QUALIFICATION GAP FILL ACTIVITIES Q & H1 2012

Transcription

1 QUALIFICATION GAP FILL ACTIVITIES Q & H This document shows available gap fill options for the gaps not covered by the CFP certification and Fellowship. Calibrand offers a gap fill exam option exclusively for CFP CM professionals and Fellows. This consists of 2 modules which cover all gaps not covered by the CFP certification/fellowship. Passing also leads to the new level 4 Diploma in Professional Financial Advice. For further details see Hornbuckle Mitchell & AXA Wealth are running a number of Gap Fill Retirement Planning & sessions covering IFP learning outcomes , ,224, , ) Birmingham 18 October Swindon 19 October Newcastle 27 October Further information in included on the IFP Course Searcher (search on Provider field using Hornbuckle Mitchell). JP Morgan offers 3 x 4 hour gap fill sessions on many of the gaps under the Financial Services, Regulation and Ethics and Investment Principles and Risk Headings. See template which follows for details of which gaps each session covers. Gap Fill Session 1: Birmingham 24 January 2012 Bristol 10 January 2012 Durham 19 January 2012 London 17 January & 14 March 2012 Manchester 18 January 2012

2 Gap Fill Session 2: Birmingham 21 February 2012 Bristol 07 March 2012 Durham 29 February 2012 London 26 January & 25 April 2012 Manchester 28 February 2012 Gap Fill Session 3: Birmingham 16 November 2011 & 24 April 2012 Bristol 02 May 2012 Durham 18 April 2012 Edinburgh 21 October 2011 Exeter 07 November 2011 Leeds 03 November 2011 Leicester 15 November 2011 London 30 November 2011, 06 March & 01 May 2012 Manchester 02 November 2011 & 17 April 2012 To register for any of the events go to Please see the template which follows to see which session covers which gaps. Just Retirement is running a series of sessions covering pension gaps ( , 255, 256 & 259) during November. Birmingham 08 November 2011 Exeter 17 November 2011 Gatwick 10 November 2011 Leeds 10 November 2011 London 15 November 2011 Maidstone 23 November 2011 Manchester 09 November 2011 Newport 22 November 2011 Norwich 09 November 2011 Sheffield 17 November 2011 Southampton 08 November 2011 Watford 09 November 2011 To register for any of the sessions go to Other Professional Bodies exams and accredited /recommended gap fill activities for their members. The IFP will accept such exams and/or activities as being suitable for gap fill provided you retain relevant evidence, such as attendance certificates, assessment results etc. 2

3 Technical Connection, sponsored by Zurich offer online learning and of many gaps under the Pensions and Retirement Planning heading. Each module will cover one or more gaps and will include an audio visual lecture, downloadable notes plus online. The various modules are being rolled out month by month as follows: Module 1 Pension Scheme Investment Funds (IFP learning outcome 211) from 01 September 2011 Module 2 EFRBS, QROPS & Pensions Regulator compliance requirements (IFP learning outcomes ) from 01 October 2011 Module 3 Pension protection Schemes, Role & duties of trustees & administrators, Pensions & divorce (IFP learning outcomes ) from 01 November 2011 Module 4 Employment law aspects, Bankruptcy law and pension assets, role of Government (IFP learning outcomes 223, 224, 202) from 01 December 2011 Module 5 Corporate responsibilities, Transitional reliefs post FA 2006, Pension credit Framework (IFP learning outcomes 203, 256, 259) from 02 January 2012 Module 6 Personal Accounts, DC Schemes compliance requirements, Triviality Rules (IFP learning outcomes 249, 256, 259) from 14 January 2012 The modules will be hosted on Techlink and will be free to all IFP members. If you are not already a subscriber to Techlink, you will need to register as a user. The learning will be automatically logged in your CPD and gap fill record on IFP CPD Online system. For more information, see (link to be added) Dates for the release of Modules on Personal Tax gaps will be announced shortly. Wizard Learning offers online learning and on all the new learning outcomes, based on the CII RO papers which meet the new Level 4 standards. RO1 covers Financial Services, Regulation and Ethics, RO2 covers Investment Principles and Risk, RO3 covers Personal Taxation and RO4 covers Pensions and Retirement Planning. For further information see A 5% discount is available for IFP members. Insert code IOFP, when prompted. 3

4 Financial Services, Regulation and Ethics Learning outcome Demonstrate an UK financial services industry, in its European and global context: IFP Nos CII Nos Indicative content Included / N Provider & Activity Role and structure of the UK and international markets, key participants Wizard Learning RO1 online learning and The impact of the EU on UK regulation Wizard Learning RO1 online learning and - The role of government economic and N JP Morgan Gap Fill Session 3 industrial policy, regulation, taxation Wizard Learning RO1 online learning & and social welfare Demonstrate an understanding of how the retail consumer is served by the financial services industry: The function and operation of financial 4. services within the wider economy Wizard Learning RO1 learning and Calibrand Exam Gap Fill exam option Unit 1 - Obligations towards consumers and N JP Morgan Gap Fill Session 3 5. their perception of financial services Wizard Learning RO1 online learning and 6. Consumers main financial needs and Wizard Learning RO1 online learning and how they are prioritised: 7. - managing debt Wizard Learning RO1 online learning and 8. - budgeting and borrowing, Wizard Learning RO1 online learning and including house purchase 9. - protection Wizard Learning RO1 online learning and saving and investing Wizard Learning RO1 online learning and 4

5 Demonstrate and understanding of legal concepts and considerations relevant to financial advice: retirement Wizard Learning RO1 online learning and - estate planning and tax planning Wizard Learning RO1 online learning and How these needs are met: Wizard Learning RO1 online learning and - mortgages and loans Wizard Learning RO1 online learning and - life and health insurance Wizard Learning RO1 online learning and - savings and investments Wizard Learning RO1 online learning and - state benefits Wizard Learning RO1 online learning and - the main types of pension Wizard Learning RO1 online learning and provision Legal persons and powers of attorney Wizard Learning RO1 online learning and Basic law of contract and agency N JP Morgan Gap Fill Session 3 Wizard Learning RO1 online learning and Calibrand Gap Fill exam option Ownership of property Wizard Learning RO1 online learning and Insolvency and bankruptcy N JP Morgan Gap Fill Session 3 Wizard Learning RO1 online learning and Wills and intestacy Wizard Learning RO1 online learning and 15. Use of trusts: Wizard Learning RO1 online learning and the main types of trusts and their Wizard Learning RO1 online learning and uses 5

6 Demonstrate an regulation of financial services: how to create and administer trusts The role of the Financial Services Authority (FSA), HM Treasury and the Bank of England market regulation The role of other regulating bodies such as the Competition Commission, the Office of Fair Trading, the Pensions Regulator, the Information Commissioner - Financial Services and Markets Act (FSMA) 2000, other relevant legislation Wizard Learning RO1 online learning and N JP Morgan Gap Fill Session 3 Wizard Learning RO1 online learning and Demonstrate an FSA s responsibilities and approach to regulation: The role of EU regulation and relevant 29. Directives Additional oversight senior management, trustees, auditors, external compliance support services 31. Statutory objectives and how FSA is 4. structured to achieve these: - powers and activities 32. financial stability and prudential regulation - powers to deal with financial crime 34. 6

7 financial capability National N JP Morgan Gap Fill Session 3 Strategy The FSA handbook the main N JP Morgan Gap Fill Session 3 principles and rules: - the High Level standards N JP Morgan Gap Fill Session 3 Prudential Standards N JP Morgan Gap Fill Session 3 Business standards N JP Morgan Gap Fill Session 3 Conduct of Business (COBS) N JP Morgan Gap Fill Session 3 Rules for dealing with client assets N JP Morgan Gap Fill Session 3 Market Conduct code N JP Morgan Gap Fill Session 3 Training and Competence N JP Morgan Gap Fill Session 3 6. Regulatory Processes: 7

8 Demonstrate and ability to apply the principles and rules as set out in the regulatory framework: - Authorisation, supervision, approved persons, significant influence functions, controlled functions, appointed representatives Risk based supervision, discipline and 46. enforcement, sanctions to deal with criminal activities Regulated activities and authorisation 47. requirements N JP Morgan Gap Fill Session 3 Approved person and controlled N JP Morgan Gap Fill Session 3 function responsibilities Record keeping, reporting and N JP Morgan Gap Fill Session 3 notification requirements Professionalism and the training and N JP Morgan Gap Fill Session 3 competence requirements Anti money laundering and proceeds N JP Morgan Gap Fill Session 3 of crime obligations Data protection including data security N JP Morgan Gap Fill Session 3 Complaints procedures and N JP Morgan Gap Fill Session 3 responsibilities to consumers The Financial Ombudsman Service N JP Morgan Gap Fill Session 3 (FOS) 8

9 Demonstrate the ability to apply the regulatory advice framework in practice for the consumer: Demonstrate an range of skills The Financial Services Compensation N JP Morgan Gap Fill Session Scheme (FSCS) Client relationships and adviser responsibilities - Types of client Fiduciary relationship duty of care, confidentiality, primacy of clients interest - Clarity of service provision and N JP Morgan Gap Fill Session 3 charges, status disclosure 59. including terms of business and client agreements, execution only - Limitations to own authority or N JP Morgan Gap Fill Session expertise, referrals to and relationships with relevant specialists - Clients cancellation rights N JP Morgan Gap Fill Session Regulated advice standards N JP Morgan Gap Fill Session Monitoring and reviewing client s Wizard Learning RO1 online learning and plans and circumstances and taking account of relevant changes 64. Communicating clearly, assessing and adapting to the differing capabilities of clients Wizard Learning RO1 online learning and 9

10 required when advising clients Demonstrate an FSA s use of principles and outcomes based regulation to promote ethical and fair outcomes: Gathering information, assessment and analysis of client s needs and 65. circumstances, reaching conclusions and making appropriate recommendations The Principles for Business and the discretionary obligations these place on firms Wizard Learning RO1 online learning and Corporate culture and leadership N JP Morgan Gap Fill Session 3 The responsibilities that rest with approved persons and the need for integrity, competence and fair outcomes for clients, including dealing with conflicts of interest Demonstrate an ability to apply the Code of Ethics and professional standards to business behaviours of individuals: The over arching Code of Ethics The professional principles and values on which the Code is based Identifying ethical dilemmas The steps involved in managing ethical N JP Morgan Gap Fill Session 3 dilemmas 10

11 Demonstrate an ability to critically evaluate the outcomes that distinguish between ethical and compliance driven behaviours: Typical behavioural indicators positive and negative 12. The outcomes which may result from behaving ethically for the industry, the firm, individual advisers and consumers The outcomes which may result from limiting behaviour to compliance with the rules for the industry, firm and individual advisers and consumers N JP Morgan Gap Fill Session 3 Investment Principles and Risk Learning outcome Demonstrate an ability to analyse the characteristics, inherent risks, behaviours and correlation of asset classes IFP Nos CII Nos Indicative content Included / N Provider & Activity Cash and cash equivalents: Wizard Learning RO2 online learning and - Main types, costs and charges Fixed interest securities: N JP Morgan Gap Fill Session Main types N JP Morgan Gap Fill Session 3 - Running and redemption yields, N JP Morgan Gap Fill Session interest rates and yield curves - Markets and indices N JP Morgan Gap Fill Session

12 - Transaction costs purchase and JP Morgan Gap Fill Session sale Equities: N JP Morgan Gap Fill Session Main types, private equity N JP Morgan Gap Fill Session Valuation measures Price / N JP Morgan Gap Fill Session 3 Earnings (P/E) ratio, dividend yield and cover, Net Asset Value (NAV) - Stock markets indices, listings N JP Morgan Gap Fill Session Transaction costs N JP Morgan Gap Fill Session 3 Property: N JP Morgan Gap Fill Session Main types, residential and N JP Morgan Gap Fill Session commercial, income profile and gearing Valuation N JP Morgan Gap Fill Session Performance benchmarking N JP Morgan Gap Fill Session 3 12

13 Demonstrate an macro economic environment and its impact on asset classes - Transaction and on going costs N JP Morgan Gap Fill Session Alternative investments such as N JP Morgan Gap Fill Session commodities, and physical assets Pricing, liquidity and fair value N JP Morgan Gap Fill Session Correlation of asset classes Wizard Learning RO2 online learning and relevance to asset allocation Main long term UK and global socioeconomic trends Wizard Learning RO2 online learning and 19. Overview of world economies and 96. globalisation of markets Economic and financial cycles predictability, regional economy differences The key economic indicators trends and their interpretation Significance of monetary and fiscal policy Relevance of money, inflation, deflation, interest rates and exchange rates Balance of payments and international capital flows Wizard Learning RO2 online learning and 13

14 Demonstrate an merits and limitations of the main investment theories Demonstrate an ability to apply the principles of the time value of money The role of financial investment in the economy 35. Key features of the main investment theories: - Modern portfolio theory Calibrand Gap Fill exam option - Multi factor model Efficient market hypothesis Capital asset pricing model 107. (CAPM) Portfolio theory, diversification and Wizard Learning RO2 online learning and hedging Correlation between asset Wizard Learning RO2 online learning and classes Total return and an awareness of 110. beta and alpha Risk adjusted returns Wizard Learning RO2 online learning and Basics of behavioural finance market and individual behaviours Wizard Learning RO2 online learning and Compound interest and discounting Wizard Learning RO2 online learning and Real returns and nominal returns Wizard Learning RO2 online learning and 14

15 Demonstrate an ability to analyse and explain the nature and impact of the main types of risk on investment performance Demonstrate an ability to analyse the characteristics, inherent risks, behaviours and relevant tax considerations of investment products Liquidity and access Wizard Learning RO2 online learning and Income and capital growth, including shortfall Wizard Learning RO2 online learning and Short term volatility Wizard Learning RO2 online learning and Long term performance Wizard Learning RO2 online learning and 46. Gearing N JP Morgan Gap Fill Session Currency N JP Morgan Gap Fill Session Inflation Wizard Learning RO2 online learning and Interest rates Wizard Learning RO2 online learning and 49. Systematic and non systematic, N JP Morgan Gap Fill Session including fraud and counterparty, institutional, market timing The advantages and disadvantages of Wizard Learning RO2 online learning and direct investment in securities and assets compared to indirect investment through collectives and other products 125. The main types and use of indirect investment products: Wizard Learning RO2 online learning and Investment structures: Wizard Learning RO2 online learning and Collective Investment Wizard Learning RO2 online learning and 127. Funds onshore and offshore Exchange Traded funds N JP Morgan Gap Fill Session 2 (ETFs) and Exchange Traded Commodities (ETCs) 15

16 Closed ended funds / investment companies onshore and offshore Individual Savings Accounts (ISAs) and Child Trust Funds (CTFs) National Savings and Investments Life assurance based investments onshore and offshore Defined Contribution (DC) pension arrangements Retail Estate Investment Trusts (REITs) and other property based products Venture Capital Trusts (VCTs) and Enterprise Initiative Schemes (EISs) basic structure and uses Broker funds and 136. distributor influenced funds (DIFs) Derivatives - Basic structure, main types and uses - Investment strategy based products Hedge funds and funds of hedge funds Wizard Learning RO2 online learning and Wizard Learning RO2 online learning and Wizard Learning RO2 online learning and Wizard Learning RO2 online learning and Wizard Learning RO2 online learning and N JP Morgan Gap Fill Session 3 N JP Morgan Gap Fill Session 3 N JP Morgan Gap Fill Session 3 N JP Morgan Gap Fill Session 3 JP Morgan Gap Fill Session 3 N JP Morgan Gap Fill Session 2 16

17 Demonstrate an ability to apply the investment advice process - Absolute return funds Structured products income Wizard Learning RO2 online learning and 141. and capital growth, structure and analysis With profit funds main principles Wizard Learning RO2 online learning and Know your client requirements: Wizard Learning RO2 online learning and Explain the investment process Wizard Learning RO2 online learning and Establish client relationships, Wizard Learning RO2 online learning and 145. capability and circumstances including assets and debts Agree and prioritise needs and wants Wizard Learning RO2 online learning and - Agree investment objectives, Wizard Learning RO2 online learning and growth, income, time horizons, debt and credit management and repayment - Determine and agree risk Wizard Learning RO2 online learning and 148. profile objective and subjective factors - Assess affordability and other Wizard Learning RO2 online learning and suitability considerations, ethical, social responsibility and religious preferences Agree strategy and rationale to achieve the objectives Wizard Learning RO2 online learning and - Agree benchmark / Wizard Learning RO2 online learning and performance measures and review process 152. Asset allocation: Wizard Learning RO2 online learning and Alignment with client risk profile and requirements Wizard Learning RO2 online learning and 17

18 Demonstrate an principles of investment planning Diversification and correlation benefits Wizard Learning RO2 online learning and Accumulation and decumulation Wizard Learning RO2 online learning and Asset allocation Stochastic modelling N JP Morgan Gap Fill Session Strategic and tactical asset N JP Morgan Gap Fill Session allocation 158. Portfolio construction: Wizard Learning RO2 online learning and Stock and fund selection N JP Morgan Gap Fill Session Diversification by sector, geographical area and currency Wizard Learning RO2 online learning and Main fund management strategies and styles Wizard Learning RO2 online learning and Costs, charges, Total Expense Wizard Learning RO2 online learning and 162. Ratios (TERs), Portfolio Turnover Rates (PTRs) Selection of products, tax wrapper and services Wizard Learning RO2 online learning and Provider selection and due N JP Morgan Gap Fill Session diligence Recommendations and Wizard Learning RO2 online learning and suitability Wrap and other platforms Hornbuckle Mitchell & Axa Retirement Planning & Concept and uses Hornbuckle Mitchell & Axa Retirement Planning & 18

19 Demonstrate an ability to analyse the performance of investments Benefits and risks Hornbuckle Mitchell & Axa Retirement Planning & Costs / charges N JP Morgan Gap Fill Session Hornbuckle Mitchell & Axa Retirement Planning & Portfolio performance Methods of evaluating portfolio 171. performance Selection and use of benchmarks New money and timing factors Portfolio review and administration Changes in client circumstances Wizard Learning RO2 online learning and Changes in financial environment Wizard Learning RO2 online learning and New products and services available Wizard Learning RO2 online learning and Maintenance of products and services Wizard Learning RO2 online learning and Use of external services / N JP Morgan Gap Fill Session benchmarking Rebalancing Wizard Learning RO2 online learning and 19

20 Personal Taxation Learning outcome IFP CII Indicative content Demonstrate an 181. Income tax sources of income, liability, allowances, reliefs, priorities UK tax system as for taxing income, income of trusts relevant to the needs and beneficiaries and circumstances of National Insurance Contributions individuals and trusts (NICs) liability for employers, employees, self employed contribution levels, voluntary NICs 183. Capital Gains Tax (CGT) liability, rate, disposals, gains and losses, reliefs and exemptions, capital gains of trusts 184. Inheritance Tax (IHT) liability, transfers, nil rate band, reliefs and exemptions, assets held in trusts, transfers to and from trusts Residence and domicile main rules, impact on liability to income tax, CGT and IHT UK tax compliance self assessment, Pay As ou Earn (PAE), tax returns, tax payments, tax evasion and avoidance issues Stamp duty reserve tax and stamp duty land tax transactions subject to tax, rates of tax, main reliefs Included / N Provider & Activity Wizard Learning RO3 online learning and Wizard Learning RO3 online learning and Wizard Learning RO3 online learning and Wizard Learning RO3 online learning and Wizard Learning RO3 online learning and Wizard Learning RO3 online learning and N Technical Connection online learning & Calibrand Gap Fill exam option IFP Unit 2 Wizard Learning RO3 online learning & 20

21 Demonstrate an ability to analyse the taxation of investment as relevant to the needs and circumstances of individuals and trusts Demonstrate an ability to analyse the role and relevance of tax in the financial affairs of individuals and trusts Outline of Value Added Tax (VAT) and Corporation Tax Direct investments cash and cash equivalents, fixed interest securities, equity and property N Technical Connection online learning & Calibrand Gap Fill exam option IFP Unit 2 Wizard Learning RO3 online learning & Wizard Learning RO3 online learning and Indirect investments: Wizard Learning RO3 online learning and Pension arrangements Wizard Learning RO3 online learning and Wizard Learning RO3 online learning and & Individual Savings Accounts (ISAs) and Child Trust Funds (CTFs) Onshore and offshore collectives and investment companies Onshore and offshore life assurance policies Real Estate Investment Trusts (REITs) Venture Capital Trusts (VCTs) and & Enterprise Initiative Schemes 87. (EISs) basic outline 197. The impact of taxes on individuals, trusts and their investments 198. Key principles of income tax planning spouse, civil partners, children, pension contributions, ISA allowances, use of the main CGT exemptions and reliefs Main uses of lifetime gifts and trusts in basic IHT mitigation Wizard Learning RO3 online learning and Wizard Learning RO3 online learning and Wizard Learning RO3 online learning and Wizard Learning RO3 online learning and Wizard Learning RO3 online learning and Wizard Learning RO3 online learning and Wizard Learning RO3 online learning and 21

22 Demonstrate the ability to apply the knowledge of personal taxation to the provision of investment advice To carry out computations on the most common elements of income tax and NICs; CGT; IHT including the impact of lifetime transfers and transfers at death To make elementary tax planning recommendations in the context of investment advice Wizard Learning RO3 online learning and Wizard Learning RO3 online learning and Pensions and retirement planning Learning outcome Demonstrate an political, economic and social environment factors which provide the context for pensions planning IFP Nos CII Nos Indicative content Included / N Provider and Activity Role of Government, policy direction, N Technical Connection online Module 4 challenges and proposed reforms Wizard Learning RO4 online learning and Just Retirement November 2011 seminars Corporate responsibilities, challenges N Technical Connection online Module 5 and impact on pension provision Wizard Learning RO4 online learning and Just Retirement November 2011 seminars Demographic trends, longevity and ageing population Just Retirement November 2011 seminars Incentives, disincentives and attitudes to saving Just Retirement November 2011 seminars 206. Main scheme types and methods of pension provision: State pension benefits DB schemes, funding and benefits DC schemes, funding and benefits 22

23 Demonstrate an understanding of how the HMRC tax regime applies to pensions planning 210. Funding /contributions to registered pension schemes, tax relief provision Hornbuckle Mitchell & Axa Retirement Planning & 211. Pension scheme investment funds N Hornbuckle Mitchell & Axa Retirement Planning & Technical Connection online Module Death benefits before and after crystallisation Hornbuckle Mitchell & Axa Retirement Planning & 213. Pension scheme retirement benefits Hornbuckle Mitchell & Axa Retirement Planning & 214. Outline of the annual allowance, lifetime allowance, special annual Hornbuckle Mitchell & Axa Retirement Planning & allowance, and associated charges Outline of relevant transitional reliefs post Finance Act 2006 Outline of the tax treatment of other scheme types: Employer Funded Retirement Benefit Schemes (EFRBS) Qualifying Recognised Overseas Pension Schemes (QROPS) N Hornbuckle Mitchell & Axa Retirement Planning & Technical Connection online Module 5 N Technical Connection online Module 2 Calibrand Gap Fill exam option IFP Unit N Technical Connection online Module 2 23

24 Demonstrate an relevant aspects of pensions law and regulation to pensions planning Demonstrate an structure, relevance and application of the State Schemes to an individual s pension planning Pensions Regulator compliance N Technical Connection online Module 2 requirements Pension protection schemes N Technical Connection online Module Trust and contract based pensions Role and duties of trustees and N Technical Connection online Module 3 administrators 222. Pensions and divorce N Technical Connection online Module Employment law relevant to pensions N Technical Connection online Module Bankruptcy law and pension assets N Hornbuckle Mitchell & Axa Retirement Planning & Technical Connection online Module Basic state retirement benefits Additional state retirement benefits Contracting in / out considerations Pension credit framework N Technical Connection online Module 5 24

25 Demonstrate an structure, characteristics and application of Defined Benefit schemes to an individual s pension planning Demonstrate an ability to analyse the range of Defined Contribution scheme options as they apply to an individual s pension planning Main attributes and benefits of DB pension provision Main types, variations and hybrids Rules and operation of DB schemes Funding methods and issues Roles of trustees and other parties, N Technical Connection online Module 6 and scheme reporting Factors to consider and benefits on leaving, early and normal retirement Benefits on ill health and death Eligibility criteria and top up options Transfer issues and considerations Public sector schemes Main attributes and benefits of DC pension provision Legal bases for schemes and main impacts Main types of DC schemes and their rules and operation Contributions methods and issues Contracting out, rebates and the contracting out decision Benefits on leaving and death before crystallisation Scheme options, limitations and restrictions Crystallisation options and impact of decisions Transfer issues and considerations Stakeholder pensions 25

26 Demonstrate an ability to analyse the options and factors to consider for drawing pension benefits Personal Accounts N Technical Connection online Module State retirement benefits 251. DB schemes: Scheme benefits, payment guarantees, survivor benefits 253. DC schemes Hornbuckle Mitchell & Axa Retirement Planning & Secured pensions, types of Hornbuckle Mitchell & Axa Retirement Planning & annuities and main features Unsecured pensions Hornbuckle Mitchell & Axa Retirement Planning & Just Retirement November 2011 seminars Compliance requirements N Technical Connection online Module 6 Just Retirement November 2011 seminars 257. Phased retirement options, benefits Hornbuckle Mitchell & Axa Retirement Planning & and risks 258. Timing of decisions and Hornbuckle Mitchell & Axa Retirement Planning & implementation 26

27 Demonstrate an ability to evaluate the aims and objectives of retirement planning including the relevant investment issues Triviality rules N Hornbuckle Mitchell & Axa Retirement Planning & Technical Connection online Module Assessing and quantifying retirement aims and objectives: Just Retirement November 2011 seminars Availability and prioritisation of savings Assumptions and impacts Conflict with other objectives Timescales and risk 265. Investments available to meet this objective - Suitability and risk Rates of return needed Accumulation and decumulation strategies, life styling Products and wrappers, advantages and constraints, critical yield Other sources of non pension income 270. Asset allocation factors, relationship to overall portfolio 271. Self investment Main characteristics 273. Alternative solutions for pension income: Alternative sources of capital including non pension investment 27

28 assets, home equity, proceeds from sale of a business, inheritance Advantages and drawbacks 276. Factors affecting regular reviews Financial Protection (Does Not Need To Be Completed) Learning outcome Demonstrate an consumer and retail market factors and trends relevant to financial protection Demonstrate an areas of need for protection planning and the main sources of financial protection IFP Nos CII Nos Indicative content 277. The role of insurance in mitigating personal financial risk 278. Consumer attitudes and behaviours to protection needs planning 279. Trends: Health and morbidity Longevity and mortality Employment Product design and development Access to advice and/or insurance cover 280. Personal and family income and capital protection needs: Health, incapacity, accident Income, mortgage and other debt Death, asset protec on The relationship between insurance and assets and liabilities Business protection needs Small & Medium Enterprises(SMEs) Sources of financial protection: State Employer individual, group schemes Life assurance and pension policies Health and other insurance products Included / N N N Completed Details 28

29 Demonstrate an role and limitations of State Benefits and state/local authority funded solutions for financial protection Demonstrate an range, structure and application of life assurance and pension based policies to meet financial protection needs Demonstrate an taxation treatment of life assurance and pension based protection policies Demonstrate an range, structure and application of income protection insurance and options to meet financial protection needs Demonstrate an range, structure and application of critical illness insurance to meet financial 281. Range and limitations of benefits Mortgage repayment support Considerations and impact on financial planning 282. Types of policies, comparative costs, benefits and disadvantages Cost and premium calculation factors Legal requirements, ownership, uses and relevance of trusts Underwriting Terminal illness benefit Assignments, surrenders, paid up policies, claims 283. Qualifying and non qualifying policies, offshore policies Taxation of life funds, onshore and offshore Capital Gains Tax (CGT) and life assurance policies Inheritance Tax (IHT) and life assurance 284. Types of policies, features and uses, comparative costs, benefits and disadvantages Definitions, exclusions, premium calculation factors Underwriting Claims Taxation treatment Group policies 285. Types of policies, structure, comparative costs, benefits and disadvantages Market developments for critical illness insurance Definitions, conditions, exclusions Term and amount of cover factors, assessment Premium calculation factors 29

30 protection needs Demonstrate an range, structure and application of long term care insurance to meet financial protection needs Demonstrate an main features of other insurance based protection policies Demonstrate an ability to evaluate the needs and priorities for financial protection and the relevant factors in selecting appropriate solutions Underwriting Claims Taxation treatment, use of trusts Group policies 286. Regulatory considerations Political environment, social care policy, national factors Main product types and features Long term care planning: Cost and other factors, op ons and choices Available resources, impact and consequences Immediate needs provision Future needs planning Legal considera ons, powers of a orney 287. Personal accident and sickness insurance Private medical insurance, hospital plans, dental insurance Payment protection insurance mortgages, credit 288. Identifying the priorities, risks and choices Consequences of inadequate protec on Assessing and quantifying current and future capital and income needs in real terms Family and personal protec on SME business protec on needs business loans, keyperson and shareholder protection Exis ng arrangements Determining suitability of product types and options Comparing similar types of products Iden fying and matching suitable product solutions to needs Combina ons of products Current and future affordability 30

31 Application standards Outcome standards Candidates should be able to: Obtain appropriate client information and understand clients needs, wants, values and risk profile essential to the financial planning process Synthesise the range of client information, subjective factors and indicators to provide the basis for financial planning assumptions and decisions Analyse a client s situation and the advantages and disadvantages of the appropriate options Formulate suitable financial plans for action Explain and justify recommendations IFP Nos CII Nos Assessment Assessment at this level will seek to test ability to: Identify and use relevant understanding, methods and skills to address problems that are complex and non routine while normally fairly well defined Take responsibility for overall courses of action as well as exercise autonomy and judgement Initiate and use appropriate investigation to inform actions 292. Analyse, interpret and evaluate relevant information and ideas 293. Review the effectiveness and appropriateness of methods, actions and results Included / N Completed Details 31

32 Implement, review and maintain financial plans to achieve the client s objectives and adapt to changes in circumstances