Diploma in Financial Planning Handbook 2015

Transcription

1 Diploma in Financial Planning Handbook 2015 Diploma in Financial Planning Your route to becoming a CERTIFIED FINANCIAL PLANNER CM Professional

2 Contents Becoming a CERTIFIED FINANCIAL PLANNER CM Professional Education Level Entry requirements Preparing for the Diploma in Financial Planning Page The assessment process 5 2. About the examination What is tested and how Registering for the examination Before the examination On the day of the examination After the examination Enquiries and appeals policy and procedures 7 3. About the case study assessment Submitting the Financial Plan for Assessment Feedback to candidates from assessors Borderline Financial Plans Enquiries and appeals policy and procedures FPSB UK Customer Service Statement Reasonable adjustments and special consideration policy and procedures Malpractice procedures Position statement on use of Welsh and Irish Equality of opportunity policy Confidentiality Policy Data Protection Statement Guidelines for challenging the validity of the certifying procedures FPSB UK Level 6 Diploma in Financial Planning syllabus 19 Appendix I: The CERTIFIED FINANCIAL PLANNER CM Certification Entry Requirements Appendix II: Examination fees and dates Appendix III: Case Study Assessment fees Appendix IV Recommended reading list CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB. Page 2

3 Becoming a CERTIFIED FINANCIAL PLANNER CM Professional Becoming a CERTIFIED FINANCIAL PLANNER CM professional means much more that gaining a level 6 qualification. It s a way of transforming the service you provide, helping you to deliver real value for clients. It ll transform your business success as a result too. Success in the Diploma means you're eligible to join the CERTIFIED FINANCIAL PLANNER CM professionals in the UK and be part of a global community of over 153,000 Financial Planning professionals. The FPSB UK Diploma in Financial Planning is your route to becoming a CERTIFIED FINANCIAL PLANNER CM Professional in the UK. The Diploma in Financial Planning is an advanced level qualification which tests a candidate s ability to apply their detailed knowledge and skills of Financial Planning practice to deliver effective solutions for clients. Becoming a CFP CM professional is not an easy undertaking. The assessment and learning process represents a significant challenge and that is why CFP CM certification is so highly respected as an international standard. There are significant business benefits to becoming a CFP CM professional. As well as acquiring a well recognised and respected qualification, the learning process takes candidates through a rigorous six step Financial Planning process. This process not only recognises personal and practical development but symbolises strong technical knowledge along with the ability and skill to apply this knowledge to clients situations and produce highly effective results. It is very much in line with the RDR requirements, helping the Financial Planner to deliver a service that puts the client first and their needs right at the heart of the process. CFP CM professionals adhere to a strict code of ethics and practice standards. This is coupled with complying with rigorous CPD requirements to ensure that relevant competence is maintained. It sends the strongest message to clients that CFP CM professionals are fully committed to their own professional development and have reached the peak of the Financial Planning profession. CERTIFIED FINANCIAL PLANNER CM, CFP CM and marks are international marks representing the highest professional certification globally that can be awarded to a Financial Planner. Over1,000 CFP CM professionals in the UK are part of this global community of over.153,000 In 2014, 160 candidates registered for the Principles of Financial Planning Exam; around 53% passed. 61 candidates continued to Case Study stage to complete the Diploma in Financial Planning. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB. Page 3

4 Education Level The FPSB UK Diploma in Financial Planning is a level 6 qualification recognised by Ofqual. It represents a challenging test of your technical ability by examination, but also assesses how well you can apply this knowledge in order to produce an effective financial plan - i.e. your planning skills. The qualification is based on the Financial Planner Competency Profile developed by FPSB. Entry Requirements In order to attempt the FPSB UK Diploma in Financial Planning, one of the following qualification requirements must be met by candidates: An FCA-recognised Diploma post An FCA-recognised Transitional Qualification plus Qualification gap-fill A current and valid SPS Preparing for the Diploma in Financial Planning Candidates should ensure that they are thoroughly familiar with the Diploma assessment criteria which can be found in Section 12 of this document. Additional reading is also recommended in Appendix IV. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB. Page 4

5 1. The Assessment Process The assessment for the FPSB UK Diploma in Financial Planning qualification comprises of two separate components, both of which must be passed successfully. i. Principles of Financial Planning examination. ii. Financial Plan based on a case study. Principles of Financial Planning examination Financial Plan based on a case study QCF level 4 QCF level 6 Online / paper-based two hour exam Financial Plan with 12 weeks to complete 30 multiple choice questions Each unit must be passed Case study based questions and calculations Failed units may be repeated up to two times Pass mark in region of 65% Results issued within eight weeks If failed, whole exam will need to be retaken Results issued within six weeks New candidates should pass the Principles of Financial Planning examination before proceeding to attempt and submit their Financial Planning case study. After passing the examination, candidates may then purchase a case study. The case study will be selected randomly from a bank of case studies all of which will deal with a typical Financial Planning client. Candidates will have 12 weeks to prepare a Financial Plan based on the client scenario using the learning outcomes and assessment criteria as a guide. The Financial Plan is assessed independently by two assessors using the assessment criteria. If the assessment is passed, provided all the other criteria are met, the candidate may apply to the IFP to become a CERTIFIED FINANCIAL PLANNER CM Professional. If the case study assessment is not passed initially, then the plan may be resubmitted. It will be necessary to pass each unit in order to pass the qualification. If one or more units are not passed then the plan may be amended and resubmitted. If the mark for the assessment is very low and / or a significant number of units are failed, the whole plan may need to be submitted. In such instances some limited feedback will be given to candidates in order to provide guidance on where their plan has failed. What training and support is available for candidates? As a qualifications provider, FPSB UK does not provide training facilities for its qualifications. However, the IFP provides a range of training courses to support the needs of candidates preparing for the Diploma in Financial Planning as well as other qualifications. Other training provisions may be available. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB. Page 5

6 2. About the Examination 2.1 What is tested and how? The Principles of Financial Planning unit consists of a two hour examination. The examination comprises 30 multiple choice questions as well as detailed responses to a client case study, including financial calculations. The Principles in Financial Planning exam is delivered online using a bespoke platform or on paper. This is available at a number of centres throughout the UK. Details of dates and venues can be found in Appendix I. 2.2 Registering for the Examination In order to register for the Principles of Financial Planning Exam, you should complete the registration form (available at the back of this document or as a download from our website) and send it to the FPSB UK with your payment. You should decide where and when you wish to sit the examination. We may be able to offer additional dates and venues please contact us for further details. Together with the Exam entry registration form, you will need to send in evidence of your examination passes. The registration for the examination won t be processed without a proof of eligibility. FPSB UK reserves the right to cancel, withdraw or substitute venues / dates if there are insufficient candidates. 2.3 Before the examination At least two weeks before the examination you will be sent a list of rules and regulations, along with the confirmation of the date, time and venue of the exam. You will, as well, be provided the specimen paper, which should help you to familiarise yourself with the format of the exam. Cancellation / Changing the date of the Exam Refunds are not offered for the exams cancelled by the candidate. Candidates are able to transfer the date of the exam. However, a 50 administration fee will apply if the candidate contacts us less than two weeks before the exam date. 2.4 On the day of the examination On the day of the examination you should arrive 15 minutes before the scheduled start time of the examination. If you arrive late, you may not be allowed to sit the examination. You should bring photo identity with you such as a Driving Licence or a Passport as this may be checked by the official to verify your identity. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB. Page 6

7 You may bring a silent, non-programmable calculator with you to use during the examination. The calculator must not be capable of storing any data. If you wish to check that your calculator is allowed, please contact FPSB UK for guidance. It is acceptable to use a scientific or financial calculator provided that it meets the criteria above. If you bring a phone or similar device with you, you should ensure that it remains switched off throughout the examination. Failure to comply with this requirement may disqualify you from the examination. The time allowed for the examination is two hours; you may leave early if you wish provided that you do not disturb other candidates. The examination consists of two parts: the first part will be 30 multiple choice questions and the second part will be based around a case study and you will be required to answer a number of questions based on the case study. Tax tables and other reference materials will be provided and you should not bring these with you. 2.5 After the Examination Results will be sent out within six weeks after the examination via or post. The nominal pass mark is 65% although the actual pass mark may vary slightly to reflect the difficulty of the particular examination that you took. We are not able to provide details of individual candidate scores. Successful candidates If you have passed the Examination, then you may apply for a case study to start the second part of the assessment. Successful candidates, provided that they hold a personal taxation qualification, will be able to apply for the Certificate in Paraplanning and apply to IFP to become an Accredited Paraplanner. Unsuccessful candidates If you do not reach the required pass standard, you may attempt the examination again by completing the entry form sent to you with your result. 2.6 Enquiries and appeals policy and procedures Appeals We operate a clear and transparent appeals process in line with the regulatory arrangements of Ofqual. Administrative check An administrative checking service is available to candidates who have failed a written paper. The service will check that all parts of the exam have been marked and that the marks have been totalled and recorded correctly. It will also check that any special consideration has been taken into account, where applicable. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB. Page 7

8 Requests for administrative checks should be made by way of letter addressed to the Qualifications Co-ordinator to arrive no later than 14 days following receipt by the candidate of the result to which the administrative check relates. We will acknowledge the request within seven days of receipt. The result of the administrative check will be sent to the candidate within 14 days of receipt. Candidates who are not satisfied with the administrative check can appeal against their result. (See below). Appeal against result Appeals should be made by way of letter to the FPSB UK Chief Executive to arrive no later than 14 days following receipt by the candidate of the outcome of the administrative check or the issue of the result. In the event that a candidate wishes to appeal, all the documents relating to their examination will be considered by the senior examiner. The cost of an appeal is 75 which will be refunded if the appeal is successful. As part of the consideration, a review of the original marking will be carried out. To ensure independence, the senior examiner will not have been involved in the assessment of the candidate previously. We will acknowledge the appeal within seven days of receipt. The result of the appeal will generally be sent to the candidate within 28 days of receipt. The decision of the senior examiner is final. Unresolved appeals Candidates who have reason to believe that the appeal has not been conducted correctly should write to the Chairman of the FPSB UK Examination and Certification Committee by way of letter within 14 days of receipt of the result of their appeal. The letter should provide a detailed explanation as to why the candidate believes the appeal has been conducted incorrectly, with evidence to support this explanation. The Chairman has the discretion to put the matter to the Examination and Certification Committee if they believe the candidate has suitable grounds for complaint. In this case, the candidate will be notified of the referral within 14 days of receipt of the letter and of the committee s decision within 14 days of the meeting. If the Chairman finds insufficient grounds for referral, they will notify the candidate within 14 days of receipt of the letter, giving the reasons why. In all cases, the decision of the Chairman is final. All other complaints Any complaint in respect of any other matter, including inter alia but with limitation, the assessment or examination environment or facilities, including the invigilation of the examination, or the conduct of any other person whether candidate or staff of the FPSB UK or any other matter surrounding the registration for the assessment must be made by way of letter addressed to the FPSB UK Qualifications Coordinator to arrive no later than 14 days following the date of the examination or the date on which the matter complained of occurred if some other date. We will acknowledge the complaint, in writing, within seven days of receipt. The acknowledgement will set out the date by which the candidate can expect a response to the complaint. Following investigation of the complaint a full response will be sent to the complainant, within the timescale set out in the FPSB UK s acknowledgement of the complaint, setting out the steps taken during the course of the investigation, the results of the investigation and the final decision on the matter. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB. Page 8

9 3 About the Case Study The case studies are written by Financial Planning professionals and are intended to replicate reallife clients who might be seeking Personal Financial Planning advice. Typically, there will be several areas of planning need and multiple objectives some of which may be unachievable, as they may be in real life. The case studies are based on English law and practice and Financial Plans should be answered on this basis. For candidates who wish to answer on the basis of Scottish law and practice, they should advise FPSB UK in advance of their assessment so that they can be issued with a case study where the clients live in Scotland. 3.1 Submitting the Financial Plan for Assessment Candidates should submit their Financial Plan by post together with a completed Assessment application Form. There should be nothing in the Financial Plan to identify the candidate or their firm. Candidates are also required to submit a Word/PDF version of their Financial Plan. Details of how to submit this will be sent to the candidates. Candidates should be aware that FPSB UK uses software to produce an originality report for each Financial Plan. All learning outcomes assessed within the Financial Plan need to be passed in order that the candidate is successful and passes the qualification. The assessment process will take eight weeks from the date the plan is received by FPSB UK. On receipt of the submission by FPSB UK, the candidate s plan with the relevant marking sheets and case study are sent to two assessors. If there is a significant discrepancy in the marking of the two assessors which will materially affect the result, then the plan is sent to an adjudicator for adjudication on the points of disagreement. If the candidate has passed the assessment, they are informed in writing. If a candidate s Financial Plan does not meet the required standards the candidate is sent a letter that will include constructive feedback to assist in correcting the parts they have failed, in order to meet the Diploma in Financial Planning standards. Not all points will be raised in detail and candidates are advised to review any resubmission carefully against the Assessment Criteria which can be found in the Diploma in Financial Planning Handbook, Diploma Syllabus or on the IFP e-learning package. The result letter will show which learning outcome have been passed and failed. All learning outcomes within a unit must be passed to achieve a pass in the unit. Candidates have 12 weeks from the date of the feedback letter to re-submit their revised plan for assessment. Only the failed units will be reassessed. Following a fail on a second submission a further and final submission is allowed, giving three submissions per case study in total. The above assessment process is carried out for both second and third submissions, a copy of the candidate s previous submission(s) and current feedback letter are also sent to the assessors for their reference. If the Financial Plan is failed following the third submission, it is not possible to resubmit based on the same case study. The candidate may apply for a new case study and start the assessment process again. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB. Page 9

10 3.2 Feedback to candidates from assessors Candidates will be provided with feedback once the assessment process is complete. The feedback will state whether the Financial Plan has met the required standards (Pass / Fail). If the result is a pass, candidates may be provided with helpful guidance to improve further the standard of their Financial Plans. If a candidate meets the eligibility requirements (see 1.1), then they may apply to the IFP (parent body of FPSB UK) for certification as a CFP CM professional. If the Financial Plan does not meet the required standards, feedback will be provided which will include: list of passed and failed units and list of passed and failed learning outcomes within the units general comments for improvement of the Financial Plan in order to meet the assessment criteria. brief comments on each failed unit and any failed learning outcomes. Please note that not all points will be raised in detail and you should review your resubmission carefully against the learning outcomes assessment standards which can be found in section Borderline Financial Plans Under some circumstances a Financial Plan may be considered to be borderline. In this case, the candidate may be offered an opportunity to submit a written justification of part(s) of their plan or to undertake a vive voce assessment. A Viva Voce Assessment (viva) consists of oral questions posed to a candidate, to which the candidate gives an oral response in real time. This may be conducted by a physical meeting or telephone conference. A viva is primarily used to provide additional evidence to help assessors decide whether a borderline Financial Plan should pass or fail. It may also be used to provide additional evidence for assessment purposes to confirm a decision. Broadly, a viva is used to provide evidence that a candidate should pass. All viva candidates will be questioned by using short, open questions based upon the Assessment criteria and designed and phrased to assess possible weaknesses in the candidate s written assessment. All candidates will be questioned on their understanding of the Financial Planning process. Those candidates exhibiting potential weaknesses in application of the Financial Planning process to specific technical areas will also be questioned on those areas. Normally at least three questions will be posed per area of assessment. The viva should not normally last for more than 20 minutes and will terminate when the assessors are satisfied enough evidence has been gathered upon which to make a decision. At the commencement of each viva, the candidate s identity must be verified by: checking his/her candidate number; sight of identification (e.g. passport or I.D. Card with photograph) or by a witness physically present who can verify the candidate s identity (normally a CFP CM professional or other person regulated by a recognised profession or regulatory body e.g. a T&C or Compliance officer). CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB. Page 10

11 The written record of the viva will be treated as assessment evidence and retained with other assessment evidence by the Qualifications Coordinator. The request for a viva will only be made by the Senior Assessor or Qualifications Director to the Qualifications Coordinator. The Qualifications Coordinator will liaise between the candidate and the assessors to arrange a convenient date, time and, if required, location. A viva or written justification is likely to be required where it is not clear that the plan is wholly the candidate s own work. Other than in very exceptional circumstances, we will not use a viva to downgrade candidates, who have passed based upon their written evidence. 3.4 Enquiries and appeals policy and procedures Appeals We operate a clear and transparent appeals process in line with the regulatory arrangements of OFQUAL. Administrative check An administrative checking service is available to candidates who have failed a written paper. The service will check that all parts of the exam have been marked and that the marks have been totalled and recorded correctly. It will also check that any special consideration has been taken into account, where applicable. Requests for administrative checks should be made by way of letter addressed to the Qualifications Coordinator to arrive no later than 14 days following receipt by the candidate of the result to which the administrative check relates. We will acknowledge the request within seven days of receipt. The result of the administrative check will be sent to the candidate within 14 days of receipt. Candidates who are not satisfied with the administrative check can appeal against their result. (See below). Appeal against result Appeals should be made by way of letter to the Qualifications Director to arrive no later than 14 days following receipt by the candidate of the outcome of the administrative check. In the event that a candidate wishes to appeal, all the documents relating to their submissions and the assessment will be considered by the Senior Assessor. The cost of an appeal is 75 which will be refunded if the appeal is successful. As part of the consideration, a review of the original marking will be carried out and the Senior Assessor may wish to conduct a viva assessment at a mutually convenient time. To ensure independence, the Senior Assessor will not have been involved in the assessment of the candidate previously. We will acknowledge the appeal within seven days of receipt. The result of the appeal will be sent to the candidate within 28 days of receipt. The decision of the Senior Assessor is final. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB. Page 11

12 Unresolved appeals Candidates who have reason to believe that the appeal has not been conducted correctly should write to the Chairman of the FPSB UK Examination and Certification Committee by way of letter within 14 days of receipt of the result of their appeal. The letter should provide a detailed explanation as to why the candidate believes the appeal has been conducted incorrectly, with evidence to support this explanation. The Chairman has the discretion to put the matter to the Examination and Certification Committee if they believe the candidate has suitable grounds for complaint. In this case, the candidate will be notified of the referral within 14 days of receipt of the letter and of the committee s decision within 14 days of the meeting. If the Chairman finds insufficient grounds for referral, they will notify the candidate within 14 days of receipt of the letter, giving the reasons why. In all cases, the decision of the Chairman is final. All other complaints Any complaint in respect of any other matter, including inter alia but with limitation, the assessment or examination environment or facilities, including the invigilation of the examination, or the conduct of any other person whether candidate or staff of the FPSB (UK) Limited, or any other matter surrounding the registration for the assessment must be made by way of letter addressed to the Qualifications Director, FPSB UK to arrive no later than 14 days following the date of the examination or the date on which the matter complained of occurred if some other date. We will acknowledge the complaint, in writing, within seven days of receipt. The acknowledgement will set out the date by which the candidate can expect a response to the complaint. Following investigation of the complaint a full response will be sent to the complainant, within the timescale set out in the FPSB UK s acknowledgement of the complaint, setting out the steps taken during the course of the investigation, the results of the investigation and the final decision on the matter. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB. Page 12

13 4 FPSB UK Customer Service Statement We are committed to providing high quality services and qualifications for all our stakeholders in support of building the profession of Financial Planning in the UK. This statement will help us monitor our service and continually improve that service. You can expect us to: Give prompt, helpful and friendly response to telephone and enquiries, normally within two working days. Answer telephone calls promptly and professionally. Respond to written correspondence within seven working days. Deal with complaints promptly providing an initial response within five working days. Deal with financial transactions within two months. Protect confidential information. Provide regular updates on our website to keep stakeholders informed of all our latest news and guidance in all areas. Provide regular updates via post, journal, pr and and respect your wishes with regard to communications. Maintain full and accessible current information on our fees and regularly review our pricing to ensure we offer value for money. Give professional and individual advice where appropriate when you seek clarification prior to any assessment or event. Offer qualifications with appropriate national accreditation and international recognition Support our facilitators, candidates and staff through forward-looking course material, publications and training. Include clear and simple guidance notes in all our course material and handbooks, and where possible offer these online. Have confidential and secure procedures for storing case studies, written papers and blank certificates. Ensure that candidates are examined by highly trained professional assessors. Dispatch confirmation of results within the timeframes and through the methods announced in our supporting documents. Respond to formal appeals as detailed in our course material, with an independent opinion at the ultimate level. Ensure that candidates have access to suitable assessment facilities. Immediately investigate allegations of malpractice in relation to our assessment system. Keep records of candidates achievements and respond to legitimate requests for these records. Continue to ensure that we are committed to providing equality of opportunity and treatment for all, and that we will not unlawfully or unfairly discriminate directly or indirectly on the basis of gender, age, ethnic origin or disability in our dealings with candidates, facilitators, assessors, Use best practices and implement policies and procedures to ensure that candidates are dealt with on a consistent and fair basis. Undertake to listen to and consult with Welsh speaking candidates to determine their needs and monitor verifiable demand for Welsh language assessment. Provide our candidates and other stakeholders with the opportunity to comment on all aspects of our service by contacting us at any time. Comply in all areas of the UK Data Protection Act. Comply with all current relevant statutory legislation. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB. Page 13

14 If you wish to comment on this statement or any service offered by us, please contact us by or call the office on Alternatively, you can write to the Chief Executive, FPSB (UK) Limited at the office address shown at the end of this document. Please note, our offices are open 8am-5pm Monday to Thursday and 8am 4.30pm on Fridays, excluding bank holidays and between Christmas and New Year. 5 Reasonable adjustments and special considerations policy and procedures Candidates who may require any concession or assistance as a result of any disability or for any other reason should contact us in writing or by telephone before applying for the assessment. Guidance can then be given and, if considered necessary, suitable arrangements can be put in place. Special consideration/needs If there are any special needs the candidate may have, these should be made known to us at the time of registration. If at any time a candidate feels there are circumstances that need to be taken into account in assessing their case study they should raise these issues with us. 6 Malpractice procedures Malpractice is defined as any deliberate activity, neglect, default or other practice that compromises the integrity of the assessment process, and/or the validity of the qualifications we offered. Malpractice may include a range of issues from the failure to maintain appropriate records or systems to the deliberate falsification of records in order to claim certificates. We will investigate all cases of alleged malpractice. The main purpose of an investigation is to establish if any regulations have been breached and to determine whether there is any irregularity. Where cases of malpractice are found, we will take appropriate action in order to maintain the integrity of its qualifications. Members of the IFP guilty of malpractice will be treated in accordance with the IFP Code of Practice and Ethics. Candidates may also be referred to IFP Disciplinary Committee or the appropriate trade body or regulator. We are obliged to refer all proven cases of malpractice to OFQUAL in respect of all regulated qualifications. In addition, we may refer cases to the Financial Conduct Authority. Examples of malpractice 1. A candidate arranging for another person to sit the assessment or to write any part of it on their behalf. 2. Impersonating another candidate by sitting an assessment for them or submitting work on their behalf. 3. Submitting any work which is not the candidate s own original work. 4. Copying the work of another candidate. 5. Allowing another candidate to copy their work. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB. Page 14

15 6. Taking forbidden items into the examination room. This may include, but is not limited to, mobile phones, personal organisers, computers, notes or books. 7. Communicating with another candidate during the assessment. 8. Working collaboratively with another person during the assessment. 9. Plagiarism or misrepresentation. 10. Including offensive or inappropriate material within the assessment. 11. Identifying themselves or their company within the assessment. 12. Wilfully failing to follow instructions given by an officer or representative of FPSB UK. 13. Behaving in a disruptive manner during the assessment. 14. Falsifying documentation or certificates. 15. Knowingly allowing a candidate to breach regulations or commit malpractice. In the event of malpractice In the event of suspected malpractice, you should advise us in writing with full details of the events with any relevant documentary evidence. We will instigate an investigation and advise the candidate(s) of the investigation. Investigation of malpractice (in accordance with OFQUAL guidance) The purpose of the investigation is: 1. To establish the facts relating to allegations/complaints in order to determine whether any irregularities have occurred. 2. To identify the cause of the irregularities and those involved. 3. To establish the scale of the irregularities. 4. To evaluate any action already taken. 5. To determine whether remedial action is required to reduce the risk to current candidates and to preserve the integrity of the qualification. 6. To ascertain whether any action is required in respect of certificates already issued. 7. To obtain evidence to support any sanctions to be applied to the candidate and/or to members of staff, in accordance with our own internal procedures. 8. To identify any patterns or trends. Process for investigation (from OFQUAL guidance) Stage 1: Briefing and record-keeping Anyone involved in the conduct of an investigation should have a clear brief and understanding of their role. All investigators must maintain an auditable record of every action during an investigation to demonstrate that they have acted appropriately. All material associated with an investigation will be securely stored in case of subsequent legal challenge. Stage 2: Establishing the facts Investigators should review the evidence and associated documentation, including awarding body guidance on the delivery of the qualifications and related quality assurance arrangements. Issues to be determined: What occurred (nature of malpractice/substance of the allegations). Why the incident occurred. Who was involved in the incident. When it occurred. Where it occurred there may be more than one location. What action, if any, the centre has taken. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB. Page 15

16 Stage 3: Interviews Interviews should be conducted in accordance with the relevant codes for interviewing of the nation concerned. Thorough preparation is needed prior to any interview. Interviews should include prepared questions; responses should be recorded. Interviewers may find it helpful to use the PEACE technique: Plan and prepare. Engage and explain. Account. Closure. Evaluation. Face-to-face interviews should normally be conducted by two people with one person primarily acting as interviewer and the other as note-taker. Those being interviewed should be informed that they may have another individual of their choosing present and that they do not have to answer questions. These arrangements aim to protect the rights of all individuals. Stage 4: Other contacts In some cases, candidates or employers may need to be contacted for facts and information. This may be done through face-to-face interviews, telephone interviews, by post or by . Whichever method is used, the investigator will have a set of prepared questions. The responses will be recorded in writing as part of confirmation of the evidence. Investigators should log the number of attempts made to contact an individual. Stage 5: Documentary evidence Wherever possible, documentary evidence should be authenticated by reference to the author; this may include asking candidates and others to confirm handwriting, dates and signatures. Receipts should be given for any documentation removed from a centre. Independent expert opinion may be obtained from subject specialists about a candidate s evidence and/or from a specialist organisation such as a forensic examiner, who may comment on the validity of documents. Stage 6: Conclusions Once the investigators have gathered and reviewed all relevant evidence, a decision is made on the outcome. Dealing with significant cases of suspected malpractice by those involved in the delivery of qualifications Stage 7: Reporting A draft report is prepared and factual accuracy agreement obtained. The final report is submitted to the relevant regulatory authority. Stage 8: Actions Any resultant action plan is implemented and monitored appropriately. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB. Page 16

17 7 Position statement on use of Welsh and Irish All training and assessment documents are published in English. We continually monitor the need for documents in other languages specifically Welsh and Irish. In the event of sufficient demand, we will arrange for translation of materials and assessments. The assessments will be based on English law and practice. Candidates wishing to be assessed on the basis of Scottish law and practice should advise us at registration that they wish to answer on this basis. 8 Equality of opportunity policy We comply with all UK and European laws applicable in relation to discrimination on any grounds. Accordingly, we are committed to providing equality of opportunity and fair treatment for all. We will not discriminate on the basis of gender, age, marital status, sexual orientation, ethnic origin, religion, culture or disability in dealing with candidates. When candidates first register for a qualification, they will be given a candidate number for their assessment. Throughout the assessment process, Financial Plans are labelled only with this number so anonymity is maintained. The case studies used are based on real-life scenarios and are checked carefully to ensure that they do not have any unfair bias or inaccuracies. 9 Confidentiality Policy Any information relating to a candidate or potential candidate will always be regarded as confidential information. All materials, documents, and information that are provided or marked confidential will be held in the strictest confidence and will not be discussed with anyone outside the IFP group, unless we have your authority. Additionally, those in receipt of Confidential Information as a result of working for the IFP group will only use it as necessary to perform their responsibilities in relation to FPSB UK and not for any other purpose. Computer systems are secured against unauthorised access or amendment and against loss through accidental or deliberate damage, erasure or disclosure. Only authorised members of staff are allowed direct access to the candidate assessment records. Manual records, including indexes and computer printouts, are secured against unauthorised access or amendment and against loss through accidental or deliberate damage, erasure or disclosure. Records are not normally taken out of the building, but where this is necessary, extreme care is used in ensuring that no material is lost or damaged in the process. Any manual record containing confidential information that it is no longer necessary to retain is shredded prior to disposal. Under no circumstances are such manual records discarded in any other manner. No question that involves confidential information will ever answered over the telephone without establishing the identity and authenticity of the caller - and if necessary confirming with a manager if it is appropriate to give the information. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB. Page 17

18 10 Data Protection statement Data Protection Any information that candidates provide to us will be added to our candidate database and will be processed in accordance with the Data Protection Act The information contained in our candidate database is used: to enable us to deal with your registration and application and to provide you with the services requested for internal record keeping to enable us to send further information to you that we consider may be of interest to you; and for general administration purposes in connection with any of the above. We will not pass the information supplied by you to any other person, firm or company without your prior written. We will not transfer any information you give us outside the EU. Candidates have the right under the Data Protection Act 1998 to apply for a copy of any personal information we hold about them and to have any inaccurate information corrected. To exercise this right candidates should call us on or [email protected]. In accordance with UK Data Protection legislation, we reserve the right to charge a small administration fee for providing this information. 11 Guidelines for challenging the validity of the certifying procedures Eligibility determinations If you have submitted your Qualification Review Application and it has been declined by the Examination and Certification Committee, you may challenge the validity of any decision by writing to our Qualifications Director on the below address stating your reasons and enclosing any evidence that you have. General certification process If you have any concerns regarding the general process, you may challenge the validity of any decision or procedures by writing to our Qualifications Director on the below address stating your reasons and enclosing any evidence that you have. FPSB (UK) Limited One Redcliff Street Bristol BS1 6NP You will receive an acknowledgement within five working days and a more detailed response within one month. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority for the CFP marks in the United Kingdom, through agreement with FPSB. Page 18

19 12 FPSB UK Level 6 Diploma in Financial Planning Syllabus Core Units Optional Units (1 from 2) Principles of Financial Planning Financial Management and Tax Planning Retirement Planning Personal Risk Management Asset Management Financial Planning Practice* Estate Planning Assessed by examination * Holistic outcome covering synthesis and implementation Assessment will be by Examination (Unit 1 Principles of Financial Planning) and a Financial Plan based on a case study (Units 2, 3, 4, 5 and ONE of Units 6 or 7) CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Page 19

20 Core Unit 1: Principles of Financial Planning Assessed by Examination Title Principles of Financial Planning Level 4 Credit Value 8 Learning Outcomes Assessment Criterion The learner will be able to: The learner can: 1. Demonstrate an 1.1 Understand the differences between active and passive investment understanding of savings and strategies investments, both single 1.2 Understand structured products premium and regular premium 1.3 Understand tax wrappers solutions, and their tax 1.4 Explain product wrapper selection, where appropriate, including openended versus closed-ended wrappers, to maximise tax efficiency treatment and application in the Financial Planning process 1.5 Understand onshore and offshore investments and their tax treatments and applications 2. Demonstrate an understanding of, and the ability to analyse, protection solutions, their tax treatment and application in the Financial Planning process 3. Demonstrate an understanding of, and the ability to analyse, retirement solutions and their tax treatment and application in the Financial Planning process 4. Demonstrate an understanding of estate planning and its application in the Financial Planning process 5. Demonstrate an understanding of, and the ability to apply, Financial Planning fundamentals 6. Demonstrate an understanding of ethics and Codes of Practice and their application in the Financial Planning process 7. Demonstrate an understanding of risk and its application in the Financial Planning process 2.1 Understand whole of life policies 2.2 Understand term assurance policies 2.3 Understand income protection policies 2.4 Understand critical illness policies 2.5 Understand private medical and accident insurances 2.6 Understand long-term care and special needs planning 2.7 Analyse how different protection solutions are used to meet client needs and their tax treatment 3.1 Understand the structure, characteristics and application of occupational, personal and state pension schemes to an individual s retirement planning 3.2 Explain the impact of auto-enrolment and employees options including NEST 3.3 Understand non-pension retirement planning solutions 3.4 Explain options for taking benefits at retirement 3.5 Analyse the implications of retirement, divorce, ill-health and death 4.1 Understand the basics of wills and will planning including i. Events that invalidate wills ii. Deeds of variation and will trusts iii. The laws of intestacy 4.2 Understand powers of attorney including Lasting Powers of Attorney 4.3 Understand the types of trusts available, their taxation and application 5.1 Understand the key roles involved in Financial Planning 5.2 Understand the six-step Financial Planning process 5.3 Understand the key components of a Financial Plan 5.4 Understand the importance of assumptions in the Financial Planning process 6.1 Understand professional bodies Codes of Practice and Ethical Codes 6.2 Understand continuing professional development 7.1 Understand different types of risk to which a client may be exposed including i. Systemic and non-systemic risk ii. Economic, political, market, volatility, longevity, deviation from an index, inflation/ deflation etc 7.2 Determine what clients understand by risk including CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Page 20

21 8. Demonstrate an understanding of assets and liabilities and their application in the Financial Planning process 9. Demonstrate an understanding of income and expenditure and their application in the Financial Planning process 10. Demonstrate an understanding of how to apply the six steps of Financial Planning 11. Demonstrate an understanding of assumptions and their application in the Financial Planning process 12. Demonstrate an understanding of research and its application in Financial Planning process 13. Demonstrate an understanding of asset allocation and its application in the Financial Planning process 14. Demonstrate an understanding of the principles and application of cashflow forecasting i. Not achieving expectations returns, outcome etc ii. Risk of losing money / value iii. Risk tolerance and capacity for loss 7.3 Understand the relationship between risk and return 7.4 Understand how to mitigate investment risk while maintaining target returns including i. Diversification ii. Hedging 8.1 Identify assets, liabilities including loans and debts, and irregular capital receipts from client information 8.2 Prepare a net worth statement: i. During lifetime ii. On death iii. On specific events such as illness, disability or retirement 8.3 Calculate investible capital / excess liabilities 9.1 Identify gross and net income receipts and expenditure 9.2 Identify benefits in kind and other non-cash receipts 9.3 Prepare Income and Expenditure Analysis 9.4 Calculate net spendable income/income shortfall 10.1 Identify and prioritise client needs, goals and objectives 10.2 Identify additional issues and problems 10.3 Analyse existing available resources for Financial Planning 10.4 Make outline recommendations to meet client needs, goals, objectives and other issues or problems where appropriate 10.5 Draft initial recommendations for the Financial Plan i. Understand the advantages and disadvantages of different strategies ii. Understand the implications of the different strategies on other parts of the Financial Plan 11.1 Understand the importance of assumptions in the Financial Planning process 11.2 Use assumptions to project future values of assets, liabilities, incomes, expenditure and cost of goals and objectives in both real and nominal terms 11.3 Understand the effects that changing assumptions may have on a Financial Plan 12.1 Understand what information may be missing from a fact find or client meeting notes 12.2 Understand where and how to obtain further information 13.1 Understand different asset classes: cash, fixed interest, property, equities and alternative investments 13.2 Analyse existing asset allocation vs. risk profile 13.3 Determine appropriate asset allocation for client circumstances 13.4 Understand how to achieve appropriate asset allocation 13.5 Understand portfolio drift and rebalancing 14.1 Analyse cashflow at key lifestages including i. Current ii. At retirement iii. On ill-health iv. On death CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Page 21

22 15. Demonstrate an understanding of the required documentation and processes to implement Financial Planning recommendations 16. Demonstrate an understanding of client reviews and their application in the Financial Planning process 15.1 Understand how recommendations may need to gain client acceptance to proceed 15.2 Identify financial products, where appropriate, to implement recommendations 15.3 Understand the documentation required to be provided to the client and when it should be provided i. Know what should be included in a Suitability letter ii. Understand what should be included in a Financial Plan 15.4 Understand what is required to ensure that all recommendations and documentation are compliant and technically correct 15.5 Assess the appropriateness, affordability and relevance of products against recommendations 16.1 Understand the reasons for reviewing a Financial Plan and frequency of reviews 16.2 Understand the process of a review and what may be discussed at a review meeting 16.3Understand how to initiate the review meeting and how to gather the data required 16.4 Understand actions that may be required after the review i. Reassessing and rebalancing asset allocation ii. Review of existing financial solutions CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Page 22

23 Core Unit 2: Financial Management and Tax Planning Title Financial Management and Tax Planning Level 6 Credit Value 11 Learning Outcome the Assessment Criterion the learner can learner will 1. Demonstrate the ability to analyse and evaluate financial information 1.1 Determine the client s attitude towards savings and debt 1.2 Assess the impact of potential changes in income and expenditure 1.3 Identify conflicting demands on cashflow 2. Demonstrate the ability to prepare a net worth statement 3. Demonstrate the ability to prepare an income and expenditure analysis 4. Demonstrate the ability to evaluate the client s tax position and liabilities 5. Demonstrate the ability to develop and evaluate financial management strategies 6. Demonstrate the ability to develop and evaluate tax planning strategies 2.1 Produce an accurate net worth statement based on current circumstances 2.2 Produce an accurate net worth statement for any or all of the following, as appropriate: (i) On death (ii) On specific events such as illness, disability, retirement 2.3 Include all the relevant assets and liabilities 2.4 Identify the ownership basis of the assets 2.5 Identify and apportion all relevant debts 2.6 Provide a date for each net worth statement 2.7 Clarify whether each net worth statement relates to lifetime, death or other scenarios 3.1 Produce an income and expenditure analysis and identify clearly the time period to which it relates 3.2 Identify gross and net income 3.3 Distinguish between regular and irregular receipts 3.4 Apportion income between recipients, where necessary 3.5 Calculate client expenditure 3.6 Calculate shortfall or surplus income 4.1 Produce an accurate tax calculation for the client 4.2 Identify the taxable nature of assets 4.3 Calculate a tax liability for each relevant tax 4.4 Identify clearly the time period to which the tax liability relates 4.5 Calculate National Insurance contributions 5.1 Develop financial management strategies 5.2 Identify an appropriate and effective financial management strategy 5.3 Ensure that the identified financial management strategy meets the client s stated objectives as fully as possible 6.1 Develop tax planning strategies 6.2 Identify an appropriate and effective tax planning strategy 6.3 Ensure that the identified tax planning strategy is appropriate to the client s circumstances 7. Demonstrate the ability to produce effective recommendations which meet client objectives and are technically accurate 7.1 Clarify whether the client s objectives can be achieved within current and/or future cashflow restraints 7.2 Clarify how the solution can be adjusted, if necessary, to fit any identified cashflow restraints 7.3 Consider a liquidity and/or cash reserve 7.4 Explain how each recommendation meets the client s objectives as fully as possible 7.5 Explain the tax position resulting in comments to the client 7.6 Ensure that the proposed solution meets the client s agreed objectives as fully as possible 7.7 Ensure that the solution is technically accurate CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Page 23

24 Core Unit 3: Personal Risk Management Title Personal Risk Management Level 6 Credit Value 8 Learning Outcome the Assessment Criterion the learner can learner will 1. Demonstrate the ability to 1.1 Quantify and qualify the client s needs and objectives analyse and evaluate risk 1.2 Identify the client s attitude to mortality and morbidity risk and personal risk 1.3 Discuss the client s financial exposure to mortality and morbidity management issues risk 1.4 Analyse and take into account existing risk management strategies and insurance policies 1.5 Take into account existing or anticipated assets or capital 1.6 Use appropriate, reasoned and reasonable assumptions 2. Demonstrate the ability to develop and evaluate personal risk management strategies 3. Demonstrate the ability to prepare effective recommendations which meet client objectives and are technically accurate 2.1 Develop personal risk management strategies 2.2 Identify an appropriate and effective personal risk management strategy 2.3 Ensure that the identified personal risk management strategy meets the client s stated objectives as fully as possible 3.1 Analyse the taxation considerations of the solution during lifetime and on death 3.2 Explain the qualifications, caveats and implications of the solution clearly to the client, for example, taxation, underwriting, legal and generic contract limitations 3.3 Ensure that the solution is affordable within parameters agreed with the client 3.4 Ensure that the solution matches the client s agreed investment risk attitude (where appropriate) 3.5 Explain the ownership and method of arranging the solution 3.6 Take into account social security benefits, where applicable 3.7 Ensure that the proposed solution meets the client s agreed objectives as fully as possible 3.8 Ensure that the solution is technically accurate CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Page 24

25 Core Unit 4: Asset Management Title Asset Management Level 6 Credit Value 11 Learning Outcome the Assessment Criterion the learner can learner will 1. Demonstrate the ability to 1.1 Quantify and qualify the client needs and objectives analyse and evaluate 1.2 Establish clear portfolio parameters existing and desired 1.3 Analyse existing assets and compare them against the portfolio portfolio provision parameters 1.4 Identify all relevant assumptions and portfolio returns 1.5 Determine the client s risk tolerance and capacity for loss and compare it to the existing portfolio 1.6 Analyse the existing portfolio and identify any gaps 1.7 Analyse current and future income requirements 1.8 Calculate the following: (i) Capital needed at a given date (ii) Capital discounted back to today s value (iii) Capital/income needed now (iv) Shortfall/surplus 1.9 Ensure that the link to portfolio return is in line with the client s identified attitude to risk 1.10 Consider diversity in the portfolio 2. Demonstrate the ability to analyse risk 3. Demonstrate the ability to develop and evaluate asset management strategies 4. Demonstrate the ability to develop asset management solutions which meet client objectives and are technically accurate 2.1 Analyse and evaluate the different types of risk with regard to: (i) systemic and non-systemic (ii) economic, political, market, volatility, longevity, deviation from an index, inflation / deflation etc. 2.2 Identify and quantify appropriate mortality and morbidity risks 2.3 Consider diversification methods to reduce risk 3.1 Develop asset management strategies 3.2 Identify an appropriate and effective asset management strategy 3.3 Ensure that the identified asset management strategy meets the client s stated objectives as fully as possible 4.1 Make allowance in the portfolio for liquidity 4.2 Identify and explain all assumptions 4.3 Ensure that all assumptions are reasoned, reasonable and take account of variations in returns of different asset classes 4.4 Ensure that the affordability of capital/income required is based on the agreed cashflow/ expenditure pattern 4.5 Identify and justify asset/product ownership 4.6 Identify obstacles to achieving the client s specific objectives 4.7 Take into account existing or anticipated assets or capital 4.8 Take into account social security benefits and contributions, if appropriate 4.9 Take into account and explain all relevant taxation considerations 4.10 Ensure that the solution takes identified mortality and morbidity risks into account 4.11 Identify and explain any relevant implications, limitations and legal/taxation considerations 4.12 Ensure that the solution is consistent with the client s agreed investment attitude 4.13 Ensure that the proposed solution meets the client s agreed objectives and needs as fully as possible 4.14 Ensure that the solution is technically accurate CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Page 25

26 Core Unit 5: Financial Planning Practice Title Financial Planning Practice Level 6 Credit Value 14 Learning Outcome the Assessment Criterion the learner can learner will 1. Demonstrate the ability to 1.1 Identify all the information required for a financial plan analyse and critically 1.2 Establish and record the client s needs, objectives and aspirations evaluate financial 1.3 Quantify and qualify the client s needs and objectives planning information 1.4 Ensure that other needs and issues are considered, recorded and a conclusion reached 1.5 Quantify and qualify potential problems 1.6 Establish the client s attitude to investment risk in relation to each of the objectives 1.7 Ensure that the plan includes all relevant client data 1.8 Identify any missing client data 2. Demonstrate the ability to develop and use assumptions in the Financial Planning process 3. Demonstrate the ability to produce comprehensive recommendations which meet client objectives and are technically accurate 4. Demonstrate the ability to write a clear, concise Financial Plan which meets a client s objectives and is technically accurate 2.1 Discuss assumptions regarding investment growth, price inflation and earnings inflation 2.2 Discuss other relevant assumptions 2.3 Ensure that all assumptions are: (i) adequate (ii) reasoned (iii) reasonable 3.1 Develop comprehensive recommendations for each of the client s objectives 3.2 Explain how the proposed solutions solve the identified problems as fully as possible 3.3 Clarify whether the client s objectives can be achieved within current and/or future cashflow constraints 3.4 Clarify whether the solution can be trimmed, adjusted or prioritised to fit cash flow constraints, if the client s objectives cannot be achieved 3.5 Explain the required actions, timing and responsibilities 3.6 Explain the underwriting process for life assurance products, where appropriate 3.7 Explain the application process for investment products and services including unit trusts, wraps and platforms 4.1 Include all the components of a Financial Plan (i) Contents page (ii) Introduction (iii) Objectives (iv) Attitudes (v) Assumptions (vi) Assets and liabilities (vii) Income and expenditure (viii) Financial management (ix) Tax planning (x) Personal risk management (xi) Asset management (xii) Retirement and/or estate planning (xiii) Action plan (xiv) Reviews CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Page 26

27 5. Demonstrate the ability to understand the review process 4.2 Ensure that the plan is a single document (bound or electronic) 4.3 Ensure that the plan has a logical structure, and is easy to read and follow 4.4 Use clear and appropriate language throughout the plan 4.5 Explain and justify all recommendations 4.6 Refer to and justify the exclusion of any financial planning issues 4.7 Provide a clear action plan for the client 4.8 Ensure that the solutions are generally suitable for the client, with no evidence of unsuitable advice 4.9 Ensure that the solutions are technically accurate 5.1 Explain the reason why client reviews are needed 5.2 Explain what a client review will cover and who will be involved 5.3 Explain the timings and actions involved 5.4 Explain how the review process will be initiated CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Page 27

28 Optional Unit 6: Retirement Planning Title Retirement Planning Level 6 Credit Value 8 Learning Outcome the Assessment Criterion the learner can learner will 1. Demonstrate the ability to 1.1 Quantify and qualify retirement planning needs and objectives analyse and evaluate 1.2 Establish the income and capital required to achieve current or retirement planning future objectives, needs and the timescale(s) applicable issues 1.3 Take into account and analyse existing assets or capital 1.4 Use appropriate, reasoned and reasonable assumptions 1.5 Take into account social security benefits and contributions 1.6 Take into account taxation considerations 1.7 Quantify and qualify appropriate mortality and morbidity risks 2. Demonstrate the ability to develop and evaluate retirement planning strategies 3. Demonstrate the ability to produce effective recommendations that meet the client s needs and objectives and are technically accurate 2.1 Develop retirement planning strategies 2.2 Identify an appropriate and effective retirement planning strategy 2.3 Ensure that the identified retirement planning strategy meets the client s stated objectives as fully as possible 3.1 Analyse the taxation considerations of the solutions 3.2 Explain the qualifications, caveats and implications of the solution 3.3 Take into account social security benefits, where appropriate 3.4 Ensure that the solution takes identified mortality / morbidity risks into account 3.5 Ensure that the solution is consistent with the client s agreed investment attitude 3.6 State and explain any relevant implications, limitations and legal/taxation conditions/ consequences 3.7 Ensure that the capital or expenditure from income required can be afforded based on the client s agreed cashflow/expenditure pattern 3.8 Ensure that the proposed solution meets the client s stated needs and objectives as fully as possible 3.9 Ensure that the solution is technically accurate CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Page 28

29 Optional Unit 7: Estate Planning Title Estate Planning Level 6 Credit Value 8 Learning Outcome the Assessment Criterion the learner can learner will 1. Demonstrate the ability to 1.1 Quantify and qualify estate planning needs and objectives analyse and evaluate estate 1.2 Consider the most appropriate methods of achieving the client s planning issues wishes 1.3 Take into account taxation considerations for the client and the intended beneficiaries 1.4 Identify and explain relevant implications and/or limitations identified and explained 1.5 Identify and explain any knock on effects on other areas of financial planning 1.6 Identify and explain issues that should be referred to specialist legal and/or taxation advisers 2. Demonstrate the ability to develop and evaluate estate planning strategies 3. Demonstrate the ability to produce effective recommendations that meet the client s needs and objectives and are technically accurate 2.1 Develop estate planning strategies 2.2 Explain the appropriate ownership of assets to achieve the stated objectives 2.3 Identify an appropriate and effective estate planning strategy 2.4 Ensure that the identified estate planning strategy meets the client s stated objectives as fully as possible 3.1 Analyse the taxation considerations of the solution 3.2 Ensure that there is appropriate (i) use of wills (ii) use of trusts (iii) use of powers of attorney (iv) use of gifts 3.3 Explain the qualifications, caveats and implications of the solution 3.4 Take into account social security benefits where appropriate 3.5 Ensure that the solution is consistent with the client s agreed investment attitude 3.6 Ensure that the capital or expenditure from income required can be afforded based on the client s agreed cashflow/expenditure pattern 3.7 Ensure that the proposed solution meets the client s stated objectives as fully as possible 3.8 Ensure that the solution is technically accurate All candidates should study the Diploma in Financial Planning Syllabus. For full details please visit CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Page 29

30 Appendix I CFP CM Certification - Entry Requirements To be eligible to embark on the process of becoming a CFP professional there are three compulsory criteria which must be met: Experience Evidence of Prior Learning FPSB UK Diploma in Financial Planning 1. Experience Have a minimum of one year's supervised or three years' unsupervised experience within Financial Planning. Examples of the sorts of experience that is acceptable are: 1.1 Relevant Work Experience An individual demonstrates relevant work experience, either supervised or unsupervised, working with clients while: Engaging in practice described in FPSB s Financial Planning Practice Standards; Applying the abilities, skills and knowledge described in FPSB s Financial Planner Competency Profile; and Adhering to ethical principles described in FPSB s Financial Planner Code of Ethics and Professional Responsibility. 1.2 Supervised Experience Supervised Experience can be met by completing one year of supervised practice as described above under Relevant Work Experience. The supervisor, who must be a Financial Planning professional who has mastered the abilities, skills and knowledge described in FPSB s Financial Planner Competency Profile: Provides candidates with experience in, and instruction about, the practice of the profession; Helps candidates to develop knowledge about the practice of the profession; Teaches candidates the required standards of conduct; and Confirms candidates are able to interact with clients. At the end of the supervised practice period, the supervisor attests to the IFP in writing to the candidate s readiness to competently and ethically practice Financial Planning. 1.3 Unsupervised Experience Unsupervised Experience can be met by completing three years of unsupervised practice as described above under Relevant Work Experience. Examples of the sorts of experience that are not acceptable are: Occupations or experience outside of the financial world or roles that do not involve numeracy work or application of financial knowledge either directly to the public or in training those who come into contact with the public Pure supervisory management in banking or motivational training where no financial CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Appendix I

31 information is analysed or applied for the benefit of advice to the public. 2. Examination Passes Candidates must hold one of the following An appropriate qualification for Advising on Retail Investment Products (as listed by FCA) A transitional qualification recognised by the FCA plus qualification gap-fill A valid Statement of Professional Standing 3. FPSB UK Diploma in Financial Planning Candidates who wish to become CERTIFIED FINANCIAL PLANNER CM Professionals must hold the FPSB UK Diploma in Financial Planning. Policy on changes to certification requirements i. Changes to Requirements All changes to certification requirements will be published in the Introduction to the Diploma in Financial Planning booklet, and will be issued as news items in both the next available E-News bulletin, the Financial Planner magazine and on the website In the Introduction to the Diploma in Financial Planning, any changes in certification requirements within the previous two years of publication will also be referenced. ii. Impact on Certificants Successful candidates who meet the eligibility requirements may apply to the IFP to become a CFP CM professional. The IFP will assess all candidates for CFP CM certification against the most current certification requirements with immediate effect from the publication of such changes. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Appendix I

32 Candidates who are part-qualified Candidates may not start the Diploma in Financial Planning assessment process unless they comply with the required entry standards. Experience shows those embarking on the examination process without the full entry requirements dramatically reduce their chances of passing the Diploma in Financial Planning. Requests for waivers to this requirement should be ed to with full details of the reasons for the request. It is important to note that if your request for a waiver is agreed, you will have a maximum period of two years from the date of request for your case study in which to achieve all of the entry requirements, after which time you will be required to embark on the CFP certification process again. Candidates who do not hold the relevant work experience requirements Candidates may start the Diploma in Financial Planning, providing they are meeting the qualification entry requirement before gaining the relevant work experience. However, they will have to gain the relevant work experience before becoming the Certified Financial Planner CM Professional. Candidates who hold qualifications/examinations that are not listed If you hold an examination or qualification that is not included above and you believe it to be relevant, you may apply for a review by the Examination and Certification committee of FPSB UK. Please contact FPSB (UK) by telephone, or by ing [email protected] and be prepared to supply the syllabi relevant to your qualification and the 20 administration fee. Please note, if any application is received either incomplete or without these items it will be returned. Candidates should allow up to 12 weeks for a review. Entry Requirement Enquiries: If you have a specific query about entry requirements for the Diploma in Financial Planning please contact: FPSB (UK) Limited One Redcliff Street Bristol BS1 6NP Tel: Fax: [email protected] CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Appendix I

33 APPENDIX II The Principles of Financial Planning Exam: Fees and Dates Examination Dates 2015* All examinations will take place in Bristol and regional venues on the dates below Bristol Exams Regional Exams 24 th February FPSB UK Office 24 th March FPSB UK Office 28 th April FPSB UK Office 26 th May FPSB UK Office 23 th June FPSB UK Office 28 nd July FPSB UK Office 25 th August FPSB UK Office 22 rd September FPSB UK Office 27 th October FPSB UK Office 24 th November FPSB UK Office 15 th December FPSB UK Office 26 th February London 25 th March Manchester 30 th April London 28 th May Scotland 25 th June London 30 th July London 27 th August Manchester 24 th September London 29 th October London 26 th November Scotland 17 th December London Fees: 165 Exam entrance and assessment *All dates are subject to minimum numbers. FPSB UK reserves the right to change the date and / or venue in the event of this requirement not being met. ** Please note that the FPSB UK office is on the first floor and is only accessible via a flight of stairs. Please contact us if this is not convenient for you and we will make alternative arrangements. Entries should be received by FPSB UK 30 days before the Examination date. Other venues and dates may be available subject to sufficient numbers. Please contact [email protected] for details Please note that VAT is not applicable to qualification related fees. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Appendix I

34 The Principles of Financial Planning EXAM REGISTRATION FORM Candidate Information First Name: Title: Last Name: Job Title: Company/Organisation: Correspondence Address: Town / City: Postcode: Telephone: IFP Member? Yes No Membership No.: 2. Exam and Assessment Bristol Exams** Regional Exams 24 th February FPSB UK Office 26 th February London 24 th March FPSB UK Office 25 th March Manchester 28 th April FPSB UK Office 30 th April London 26 th May FPSB UK Office 28 th May Scotland* 23 rd June FPSB UK Office 25 th June London 28 th July FPSB UK Office 30 th July London 25 th August FPSB UK Office 27 th August Manchester 22 nd September FPSB UK Office 24 th September London 27 th October FPSB UK Office 29 th October London 24 th November FPSB UK Office 26 th November Scotland* 15 th December FPSB UK Office 17 th December London Time and venue of exams will be advised two weeks before exam date. *Venue city dependent on demand * Please note that the FPSB UK office is on the first floor and is only accessible via a flight of stairs. Please contact us if this is not convenient for you and we will make alternative arrangements. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Appendix I

35 3. Eligibility Requirements Please refer to the entry requirements which can be found in the Diploma in Financial Planning Handbook and Certificate in Paraplanning Handbook. You will need to send in evidence of your examination passes (Certified copies or a CII learning statement is acceptable) along with this registration form in order to be eligible to register for the examination. Please indicate whether you are entering the exam as a Diploma in Financial Planning or a Certificate in Paraplanning candidate. # Diploma in Financial Planning candidate Certificate in Paraplanning candidate Please list relevant exam passes- # Only candidates that fulfil the entry requirements for the Diploma in Financial Planning will be allowed to request the CFP Certification case study upon successful completion of the Principles of Financial Planning exam. 4. Payment Total Amount Payable: CHEQUE I enclose a cheque made payable to FPSB (UK) Limited for 165 CARD Name on card (as printed): Card number: Expiry date: Card address (if diff to above): Signature: Please debit my card for the GRAND TOTAL above. Please select card type: Mastercard Visa Visa Debit Other (Amex not accepted): 3 digit security no: Post Code: By checking this box you are agreeing to the Terms and Conditions of Booking. FPSB UK strongly recommend that you read the booking terms and conditions as set out on the IFP website: Signed: Please return to: FPSB UK, One Redcliff Street, Bristol, BS1 6NP. P: E: [email protected] Date: CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Appendix I

36 Appendix III The Case Study Assessment Fees Assessment 2015 Fees Case study order Assessment submission fee Assessment re-submission fee (maximum of two) Please note that VAT is not applicable to qualification related fees. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Appendix I

37 Appendix IV Recommended reading list: As well as studying the syllabus, we recommend that you familiarise yourself with the techniques associated with creating a comprehensive financial plan by consulting the following books: SDB Training Easy Steps Guides: ( Income Tax Calculations IHT Calculations CGT Calculations. Financial Calculations Guide Whillans Tax Tables latest edition Time Value of Money Booklet (IFP) Available from the IFP either with or without a financial calculator, the booklet breaks down a variety of time value of money calculations into easy to remember steps. Seven Stages of Money Maturity by George Kinder. From where do our attitudes about money come how do they influence our lives? How can we approach financial planning with honesty and without fear? The Life Assurance and Pensions Handbook - Taxbriefs This is the market leading guide for Advisers, updating legal and regulatory changes and acting as comprehensive aide memoir for advisers. Taxbriefs Tax Guide (latest edition) - Taxbriefs The most complete tax planning guide designed for advisers, covering not only personal tax issues but also the taxation of business. Professional Advisers Fact File - Taxbriefs A handy source of data that every adviser needs to answer client questions and help explain and promote various aspects of financial planning. DIY Financial Planning Guide By Jane Wheeler. Jane is a Fellow of the Institute of Financial Planning, a CERTIFIED FINANCIAL PLANNER CM professional and a Chartered Financial Planner. The Guide is based on Jane s useful book for consumers on Financial Planning called Sorted! It gives helpful tips and guidance around key Financial Planning steps. Download DIY Finanical Planning Guide - ncial_planning.pdf Calibrand Diploma in Professional Financial Advice Training materials to support the Diploma available free from The process of financial planning Taxbriefs A practical guide for financial advisers looking to begin re-engineering the way they give financial advice. CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Appendix I

38 Recommended websites: We also recommend that you familiarise yourself with the various technical data and techniques associated with creating a comprehensive financial plan by consulting the following websites: Useful websites 1. Debt Management Office for information on the UK gilts market: 2. Retail Prices Index history 3. Official life expectancy data: 4. Institute of Financial Planning branch meetings, more courses, CFP CM certification and much more: 5. Association of Investment Companies investment trust and closed-ended investment company data: 6. Investment Management Association OEIC and unit trust data: CFP CM, CERTIFIED FINANCIAL PLANNER CM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing Appendix I FPSB /15