Competancy & Compliance

Transcription

1 Competancy & Compliance

2 Agenda Get With A Plan Financial Planning Defined Licenses and Certifications Continuing Professional Education Regulation and Compliance Liability

3 Get With A Plan Choose services to provide Develop business model in house or affiliation Determine how to get paid fee only, fee based, or commission Choose structure and legal form Get requisite licenses and registrations Maintain compliance Address liability

4 Financial Planning defined? Traditional advice on financial matters including income and expenses, retirement, education funding and taxes. Investments planning, advisory services, securities activities Insurance and risk management Referrals for financial products or insurance COMPREHENSIVE financial planning

5 Financial Planning Industry Terms Investment Advisory Wealth Management Planning Investments Tax

6 Licenses and Certifications CPA Certified Public Accountant CFP Certified Financial Planner PFS Personal Financial Specialist ChFC Chartered Financial Consultant CFA Chartered Financial Analyst Registered Rep Broker Dealer relationship RIA Registered Investment Adviser State Insurance Licenses

7 Licenses, Designations, Credentials, Certifications and Registrations Certified Public Accountant License Personal Financial Specialist Credential Certified Financial Planner Certificant Chartered Financial Consultant designation Chartered Financial Analyst designation Registered Representative Registered Investment Advisor

8 Registered Reps permitted to engage in the purchase or sale of investment products on behalf of customers and requires approval of B/D General Securities License Series 7 Exam FINRA Uniform Securities Agent State Law Examination series 63 Uniform Combined State Law Examination series 66 State Insurance Licenses REGISTER THROUGH A BROKER DEALER

9 Registered Investment Advisor Licensed through a state or the SEC to provide investment advice for a fee. Uniform Investment Adviser Law Exam Series 65 File Form ADV Parts IA, IB and Schedules and II Less than $25 million at State level greater SEC Both application and disclosure IARD/WEB CRD Firm level versus individual IAR s Code of Ethics

10 Registered Investment Advisor Licensed through a state or the SEC to provide investment advice for a fee. Policies and Procedures (Compliance Program) Books and Records Best practice and execution for clients Subject to SEC examination Net Worth/Net Capital or Bonding FIDUCIARIES

11 AICPA CPE Requirements 3 year cycle begining calendar year after joining 120 hours No specific subject areas are required. Examples are trade association classes, in house training courses or college and university classes. There is a 2 month grace period following the reporting period. Hours credited toward a deficiency may not be counted toward the reporting period in which they are taken. Documentation Requirements: Name and Contact Info of Sponsor Title and Description of Content Date of Program Location (if Applicable) Number of CPE Credits

12 New Jersey CPE 3year cycle 120 hours of CPE 72 hours in Technical Subject areas (24 of which must be Accounting & Auditing) 4 hours in NJ law & Ethics Acceptable Technical Subjects Accounting Auditing, including, but not limited to, review, compilation and attest standards Business Law Computer Science Economics Finance Management Advisory Services Mathematics, Statistics, etc. SEC Practice Taxation Professional Ethics Any of the above subjects may be in specialized areas.

13 Florida CPE Requirements 2 year cycle current renewal date 6/30/09 80 hours of CPE 4 hours must be Ethics Minimum 20 hours for Accounting & Auditing Maximum 20 hours for behavioral courses Ethics requirement must be administered by providers approved by the board and include a review of the provisions of Chapter 455 and 473, Florida Statutes, and Chapter 61H1, Florida Administrative Code. Florida requires self study course providers to be sponsors of NASBA's Quality Assurance Service (QAS). Behavioral courses do not have to be taken from an approved QAS sponsor.

14 PFS CPE Requirements : 3 year cycle Combined total of 60 PFS points in personal financial planning business experience and qualified "life long learning" activities One of the following combinations may be used 600 hours of Business Experience and 135 hours of CPE 800 hours of Business Experience and 120 hours of CPE 1000 hours of Business Experience and 105 hours of CPE 1200 hours of Business Experience and 90 hours of CPE 1400 hours of Business Experience and 75 hours of CPE 1600 hours of Business Experience and 60 hours of CPE Membership in good standing with the AICPA A valid CPA Certificate Submission of a written Statement of Intent to continue to comply with all recertification requirements

15 CFP CPE 2 year cycle the same as a CFP certificant's certification period 30 hours of CPE 2 hours from a CFP Board approved program on CFP Board's Code of Ethics and Professional Responsibility (Code of Ethics) and/or Financial Planning Practice Standards (Practice Standards). 28 hours from one or more of the accepted subject topics. Acceptable Subject Topics General Principles of Financial Planning Insurance Planning and Risk Management Employee Benefits Planning Investment Planning Income Tax Planning Retirement Planning Estate Planning

16 NAPFA 2 year cycle begining 1/1 of even year and ending 12/31 of odd year Pro rating for new members 30 hours in Core Areas with a minimum of 5 credits in each core area 30 hours in Elective Areas or additional Core Areas Up to 15 Elective hours may be carried forward. No Core hours may be carried over You have 45 days after the end of the cycle to send your summary page to the national office Core Areas B. Insurance and Risk Management C. Investments D. Income Tax Planning E. Retirement Planning and Employee Benefits F. Estate Planning J. Counseling and Communications Elective Areas A. Financial Planning Process H. Accounting, Cash Flow Management and Budgeting I. Economic and Political Environment K. Marketing and Practice Management L. Strategic Thinking M. Technology N. Ethics of Financial Planning No more than 15 hours may be earned within any one Core subject and no more than 5 hours may be earned within any one Elective subject

17 Steps to Initial CFP Certification 1 Complete the Education Requirement Complete a CFP Board Registered Education Program Apply for Challenge Status Academic degrees and credentials that fulfill the educational requirements include: Certified Public Accountant (CPA) inactive license acceptable Licensed attorney inactive license acceptable Chartered Financial Analyst (CFA ) Doctor of Business Administration Chartered Financial Consultant (ChFC) Ph.D. in business or economics Chartered Life Underwriter (CLU) Request a Transcript Review Bachelor's Degree Requirement

18 Steps to Initial CFP Certification 2 Pass the CFP Certification Examination 10 hour exam is divided into three separate sessions. Administered three times a year generally on the third Friday and Saturday of March, July and November at about 50 domestic locations. Review Courses are available 3 Meet the Experience Requirement three years of qualifying full time work experience are required for certification the delivery of all, or of any portion, of the personal financial planning process to a client. the direct support or supervision of individuals who deliver all, or any portion, of the personal financial planning process to a client. teaching all, or any portion, of the personal financial planning process.

19 Steps to Initial CFP Certification 4 Pass Candidate Fitness Standards and Background Check Disclosures required Background check will also be conducted. 5 Pay Certification Fees A one time, non refundable initial certification application fee of $100 for the background checks as noted above. A biennial certification fee of $ Receive Authorization to Use the CFP, CERTIFIED FINANCIAL PLANNER ; and marks.

20 Personal Financial Specialist Credential Beginning in 2009, the AICPA will be offering our own comprehensive financial planning exam for the PFS credential The requirements to obtain the PFS credential have been updated as well: Education 80 hours Experience 2 years full time experience Exam qualifying exams will include the new PFS exam, or the CFP or ChFC exams The Series 7, 65, and 66 and CFA exams, which are currently accepted as qualifying exams, will be phased out as of December 31, For further information on this exciting change, please refer to the PFS Credential Application Kit which contains the new application, effective for new applicants after 1/31/09.

21 Regulation and Compliance Registered Investment Advisor fiduciary State Regulation under $25,000,000 under management SEC Regulation over $25,000,000 State Registration and Notification if > 6 clients in state Form ADV SEC Audits

22 Liability Financial Planning and Investment Advisory Public Accounting

23 compliance consultants.com/