portfolio value in preparation for a client review meeting. If any of the examples listed above are undertaken by you as part of the complete financial planning process, the experience is then classified as direct experience. CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 45

46 DOCUMENTATION The following documentation can be downloaded from FPA Learn from the start of semester: your nominated internal assessor form an example and guidelines for assessment your record of experience form. These documents need to be submitted via FPA Learn by the advertised due date for the results to be processed for the relevant semester. Results STANDARD REQUIRED FOR CERTIFICATION After completing all components, students will receive an overall result. Students who have not been successful will be advised whether they are required to take one, two or all assessment components again in the following semester. You will be able to carry forward any component to the next available semester. Results are given as either standard satisfied or standard not satisfied. Students are required to pass all elements of the Certification Assessments in order to satisfy the examination requirement for CFP Certification. Progressive results for the components of the CFP Certification Assessment are not available. The result of the Certification Assessment is CFP Certification Standard satisfied or CFP Certification Standard not satisfied. The primary goal of the Certification Assessment is to separate those who have met the certification standard (satisfied) from those who have not (not satisfied). The following result categories are used to record the performance in the assessment. Code Result descriptor P CFP Certification Standard satisfied F CFP Certification Standard not satisfied RI Result incomplete RW Result withheld Individual scores, percentages or grades are not provided for any section of the Certification Assessment. 46 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK

47 FEEDBACK TO STUDENTS If the result is that the CFP Certification Standard is not satisfied, you will be advised of the result for each assessment component (CFP Certification Standard satisfied/cfp Certification Standard not satisfied). Students who fail to reach the required standard for the exam will receive feedback for the topics on which their exam performance was below the required standard. Score percentages or grades are not provided on the exam. Students who fail to reach the required standard for the financial plan will receive feedback on the areas of the plan that require improvement. The financial plan is not returned to students who achieved the standard. CPD CERTIFICATES Certificates will only be issued once you have successfully completed all assessments in the unit and these will be sent to you via . STATEMENT OF RESULTS If you require a transcript of your results, complete the appropriate form on our website and send it to us. Please note there is a replacement fee. CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK 47

48 Gwen Fletcher Memorial Award In May 2014, the Gwen Fletcher Memorial Award was announced in honour of the late First Lady of Financial Planning. The award supports a key legacy of Gwen Fletcher s lifelong endeavours to champion the vital role of education and its central importance in nurturing the financial planning profession. She was responsible for bringing the CERTIFIED FINANCIAL PLANNER designation to Australia back in 1990, and it is appropriate that we acknowledge our top students in her name. Gwen Fletcher played a pivotal role in campaigning for, and organising, the merger between the International Association of Financial Planners (IAFP) and the Australian Society of Investment and Financial Advisers (ASIFA) to become the Financial Planning Association of Australia in She also coined the title Financial Planning Association, which was subsequently adopted by the organisation in the US among other countries. Each semester we will award a prize ($1000 and a complementary pass to the FPA Congress) to the highest achieving student in the CFP Certification unit in all four pieces of assessment. For more information about the award, please education@fpa.com.au. Applying for your designation Once you have successfully completed the CFP Certification Program and meet the experience criteria, you will be eligible to apply for the CFP designation. To meet the experience criteria, you need to have three years minimum relevant experience within the last five years and at least one year as an authorised representative or representative. Membership upgrades can be obtained from Once we have approved your application, you will be issued a certificate and guidelines on how to use the full range of CFP marks. 48 CERTIFIED FINANCIAL PLANNER CERTIFICATION PROGRAM HANDBOOK