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CFP® Certification Assessment Handbook2016

CFP® Certification Assessment Handbook

First published 2003; revised 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016

© Financial Planning Association of Australia Limited 2016.

ISBN: 978-0-7300-0050-1

CFP®, Certified finanCial Planner® and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Financial Planning Association of Australia Limited is the marks licensing authority for the CFP marks in Australia, through agreement with FPSB.

This subject material is issued by the Financial Planning Association of Australia Limited (FPA) on the understanding that:

1. The FPA, its directors, author(s), or any other persons involved in the preparation of this publication expressly disclaim all and any contractual, tortious, or other form of liability to any person (purchaser of this publication or not) in respect of the publication and any consequences arising from its use, including any omission made, by any person in reliance upon the whole or any part of the contents of this publication.

2. The FPA expressly disclaims all and any liability to any person in respect of anything and of the consequences of anything done or omitted to be done by any such person in reliance, whether whole or partial, upon the whole or any part of the contents of this subject material.

3. No person should act on the basis of the material contained in the publication without considering and taking professional advice.

4. No correspondence will be entered into in relation to this publication by the distributors, publisher, editor(s) or author(s) or any other person on their behalf or otherwise.

Portions of this document are based on, or derived from, Financial Planning Standards Board Ltd’s Financial Planner Competency Framework, © 2015 FPSB, and website, © 2004–2016 FPSB.

Disclaimer All legislative material herein is reproduced by permission but does not purport to be the official or authorised version. It is subject to Commonwealth of Australia copyright. The Copyright Act 1968 permits certain reproduction and publication of Commonwealth legislation. In particular, s. 182A of the Act enables a complete copy to be made by or on behalf of a particular person. For reproduction or publication beyond that permission by the Act, permission should be sought in writing. Requests should be addressed to Commonwealth Copyright Administration, Attorney-General’s Department, Robert Garran Offices, National Circuit, Barton ACT 2600 or posted at www.ag.gov.au/cca.

059917_cfpca_cah_sem0116_v01

Welcome to the CFP® Certification Assessment

For many of you, completing the CFP® Certification Assessment will be the final step before you apply for the CFP® designation. As a CFP professional, you will join a growing community of over 5500 CFP professionals in Australia and 150,000 globally.

Your commitment to a world-class professional code and best practice financial planning will place you at the forefront of your profession—and rightly so. CFP® Certification is not for the faint-hearted and I applaud your dedication and determination in striving for the international gold standard.

Your hard work will undoubtedly open many doors for you. The CFP mark represents a symbol of trust and will distinguish you as a high-calibre financial planner. To your clients, it will provide reassurance that you work to the highest professional and ethical standards, always putting their interests first.

Over the years, we have conducted focus groups and online research surveys to measure how Australians feel about seeking financial advice. The FPA invests heavily in raising consumer awareness and promoting the value of advice from a CFP® professional. As more consumers come to know what these three letters stand for, more consumers will look for you.

Good luck with your studies.

Dante De Gori CFP®CEO, Financial Planning Association

STAND

To continue to li� standards of professional advice.

Financial peace of mind.

Integrity. Unity. Making a di�erence.

Purposeful. Trustworthy. Energetic. Giving. Engaging. Encouraging.

�e FPA vision:

THROUGH our members we

STAND withAUSTRALIANSfor a BETTER �nancial

FUTURE.

ContentsWelcome to the CFP® Certification Assessment

Background to the CFP® mark 1Financial Planning Standards Board Ltd (FPSB) 1

FPSB Financial Planner Competency Framework 1

CFP® Certification process in Australia 3

Professional Designations Committee 3

Overview of CFP Certification Assessment 3

Useful technical resources 5

CFP® Certification education materials 5

Gwen Fletcher Memorial Award 5

Key dates for 2016 6

Webinar dates for 2016 6

Where to send your assessments and other forms 7

Topic areas for CFP 2 to CFP 4 8

CFP® Certification policies 10Confirmation of enrolment 10

Chat rooms 10

Study groups 10

Learning materials 10

Withdrawal 10

Special examination arrangements 10

Special arrangements for observation assessment 10

Extensions to due dates 11

Unauthorised extensions 11

Special consideration 11

Assessment irregularity 11

Results 12

Marginal result review policy 12

Feedback to students 12

Resubmission option 12

Feedback to the Professional Designations Committee 13

Past examination papers 13

Financial plan 14Key points to consider in developing the financial plan 14

Use of financial planning software 14

Inclusions not required 15

Compliance 15

The licensee for this assignment 15

Recommended products 16

Referral to external professionals 16

Other sources of information 16

Steps in developing the plan 16

Assessment criteria 22

Observation 23Purpose of assessment by observation 23

The observer 23

Format of assessment 23

Suggested client meeting and observation 23

Validation of assessments 23

Record of experience 24Purpose of assessment by record of experience 24

Recency of experience 24

Verification of experience 24

Record of experience example 24

Guidelines for acceptable experience 24

FPA’s Six-Step Financial Planning Process 25

Documentation 25

The examination 26Examination arrangements 26

Format 26

Standard required 26

Rules governing the examination 26

Required items 26

Calculator policy 27

References for the open-book examination 27

Reading time 27

During the examination 27

Conclusion of examination 27

Problems encountered during the examination 27

Consequences of failure to comply with regulations 28

References 28

Appendix A 29Financial planning knowledge topic categories 29

Appendix B 33Mapping of the FPSB Financial Planner Competency Framework to CFP® Certification Assessment 33

Appendix C 37Professional Designations Committee 37

Student policies for our programs 37

Privacy statement 38

Academic misconduct policy 40

Academic progress policy 41

Student appeals policy 41

Reference 41

1

CFP CERTIFICATION ASSESSMENT HANDBOOK

Background to the CFP® mark

The CFP mark is a certification mark that is represented by the marks of professional distinction—CFP, Certified finanCial Planner® and . The CFP marks were first registered in the United States in 1986, and there are now over 155,000 CFP professionals worldwide.

Financial Planning Standards Board Ltd (FPSB)Outside the United States, the CFP marks are owned by the Financial Planning Standards Board Ltd (FPSB). FPSB is a non-profit association that manages, develops and operates certification, education and related programs for financial planning organisations so that they may benefit the global community by establishing, upholding and promoting worldwide professional standards in personal financial planning. To administer the CFP Certification Program, FPSB enters into licensing and affiliation agreements with non-profit organisations that become FPSB affiliates. By meeting and maintaining FPSB’s affiliation requirements and standards, FPSB affiliates are authorised to administer the CFP Certification Program in a country, or geographic or economic region, on behalf of FPSB.

There are now 26 affiliates on five continents authorised to administer the CFP marks. There are more than 86,000 CFP professionals outside the United States, including 5500 in Australia.

In 1990, FPA was the first international FPSB affiliate licensed to award CFP Certification.

FPSB Financial Planner Competency FrameworkIn 2011, the FPSB published the FPSB Financial Planner Competency Framework, a comprehensive analysis that identified the abilities, skills and knowledge required to competently perform the tasks of a professional financial planner.

Competent Performance

ABILITIES

KNOWLEDGE

PROFESSIONALSKILLS

Figure 1: fpsB financial planner competency framework

Source: fpsB, Financial Planner Competency Framework, <https://www.fpsb.org/certificationandstandards/competencyprofile.html>, accessed february 2016.

FunctionsThe competency framework ‘functions’ defines the complete set of competencies required of a financial planning professional. It describes the various tasks that financial planning professionals should be able to carry out during financial planning engagements with clients, regardless of practice types, setting or location.

Irrespective of whether the financial planning professional offers comprehensive financial planning or has been instructed by their client to limit the scope or level of services, they must be able to master the complete set of abilities required to competently deliver a comprehensive financial plan to a client.

The financial planner functions are categorised into three functions that are defined by Core Financial Planning Competencies:

Collection• Collects the quantitative information required

to develop a financial plan.

• Collects the qualitative information required to develop a financial plan.

https://www.fpsb.org/certificationandstandards/competencyprofile.html



2


Analysis• Considers potential opportunities and constraints

to develop strategies.

• Assesses information to develop strategies.

Synthesis• Develops and evaluates strategies to create a

financial plan.

Within this functions framework, the FPSB identifies various Fundamental Financial Planning Practices that demonstrate a financial planner’s ability to:

• integrate the various Core Financial Planning Competencies and Financial Planning Areas

• understand and master the interrelationships among the various Financial Planner Competencies required to carry out a Financial Planning Function.

Financial Planning Areas of CompetenceThe Financial Planner Competencies are categorised into eight Financial Planning Components:

1. financial planning principles, process and skills

2. financial management

3. tax planning

4. asset management

5. risk management

6. retirement planning

7. estate planning

8. integrated financial planning.

These broad technical knowledge areas provide a framework within which the abilities and knowledge expected of a financial planner can be mapped.

ANALYSIS

COLLECTION SYNTHESIS

TAX RISK

FINANCIALMGT.

RETIREMENTESTATE

ASSETMGT.

Consider opportunities& constraints

Assessinformation

Develop/evaluate

strategies to create a

financial plan

Collectquantitativeinformation

Collectqualitativeinformation

F

unda

mental Financial Planning Practices

Figure 2: competency framework abilities and components

Source: financial planning standards Board, Financial Planner Competency Framework, fpsB, Denver, 2015, p. 7.

Body of knowledge for AustraliaThe ability to practise effectively as a financial planning professional requires the mastery of theoretical and practical knowledge in a broad range of financial planning and related topics.

We categorise the body of knowledge into 11 areas:

1. taxation

2. insurance

3. investment

4. retirement, savings and income programs

5. law

6. financial analysis

7. debt

8. economic and regulatory environment

9. government benefits plans

10. behavioural finance

11. ethics and standards.

These areas are further developed into Knowledge Topic Categories.

The Knowledge Topic Categories are published in Appendix A (see page 29).

Professional skillsThe FPSB competency framework identifies the professional skills that a financial planning professional must be able to draw on to deliver advice to clients in financial planning engagements. These are:

• professional responsibility

• practice

• communication

• cognitive.

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CFP® Certification process in AustraliaThe CFP Certification process assures the public that those whom the FPA has authorised to use the CFP Certification marks have met rigorous professional competency, ethics and professional practice standards.

To become certified, you are required to meet the following four initial certification requirements (known as the four ‘E’s):

• ethics

• education

• examination

• experience.

Students who are accepted for enrolment into the CFP Certification Assessment unit have satisfied the education criteria.

Following successful completion of the CFP Certification Assessment unit (the examination requirement), students may submit an application for admission as a CFP practitioner, at which point their experience and ethics prerequisites will be evaluated.

Being accepted to enrol in the CFP Certification Assessment unit does not imply that your application for admission as a CFP practitioner will be approved.

Professional Designations CommitteeThe FPA Board of Directors has established a Professional Designations Committee to oversee the structure, content and standards for admission as a CFP practitioner in Australia. The committee ensures that certification standards are safeguarded and impartial and are consistent with the requirements of FPSB. Further, the committee is charged with ensuring that FPA members and the broader public have confidence in the CFP Certification Program as the highest standard in financial planning.

Note: The Professional Designations Committee replaced the previous Board CFP Certification Committee in 2011.

Overview of CFP Certification Assessment The CFP Certification Assessment comprises the following components:

• comprehensive financial plan based on a case study

• observation

• record of experience

• examination.

Students are required to pass all components.

Each assessment component can be mapped to the FPSB Financial Planner Competency Framework. The diagram below is a summary of the mapping.

AbilitiesProfessional

skills Knowledge

financial plan—case study

• • •

Observation • • •

Record of experience

• • •

examination •

Appendix B (page 33) contains a complete matrix that maps the FPSB Financial Planner Competency Framework to the assessment components of CFP Certification Assessment.

Comprehensive financial plan—Case study

The financial plan assesses a student’s abilities, knowledge and written communication skills.

You are required to prepare a comprehensive financial plan (including a Statement of Advice) for a fictitious client or clients based on case study information that is provided. The issues presented in the case study are complex and of a level that a CFP practitioner is expected to advise on. The issues presented in the case study may not be representative of the issues normally dealt with by you in your current role.

Note: Students are advised not to rely exclusively on a Statement of Advice template used by their licensee. ASIC has stated that ‘the primary purpose of a[n] SOA is as a disclosure document’ (ASIC 2005), and the SOA might not satisfy the requirements of a comprehensive financial plan.

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Students will be assessed as either meeting the standard or not meeting the standard. Students need a score of 75% in order to meet the required standard.

Assessors will use a marking guide reflecting the relative importance of areas that need to be addressed in the financial plan. More information regarding the assessment of the financial plan is provided on page 22. Students who do not meet the standard will be provided with feedback on the areas that were not to the standard required. Assignments will not be returned to those students who have passed.

ObservationStudents’ communication skills are assessed on the job. The assessment can take place during a meeting with a new or existing client. The student’s internal assessor must attend the meeting, observe the student’s communication skills and complete the required documentation. Two observations will be required: one observation for an initial meeting with a client and a second observation for a meeting to present a financial plan. The observations can take place at any time.

Students will be assessed as either meeting the standard required or not meeting the standard. More information about the observation is provided on page 23.

Record of experienceThe practical application in the workplace of the technical knowledge gained through formal study is a key characteristic in the development of a professional financial planner. Completion of work experience under supervision will provide you with the support, expertise and advice of an experienced member of the financial planning profession and provide further public confidence in the quality of the advice offered by CFP professionals.

You must have a minimum of three years’ full-time or equivalent part-time experience, comprising:

• two years’ full-time or equivalent part-time indirect experience, and

• a minimum of one year full-time or equivalent part-time direct experience.

You must also be authorised to give financial planning product advice for the period of the direct experience for a minimum of 12 months.

Students will be assessed as either meeting the standard required or not meeting the standard. More information about the record of experience is provided on page 24.

Multiple-choice examination

The examination must comply with the standards set by the Financial Planning Standards Board. It is based on the level of skills and applied knowledge expected of a CFP® practitioner as described by the FPSB and adapted to the Australian financial planning industry.

The CFP Certification examination is a four-hour multiple-choice examination that covers the following six broad technical knowledge areas categorised by the FPSB as Financial Planning Components:

1. financial planning principles, process, and skills2. financial management3. asset management4. risk management5. tax planning6. retirement planning7. estate planning8. integrated financial planning.

The questions also draw on the 11 Knowledge Topic Categories (see Appendix A, page 29).

The examinations are designed to measure your critical thinking, analytical and evaluative skills. You must be able to apply your technical knowledge to a variety of complex financial planning scenarios. (The depth of technical knowledge required is higher than that stipulated in RG 146.)

If you do not deal with these technical areas as part of your current role or you have received exemptions for CFP 2 to 4, you are strongly encouraged to access source material to cover the content of the exam. All students are advised to research and prepare for the examination.

Since the examination is open book, preparation of your own notes for reference during the exam is recommended. Previously successful students have identified thorough preparation of reference notes as a key to success in the exam.

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The examination pass standard is set by the Professional Designations Committee. As Certification Assessment is the highest level of assessment to achieve CFP status, the examination pass standard must comply with standards set by the Financial Planning Standards Board and is based on the level of skills and applied knowledge expected of a CFP practitioner. The pass standard is determined using accepted methodology for professional certification exams. Students should expect a standard of around 70% in order to pass the examination component.

Standard required for certification

Students are required to pass all elements of the Certification Assessment in order to satisfy the examination requirement for CFP Certification.

The pass standard is approved by the Professional Designations Committee each semester.

After completing all components, students will receive an overall result. Students who have not been successful will be advised whether they are required to take one, two or all assessment components again in the following semester. You will be able to carry over any component to the next available semester. Results are given as either ‘standard satisfied’ or ‘standard not satisfied’. Individual results will not be released.

Useful technical resourcesThe following publications from CCH Australia may prove useful. Make sure that you obtain the most recent edition.

• Australian Master Financial Planning Guide

• Australian Master Superannuation Guide

• Australian Master Tax Guide

These references may also be helpful:

• A Guide to Australian Government Payments (updated quarterly, available on the Centrelink website at <http://www.humanservices.gov.au/corporate/publications-and-resources/a-guide-to-australian-government-payments>)

• FPA Code of Ethics and Rules of Professional Conduct (available on the FPA website)

• Taxpayers Australia, 2015 & 2016 Tax Summary.

CFP® Certification education materialsThe course materials for units CFP 2 to CFP 4 of the CFP Certification Program may be useful in preparation for the Certification Assessment and can be ordered from us. The order form is available from the Student Portal.

Gwen Fletcher Memorial AwardIn May 2014 the Gwen Fletcher Memorial Award was announced in honour of the late ‘First Lady of Financial Planning’. The award supports a key legacy of Gwen Fletcher’s lifelong endeavours to champion the vital role of education and its central importance in nurturing the financial planning profession. She was responsible for bringing the Certified finanCial Planner® designation to Australia back in 1990, and it is appropriate that we acknowledge our top students in her name.

Gwen Fletcher played a pivotal role in campaigning for, and organising, the merger between the International Association of Financial Planners (IAFP) and the Australian Society of Investment and Financial Advisers (ASIFA) to

become the Financial Planning Association of Australia in 1992. She also coined the title ‘Financial Planning Association’, which was subsequently adopted by the organisation in the US among other countries.

Each semester we will award a prize ($1000) to the highest achieving student in the CFP® Certification unit in all four pieces of assessment. For more information about the award, please email [email protected].

http://www.humanservices.gov.au/corporate/publications-and-resources/a-guide-to-australian-government-payments



6


Key dates for 2016Semester 1, 2016 Semester 2, 2016

Semester starts 1 march 19 July

Withdrawal—full refund

Withdrawal—partial refund

Withdrawal—no refund

Before 12 february

12 february – 18 march

from 21 march

Before 6 July

6 July – 12 august

from 15 august

Nominated internal assessor—due dates 27 february 12 July

Assignment extension date 26 april 13 september

Financial plan assignment due

Assignment resubmission due

27 april

15 July

14 september

2 December

Observation documentation due 13 april 31 august

Record of experience due 13 april 31 august

Examination 17 may 6 October

Results release 17 June 4 November

Note: The financial plan must be received by the due date. It can be uploaded electronically to the FPA Student Portal up until 3.00 p.m. Melbourne time* on the due date. Please ensure that you upload your assignment and attachments using the following format. Student Number_CFPC_Assignment For example: 321456_CFPC_Assignment You can upload your appendices separately using the following format. Student Number_CFPC_Appendices For example: 321456_CFPC_appendices Mailed, faxed or emailed assignments will not be accepted. Please refer to page 11 for extensions.

Webinar dates for 2016Semester 1, 2016(Melbourne time)

Semester 2, 2016(Melbourne time)

assignment webinar part 1 11 march, 2.00 p.m. 2 august, 1.30 p.m.

assignment webinar part 2 16 march, 2.00 p.m. 5 august, 1.30 p.m.

examination webinar 4 may, 11.30 p.m. 21 september, 1.30 p.m.

On the FPA Student Portal, we have uploaded copies of the recorded webinars for CFP 1 to 4 if you need a refresher in any of these units. These recorded webinars can be viewed at any time.

* Melbourne is in the Australian Eastern Standard Time (AEST) zone. Daylight saving is observed in Melbourne, with Australian Eastern Daylight time starting on the first Sunday in October and ending on the first Sunday in April. In 2016, AEST begins on 28 March and ends on 2 October. For more details go to <http://www.australia.gov.au/about-australia/our-country/time>.

http://www.australia.gov.au/about-australia/our-country/time

7


Where to send your assessments and other formsAddress/Website

Assignment (financial plan) Upload electronically via the fpa student portal

Nominated internal assessor [email protected]

Observation Upload electronically via the fpa student portal

Record of experience Upload electronically via the fpa student portal

Associated forms (i.e. extension, withdrawal) education Team

[email protected]

Assignment resubmission Upload electronically to the fpa student portal

Designation application member services

fpa

GpO Box 4285

sydney NsW 2001

8


CFP 2 Applied Strategies 1

Introduction to strategy development• What is strategy?

• The strategy development process

• Developing client-centred strategies

• Generating, selecting and presenting strategies

• Conducting a review of strategies

Applied structures• Structures in the context of client strategy

• Taxation of structures

• Individual ownership/sole trader

• Is the individual a resident of Australia?

• Partnerships

• Joint ventures

• Trusts

• Superannuation structures

• Interrelationship of structures

• Strategies using structures

Risk management strategies• Analysing client exposure to risk

• Educating the client

• Identifying suitable strategies

• Recommending suitable policy ownership

• Appropriate products or policies

• Personal and business risk

• Estate planning

Debt management strategies• Entering debt arrangements

• Legislative reforms

• Cost of borrowing

• Consumer debt

• Building wealth with debt

• Reducing the risk of debt

• Effect of debt on estate planning

• Debt management checklist

Salary packaging strategies• Salary packaging basics

• Fringe benefits tax

• When packaging may not be effective— Fully taxable fringe benefits

• Reductions in FBT

• Calculating the tax efficiency of packaging

• Salary packaging a motor vehicle—Concessionally taxed fringe benefits

• Salary sacrifice into superannuation— Not subject to FBT

• Employee share schemes—Not subject to FBT

• Exempt fringe benefits

CFP 3 Applied Strategies 2

Leaving the workforce: Issues and strategies• Shifting demographics

• Baby boomers and saving

• Financial advice and retirement

• Life issues for retirees

• Retrenchment and redundancy

• Illness or accident

• Employment termination payments

Superannuation strategies• Changing shape of the superannuation industry

• Contribution strategies

• Superannuation benefits

• Investments in superannuation funds

• Income streams: Pensions and annuities

• Splitting superannuation on divorce

Pension and benefit strategies• Income and support payments

• Income and assets testing

• Gifting

• Overseas entitlements and dual arrangements

• Pensions and benefits strategy integration

• Living arrangements

• Using home equity to supplement retirement funding

• Concession cards

• Rural issues

• Centrelink tips and traps

• Appeals process

Topic areas for CFP 2 to CFP 4

9


Estate planning strategies• Role of the financial planner in estate planning

• Superannuation death benefits

• Insurance in superannuation

• Jointly made agreements

• Process of probate

• Challenges to deceased estates

• Business succession planning

• Taxation issues

• Capital gains tax and deceased estates

Strategies for expatriates• Costs of relocating

• Is your client a resident of Australia?

• Double tax agreements

• Ten key tax-planning concepts for non-residents

• Why expatriate clients should consider investing back into Australia

• Superannuation

• Tax consequences of returning to Australia

• Australian tax implications of retaining offshore investments

CFP 4 Investment Strategies

Advice process of portfolio construction• Traditional portfolio construction process

• Changing face of advice

• Enhancement to the traditional process

• Applying the enhanced process to specific clients

Asset allocation and risk• Asset allocation

• The process for developing the asset allocation

• Tactical asset allocation

• Dynamic asset allocation

• Investment risk

• Strategies to reduce investment risk

• Measure of portfolio risk and return

• Revisiting client objectives and current circumstances

• Rebalancing portfolios and maintaining the path to a client’s objectives

• Investment disasters

Investment strategies and structures• Core plus satellite approach

• Multi-manager investment strategy

• Model portfolios

• Wraps and master trusts

• Investor directed portfolio services

• Retail managed funds

• Managed discretionary accounts

• Direct investments

• Shares

Investment managers and products• Investment managers

• Funds management industry background

• Investment approaches

• Industry gatekeepers

• Overview of fixed interest investment approaches

• Specific investment products

• Australian versus international shares

Alternative investments• Hedge funds

• Derivatives

• Infrastructure

• Private equity

• Commodities

Exchange-traded products • Exchange-traded products

• Exchange-traded funds

• Exchange-traded managed funds

• Comparison of investment structures

• Investing in ETFs

• ETFs and portfolio construction

• Future outlook of ETFs

Applied decision making• Applying theory to client scenarios

• Insurance risk

• Returns and inflation

• Portfolio monitoring and review

10


Confirmation of enrolmentFollowing the receipt and approval of the CFP Certification enrolment form, you will be sent log-in and password details by email to enable you to log into a secure website. All information regarding policies and the assessment components will be posted on the website at <https://fpa.cls.janisoncloud.com>.

The details of the financial plan—case study for Semester 1, 2016 will be available on the FPA Student Portal at <https://fpa.cls.janisoncloud.com> on 1 March 2016.

The details of the financial plan—case study for Semester 2, 2016 will be available on the FPA Student Portal at <https://fpa.cls.janisoncloud.com> on 19 July 2016.

Chat roomsWe provide you with an opportunity to be in contact with other students for the purposes of exchanging ideas and study techniques via the chat room on the FPA Student Portal.

Study groupsSelf-managed study groups have been set up for your use.

It will be up to you to organise the logistics of the group. You need to go to the Study Group – Connect With Your Fellow Students section of the Student Portal and reach out to other students.

Learning materialsThe CFP Certification Assessment unit is the final evaluation of your readiness and ability to meet the CFP Certification Standard. The education pathway and experience in the financial planning industry contribute to your preparedness for the Certification Assessment unit.

As the unit is not part of an education program but a certification process that is aligned to the global standard for financial planning, learning materials are not supplied.

Please refer to page 5 for suggested resources.

WithdrawalYou can elect to withdraw from the CFP Certification Assessment and receive a refund less administrative fees—see ‘Key dates’ on page 6 of this handbook for withdrawal date details.

If you withdraw after the last date for withdrawal you will be required to reapply and enrol at the next available offering of the CFP Certification Assessment. No refund applies.

Special examination arrangementsIf you are absent for the whole or a part of an examination due to ill health or other serious cause, you need to contact us at the FPA. Conditions apply and such arrangements are not automatically available. Any costs associated with a special examination are borne by you.

Special arrangements for observation assessmentThe observation assessment can be incorporated into your daily activities. The observations can take place at any time, but all documentation for each semester must be uploaded to the FPA Student Portal by the advertised date in order for the result to be processed for the relevant semester.

CFP® Certification policies

https://fpa.cls.janisoncloud.com





11


Extensions to due datesExtensions to due dates will generally not be granted. However, in exceptional circumstances an extension may be granted provided it has been applied for and agreed to by us prior to the due date. Refer to the ‘Key dates’ section on page 6.

To apply for assessment extension, you will need to complete the form and return it to us. The form is available on the FPA Student Portal.

The following circumstances will not be considered:• holidays

• seminars

• heavy workload

• business trip

• personal matters

• minor medical ailments

• non-attendance due to misreading the information supplied.

Unauthorised extensionsThe assignment will be accepted and marked up to one week after the due date. However, please note that the Marginal Result Review Policy will not apply and you will forfeit the right to an assignment resubmission.

Special considerationIf your performance in an examination or other assessment has been affected by illness or other serious cause, you may apply for special consideration. Please complete the form on our website and email it to us for special consideration. A medical condition or other unusual circumstance of fewer than four (4) consecutive days’ duration immediately prior to, or inclusive of, the assessment due date will normally not be considered sufficient grounds for special consideration.

Applications should be lodged either immediately after the occurrence or not later than 48 hours after the date of the examination or assessment deadline. An application for special consideration must be supported by appropriate evidence, such as a medical certificate.

Such evidence may be submitted separately from the application itself, as long as it is received no later than five working days after the examination or assessment deadline.

No application will be considered after the publication of results.

Assessment irregularityIrregularity is the unauthorised use or attempted use by or for any student of any means to gain an unfair advantage in an assessment component. It includes any action taken by a student that would constitute an unfair advantage or any intentionally fraudulent act to demonstrate competency in any assessment component. An irregularity includes misconduct, plagiarism and collusion.

When an apparent irregularity is suspected in an assignment, examination, essay, performance, exhibition or other piece of work for assessment, the member of staff who detects the apparent irregularity will inform us.

We will assess whether there is prima facie evidence to suggest that there has been an irregularity. If we deem there is insufficient evidence to suggest that an irregularity has occurred, we will conclude the matter. At this stage no penalty will be applied to the student and no notation will be made on the student’s record.

If we believe that there may have been an irregularity, the matter will be referred to our Policy Conduct Team for investigation. The piece of assessed work in which the irregularity is suspected will be retained by us and the result withheld until the investigation is complete. Further information is available in Appendix C (see ‘Academic misconduct policy’ on page 40).

12


ResultsProgressive results for the components of the CFP® Certification Assessment are not available. The final result for Semesters 1 and 2 in 2016 will be advised to students on the advertised date.

The result of the Certification Assessment is ‘CFP Certification Standard satisfied’ or ‘CFP Certification Standard not satisfied’. The primary goal of the Certification Assessment is to separate those who have met the certification standard (satisfied) from those who have not (not satisfied).

The following result categories are used to record the performance in the assessment:

Code Result descriptor

p cfp certification standard satisfied

f cfp certification standard not satisfied

RI Result incomplete

RW Result withheld

Individual scores, percentages or grades are not provided for any section of the Certification Assessment.

SMSYou will receive your results via an SMS message at 9 a.m. (AEST or AEDT) on the advertised result release date. Information regarding the results release is available from FPA Student Portal.

FPA Student PortalYou are able to access results on the advertised date on the FPA Student Portal. To access the portal, you will require your student number and unique password. If you do not have your username and password, you can contact [email protected] for the information to be reissued.

Statement of ResultsA Statement of Results will be available for you to download via the FPA Student Portal on the advertised result release date. If you have misplaced or lost any previous Statement of Results, complete the form on our website and email it to us. Please note that there is a replacement fee.

Marginal result review policyWe will ensure that a review has been carried out on the marks and examination results of all students who are identified as having failed an assessment component or whose results are on the borderline between a pass and a fail result.

Feedback to studentsIf the result is that the CFP Certification Standard is not satisfied, you will be advised of the result for each assessment component (CFP Certification Standard satisfied/CFP Certification Standard not satisfied). You can carry over any successful result to the next semester.

Students who fail to reach the required standard for the exam will receive feedback on the topics on which their exam performance was below the required standard. Score percentages or grades are not provided on the exam.

Students who fail to reach the required standard for the financial plan—case study will receive feedback on the areas of the plan that require improvement. The financial plan is not returned to students.

Resubmission optionIf you receive a score of 65% or above in your assignment, you may be eligible for a resubmission.

Students whose papers are identified by the assessor as eligible for a resubmission will be able to redo the problem areas identified by the assessor. You will be provided with a detailed feedback sheet which addresses the areas of weakness.

It is therefore expected that the submission will be smaller than the original (e.g. appendices would only be included if specifically requested by the assessor).

Students must address all the areas identified by the assessor. It is not sufficient to aim only for the missing marks. A new percentage mark will not be awarded. The final grade awarded will be ‘standard satisfied’ or ‘standard not satisfied’ and the assessor’s decision will be final.

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Resubmission process• You will receive your assessor’s feedback with your

overall result on the advertised results release date.

• In a separate email, the FPA will forward you a resubmission form for you to complete and return to us within five days of receipt of your result.

• You will need to complete the form, including payment details, and return it to us at:

[email protected]

The cost for this resubmission is $625 (GST exempt).

The assignment resubmission is due 20 business days after receipt of results. You will need to complete the resubmission and email the assignment to [email protected]

Resubmissions must be made by the due date and there will be no extensions. Your resubmitted work will be sent to the assessor. Changes in the resubmitted work should be readily identifiable to assessors. This can be achieved by using a contrasting font colour, such as red. Your results will be available within 20 business days of receipt of your resubmission.

Feedback to the Professional Designations CommitteeThe Professional Designations Committee will review feedback about the assessment components but will not make written responses to comments.

Past examination papersAll examination booklets, answer sheets, assessment documents, comments, assignments and assessment material or calculation of assessment marks are the property of the FPA.

Exam material is not available for review.

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Due date:

(refer to page 21 for more information)

semester 1, 27 april 2016

semester 2, 31 august 2016

Last date for extension requests:

semester 1 5 p.m., 26 april 2016

semester 2 5 p.m., 30 august 2016

Page length: maximum 55 pages (excluding appendices)

Standard required: students require a score of 75% in order to meet the required standard.

The case study facts will be available on the FPA Student Portal at the start of the semester.

As a part of the CFP Certification Assessment, successful completion of this assignment is essential. You are expected to devote sufficient time to the preparation of the financial plan to cover each of the 15 essential steps or elements to be included in the body of the plan. The 15 steps (see pages 16 to 18) are those required to develop a plan to CFP Certification Standard.

You are invited to attend the webinar, which will give you information about the requirements needed to complete the assignment. The webinar is in two parts over two separate days. Please see the advertised dates and times on page 6.

The submission should clearly demonstrate your capacity to develop a sound financial plan, supported by technical and professional knowledge and skills. In essence, the requirement of this assignment is to produce a technically sound plan that reads logically and succinctly and conforms to regulations and legislation.

The assignment requires the preparation of a comprehensive financial plan, not a commercial Statement of Advice.

Any appendices included as additions to the body of the plan must be relevant to the client’s circumstances and must be cross-referenced from the relevant section of the plan.

Key points to consider in developing the financial planThe financial fact finder is the basis for your recommendations. You are required to prepare a comprehensive financial plan (not a commercial Statement of Advice) that succinctly addresses the client’s needs, concerns and financial objectives.

Explanations must be clear and concise, in terms the client would understand. You must demonstrate your understanding of any related technical issues by referring to them as necessary at appropriate points in the plan.

Your explanations must be clearly framed in the context of the client’s situation. The inclusion of technical material of a generic or general nature, that is, material not clearly linked to the client’s specific needs, concerns and financial objectives—will not be considered favourably.

Appendices and attachments can be useful supports to your plan. You should use them sparingly so that they enhance the clarity of the proposed plan. They must therefore be clearly relevant and cross-referenced to the body of the plan. Appendices of a general nature that are not relevant to the plan content or the client’s situation will not be considered favourably.

Use of financial planning softwareFinancial planning software may be used to provide projections to support your calculations. The software should be appropriately referred to in your reference list or as a footnote to the page on which it appears. Certainly, scenarios may be created by the software for you to discern what may be the best approach for your client. However, should only this material be used to generate your financial plan, or if indeed software has determined your strategy without any need for your input as a planner, this will be deemed unacceptable. You should ensure that the plan you submit demonstrates your understanding of the rationale required to make a recommendation that is appropriate to the client’s situation, goals and concerns raised.

Financial plan

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Inclusions not requiredDo not include any of the following in your plan: research profiles, investment memoranda, insurance quotations, product brochures, prospectuses or any product advertising material.

To demonstrate your knowledge of the above documents, the first page of the appendices should ideally provide a list of the documents that would ordinarily be provided to the client. The plan should still make reference to ‘research reports provided’, and so on, to satisfy the requirements of providing such material.

ComplianceThe plan must demonstrate a clear understanding of the following:

• all ASIC compliance requirements (i.e. Corporations Act 2001 (Cwlth), including the Financial Services Reform Act)

• all FPA ethical and compliance requirements.

The licensee for this assignmentFor the purposes of this case study you are to assume that you are an authorised representative of Creative Planning Securities Ltd, ABN 33 354 235 333, the holder of an Australian Financial Services Licence (AFSL number 123456) and Australian Credit Licence 123456.

The Australian Financial Services Licence authorisation conditions and the scope of your authorised representative status permit you to provide the financial services of advising clients and dealing in the following financial products on behalf of the licensee:

• deposit and payment products, including:

– basic deposit products

– non-basic deposit products

– non-cash payment products

• derivatives restricted to old law securities options, contracts and warrants

• general insurance products, including business and health insurance

• government debentures, stocks and bonds

• interests in managed investments, including investor-directed portfolio services

• investment life insurance products

• life risk insurance products

• retirement savings accounts

• securities, including debentures of a body corporate

• margin lending and other gearing strategies

• superannuation.

Creative Planning Securities Ltd is a wholly owned subsidiary of Gateway Life Ltd, ABN 33 354 235 444, AFSL number 23354A. You have access to, and are authorised to advise on and deal in, a range of personal insurances, including life, trauma, disability and income protection, as well as on general insurance products, such as house, contents, motor vehicle, health and business insurance. These insurances are from a range of companies, and while they include Gateway Life Ltd they are not necessarily limited to this.

Creative Planning Securities Ltd authorises you to advise on and deal in products included on the licensee’s approved product list. Creative Planning Securities Ltd holds an Australian credit licence under the National Consumer Credit Protection Act 2009 (Cwlth) (the National Credit Act), and you are also authorised by Creative Planning Securities Ltd to provide strategic credit advice.

While it is not appropriate to provide advice regarding direct property acquisition or sale, such as that offered by a real estate agent (unless you hold appropriate accreditation), it is appropriate to provide general strategic advice regarding such an asset as part of your consideration of the strategy the client should adopt and their asset allocation. For instance, as part of SMSF strategic advice you could recommend that the client purchase a direct property, but you would then refer them to a real estate agent to complete the transaction because you cannot provide recommendations to specific properties or their location. Creative Planning Securities Ltd has also registered you with the Tax Practitioners Board as a tax (financial) adviser and your user name is: 12345678.

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Recommended productsFor the purpose of product recommendation—both investment and insurance products—use products that you are familiar with, whether they are on the recommended list you work from or are products of which you have some knowledge. If you are not currently working with a recommended list and are unfamiliar with specific financial products, you may create products for the purposes of this plan. If you are to take this measure, be sure to make the products ‘true to label’ in their product features, descriptions and, in the case of investment products, their asset allocation. Note that, due to Creative Planning Securities Ltd being a wholly owned subsidiary, you are not able to claim that your advice is independent; also note that section 923A of the Corporations Act establishes strict criteria for the use of the words ‘independent’, ‘impartial’ and ‘unbiased’ by the providers of financial services.

As an authorised representative of Creative Planning Securities Ltd, you may charge fees, a commission or a combination of both, using a placement fee.

Commission may be rebated to the client where a fee is charged, but standard commission must first be shown, then the effect of the rebate. This is also the case where a portfolio monitoring or review service is offered.

Creative Planning Securities Ltd is a Professional Practice, and may use the FPA’s Professional Practice logo in any advertising or marketing material.

Referral to external professionalsIn normal commercial practice, if parts of your work require referral to external professionals (e.g. lawyers, accountants), it is expected that the strategic advice on the recommended structure of the client’s situation resulting from this consultation will be provided in the body of the client’s financial plan.

Such advice must be integrated into the plan document as part of the recommendations to the client in a way that supports the assessment criteria of providing the client with a document that logically communicates your solutions.

Please be aware that it is not acceptable to simply state that a matter will be referred to a professional without any direct discussion of the problem at hand or some form of solution to the problem identified.

However, you do not need to prepare or provide a copy of referral letters to other professionals.

Other sources of informationThe use of material from other sources must be appropriately acknowledged and referenced. Paraphrasing or quoting of a source without including an appropriate reference is plagiarism and will be penalised or investigated under the definition of assessment irregularity. The opinions or words of others should not be presented as if they were your own, and all such sources must be acknowledged appropriately.

For the purposes of estate planning, the client comes under the jurisdiction of your own state or territory.

Steps in developing the planThe following is an outline of the steps you should take to cover the 15 essential elements that your developed plan should demonstrate. The associated questions are to give you an indication of the types of issues that should be addressed.

Please note that the associated questions may not represent all of the considerations necessary for satisfactory coverage of each of the steps. There may well be other issues that need to be discussed. Similarly, some questions may not be directly relevant to the case in question.

Also note that in developing a logical sequence for your plan, these steps might not necessarily occur in numerical order. The order will in part be determined by the strategy priorities established for the client.

This assignment aims to assess your ability to put all of the 15 steps of plan preparation into practice and to test your ability to give appropriate and focused advice.

You must provide a comprehensive explanation of all pertinent issues. Marks will be deducted if information is included in your plan without an explanation of its relevance to these clients.

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Step 1: Gather client dataThe interview you have with the client should initiate enough data to give you a comprehensive understanding of the client and their approach to a range of issues, in particular the development of a clear risk profile.

Issues include:

(a) What is the client’s view of risk and investment preferences?

(b) How is the client data to be stored for compliance purposes?

Step 2: Goal and objective identificationIssues include:

(a) Are the client’s goals realistic and achievable?

(b) What are the true factors that motivate them?

(c) How much capital would be needed to meet their retirement goals?

(d) Is capital likely to remain intact or diminish in value in relation to the nominated life expectancy?

(e) Do they have the savings capacity and can it be increased?

Step 3: Issue and problem identification

(a) What are the existing concerns?

(b) Are there any potential and future problems?

(c) Does the client have a manageable debt level?

(d) Is the stated risk profile consistent with the expressed concerns?

Step 4: Assumptions (financial and technical)How do the following impinge upon the plan?

(a) tax rates (current financial year)

(b) inflation (assume an annual CPI increase of 3%)

(c) average weekly ordinary time earnings (AWOTE) indexation (assume 3.5%)

(d) investment earnings (assumptions about rates of return must be realistic and reflect industry norms—see ‘A word about projections’ on page 19)

(e) Australian Life Tables 2010–12, from the Australian Government Actuary

Note: These assumptions must be identified in the body of the plan, not on the A4 page where points of clarification regarding the client interview are to be recorded.

Step 5: Balance sheet or net worth nowIn what ways will the following issues affect the construction of your plan?

(a) investment assets

(b) personal use assets

(c) loans

Step 6: Cash flowIssues include:

(a) What is the income need of the client?

(b) Will the client’s income needs be met over the next 12-month period?

(c) How will you demonstrate to the client that their continuing income needs will be met up to and throughout retirement?

Step 7: Income taxWhat are the fundamental tax issues that need to be addressed?

(a) current tax

(b) recommended tax structures

(c) proposals for reducing tax

Step 8: Risk management and insuranceHow will your plan reflect the key issues in risk management?

(a) What are the insurance needs?

(b) How appropriate is their current insurance—both level of cover and structure?

(c) What additions or modifications are required to their current insurance cover and why? What levels of cover are required? Have you considered all forms of personal risk and general insurance?

Step 9: InvestmentsHow will you demonstrate that you appreciate the client’s investment status and on what basis will you make recommendations? Aspects to include:

(a) analysis of current investments to meet nominated goals and issues

(b) description and analysis of recommended investments to meet nominated goals and issues

(c) consideration of asset allocation with respect to the client’s risk profile.

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Step 10: Retirement planningThe client wishes to retire within a specific time frame—how best will you help them plan for this? Consider and demonstrate:

(a) current investment choices

(b) estimated outcomes of the recommended strategies over time

(c) eligibility for social security benefits.

Step 11: Estate planningQuestions, issues and strategies to consider include:

(a) Are there sufficient assets (e.g. investments, life insurances) to meet the client’s wishes?

(b) Are there appropriate mechanisms in place to ensure that assets (in terms of ownership or control) are transferred to the appropriate person or entity?

(c) When should assets be transferred or sold, and by whom?

(d) What taxation implications are there (e.g. capital gains tax)?

(e) Are there appropriate powers of attorney?

Step 12: RecommendationsHow will you rationalise and provide a strong argument that the recommendations you make have the capacity to meet the client’s goals and objectives? Consider:

(a) cashflow strategy

(b) investments

(c) investor’s risk tolerance and profile

(d) insurance needs.

Step 13: ImplementationThe plan must demonstrate how you will put the recommendations into place. An action list should provide a summary of what needs to be done, by whom, and by what date. An Authority to Proceed should accompany the plan.

Step 14: Periodic reviewYou must indicate benchmarks to the client’s current financial position and expected position at the time of review.

(a) What level of service is proposed? (And how will you justify this, given the client’s needs and circumstances?)

(b) How often are reviews to be carried out?

(c) Are there any other features and benefits?

(d) What is the cost of the service?

Step 15: Compliance and legal requirementsYour submission must comply with all legal and other standards.

It is imperative that you thoroughly familiarise yourself with ASIC policy statements on disclosure and other relevant matters. In addition, you should review the FPA Practice Standards which can be found at <www.fpa.com.au/professionalism>.

Note: Failure to comply with either the Corporations Act, including the Financial Services Reform Act, as expressed through the ASIC policy statements and the FPA Code, or errors in dealing with compliance requirements, will be penalised.

Disclosure of capacityWe recommend that you meet your obligation of disclosure of capacity (i.e. planner’s identification, licensee identification, and relationship between planner and licensee) through the cover sheet and accompanying letter (with appropriate letterhead).

Disclosure of interestsTo meet the disclosure of interests requirement, we recommend that the plan contain a separate ‘Disclosures’ section, identified as such in the ‘Table of contents’ page.

It is not only important to disclose all fees, commissions and so on—they should also be clearly presented to the client in such a way that they can readily determine the total costs of the recommendations.

Note: All commissions, even if fully rebated, must be disclosed.

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DisclaimerYou are required to communicate clearly to the client any limitations to the advice given. You are advised to do this in your plan through a formal ‘Disclaimer’ section.

Addressing the client’s risk profileIt is imperative that the client be given a clear explanation of their risk profile and how this will affect appropriate investment strategies. You should address the relationship between the client’s stated risk profile and their financial concerns, as well as the asset classes and products recommended.

A word about projectionsIt is important that you base your projections on realistic assumptions about rates of return and economic factors. Such rates and information could be based on estimates from reputable research houses or other reliable sources recognised within the financial planning industry. However, it is preferable that they satisfactorily reflect expected rates of return in accord with risk profile parameters determined by your licensee.

Diagrams and tablesWhen included in the main text, diagrams and tables should be clearly and fully analysed and explained. Do not assume that the data supplied in diagrams and tables are self-evident. Always consider using tables or diagrams if they would add to a client’s understanding. Diagrams and tables should be clearly titled and numbered sequentially.

AppendicesSome data is more conveniently placed in an appendix rather than included in the main text. However, remember to be selective of the data included and indicate in the main text why an appendix is included and what it shows. If data is to be placed in an appendix, this must be clearly referenced in the body of the plan. It is not appropriate to place information in the appendices that should have been included in the body of the plan. Where this occurs, a penalty will apply.

Presentation guidelines

Order of pagesThe pages of the assignment must be numbered consecutively (the executive summary should be numbered page 1) and arranged in the following way:

• interview—points of clarification

• covering letter

• title page (cover sheet)

• table of contents (separate page)

• executive summary (start on a new page: page 1)

• body of the plan

• appendices (start each on a new page)

• references.

Interview—Points of clarificationAs you read through the financial fact finder and review the supplied client data, you may find that if you had performed the interview yourself you would have explored some points more fully, and that further clarification is required for you to be able to complete the plan.

Since there is no further information beyond the data provided, you may use the ‘clarifications’ page to make assumptions that are appropriate (e.g. client consideration to dispose of an asset such as the principal residence). The overriding determinant is that the ‘clarifications’ do not vary the parameters of the case study, such as discovering an inheritance.

In order to clarify the situation upon which you will base your plan:

• set out clearly the points that clarify the situation in bullet point form, limited to one A4 page; this page should be headed ‘Interview—Points of clarification’

• place your ‘Interview—Points of clarification’ in front of the first page of the plan.

This page does not form part of the plan and does not count towards the 55-page limit.

If this page is used to resolve issues, such as the risk profile, that should be investigated, discussed and resolved in the body of the plan, a penalty may apply.

Do not simply repeat given case study facts here. As these have already been identified, they do not require clarification.

Material included must not only state what you want to know, but must also resolve those issues that are not clear to you.

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Table of contentsA table of contents lists all headings used in the assignment in the same order that the headings appear in the assignment.

Next to each heading, the number of the page upon which the heading can be found is given. For example (incomplete):

Table of contents

executive summary 1

present position 3

financial objectives 7

appendix a—e.g. Risk profile 56

appendix B—e.g. financial statements 59

Number pages of the SoA and appendices consecutively. Do not recommence numbering at the first page of the appendices.

Executive summaryThe financial plan must contain an executive summary (no more than two typed pages when formatted). This should be addressed under four subheadings:

• ‘Statement of present position’• ‘Objectives’• ‘Strategies and recommendations’• ‘Projections’.

The executive summary should be in précis form and be able to stand alone as a document of information to the client.

Body of the planAfter the contents page and executive summary, the structure of the plan is a matter of professional judgment. Regardless of the way the information is presented, it must be logical and facilitate the client’s understanding of the plan. All 15 essential elements must be included within the body of the plan as this is the criteria against which the plan will be marked.

Refer to pages 16 to 18 for the 15 essential elements that your developed plan should demonstrate.

Appendices and attachmentsAppendices and attachments can be useful supports to your plan. You should use them sparingly so that they enhance the clarity of the proposed plan. They must therefore be clearly relevant and cross-referenced to the body of the plan. Appendices of a general nature that are not relevant to the plan content or the client’s situation will not be considered favourably.

Note: Financial statement projections should normally be included within the appendices but can be shown within the SoA if desired.

Formatting guidelinesPaper

All assignments should be typed on A4-size paper only.

Line spacing

Single-line spacing must be used throughout the assignment.

Margins

Use uniform margins of 2.5 cm at the top, bottom, left and right of every page.

Fonts

Use Times New Roman only and a minimum 12-point font.

Numbering pages

Number all pages consecutively.

The executive summary should be numbered page 1.

Layout

Take particular note that use of generic layouts may not necessarily satisfy the requirements for a comprehensive financial plan, as there may be insufficient information for satisfactory quality and depth.

Length

The body of the plan is limited to 55 pages (based on single-line spacing, fonts and margins as previously stated, and appropriate use of tables, graphs or figures). The body of the plan does not include the clarification of the client interview, covering letter, title page (cover sheet), table of contents, appendices or the references page.

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All other material, including the executive summary, counts towards the 55-page limit. It is recommended that a maximum 20% of the plan should be allocated to investment strategies; however, this is to be construed as guidance only.

A 10% penalty will apply where the body of a financial plan exceeds 60 pages. Students penalised for excess length will also forfeit the opportunity to gain a conceded pass if they pass the assignment but receive a marginal fail for their examination.

Proofreading

Proofread and spell check the assignment carefully (or ask someone else to do so) before submission. Do not rely on a computer spell-checking or grammar-checking program—do this yourself.

It is advisable that you, and preferably someone else as well, read your assignment thoroughly before submitting it.

Due dateIt is essential that the financial plan be uploaded to the FPA Student Portal by the date stipulated.

Submissions will be accepted and marked up to one week after the due date. However, please note that the marginal result review policy will not apply and you forfeit the right to an assignment re-submission if the submission is an unauthorised extension. Please refer to page 6 for due dates and page 11 for extensions.

Submissions received more than one week after the due date without extension approval will not be assessed. You will receive a result of ‘CFP Certification Standard not satisfied’.

Before submitting the financial plan, make sure that all key areas have been addressed and that all pages and necessary documentation are included in the submission.

Additional parts of the financial plan ‘inadvertently’ left outJust as it is unprofessional to forward additional bits of a financial plan after its completion and delivery to a client, it is considered unprofessional to forward an incomplete plan and expect that additions will be accepted.

Therefore, amendments or parts of a financial plan ‘inadvertently’ left out of the first submission and sent at a later date will not be accepted.

Your first submission is the only submission that will be assessed.

The onus is on you to check and proofread your work thoroughly prior to submission.

Copies of your planEnsure you keep an electronic copy of the final

version of your assignment for your records.

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Assessment criteriaGeneral criteriaAssessors will look for the following:

• attention to all key areas (15 steps in preparing a plan to CFP® Certification Standard)

• relevance and attention to the specific client situation

• depth of analysis of client-specific situation

• appropriateness of financial ‘solutions’

• demonstrated understanding of financial planning principles and concepts

• quality of presentation of the plan—logical structure, language suited to the client, use of tables, diagrams and so on to aid client understanding

• accurate use of terminology

• accuracy of calculations

• compliance with all ASIC and FPA Code requirements.

Specific criteriaThe following are the areas that will be considered when assessors are marking the plan.

The following mark allocation is a guide only. The final allocation of marks will depend on the specific case study facts and is discussed and agreed upon by the CFP Certification assessors at the assessors standardisation meeting.

Sample mark allocation (this is an indication only)

Section Mark allocation

Compliance 4

Contents page 2

Executive summary 5

Present position 4

Financial objectives 4

Risk profile and concerns 8

Investment strategies 18

Insurance 8

Estate planning 10

Investment product selection 5

Action to proceed 4

Ongoing service and review 4

Financial statements 8

Assumptions 4

Overall presentation 12

Note: No more than 20% of your plan should be related to investment strategies.

Study groupsThe forming of groups to share ideas and define the requirements of assignments is an acceptable and encouraged learning practice. However, it is neither acceptable nor ethical for members of a study group to submit answers or parts of assignments that are substantially similar or identical to the work of others. All work submitted for assessment must represent an individual’s own interpretation of any discussions or projects undertaken in a group.

Any incident of suspected collusion will be referred to us for review under the academic misconduct policy. Refer to page 40 in Appendix C at the back of this handbook.

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Observation

Purpose of assessment by observationThe Financial Planning Standards Board has identified the professional communication skills that are necessary to deliver financial planning at an appropriate level of competence and professionalism:

Professional skills—Communication

ps.301 Gives attention to what the client and others are saying and takes time to understand the points being made

ps.302 establishes good rapport with the client and others

ps.303 communicates information and ideas orally in a manner understandable to the client and others

ps.304 communicates information and ideas in writing in a manner understandable to the client and others

ps.305 presents logical and persuasive rationales

ps.306 Deals effectively with objections and complaints

ps.307 Gains agreement with the client and others

As a prerequisite for admission as a CFP professional, you are required to complete a minimum of 12 months’ experience providing face-to-face comprehensive financial planning advice to clients. Accordingly, the assessment of your professional communication skills can be completed as part of your day-to-day activities.

The observerIdeally, the internal assessor should hold CFP Certification but we understand that this might not be practical. However, they must have knowledge and experience in the financial planning process. You need to nominate your internal assessor before you begin your observations. Complete the nomination form and email it to [email protected]. The form is available on the FPA Student Portal. Your nomination needs to be submitted within the first week of semester.

Format of assessmentThe assessment can take place during a meeting with a new or existing client. Your internal assessor must attend the meeting, observe your communication skills and complete the required documentation. There are two observations: one observation with a new client and a second observation with a new or existing client.

* The observations can take place at any time, but all documentation must be received at the FPA by the advertised due date in order for the result to be processed for the relevant semester.

Suggested client meeting and observationObservation one—Initial meeting with clientAn observation is required where you can demonstrate compliance with industry regulations (such as the presentation and explanation of the financial services guide (FSG)), the ability to establish good rapport, and the ability to understand the needs of the client.

Observation two—Presentation of a financial plan (Statement of Advice)An observation is required where you demonstrate the ability to communicate the strategies contained in the financial plan in a clear, concise and easily understood dialogue with the client.

Documentation*

The following documents can be downloaded from the FPA Student Portal from the start of semester.

• guidelines for assessment by observation

• your nominated internal assessor form

• Observation document 1—Initial meeting with a client

• Observation document 2—Meeting to present a financial plan

Validation of assessmentsThe FPA may contact you or your internal assessor to discuss any aspect of the observations.

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Purpose of assessment by record of experienceThe record of experience is used to confirm the application of learning and competence developed through the CFP Certification Program. Accordingly, it confirms that the practical activities undertaken in the workplace are consistent with our definition of appropriate and approved practitioner experience.

The record of experience is maintained by you for CFP Certification Assessment and must be updated each time a change of employer or supervisor occurs.

Where your activities do not vary substantially over a period of time, you must maintain a record of your activities for a minimum period of one month (equivalent full time). Your supervisor can then verify that the record is indicative of your activities for a specified period.

Recency of experienceYou must have 12-months’ full-time or equivalent part-time direct experience immediately preceding the date of application for admission.

Your experience must be gained in the five years immediately preceding the date of application for admission.

Verification of experienceIdeally, your nominated internal assessor will verify your record of experience as well as your observation assessment. If this is not possible, please contact us.

Record of experience exampleExamples of how you might record activities for each of the steps in the FPA’s Six-Step Financial Planning Process (see the next page) are available on the FPA Student Portal. In addition to identifying the step of the financial planning process, you are required to state whether the activity relates to direct or indirect experience.

Guidelines for acceptable experienceWe recognise there are various situations and circumstances in our students’ work in the financial planning process and as such have developed the work experience requirement to account for this. Accordingly, the nature of the experience is classified as indirect experience or direct experience.

Indirect experienceIndirect experience is defined as experience gained in a position where you actively use knowledge, skill and ability to provide financial planning advice to clients in accordance with the FPA’s Six-Step Financial Planning Process.

Generally, if the activity does not include direct contact with a client and the primary relationship is with a financial planner, the experience is classified as indirect experience. This could also be described as the activities that support a financial planner in the provision of comprehensive financial planning advice to a client.

Examples are:

• preparation of a Statement of Advice (paraplanning)

• technical advice to a financial planner

• research on investment products

• updating portfolio value in preparation for a client review meeting.

If any of the examples listed above are undertaken by you as part of the complete financial planning process, the experience is then classified as direct experience.

Record of experience

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Direct experienceDirect experience is defined as experience gained in a position where you actively use knowledge, skill and ability to provide comprehensive face-to-face financial planning advice to clients in accordance with the FPA’s Six-Step Financial Planning Process.

The critical principle in determining direct experience is confirmation that you have established and maintained a financial planning relationship with the client.

FPA’s Six-Step Financial Planning ProcessStep one Gathering the data

Step two Identifying the client’s goals

Step three Identifying financial issues

Step four preparing the financial plan (called a statement of advice)

Step five Implementing the recommendations based on the financial plan

Step six Reviewing the plan

DocumentationThe following documentation can be dowloaded from the FPA Student Portal from the start of semester:

• your nominated internal assessor form

• an example and guidelines for assessment of the record of experience

• your record of experience form.

These documents need to be submitted via the FPA Student Portal by the advertised date for the results to be processed for the relevant semester.

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The examination

The examination must comply with the standards set by the Financial Planning Standards Board. It is based on the level of skills and applied knowledge expected of a CFP practitioner as described by the FPSB and contextualised to the Australian financial planning industry.

The examination will be conducted over one four-hour session. You must pass the examination as well as the other assessment components in order to pass the CFP Certification Assessment.

Examination arrangementsThe examination is held at examination centres that you nominated on your enrolment form. Alternative arrangements may be made in cases of debilitating medical conditions (excluding colds and minor ailments).

Note: Alternative dates and times will not be arranged if you have simply misread the information supplied.

If you require alternative examination arrangements you must advise us at [email protected] as a matter of urgency when a problem arises. This must be prior to the examination date. All requests must include relevant supporting information.

Information regarding the venue, date and time of the examination is published on the FPA Student Portal.

FormatThe examination consists of seventy (70) multiple-choice questions on FPSB Financial Planning Competencies. Some of the questions are stand-alone; others are based on short case studies. This format complies with the standard specified by the Financial Planning Standards Board and ensures consistency and reliability of results. Each question is worth one mark. Marks are awarded for each correct answer.

The examination is designed to measure your critical thinking, analytical and evaluative skills. You must be able to apply technical knowledge to a variety of complex financial planning scenarios.

Standard requiredThe examination pass standard complies with standards set by the Financial Planning Standards Board. It is based on the level of skills and applied knowledge expected of a CFP practitioner. You should expect a standard of around 70% in order to pass the examination.

Rules governing the examinationThe examination is open book. You may bring any technical reference material into the examination room. However, mobile phones, laptop computers and paging devices will not be permitted. Calculator guides are also not permitted.

You must complete and sign the security declaration on the cover of the examination question booklet, which states that you will not transcribe or copy examination questions or answers in any format for removal from the examination room.

You must comply with all directions given by the examination supervisors.

Required itemsYou are required to bring the following items to the examination:

• photographic identification (e.g. driver’s licence, passport or a statutory declaration confirming your identity); failure to provide photographic identification or a statutory declaration may result in results being withheld

• 2B pencils and an eraser for use on multiple-choice answer sheets

• a hand-held, non-text-retrievable, non-programmable financial calculator (see ‘Calculator policy’ below).

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Calculator policyYou are permitted to use a hand-held, non-text-retrievable, non-programmable financial calculator during the examination.

The following models of business calculator are suitable:

• Texas Instruments BAII Plus

• Hewlett Packard 10B, 10BII, 12C, 17BII

• Sharp EL-733, EL-733A, EL-735.

Other models are suitable—these are examples only.

Before entering the examination room, all programmable calculator memory must be cleared. All calculators are checked before the examination begins. Supervisors are instructed to confiscate unauthorised calculators.

References for the open-book examinationYou will need to use tax rates and Centrelink information in your calculations to answer questions. We recommend you download these guides from the FPA Student Portal in preparation for the open-book exam.

Note: No references will be provided and you are encouraged to prepare notes and source materials as part of your exam preparation (see ‘Multiple-choice examination’ on page 4 for more information).

Reading timeWriting, marking and using calculators is not permitted during reading time. During reading time students may not:

• mark their examination paper in any way

• complete personal details on examination stationery

• use calculators.

During the examinationWhen instructed by the examination supervisor, you must complete personal details on the front cover of the answer booklet, multiple-choice answer sheet and answer booklet(s) (where applicable), including the tear-off attendance slip.

You may not enter the examination room more than 45 minutes after the commencement of reading time, nor are you allowed to leave during the first 45 minutes or last 10 minutes of the examination.

Conclusion of examinationYou must leave in accordance with instructions given by the examination supervisor after all examination materials have been collected and checked.

You must return to the supervisor the examination question booklet and any corresponding examination stationery (multiple-choice answer sheet, answer booklet(s) and any additional paper distributed to you).

Note: Failure to return the examination question paper may result in results being withheld.

Problems encountered during the examinationIf you experience any problems or difficulties during the course of the examination, you can state your case, with supporting documentation, in writing, within 72 hours of the examination. Use the ‘Application for special consideration’ form available on the FPA Student Portal and see ‘Special consideration’ on page 11.

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Consequences of failure to comply with regulationsIf you fail to comply with any instructions relating to the examination your results may be withheld.

Do:

• be early

• bring spare pens, pencils, an eraser and a sharpener

• bring a calculator in accordance with the calculator policy

• read the instructions carefully and ensure that you mark the answer sheet as instructed

• read the questions carefully

• answer every question (even if unsure of the answer)

• keep track of time

• answer the questions in order; however, leave any you have difficulty with to come back to later

• check you have an answer for every question on the answer sheet.

Don’t:

• be late

• forget your calculator, pens, pencils, eraser, sharpener and watch

• give more than one answer to each question

• lose track of time; be aware of the time throughout the examination

• spend too much time on one question; do the easy ones first and only dwell on the difficult ones in the time left over

• leave early without thoroughly checking that you have answered every question according to instructions.

Remember each question is worth one mark.

ReferencesAustralian Government Actuary 2014 Australian Life Tables 2010–12 Australian Government Actuary, Canberra <http://aga.gov.au/publications> (accessed January 2014).

Australian Securities & Investments Commission 2005 Regulatory Guide 90: Example Statement of Advice (SOA) for a Limited Financial Advice Scenario for a New Client, ASIC, Melbourne <http://www.asic.gov.au> (accessed January 2014).

Note: RG 90 provides guidance for a ‘limited advice’ scenario and is referred to here as general information only. It is not to be used as a template for completion of the CFP® Certification examination assignment because this latter document must illustrate completion of a full plan.

http://aga.gov.au/publications

http://www.asic.gov.au

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Financial planning knowledge topic categories

1. Taxation

Assessment rules

Income taxation law fundamentals; tax compliance, including filing requirements and audit

Personal taxation

Income tax fundamentals and calculations

Income according to ordinary concepts, assessable income (ordinary, statutory, exempt income); salary packaging and fringe benefits tax (FBT); unearned income; capital gains tax (CGT); negative gearing; tax deductions; Pay As You Go (PAYG); eligible termination payments (ETP); income splitting, maximisation of exclusions and credits, franking credits

Tax implications of changing circumstances

Marriage, divorce, death

Business taxation

Tax characteristics of business entities

Income and expenditures; CGT; PAYG; alienation of personal services income (PSI); goods and services tax (GST); business succession planning (key person insurance, taxation implications, buy–sell agreements); small business CGT concessions

Taxation of insurance

Taxation of investment vehicles

Share investment; dividend imputation; dividend reinvestment; bonus issues; rights issues; interest-bearing securities; real estate (deduction of expenses); managed investments (unit trusts); insurance bonds, friendly society bonds and insurance policies

Wealth transfer

Characteristics and consequences of types of entities

Sole proprietorship, partnership, company, association, trust, selection of business form, acquisition and disposition

Characteristics and consequences of property titling

Common law versus community property, sole ownership, joint tenancy, tenancy in common, trust ownership

Methods of property transfer at death• Taxation issues (estate and non-estate issues,

testate succession, intestate succession, advantages and disadvantages of CGT, assets subject to CGT, techniques for avoiding CGT)

• Transfers through trusts

• Transfers through contract

Gifting strategies

Suitability of gifting as a planning strategy; techniques for gift-giving; appropriate gift property; strategies for closely held business owners, gifts of present and future interests, tax implications (income, gift, estate)

International tax issues

Tax issues for Australians overseas and migrants to Australia

Tax issues, superannuation, non-resident concepts

2. Insurance

Principles of insurance• Definitions and application; response to risk

(retain, transfer, control, reduce, avoid); mortality versus morbidity

• Analysis and evaluation of risk exposures—personal, property, liability

• Insurance policy selection—purpose of coverage, length of time required, risk tolerance, cashflow constraints

Business insurance• Insurance needs analysis and rationale

• General business liability—professional indemnity, errors and omissions, directors and officers, product liability

• Buy–sell agreements, key person insurance, business-related risks

Life insurance• Fundamentals, types, contractual provisions

• Insurance needs analysis and rationale

• Policy replacement, tax issues and strategies, policy ownership issues and strategies

Appendix A

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Use of life insurance in estate planning

Advantages and disadvantages; ownership, beneficiary designation and settlement options; life insurance trusts; estate taxation; income taxation; insurable interest

Disability insurance and income replacement• Insurance needs analysis

• Occupational definitions (‘any’ versus ‘own’ occupation in total and permanent disability insurance) and application, benefit period, benefit amount, taxation of benefits, waiting period, ‘agreed’ versus ‘indemnity’

Health insurance

Medicare, private health insurance (rebate, Medicare levy surcharge, Lifetime Health Cover)

Critical illness insurance

Trauma insurance

Property insurance

Property, motor vehicle, business and business activity, personal property

3. Investment

Investment types

Cash and fixed interest; share investments; hybrid securities, income securities; property, derivatives, options, futures, warrants, rights

Investment structures

Managed funds, master trusts, wrap accounts, property trusts

Types of investment risk

Inflation; currency, market; market timing; portfolio; liquidity; strategy; political (legislative); exchange rate; diversification; mismatch; gearing; opportunity; fund manager; value; credit; fraud and scam

Measurement of investment risk

Coefficient of determination; variability of returns, standard deviation, alpha, beta, covariance

Portfolio management techniques

Passive investment (indexing); fundamental analysis; buy and hold; technical analysis; efficient market anomalies

Leverage of investment assets—margin requirement, margin calls, home equity, instalment warrants

Selling and buying techniques

Formula investing (dollar cost averaging, dividend reinvestment); market timing

Performance measurement

Measures of investment returns

Annualised return; real (inflation adjusted); risk-adjusted return; total return; after-tax return; yield-to-maturity; after-tax yield; realised compound yield

Performance methods

Sharpe measure, Treynor measure, Jensen measure, benchmarks

Modern portfolio theory

Measurement of risk and return; efficient market theory; asset allocation and portfolio diversification—strategic asset allocation, tactical asset allocation, passive versus active portfolio management; capital asset pricing model (CAPM)

4. Retirement, savings and income programs

Personal retirement

Retirement needs analysis• Assumptions for retirement planning (inflation,

retirement period and life expectancy, lifestyle, total return)

• Financial needs (living costs, charitable and beneficiary gifting objectives, medical costs including long-term care needs analysis, trust funding, education funding, etc.)

• Income sources (total return assumptions, probability analysis assumptions)

• Alternatives to compensate for projected cashflow shortfalls

Superannuation• Superannuation fund providers—public sector

and industry funds; employer-sponsored funds; self-managed superannuation funds, small APRA funds, retail or public offer funds

• Superannuation product features

• Retirement income streams (annuities or pensions, taxation, Centrelink assessment)

• Salary sacrifice—concessional and non-concessional contribution caps and excess penalties

• Self-managed superannuation funds (SMSFs), membership, investment rules, taxation, borrowing, residency requirements

• Taxation of superannuation funds

• Superannuation guarantee support payments

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Investment considerations for retirement plans

Suitability, time horizon, fiduciary considerations, prohibited transactions, insurance, death and disablement, income protection or salary continuance, binding death nomination, employment termination payments

Distribution rules, alternatives and taxation• Superannuation fund styles (defined benefit,

accumulation, hybrid)

• Benefit payment options

• Taxation

5. Law

Legal aspects of insurance

Indemnity, insurable interest, contract requirements, contract characteristics

Private law

Consumer protection laws and credit reporting

Estate planning documents• Wills—legal requirements, types of wills, avoiding

will contests, testator family maintenance claims

• Powers of attorney (POA)—general POA, enduring POA, medical treatment POA, enduring power of guardianship, advanced medical directives (e.g. living wills), risks of POAs

• Trusts, including testamentary trusts

• Marital agreements

Disposition of estate

Tax and non-tax consequences of various estate plans (outright distributions, transfers in trusts etc.); estate planning for non-traditional relationships (children of another relationship, cohabitation, adoptions, same-sex relationships, communal relationships)

Business law

Contracts, torts, agency, negotiable instruments, professional indemnity, fiduciary liability, arbitration and mediation

Family breakdown

Superannuation

6. Financial analysis

Analysis of financial information

Time value of money concepts and calculations

Present value; future value; annuities; net present value (NPV); internal rate of return (IRR); irregular cash flows; inflation adjusted earning rates; return on equity

Bond and share investment valuation methods

Capitalised earnings; dividend growth models; ratio analysis, price/earnings; price/cash flow; price/sales; price/earnings growth

Personal financial ratios

Cash management and budgeting

Budgeting—discretionary versus non-discretionary; financial strategies; saving strategies

Emergency fund planning—adequacy of reserves; liquidity versus marketability

Educational funding and financial aid—needs analysis; sources of funding

Personal financial statements

Balance sheet (statement of financial position); cashflow statements

7. Debt

Consumer credit and credit management

Consumer debt, secured versus unsecured debt

Mortgages

Home equity loan and home equity line of credit, reverse mortgages

Leases

Buying versus leasing (e.g. housing, auto); calculation; variable and fixed rate loans; effect on financial statements

Insolvency and bankruptcy

Bankruptcy, impact on superannuation

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8. Economic and regulatory environment

Economic environment

Economic concepts

Supply and demand, monetary policy, fiscal policy, economic indicators, business cycles, balance of payments, inflation

Regulatory environment

Function, purpose and regulation of financial institutions

Financial services industry regulation requirements

Licensing, reporting and compliance, Australian Transaction Reports and Analysis Centre (Austrac), Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cwlth)

Insurance industry regulation

Regulatory considerations—Superannuation

Complying superannuation funds; the Superannuation Industry (Supervision) (SIS) legislation; Superannuation Complaints Tribunal; unclaimed money and lost members; Australian Prudential Regulation Authority (APRA)

9. Government benefit plans(Referred to in Australia as ‘social security’)

Centrelink

Eligibility, benefit, calculation of benefits, working after retirement, taxation, deeming, accommodation bonds, commonwealth seniors health cards, gifting, waiting periods

10. Behavioural financeClient attitudes and behavioural characteristics

Cultural; family; life cycle and age; level of knowledge, experience and expertise; risk tolerance; attitudes towards money; spending styles

11. Ethics and standardsEthical and professional considerations in financial planning, including the FPA Code of Ethics, Rules of Professional Conduct and Practice Standard

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Appendix B

Mapping of the FPSB Financial Planner Competency Framework to CFP® Certification Assessment

Financial plan—Case study Observation

Record of experience Examination

Abilities

Collection of information

1. collects the quantitative information required to develop a financial plan

• • •

2. collects the qualitative information required to develop a financial plan

• • •

Analysis of information

1. considers potential opportunities and constraints to develop strategies

• •

2. assesses information to develop strategies • •

Synthesis of information

1. Develops and evaluates strategies to create a financial plan

• •

Professional skills

Professional responsibility

1. establishes trust in all professional relationships

•

2. acts in the best interest of the client in providing professional services

•

3. Demonstrates ethical judgment •

4. Demonstrates intellectual honesty and impartiality

• •

5. Recognises limits of competence and voluntarily seeks the counsel of and defers to other professionals when appropriate

•

6. Recognises the public interest role of the profession and acts accordingly

•

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Financial plan—

Case study ObservationRecord of experience Examination

Practice

1. complies with relevant services laws and regulations

• • •

2. adheres to professional code of ethics and standards practice

• • •

3. makes appropriate judgments in areas not addressed by existing practice standards

• •

4. maintains an awareness of changes in the economic, political and regulatory environments

• • •

5. engages in continuous learning to ensure currency of knowledge and skills

•

6. conducts appropriate research when performing analysis and developing strategies

• •

7. exercises autonomy and initiative in the performance of professional activities

•

8. exercises responsibility for own or firm’s ability to deliver services to the client for the duration of the engagement

•

Communication

1. Gives attention to what the client and others are saying and takes time to understand the points being made

•

2. establishes a good rapport with the client and others

•

3. communicates information and ideas orally in a manner understandable to the client and others

•

4. communicates information and ideas in writing in a manner understandable to the client and others

•

5. presents logical and persuasive rationales •

6. Deals effectively with objectives and complaints

•

7. Gains agreement with the client and others •

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Financial plan—Case study Observation

Record of experience Examination

Cognitive

1. applies mathematical methods or formulas as appropriate

• •

2. analyses and integrates information from a variety of sources to arrive at solutions

• •

3. Uses logic and reasoning to consider the strengths and weaknesses of potential courses of action

• •

4. arrives at informed decisions when faced with incomplete or inconsistent information

• •

5. Demonstrates capacity to adapt thinking and behaviours

•

Knowledge

1. financial planning principles, process and skills

• •

2. financial management • •

3. asset management • •

4. Risk management • •

5. Tax planning • •

6. Retirement planning • •

7. estate planning • •

8. Integrated financial planning • •

Knowledge topic categories

1. Taxation • •

2. Insurance • •

3. Investment • •

4. Retirement, savings and income programs • •

5. Law • •

6. financial analysis • •

7. Debt • •

8. economic and regulatory environment • •

9. Government benefit plans • •

10. Behavioural finance • •

11. ethics and standards • •

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Appendix C

Professional Designations CommitteeThe Professional Designations Committee is an FPA management committee. It has the purpose of advising the FPA Board on strategies, activities and policies that will ensure the FPA:

1. maintains the integrity of its professional designations, including programs, certification and awarding procedures

2. builds and promotes professional designations that demonstrate the pinnacle of professional status of FPA membership.

This is likely to focus on ensuring that the FPA:

• maintains the quality of certification procedures and underpinning programs, in accordance with appropriate certification authority, so that consumers and members have confidence in all the FPA professional designation programs

• maintains compliance with the expectations of Financial Planning Standards Board for awarding of CFP Certification as the gold standard in financial planning

• provides support and services to encourage potential students and certificants to meet the standards for designations to be awarded

• has appropriate policies and decision processes in place to ensure consistent and reliable student and certificant outcomes and support

• works with the educational community to support programs that align to the CFP Certification Program

• responds to accreditation protocols of the Financial Planning Education Council in reviewing and making recommendations for approval of programs that align to the CFP Certification Program.

Student policies for our programsStudents with special needsThe FPA acknowledges that a physical, sensory or learning disability, or a medical or mental health condition, may interfere with a student’s ability to achieve their academic goals.

This policy ensures that students with disabilities or special needs are able to access and participate in the CFP Certification Program without experiencing discrimination. The policy has been designed to comply with the Disability Standards for Education, which were formulated under the Disability Discrimination Act 1992 (Cwlth) (the Act), effective from August 2005.

Eligibility

The definition of ‘disability’ as used in the Act is very broad and includes people who have a physical, learning, sensory, psychiatric or medical condition. A disability can be permanent or temporary.

You may request assistance if you have a disability or other need that may affect your ability to write the examinations of the CFP Certification Program under standard conditions.

Examples of assistance

Examples of assistance to students with a disability include:

• additional time to complete the examination• supervised examination rest breaks• the provision of a scribe• a separate examination room• permission to bring food, drinks or medications

into the examination room.

How to apply

You must complete the appropriate section of the enrolment form and a Special needs form (both available on the FPA website) and submit them with a written request. The written request must include all of the following information:

• the nature of the disability• recent (i.e. within the last five years) supporting

medical documentation regarding the disability• details of the specific assistance required• details of any specific assistance previously granted.

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The written request, including all supporting documentation, must be received by the FPA no later than four weeks before the examination date.

Supporting documentation

The supporting documentation must be provided by an appropriate professional and should include information on your condition, how your ability to complete an examination under standard conditions may be affected, and whether your condition is permanent, temporary or ongoing.

Students who have a learning disability must provide a valid report from a psychologist or other qualified professional trained in administering standardised tests and assessing learning disabilities.

Approval of special assistance

We will attempt to accommodate students with special needs as much as is reasonably possible.

The nature of the assistance will be determined in consultation with the student. In assessing whether the request is reasonable, the FPA will apply the Guidance Notes of the Commonwealth of Australia (2006) Disability Standards for Education 2005:

• the nature of the student’s disability

• the information provided by, or on behalf of, the student about how the disability affects the student’s ability to participate

• information provided by, or on behalf of the student about his or her preferred special assistance

• the effect of the proposed assistance on the student

• the effect of the proposed assistance on anyone else affected, including the FPA, staff and other students

• the costs and benefits of providing the special assistance.

In providing the special assistance, we will ensure that the integrity of our programs and assessment requirements and processes are maintained.

In meeting our obligations under this policy, the FPA may provide alternative assistance to the student’s preferred assistance, if the alternative is effective in achieving the desired purpose.

Privacy statementOur commitmentAt the FPA, we recognise that your privacy is very important to you, as it is to the FPA. We handle personal information provided by and about people every day. By personal information, we mean information or an opinion about a person whose identity is apparent or can reasonably be ascertained.

Personal information is collected so that we may:

• administer your records relating to educational programs undertaken with the FPA

• provide customers with products and services they request and, unless they tell us otherwise, to provide information on additional products and services offered by the FPA that may be of interest to you and your career

• comply with government and statutory requirements.

We are bound by, and committed to supporting, the National Privacy Principles (NPPs) set out in the Privacy Amendment (Private Sector) Act 2000 (Cwlth). Our aim is both to support and ensure that we comply with the NPPs that form the basis of laws introduced to strengthen privacy protection for the general public. The information set out below is largely a summary of our obligations under the NPPs.

This statement seeks to address any potential concerns you may have about the purposes for which personal information you provide in the enrolment form is collected and to whom this information will be disclosed.

Students should use the Student Privacy Statement in conjunction with the FPA’s ‘Statement of privacy policy’ (available on the FPA website).

Collection of personal information The FPA may collect information from you to determine your eligibility for undertaking educational courses offered by the FPA and to enable the FPA to assess, approve or decline your application and ability to undertake these studies.

Failure to provide full and complete information requested in the enrolment form may result in a limited ability or willingness on the part of the FPA to assess or approve your application for enrolment or, where such application is accepted, to offer or deliver complete educational services or benefits to you.

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Please note that we are required to collect enrolment information for those students undertaking accredited programs to comply with government and statutory requirements.

In addition, we will collect and retain information relating to your studies undertaken in our programs. This information may relate to your assessments, assignments and records of achievement.

Use and disclosure of personal informationIf your application for enrolment is accepted, the information you provide in the enrolment form will be used by the FPA and affiliated educational service providers to offer, provide and continue to improve educational services to you and other members of the FPA.

We may also use the information you provide in the enrolment form, and use course results and other information held by affiliated educational service providers to which FPA has obtained access, for administrative, planning and reporting purposes.

We gather this information so that the FPA can compile and analyse statistical data relevant to the financial planning industry and the educational requirements of financial planning professionals. We may also publish statistical data results on the Internet.

In addition, other educational service providers that are affiliated with or support the provision of educational services offered by the FPA may disclose information that is collected in the enrolment form or during your studies to state and Commonwealth public sector organisations and agencies. These parties may provide various services to the FPA, such as:

• maintaining and updating our database

• assisting FPA with mail-outs (and arranging, participating in and sponsoring conferences)

• delivering additional educational and support services to FPA members.

In these circumstances, external parties are bound by the terms of a confidentiality agreement.

The FPA will not otherwise, without your consent, use or disclose your personal information for any purpose unless it would reasonably be expected that such purpose is related to the offer, provision and improvement of our educational services and is of benefit to you or where such purpose is permitted or

required by law.

Access to personal informationIt is the FPA’s goal to ensure that personal information we hold is accurate, complete and up-to-date. Please contact us at the address below if any details you have given us at enrolment have changed.

Subject to FPA Education Policy as outlined in the FPA’s Professional Designation Programs—Student Handbook (which, in order to maintain the integrity of examinations and assessment, prohibits access to examination materials, including answer booklets and exam questions), you may at any time request access to the personal information that is collected in the enrolment form or otherwise held or acquired by us in relation to you, by contacting our privacy officer through one of the following channels:

• Email: [email protected]

• Post:

FPA

GPO Box 4285

Sydney NSW 2001

• Telephone: 1300 337 301

We will endeavour to respond to your request in a timely manner after receiving the ‘Request for personal information’ form. If your request cannot be met within a reasonable period owing to exceptional circumstances, we will notify you in writing detailing the expected time frames.

In some instances, the FPA may deny access to a request for access to personal information in accordance with the National Privacy Principles (NPPs) of the Privacy Amendment (Private Sector) Act 2000 (Cwlth).

Changes to FPA privacy and information handling practicesThe FPA may make changes to its privacy information handling practices from time to time for any reason. We will publish these changes on our website at <http://www.fpa.com.au>.

Accessing additional information Should you have any questions or would like further information about our privacy information handling practices, a more detailed outline on the FPA Statement of Privacy policy can be found on the web site at <http://www.fpa.com.au>.

http://www.fpa.com.au

http://www.fpa.com.au

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Academic misconduct policyDefinition of academic misconductThe FPA identifies academic misconduct as taking one or more of the following forms.

Plagiarism

Failure to cite a source used, thus attempting to disguise it as one’s own work, is plagiarism and a recognised form of cheating. Any source document must be honestly and meticulously acknowledged. All sources should be referenced at the appropriate point in the text, as well as form part of a list of references or a bibliography at the end of the assignment.

Collusion

The forming of groups to share ideas and define the requirements of assignments is an accepted and encouraged academic practice. However, it is neither acceptable nor ethical for members of the group to submit answers or parts of assignments that are substantially similar or identical to the work of others. All work submitted for assessment must represent an individual’s own interpretation of any discussions or projects undertaken in a group.

Cheating

Cheating, or attempts to cheat, will be deemed to have occurred during an examination if a student has:

• taken in or used any material other than material specifically permitted by the instructions for that assessment

• obtained from, or given to another person, any information relating to the unit, or any part of it, without approval of the supervisor of that unit

• behaved in any manner that is, in the opinion of the examination supervisor, intended to provide a misleading basis for assessment.

The process for handling matters of academic misconduct

Investigation process

This process is initiated when a complaint is made in writing or brought to the attention of the FPA, or detected through the use of an external plagiarism and collusion detection service regarding an act of academic misconduct. It involves three steps, as outlined below.

Step 1

The complaint is referred to the Investigating Officer (IO). The IO then ascertains, from the nature and other details (if available) of the complaint, whether there are enough grounds for establishing a prima facie case. This in itself can form a substantial part of the investigation.

If it is established that there are grounds for an enquiry, the IO then proceeds with the investigation. If there are no grounds for an enquiry, the result will be released by the FPA. This step should take no more than a maximum of 21 days.

Step 2

The investigation process includes the following elements:

• investigation of circumstantial evidence

• investigation of other relevant details

• a written response from the respondent

• an interview with the respondent.

This step should take a maximum of 30 days.

Step 3

After completing the investigation, the IO presents their findings to the Professional Designations Committee for appropriate action. The committee, after consideration of the case, will either:

• dismiss the case on the basis of insufficient grounds, or

• impose one or a combination of penalties detailed below.

Resulting penaltiesDepending upon the circumstances and details of the academic misconduct, the committee can impose the following range of sanctions:

• reprimand the student

• record a failure for all, or any part, of the assessment

• require the student to repeat the unit

• suspend the student from enrolling for a certain period

• suspend the student from enrolling in a certain course

• impose a combination of the above penalties.

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The committee may also refer the complaint to the FPA’s Professional Standards Department for potential breach of the FPA’s Code of Ethics and Rules of Professional Conduct.

Appeal

A student may make a written appeal against the decision of the Professional Designations Committee on the grounds that there was a procedural irregularity. This is the only grounds for an appeal and the appeal must be lodged no later than ten (10) working days from the date the student received notification of the outcome.

Academic progress policyEach program has a limited time in which the technical education must be completed.

From time to time, the Professional Designations Committee may need to consider and provide guidance on issues related to:

• appropriate time frames for the completion of an education program and follow-up where any student appears to have taken excessive time to complete the course

• students who have failed a specific unit on three occasions

• students who repeatedly fail assignments, in spite of re-marks (reviewing the number of students)

• conceded passes (reviewing the assessment task(s), numbers of participants)

• addressing other related matters as they arise.

The committee may make recommendations to the FPA’s Head of Education that could include:

• recommending that a student receives counselling on study and examination techniques

• conceding a pass on an item of assessment

• assisting a student to source additional tutorial support

• advising that a student discontinue the program.

Student appeals policyGrievance procedureA grievance exists when a complaint is presented by an individual or group based on the opinion that they are, or have been, receiving treatment that differs from the treatment received by other individuals or groups.

A grievance arises when a student cannot obtain redress through normal channels for what they consider unfair or different treatment. Such treatment may occur in classroom behaviour interactions.

A grievance may include behaviour outlawed by the equal opportunity legislation of each state and territory, the Racial Discrimination Act 1975 (Cwlth) or the Sex Discrimination Act 1984 (Cwlth), such as discrimination on the basis of sex or marital status, or racial harassment.

Grievances will be heard by the Professional Designations Committee.

For further details of the grievance procedure, please contact the Education Operations Manager.

Email: [email protected]

Post: Level 4, 75 Castlereagh Street, Sydney 2000

Academic appeals processPrior to lodging an academic appeal, students are required to first apply for an independent re-mark of their assessment. A fee may be charged for each reassessment at the discretion of the Education Operations Manager.

Following a re-mark, students who are dissatisfied with any aspect of their assessment may submit a written request for appeal to the Education Operations Manager within 30 working days of first receiving the mark for the assessment piece. This written request shall state the grounds on which the appeal is sought, including identification of the areas of the assessment that have been incorrectly assessed against the assessment criteria.

For further details of the academic appeals process, please contact the Education Operations Manager.

ReferenceCommonwealth of Australia 2006, Disability Standards for Education 2005, <http://education.gov.au/disability-standards-education>, accessed July 2015.

http://education.gov.au/disability-standards-education

http://education.gov.au/disability-standards-education

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