Mapping of Syllabus – CFPCM Certification Program

Critical Abilities mapped to Exam Specification

Education Standards of CFP Certification Program

• The body of knowledge to cover learning outcomes in the Financial Planner

Competency Profile

− Financial Planner Abilities

− Financial Planner Professional Skills

− Financial Planning Body of Knowledge

• To deliver Financial Planning to a client, a financial Planning professional needs to

combine the ability to carry out the tasks of financial planning, by using appropriate

professional skills, and drawing on knowledge of financial planning matters.

• The Financial Planning Functions of Collection, Analysis and Synthesis are

mapped on the following Financial Planning abilities:

Financial Management

Asset Management

Risk Management (Insurance)

Tax Planning

Retirement Planning

Estate Planning

Slide 3

Education Standards of CFP Certification Program

• Acceptable coursework should provide around 600 hours of education delivery and

study:

− 240 hours of classroom or equivalent, plus

− 1.5 multiplier factor for preparatory and additional study (240 x 1.5 = 360 + 240

base hours = 600 total hours)

• Coursework should be set at the European Qualification Framework (EQF) level 6

or equivalent. Level is defined as follows:

Knowledge Skills Competence Example

Advanced

knowledge of a

field of work or

study, involving a

critical

understanding of

theories and

principles.

Advanced skills,

demonstrating mastery

and innovation, required to

solve complex and

unpredictable problems in

a specialized field of work

or study.

Manage complex technical

or professional activities or

projects, taking

responsibility for decision-

making in unpredictable

work or study contexts;

take responsibility for

managing professional

development .

Honours Bachelor

Degree, Vocational

University German

State-certified Engineer,

Business Manager and

Designer .

Pattern of Question Bank Exam 1/2/3/4

Section-I Section-II Section-III Section-IV Section-V

No. of Items

Marks No. of Items

Marks No. of Items

Marks No. of Items

Marks No. of Items

Marks

Marks

Cate

go

ry

1 12 12 7 7 4 4 6 6 9 9

2 5 10 2 4 2 4 3 6 3 6

3 0 0 6 18 6 18 2 6 0 0

4 0 0 1 4 6 24 3 12 0 0

Total 17 22 16 33 18 50 14 30 12 15

The weights of individual parts in each of Exam 1 – 4 along with distribution of marks is :

Percentage

Distribution

Section -I Section-II Section -III Section -IV Section -V

No. of Items 22% 21% 23% 18% 16%

Marks 15% 22% 33% 20% 10%

Total Items: 77 / Total Marks : 150

Testing of Competency – Exam Specification and Pattern

Part II, III & IV cover 62% of total items

which account for 75% of total marks.

Testing of Competency – Exam Specification and Pattern Pattern of Question Bank Exam 1/2/3/4

Section-I Section-II Section-III Section-IV Section-V

No. of Items

Marks No. of Items

Marks No. of Items

Marks No. of Items

Marks No. of Items

Marks

Marks

Cate

go

ry

1 12 12 7 7 4 4 6 6 9 9

2 5 10 2 4 2 4 3 6 3 6

3 0 0 6 18 6 18 2 6 0 0

4 0 0 1 4 6 24 3 12 0 0

Total 17 22 16 33 18 50 14 30 12 15

Mark CategoriesSegregation of question

items (nos.)

Total Question items

Marks breaku

pTotal Marks

1 mark Introduction Module 10 38 10 38Component Module 28 28

2 marksIntroduction Module 3

156

30Component Module 12 24

3 marksIntroduction Module 2

146

42Component Module 12 36

4 marksIntroduction Module 2

108

40Component Module 8 32

Total 77 150

3&4 Marks Category:

24 items (31% of total items)

82 marks (55% of total

marks)

Testing of Competency – Exam Specification and Pattern

Indicative Difficulty Grade and Mapping of Exam Duration

The mark categories would broadly determine the nature of question items contained in those

categories along with a commensurate difficulty grade.

Marks Category

Significance Grade Total items

Total marks

Weight(%)

Expected Time/Per

Item

Total Expected

Time

1-markTheoretical testing knowledge

‘Grade 1’

38 38 25%35

seconds22

Minutes

2-markTheoretical (predominantly) testing clarity of concepts or Numerical testing basic skills

‘Grade 2’

15 30 20%90

seconds23

Minutes

3-markNumerical testing analytical

skills

‘Grade

3’14 42 28%

150 seconds

35 Minutes

4-mark

Numerical testing advanced

analytical skills, strategy

evaluation & synthesis

‘Grade

4’10 40 27%

240 seconds

40Minutes

Total 77 150 100%120

Minutes

Skills Development and Exam Mapping

Theoretical related to Introduction to Financial Planning

Theoretical Areas covered under “Introduction to Financial Planning” and asked to the extent of

20% in each of Exam 1 – 4 are:

Financial Planning Process

Code of Ethics and Professional Responsibility

Model Rules of Conduct

CFP marks usage

Brief Overview to Financial Markets

Economic Environment Analysis

Behavioral Finance

12 marks

Pattern of Question Bank – 20% of ‘Introduction FP” Module embedded in Exam 1/2/3/4

Section-I Section -II Section -III Section -IV Section -VNo. of Items

Marks No. of Items

Marks No. of Items

Marks No. of Items

Marks No. of Items

Marks

Marks

Cate

go

ry 1 2 2 4 4 1 1 2 2 1 1

2 1 2 0 0 0 0 1 2 1 2

3 0 0 1 3 1 3 0 0 0 0

4 0 0 0 0 2 8 0 0 0 0

Total 3 4 5 7 4 12 3 4 2 3

Skills Development and Exam Mapping

Numerical related to Introduction to Financial Planning

Numerical Areas covered under “Introduction to Financial Planning” and asked to the extent of

20% in each of Exam 1 – 4 are:

14 marks

Time Value of Money calculations

Personal Financial Statement Analysis – Cash Flow Management

Loan Schedules and Refinancing of Loans

Net Worth Calculation

Computation of Returns – CAGR, IRR, XIRR, etc.

Savings Ratio and Liquidity Ratios

Pattern of Question Bank – 20% of ‘Introduction FP” Module embedded in Exam 1/2/3/4

Section-I Section -II Section -III Section -IV Section -VNo. of Items

Marks No. of Items

Marks No. of Items

Marks No. of Items

Marks No. of Items

Marks

Marks

Cate

go

ry 1 2 2 4 4 1 1 2 2 1 1

2 1 2 0 0 0 0 1 2 1 2

3 0 0 1 3 1 3 0 0 0 0

4 0 0 0 0 2 8 0 0 0 0

Total 3 4 5 7 4 12 3 4 2 3

Critical Areas – Financial Planning Abilities

Numerical problems testing Analytical skills, Advanced Analytical skills, Strategy Evaluation & Synthesis

Section II:

Insurance provisions – basis- Depreciation, Market/Reinstatement value

Cost-benefit Analysis and Claim Settlement

1. Risk Analysis & Insurance Planning

68

marks

19

marks

31

marks

Section III:

Economic value of human life

Replacement of future income of the insured

Replacement of expenses and financial liabilities of the family

Provision in life cover of certain financial goals/ liabilities

Review of coverage for changes in income, assets /liabilities

Investment Linked Insurance and Insurance Linked Annuities

Return on Savings Component

18

marks

Section IV:

Basis of property cover - Reinstatement, book or market value

Personal umbrella policy- Mortgage cover

Use of excess/deductible and franchise

Critical Areas – Financial Planning Abilities

Numerical problems testing Analytical skills, Advanced Analytical skills, Strategy Evaluation & Synthesis

2. Retirement Planning & Employee Benefits

Section II:

Pre-retirement (Accumulation) & Post-retirement phase (Distribution),

Early retirement vs. Delaying retirement, Risk of living longer, Income

generation using fixed assets, Supplementing retirement income through

other sources.

68

marks

19

marks

31

marks

Section III:

Estimate Retirement Corpus, Ascertain client’s Asset Allocation in

accumulation phase, Optimize rate of return from chosen Asset Classes,

Step increase in investment, Rebalance accumulated funds in line with

defined Asset Allocation, annuity product to transfer fund near retirement,

Reverse Mortgage.

18

marks

Section IV:

PPF - Systematic accumulation for retirement corpus, Immediate vs.

Deferred annuities, Annuities - Period certain, Life certain and Life with

period certain.

Critical Areas – Financial Planning Abilities

Numerical problems testing Analytical skills, Advanced Analytical skills, Strategy Evaluation & Synthesis

3. Investment Planning

Section II:

Asset Allocation, Expected Rate of Return, Goal specific Asset Allocation,

Asset Allocation changes near the goals, Selection of asset mix according to

client’s goals.

68

marks

19

marks

31

marks

Section III:

Additional lump sum vs. Systematic staggered investments, Monitoring

portfolio progress for goals, Portfolio Beta, Variance, Semi-variance &

Covariance, Standard Deviation, Correlation and Correlation Coefficient,

Effect of diversification on portfolio risk & return, Yield to Maturity,

Dividend Discount Model, Analysis of Growth, Dividend Payout &

Reinvestment options (MF Schemes).

18

marks

Section IV:

Systematic Investment Plan, Systematic Withdrawal Plan and Systematic

Transfer Plan, Risk and return on a portfolio - Sharpe, Treynor and Jensen’s

Ratio, Capital Asset Pricing Module (CAPM).

Critical Areas – Financial Planning Abilities

Numerical problems testing Analytical skills, Advanced Analytical skills, Strategy Evaluation & Synthesis

3. Tax Planning and Estate Planning

Section II:

Salary – Allowances, Perquisites and Deductions, Income from Self

Occupied/Let out House Property, Capital Gains – Long Term/Short Term,

Indexed cost of acquisition/renovation and exemptions, Income from

Other Sources - Chargeability, Exemptions, Deductions & Tax Liability,

Clubbing of Income, Deductions under Chapter VI-A.

68

marks

19

marks

31

marks

Section III:

Deferral of tax liability, Taxability of Equity, Debt and Insurance products,

Transaction in the nature of Gifts/Prizes/Winnings, Dividend and Bonus

stripping provisions, Agricultural income and Wealth tax

18

marks

Section IV:

Estate Planning, Determine value of client’s estate and liquidity aspects,

Trust structures for Tax Efficiency and Trust as Pass-through entity.

CFPCM, CERTIFIED FINANCIAL PLANNERCM and are certification marks owned outside the U.S. by

Financial Planning Standards Board Ltd. Financial Planning Standards Board India is the marks licensing

authority for the CFP marks in India, through agreement with FPSB Ltd.

Financial Planning Standards Board India

702, 7th Floor, Leela Business Park

Andheri Kurla Road, Andheri (E) Mumbai – 400059

Phone: +91 22 61712424, Fax: +91 22 61712444

Email: info@fpsbindia.org, Website: www.fpsbindia.org