SANDY TECHFANATIC

Earlier individuals used to approach self proclaimed financial advisors for advice. Over a period of time things changed, one started looking at banks, brokerage houses, insurance companies, tax consultants for advice. However, individuals still aren’t getting the counsel that takes an integrated view of their life and financial goals. Even professionals like CAs, CWAs, CFAs are aptly qualified to handle one’s personal finance for instance Chartered Accountants specialise in accounting, CWA specializes in costing, CFA specialises in portfolio management and investment analysis, MBA in finance specializes in general finance and management.
Therefore today the need for a Certified Financial Planner (CFP) is growing. A CFP has specialisation in areas of insurance, investment, taxation, estate planning and retirement planning. A CFP doesn't see an individual’s financial needs such as insurance or investment in isolation but considers all aspects in totality.

SCOPE OF CPF
An increasing number of banks like ICICI bank, Standard Chartered Bank and others are making it mandatory for their Relationship Managers to acquire the CFP certification. Regulatory bodies like SEBI, IRDA, PFRDA etc are gradually educating and encouraging individuals to consult CFPs for their financial needs.

According to a recent report, there will be a need for 50,000 CFPs in India in the next few years. Currently India has around 450 + CPFs. As mentioned above, jobs would be offered in banks, insurance sector, financial services sector.

Overview of comprehensive Financial Planning

What is overall comprehensive Financial Planning
The place, role & importance of each module in this process
Holistic approach & code of ethics
Personal/Intra personal communication skills required.
Risk Management & Insurance Planning

Different kinds of risks & how to manage them
How dose insurance works
Doctrines of insurance
How the cost of insurance is determined
Rating practices in general insurance
How to plan the insurance –Life stage wise
Once case study
Retirement Planning & Employee Benefits

Need for Retirement Planning
How to determine the retirement corpus & planning for it’s achievement
Statutory retirement benefits offered by the Govt. / Pvt. Employees
Mathematical calculation of Gratuity / EDLI / Leave Encashment / EPS 1995 / EPF / PPF
Tax treatment of the above
Group Insurance schemes
OASIS
Investment Planning

Different classes of assets and their characteristics
Liquid Assets
Call money / Notice money / T Bills / Commercial Paper / Commercial Deposits
MMMF’s
Fixed Interest Earning Securities
Govt / PSU / Corporate Bonds /
Understanding the Concept & Calculation of YTM
Growth Assets
Equity
Valuation of Shares
Calculation of EPS / Dividend Yield / P.E. ratios
Mutual Funds
Selection process
Subtopic
Real Estate
Risk Profile
Asset Allocation
Strategic / Tactical
Rebalancing techniques
Concept of returns
Various types of returns and how to calculate them mathematically
Concept of Risk
Various types of risk & to measure them
Risk Adjusted Returns
Standard Deviation / Sharpe Ratio / Treynor Ratio / Jensen Ratio
Risk hedging Techniques
Forwards / Futures / SWAP / Options
Portfolio Design based on life stages & risk profile
Case Study
Taxation & Estate Planning

1. Tax Avoidance / Tax Evasion / Tax Planning
2. Ways & Means of Taxation Planning for Salaried Individuals, firms, Companies
3. Use of Taxation Planning in Management Decision Making Process like –
Make or Buy, Choice of Entity, Capital Structure etc.
4. Residential Status & Applicable Tax Laws to them
5. Taxation Laws & Rules applicable to Individuals / HUF / Firms / Companies / Co. Op. Soc. Etc.

Advance Financial Planning


HOW 2 BECOME CFP
The 4-step process involving 4 Es to become a Financial Planner.

1. Education.

Eligibility.
Ensure you have the requisite education requirement: HSC Marksheet / Graduation / Post Graduation from a recognized university.

Skills.
Ensure you have the skills required to be a Financial Planner:

Ability to understand the Financial Planning process
Ability to gain trust and build relationships with clients
Ensure you have the technical competence in the following areas:

Insurance Planning
Investment Planning
Tax Planning
Retirement Planning
Cash Flow Analysis Budgeting and other mathematical skills
2. Experience

The experience requirement centers on work that involves personal financial planning. It is designed to provide the public with the assurance that the candidate understands the counseling nature of personal financial planning. For CFPCM certification examination, the candidate is required to have a minimum of three years of relevant work experience.

3. Examination

Appear for the globally recognized CFPCM certification examination.

What’s the CFPCM exam all about?
Get your technical skills tested in the following areas:

* Risk Management & Insurance Planning
* Investment Planning
* Retirement Planning
* Tax and Estate Planning
* Advance Plan Construction

All the above exams are conducted by the FPSB in every alternate month, across 7 cities in India.
Click here to know the exam details»

Who gives the CFPCM certification in India?
CFPCM is conducted by Financial Planning Standards Board of India (part of Financial Planning Standard Board Council located at Denver, USA) and is recognized by its Indian charter members.

Be CFPCM certified.
CFPCM is a global certification, which endows the holder with the freedom to practice in more than 19 countries (You only need to clear one module on local tax laws to be eligible to practice in these 19 countries). The CFPCM certification is regarded as a premier qualification in financial advisory services and is among the leading career choices in developed countries.

With a CFPCM certification, you will get on a golden career path alongside fellow Financial Planners from 20 countries.

How do you register for the exam?
1. Become an FPSB India Student member.
You can register with FPSB India by paying a Student Registration fee of Rs. 5000.The Student Registration is valid for 1 year. To download form click here
FPSB India Student Regisration form

2. Exam Details and Fees.
FPSB, India conducts the exam every two months. The test fees are Rs. 1000 per test for the first 4 modules and Rs. 5000 for the last module. The Examination is outsourced to NSE, for which you will have to fill the NCFM form and attach a Passport size photograph , To download form click here
Note: Please make separate DDs for Registration and Exam Fees favoring Financial Planning Standards Board, India payable at Mumbai.
NCFM Examination form

4. Ethics

On completion of the education, examination and experience requirements, the candidate for CFPCM Certification receives a Declaration Packet which includes an ethics statement form. Prior to certification, the candidates will be required to disclose past or pending litigation or agency proceedings, and to acknowledge the right of FPSB to enforce its Professional Standards through its Disciplinary Rules and Procedures. By fulfilling this requirement, the candidate demonstrates to the public that he/she has agreed to provide personal financial planning in the clients best interest and to act in accordance with the highest ethical and professional standards for the practice of financial planning.


CFP Examinations for Modules 1,2,3,4 are now conducted everyday. Student has to schedule his/her own Examination on the website www.nseindia.com. All the four modules will be conducted online viz. on real time basis.
Note: The CFP Examination are as follows

Examination 1 - (Risk Management and Insurance Planning), Examination 2 - (Retirement Planning and Employee Benefits), Examination 3 - (Investment Planning) and
Examination 4 - (Tax Planning & Estate Planning)
A candidate needs to be registered with FPSB India and have a NCFM Number to register for CFP examination.
A candidate can register with FPSB India by submitting the New FPSB India Registration Form along with a DD of Rs. 7500/- drawn in favour of “Financial Planning Standards Board India ” payable at Mumbai to his education service provider.
One can obtain a NCFM Number by registering himself/herself on the NSE website as follows
Log on to the website www.nseindia.com
Click on NCFM on the top menu bar of the website
Select – Online Register / Enroll
Click - New User? Register here
Fill up the online form completely
Check the filled up form thoroughly. Ensure that your name, date of birth, email id and mobile number has been filled up correctly.
Click on Submit after checking the form once again
The NCFM Number will be sent on your email id.
NOTE: In case you have already taken any other module or exam from NSE/NCFM you would already have a NCFM number, DO NOT create a new NCFM number in that case

A Fresh candidate can appear for any module examination (except 5th module) after 60 days of his /her registration with FPSB India. A candidate will not be able to view the CFP modules on NSE site in case he has not registered with FPSB India.
After obtaining the NCFM Number or candidates already having NCFM Number, in both the cases, the candidates will have to create their User ID & Password on the NSE website as follows
Log on to www.nseindia.com
Click on NCFM on the top menu bar of the website
Select Online Register / Enroll
Click on “Existing NCFM Candidates can click here to obtain their User ID & Password”

After creating the user id and password, upload your recent passport size photograph on the NSE website.
Note: It is mandatory for all students to upload their photographs with NSE, if not done earlier. The same has to be done at www.nseindia.com

Choose the module you want to appear for. For example Risk Management and Insurance Planning
Select the name of City where you want to take the test and the date/month/year you wish to take the exam.
Note: CFP Exams for modules 1,2 3,4 are now conducted in 71 cities in India . The examinations will be centrally administered by National Stock Exchange of India (NSE), at their test centers.Examination Centers for Module 1, 2, 3 & 4 will be decided as per the vacancies and slots available with NSE at the time of enrolment for the Examination.

View the seats available.
Note: All the Exams are of 2 hours duration. Students can schedule any number of Examinations as per availability of seat.

Book your seat
Note: Request for carry forward of examination OR request for change in exam dates, change in exam & change in exam centre etc. would NOT be entertained by FPSB India under any circumstances, hence select the date carefully

Pay the Examination Fee. Examination fee can be paid in three ways i.e. online by debit/credit card or by cash at the designated ICICI Bank branches or net banking. Enrolment/registration for Examination can be done only on payment of fee to NSE. For more details refer website www.nseindia.com .
Note: The Examination Fee has been revised as below:

For students taking the examinations during the dates 14th July 2008 to 9th August 2008: Rs 1,000/- per ExaminationFor students taking the examinations from 11th August 2008 to 31st March 2009: Rs 1,500/- per Examination
For students taking the examinations from 1st April 2009 onwards: Rs 2,000/- per Examination

Admit card (Hall ticket) will be generated by the system. Students are required to take a printout of their admit card and carry the same to the test center. The student will be informed about the examination schedule via SMS alert.
Candidates have to carry a photo ID Proof to the exam hall. For example, PAN Card, Driving License, Passport.
Candidate who do not attend the Examination in spite of registering for the exam will be considered as absent for the said examination.