Elton Sukumar M
(Certified Accounting Technician)
(734 Points)
Replied 10 May 2007
India
Association of Financial Planners
www.afpindia.org
The Certification Process
Student Member Requirements
You will first need to register as a Student Member of the Association of Financial Planners. Before registering for the course, candidates must ensure they have a graduation certificate from a recognized college/university in any discipline. Work experience, though not mandatory to register as a Student Member, would be advantageous to complete the course successfully. The minimum age for joining is 21 years.
Modules
The CFP certification is granted to those individuals who have demonstrated technical competency enabling them to write (to international standards) a comprehensive and detailed financial plan for an individual. The certification covers six India-localized course modules as follows:
Module 1: Introduction to Financial Planning
Module 2: Risk Management and Insurance Planning
Module 3: Retirement Planning and Employee Benefits
Module 4: Investment Planning
Module 5: Tax Planning and Estate Planning
Module 6: Financial Plan Construction
CFP Certification Requirements
Candidates have a maximum of seven years to complete the certification process. To become certified, you are required to meet the following four initial certification requirements (known as the four "Es").
· Education
· Examination
· Experience
· Ethics
Education
AFP will appoint education providers who will deliver the CFP education program to student members. You will need to complete the course of study offered by an approved education provider. Completion of academic requirement is available through the self-study or distance-learning path. The course work in the certification program can be completed in 24 months.
Candidates seeking Challenge Status are granted exemptions from education for certain modules. Challenge Status candidates can challenge the examination for the particular Module conducted by AFP without completing education for that Module.
Although education is a fundamental part of achieving CFP certification and will give you the foundation of financial planning concepts and processes, mastery of educational course work alone does not guarantee success. What is more important is your ability to apply your financial planning knowledge in an integrated approach to solve 'real life' financial situations. Previous experiences are perhaps the most important complement to the educational foundation.
Examination
The CFP examinations are designed to assess your ability to apply financial planning knowledge to real-life financial planning situations. By passing all the CFP examinations, you demonstrate to the public that you are at the appropriate level of competency required to practice financial planning.
Examinations are held after completion of each module. Examinations would be held in the months of April, August and December. AFP will follow the computer based examination system available at selected centers throughout the country. All questions are presented in a multiple-choice format and candidates should be comfortable with computer operations though typing speed is not a factor in taking the examinations successfully.
The pass mark for each examination is 60%. The final score of the candidate is evaluated on a weighted average basis. Module 1 - Introduction to Financial Planning, carries a weight of 20%. Modules 2 to 5 carry a weight of 10% each. The examination for Module 6 - Financial Plan Construction, is also known as the Certification Examination. It carries the maximum weight of 40%.
Experience
The experience requirement centers on work that involves personal financial planning. It is designed to provide the public with the assurance that you understand the counseling nature of personal financial planning. The requirement is three years, performed before or after successful completion of the Certification Examination.
AFP defines work experience as 'the supervision, direct support, teaching or personal delivery of all or part of the personal financial planning process to a client'. Candidates registering for the program must submit a detailed resume and disclose their work experience. Work experience in the areas of accounting, banking/trust, portfolio management, insurance, law, retirement/pension planning, managed funds, securities broking, taxation and financial planning are acceptable. AFP reserves the right of determining acceptable work experience and may call candidates (at their own expense) for an interview. The decision made thereafter by AFP is final.
When the experience is earned subsequent to the Certification Examination, you must complete the requirement within five years of the date of the successful completion of the examination, subject to the overall criterion of completing certification within seven years.
Ethics
On completion of the education, examination, and work experience requirements, the candidate for CFP certification will receive a Declaration Packet, which includes an ethics statement form and his/her graduation to Full Member status with a bill for the initial membership fee. Prior to certification, the candidates will be required to disclose past or pending litigation or agency proceedings, and to acknowledge the right of AFP to enforce its Professional Standards through its Disciplinary Rules and Procedures. By fulfilling this requirement, you demonstrate to the public that you have agreed to provide personal financial planning in the client's best interest and to act in accordance with the highest ethical and professional standards for the practice of financial planning. The fees must be paid and the Declaration and Agreement form completed, signed and reviewed by AFP before any certification can be issued.
Continuing Education
Once certified, CFP certificants must fulfill a biennial continuing education requirement to stay current on planning strategies and financial trends affecting their clients. CFP certificants will need to complete 30 hours of continuing education every two years. In addition, AFP monitors compliance with its Professional Standards by requiring an annual disclosure statement and by investigating consumer complaints and certificant's periodic disclosures of investigations or legal proceedings. To renew your CFP certification, you will be required to complete and sign a renewal form, complete and report continuing education, and pay the annual membership fee. Student Members who pass their Certification Examination but are yet to fulfill their work experience requirements must also fulfill the continuing education obligations and accrue education credits at a rate of 15 credits per year to become certified.
grants exemption from education of Module 5 - Tax Planning and Estate Planning to equivalently qualified candidates who already possess at least three years of work experience. Candidates who possess the following designations are granted this exemption: -
1. Fellow of The Institute of Chartered Accountants of India
2. Fellow of The Institute of Cost and Works Accountants of India
3. Fellow of The Institute of Company Secretaries of India
4. Barristers, Solicitors and Ll.M. degree holders registered with the Bar Councils
AFP grants exemption from education of Module 2 - Risk Management and Insurance Planning to equivalently qualified candidates who already possess at least three years of work experience. Candidates who possess the following designation are granted this exemption: -
1. Fellow of the Insurance Institute of India
2. Fellow of the Actuarial Society of India
All Challenge Status candidates must inform their education provider also of this exemption granted by the AFP when enrolling in the programme. Students pursuing the above mentioned designations are not eligible to seek Challenge Status.
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