cfp syllabus 2010
TRANSCRIPT
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TheInstituteofFinancialPlanningLimited.
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No.
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V.A.T
No.
489
2013
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CFPCM,CERTIFIEDFINANCIALPLANNER
CMand arecertificationmarksownedoutsidetheU.S.byFinancial
PlanningStandardsBoardLtd.InstituteofFinancialPlanningisthemarkslicensingauthorityfortheCFPmarksin
theUnitedKingdom,throughagreementwithFPSB.
Page1
CERTIFIEDFINANCIALPLANNERCM
Certification
AssessmentCriteriaandStandards
1.Introduction
TheawardoftheCERTIFIEDFINANCIALPLANNERCM
certificationisdependentupondemonstrationof
knowledgeandskilltoadefinedinternationalstandard.
Thelearningcompetences(cognitiveorthinkingcompetences)requiredare:
Comprehension Interpreting,summarisingorcomputinggiveninformation Application Usinginformationtocarryoutafunction Analysis Separatinginformationintopartsuntiltherelationshipsbetweenthemareclearin
identifyingproblems
Synthesis Combininginformationtoproducesolutions Evaluation Decisionmakingorjudgementbasedoncriteriaorrationale
TheCFP
CM
Certification
is
based
on
apractical
assessment
of
applied
skills.
The
application
skills
are
assessedundertheCFPCertificationsyllabusandarelargelyconcernedwiththeapplicationof
knowledgecompetencestowrittencommunication,i.e.theabilitytopresentacomplexargumentand
complexsupportingdatatoaclientinacoherentandclearmanner. However,nonverbalandverbal
communicationskillswillnormallyberequiredwhenobtainingdata,orwhenexplainingawritten
communication.
Theseskillsareimpliedandsoarenotexplicitlyassessed. Theskilllevels(psychomotorcompetences)
requiredare:
Precision Skillsperformedwithaccuracy Articulation Tasksperformedinsequenceandwithconsistency Naturalisation Skillsareperformedeasily,automaticallyandwithoutreferencetoasource
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TheInstituteofFinancialPlanningLimited.
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limited
by
Guarantee.
Reg.
in
England
No.
2109630.
V.A.T
No.
489
2013
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CFPCM,CERTIFIEDFINANCIALPLANNER
CMand arecertificationmarksownedoutsidetheU.S.byFinancial
PlanningStandardsBoardLtd.InstituteofFinancialPlanningisthemarkslicensingauthorityfortheCFPmarksin
theUnitedKingdom,throughagreementwithFPSB.
Page2
2.InternationalStandards
MinimumStandards
for
aComprehensive
Financial
Plan
FinancialPlanningisaprofessionalserviceforclientswhoneedobjectiveassistanceinorganisingtheir
personalorcorporatefinancialaffairstomorereadilyachievetheirgoals.
TheFinancialPlanningprocessincludessixsteps:
Collectingandassessingallrelevantpersonalandfinancialdata Identifyingfinancialobjectivesandproblems Processingandanalysinginformation Producingafinancialplan,theimplementationofwhichshouldmakethemosteffectiveuseofa
client's
resources
towards
the
achievement
of
his
objectives,
and
identifying
alternative
solutions
Implementingtheplan Reviewingprogressandmodifyingtheplanasnecessarytotakeaccountofchanged
circumstances
Comprehensive Financial Planningwill include thebasicareasof Financial Planning alongwithother
areasofconcerntotheclient. Thebasicareasinclude:
FinancialStatementanalysis InvestmentPlanning TaxPlanning RiskManagementandInsurance RetirementPlanning EstatePlanning
Otherareasofconcernmayinclude:
CashManagement EducationFunding EmployeeBenefits CharitablePlanning BusinessPlanning
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TheInstituteofFinancialPlanningLimited.
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Reg.
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No.
2109630.
V.A.T
No.
489
2013
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CFPCM,CERTIFIEDFINANCIALPLANNER
CMand arecertificationmarksownedoutsidetheU.S.byFinancial
PlanningStandardsBoardLtd.InstituteofFinancialPlanningisthemarkslicensingauthorityfortheCFPmarksin
theUnitedKingdom,throughagreementwithFPSB.
Page3
2.1StandardsforaComprehensivePersonalFinancialPlan
A
comprehensive
personal
financial
plan
should
contain
analysis
of
all
relevant
factors
relating
to
the
clientandshouldincorporatethesixcomponentsmentionedabove. Whileorderandstyleof
presentationmayvarydependingupontheclient'sindividualcircumstancesandneeds,theplanshould
include,butnotbelimitedto,thefollowing15elements:
ClientData ClientGoalsandObjectives IdentificationofIssuesandProblems Assumptions BalanceSheet/NetWorth CashFlowManagement IncomeTax RiskManagementandInsurance Investments RetirementPlanningandotherspecialneeds EstatePlanning Recommendations Implementation Periodicreviewsandplanupdates Compliancerequirementsofcomprehensivefinancialplans
2.2ElementsofaComprehensivePersonalFinancialPlan
2.2.1ClientData
Theclientdatacollectionformstoincluderelevantpersonalandfamilydataforpartiescoveredunder
theplan.
Thedatacollectionrecordsshouldbecompletedandkeptonfile. Theseshouldinclude,butnotbe
limitedto,name,address,birthdateandotherrelevantdatasuchasnamesandaddressesofother
specialistadvisersincludingaccountantsandsolicitors,namesofnextofkin,detailsofpowerof
attorney,andwhetherWillshavebeenmadeout. Allapplicableareasshouldbecompleted. Areason
thedatarecordsthatarenotrelevantshouldbeclearlymarkedN/A.
2.2.2ClientGoalsandObjectivesTheplannershouldprovideastatementoftheclient'sstatedgoalsandobjectives, indicatingpriorities
andincludingatimeframewhereapplicable.
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TheInstituteofFinancialPlanningLimited.
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No.
2109630.
V.A.T
No.
489
2013
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CFPCM,CERTIFIEDFINANCIALPLANNER
CMand arecertificationmarksownedoutsidetheU.S.byFinancial
PlanningStandardsBoardLtd.InstituteofFinancialPlanningisthemarkslicensingauthorityfortheCFPmarksin
theUnitedKingdom,throughagreementwithFPSB.
Page4
The statementwill form thebasic framework for thedevelopmentof the financialplan. The client's
goalsandobjectivesshouldbeexpressedinspecificandpreciselanguage.
2.2.3Identification
of
Issues
and
Problems
Theplannerlistspersonalandfinancialissuesandproblemswhichmayaffecttheclient,suchasmajor
illness,educationcosts,taxesetc. Whiletheclientmaybeawareofmany ifnotallofthe issues,the
plannermaydiscoverotherareasthatareorcoulddevelopintoaproblem.
These issues and problems,when combinedwith the client's goals andobjectiveswill complete the
frameworkanddirectionforthefinancialplan.
2.2.4.Assumptions
The planner should identify and state material assumptions used in the preparation of the plan.
Assumptionsshould include,butnotbe limitedto, inflation, investmentgrowthrate,earningsgrowth
rate,mortality,etc.
2.2.5.BalanceSheet/NetWorth
Theplan shouldhaveapresentationandanalysis to include,butnotbe limited to,a schedule listing
assetsandliabilitieswithacalculationofnetworthanditemisedschedulesofliabilitiesandassetstobe
includedasappropriate.
Footnotesshould
be
included
as
appropriate.
2.2.6.CashFlowManagement
Theplan shouldhave statements and analysis to include,butnot be limited to, a statement of the
client'ssourcesandusesoffundsforthecurrentyearandforallrelevantyears.
The planner should indicate net cash flow (positive and negative) as well as a separate income
statementwhereappropriate.
Sourcesofincomewouldincludeearnedincome,investmentincome,saleproceeds,giftsetc.
Usesofincomewouldincludelivingexpenses,debtservice,acquisitionofassets,taxespaidetc.
2.2.7.Taxation
Theplannershouldprovideataxstatementandanalysisto include,butnotbe limitedto,the income
andothertaxesforallrelevantyearscoveredbytheplan.
Computations should show the nature of the income and deductions in sufficient detail to permit
calculation of tax liability. The analysis should identify themarginal tax rate for each year and any
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No.
2109630.
V.A.T
No.
489
2013
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CFPCM,CERTIFIEDFINANCIALPLANNER
CMand arecertificationmarksownedoutsidetheU.S.byFinancial
PlanningStandardsBoardLtd.InstituteofFinancialPlanningisthemarkslicensingauthorityfortheCFPmarksin
theUnitedKingdom,throughagreementwithFPSB.
Page5
specialsituationswhichaffect theclient's tax liability. Theclientshouldbe informed (by footnotes if
necessary) in the plan, of any taxes which have not been addressed. Income tax analysis and
recommendationson taxeffective investments shouldbe,whereappropriate, referred to theclient's
accountantor
tax
specialist/adviser.
2.2.8.RiskManagementandInsurance
Theplannershouldprovideananalysisoftheclient's financialexposurerelativetomortality (survivor
incomeandcapitalneedsanalysis)andmorbidity(impactofpoorhealth)asappropriate.
Theplannershouldprovidealistingandanalysisofcurrentpoliciesandproblemstoinclude,butnotbe
limitedto,life,disability,andmedicalinsurances.
2.2.9.
Investments
The planner should provide a breakdown of existing asset allocation and analysis or discussion of
liquidity,diversificationand investmentriskexposureoftheportfolioand includethesuitabilityofthe
investmentsinrelationshiptotheclient'sneeds,goalsandobjectives.
The financial plan should include, but not be limited to, risk tolerance, risk analysis of investments,
suitability,liquidityandassetallocation.
2.2.10.RetirementPlanningandOtherSpecialNeeds
Theplanner
should
provide
analysis
of
capital
needed
at
some
future
time
to
provide
for
financial
independence,retirementeducationorotherspecialneeds.
Theanalysisshould includeaprojectionofresourcesexpectedtobeavailabletomeetthoseneedsat
that time. Inflation, growth of assets and State and company benefits should be consideredwhere
applicable. Specialsectionsmayrequireseparateheadingsinthefinancialplan. Forexample,pension
benefitsmayrequireananalysisoftypesavailable,pretaxcontributionsneeded,taxtreatmentofplans
andinvestmentofpensionfundassets.
2.2.11.EstatePlanning
Thereshould
be
adiscussion
on
the
relevance
of
Wills,
trusts
and
the
various
powers
of
attorney.
Theplannershould,whereappropriate, include reference to theclient's solicitor foradviceonestate
matters.Theremaybeaneedto identifyassetstobe included intheclient'sestateandananalysisof
the control (title, trusteeship, power of attorney etc) disposition (transfer of ownership byWill to
individuals,beneficiariesor toa trust)and taxation (InheritanceTaxand income taxconsequences to
thebeneficiaries). Evidenceshouldbedocumentedthattheclient:
HaskeptWillsupdatedandthesewillbeappropriatetoestaterequirementsafterthefinancialplanisimplementedorhasarrangedtohavehisorhersolicitorsdrawupnewWills.
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CFPCM,CERTIFIEDFINANCIALPLANNER
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2.2.12.
Recommendations
The planner should provide clearly identified and stated written recommendations relating to the
client'sgoalsandobjectivesaswellasfinancialissuesandproblems.
The plan should include a determination of the actions necessary to compensate for any shortfalls.
Recommendationsshouldnotbeconveyedbyimplicationorinference,andmaybegenericorspecific.
2.2.13.Implementation
The planner should provide a list of action points required to implement the recommendations,
indicatingresponsible
parties,
action
required
and
timing.
This
should
follow
the
client's
agreement
to
therecommendationsmade.
2.2.14.PeriodicReviewsandPlanUpdates
The plan should include a note of intended periodic reviews and updates of the client's plan and
implementationstrategy.
Theplanner'spolicymustbe stated. Forexample, isa reviewmadeat the requestof the client, six
monthlyorannually? Doesthereviewonlyconsiderinvestmentassetsorotheractions.
2.2.15.Compliance
Requirements
of
Comprehensive
Financial
Plans
Allplansmustmeetlegalcompliancerequirementsasatthedatethefinancialplanwasprepared.
[ForthepurposesofCFPCMCertificationCaseStudyentry,theserequirementsmaybeomitted]
2.3GeneralCommentsontheComprehensiveFinancialPlan
The planner is responsible for the above elements of a comprehensive financial plan, from data
gathering through toanalysis andpresentation to the client. Thoseelementsof theplanwhich the
plannerdoes
not
personally
perform
remain
the
responsibility
of
the
planner
to
co
ordinate
and
these
shouldbeindicatedintheplan.
The implications of the involvement of other familymembers and/or business partners in the plan
shouldbeconsidered.
When technical areas suchas legal, insuranceetc,arenotpersonallyperformedby theplanner, the
financial plan should include reference to the extent towhich these areas havebeenorwillbe co
ordinatedbytheplanner.
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No.
2109630.
V.A.T
No.
489
2013
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CFPCM,CERTIFIEDFINANCIALPLANNER
CMand arecertificationmarksownedoutsidetheU.S.byFinancial
PlanningStandardsBoardLtd.InstituteofFinancialPlanningisthemarkslicensingauthorityfortheCFPmarksin
theUnitedKingdom,throughagreementwithFPSB.
Page7
Analysisofeachelementoftheplanshouldconsistofareviewofrelevantfacts,aconsiderationofthe
advantagesand/ordisadvantagesofthecurrentsituationandadeterminationofwhat, ifany,further
actionisrequired. Theplanshouldincludeasummarystatementprovidingtheplanner'scommentson
theanalysis
and
his
or
her
recommendations
where
appropriate
for
each
element
of
the
plan,
plus
a
statementoftheplanner'sclientreviewpolicy.
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TheInstituteofFinancialPlanningLimited.
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limited
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Reg.
in
England
No.
2109630.
V.A.T
No.
489
2013
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CFPCM,CERTIFIEDFINANCIALPLANNER
CMand arecertificationmarksownedoutsidetheU.S.byFinancial
PlanningStandardsBoardLtd.InstituteofFinancialPlanningisthemarkslicensingauthorityfortheCFPmarksin
theUnitedKingdom,throughagreementwithFPSB.
Page8
3.AssessmentSyllabus
N.B.Candidatesarerequiredtosubmitacasestudybasedfinancialplanforassessment. Thefinancialplanwillbeassessedagainstthefollowingcompetencestatementsandtheaccompanyingperformancestandardsforeachcompetencestatements.The standardsmarkedwithMareMANDATORY. Eachandeverymandatory standardmustallbe
passedtopassthecertificationassessmentoverall.
PartA GeneralCompetences
1:Presentation
1.1 M Doesthereportorplanhaveastructurewhichislogicalandformaplanofaction?
1.2 Wastheuseoflanguageappropriatetotheclientinthecircumstances?
1.3 M Didthelanguageusedcommunicateideasclearlytoathirdparty?
1.4 Istheplanlogicallycollated?
1.5 Istheplaneasytoreadandfollow?
1.6 Istheplanboundorotherwisefastenedtogetherasadocument?
2:Clientneedsandobjectives
2.1M
Were
clients
needs,
objectives,
aspirations
or
concerns
established
and
recorded?
2.2 M Weretheobjectivesquantifiedandqualified(i.e.what,howmuch,whenetc.)?
2.3Wereadditionalneedsorissuesandproblems/potentialproblemsconsideredinrespectof
theseobjectivesandaconclusionreached?
3:Identificationofissuesandproblems3.1 M Wereappropriatepotentialproblemsqualified,quantifiedandclearlystatedfortherecord?
3.2Hasdiscussionandjustificationofrecommendationsbeenmadeforthreespecificfinancial
planningissues?
3.3Isthereclearreferencetoandjustificationfortheexclusionofanyotherfinancialplanning
issues?
4:Clientdata4.1 Hasclientsattitudetopersonalandbusinessriskmanagementbeenidentified?
4.2 M Hasclientsinvestmentriskattitudebeenidentifiedforeachobjective?
4.3 Doesclientdataincludesufficienthardfacttoadviseoneachobjectiveidentified?
4.4 Istheclientdatacollatedandunderstandablebyathirdpartywithinthereport?
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Page9
5:Assumptions
5.1 MWereassumptionsregardinginvestmentgrowth,priceinflationandearningsinflation
discussed?5.2 M Wereotherrelevantworkingassumptionsstatedanddiscussed?
5.3 M Werethevariousassumptionsmadeadequatefortheadvicerequired?
5.4 M Werealltheassumptionsstatedbytheadviserreasoned?
5.5 Weretheassumptionsstatedbytheadviserreasonable?
6:Abalancesheet/networthstatementhasbeenproduced?6.1 M Wasastatementofnetworthproduced?
6.2 M Doesitincludeallrelevantassetsandistheownershipbasisidentifiedaccurately?
6.3
Does
it
include
all
relevant
debt
and
is
this
apportioned
accurately?
6.4 Isitclearwhetherthisrelatestolifetimeordeathorboth(theremaybemorethanone).
7:IncomeTaxCalculation7.1 M Wasananalysisproducedforeachclient?
7.2 Isitcleartowhichtimeperioditrelates?
7.3 M Isittechnicallyaccurate?
7.4 Hasthetaxpositionbeenreviewedresultingincommentstotheclients?
8:Income
and
expenditure/cash
flow
8.1 M Wasananalysisofincomeandexpenditureproduced?
8.2 M Isthetimeperiodtowhichitrelates,clearlyidentified?
8.3 Doesitidentifygrossandnetincome?
8.4 Doesitapportionincomebetweenrecipientswherenecessary?
8.5 M Doesitcorrectlyidentifyshortfallorsurplusofincomeoverexpenditure?
8.6Is there reference toand/ordiscussionofnet cash flow (spendable income) in relation to
jointincomeand/oreachclient(wheremorethanone).
8.7 Doesitincludeallrelevantassetsandareirregularcapitalreceiptsseparatelyidentified?
8.8 Arecashflow/spendableincomeobjectivesestablishedinlinewiththeclientswishes?
8.9 M
Isit
clear
whether
the
clients
aspirations
can
be
achieved
within
current
and/or
future
cash
flowconstraintsorifnotcanthesolutionbetrimmed/adjustedorprioritisedtofitcashflow
constraints?
8.10 Hasliquidityand/oracashreservebeenconsidered?
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CFPCM,CERTIFIEDFINANCIALPLANNER
CMand arecertificationmarksownedoutsidetheU.S.byFinancial
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9:Recommendations,ImplementationandReview
9.1 MArerecommendationsmadeforeachoftheproblems/concerns, identifiedandeachofthe
goals/objectivesidentified?
9.2 M Arethereclearexplanationsofhowtheproposedsolutionsolvestheproblem?
9.3 MArerequiredactions,timing,partiesandresponsibilitiesstatedorlisted(subjecttoclients
prioragreement)?
9.4 M Hasaclearactionplanbeenagreedwiththeclients?
9.5 MIs the solution generally suitable for the client and no evidence of unsuitable advice
demonstrated?
9.6 Arereviewperiods,updatesandactionsstated?
9.7 M Arereviewcontents,responsibilitiesandpartiesclearlyidentified?
9.8Isitclearhowareviewwillbeinitiated(e.g.atclientrequestorbyFinancialPlannerannually
orhalfyearly)?
9.9 M Dothesolutionsmatchtheclientsagreedinvestmentriskattitude(whererelevant)?
9.10Istheownershipandmethodofarrangingpolicies/assetsclearlyexplained(i.e.underwriting
process,whotakesactiontoimplementthisprocess)?
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TheInstituteofFinancialPlanningLimited.
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Guarantee.
Reg.
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No.
2109630.
V.A.T
No.
489
2013
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CFPCM,CERTIFIEDFINANCIALPLANNER
CMand arecertificationmarksownedoutsidetheU.S.byFinancial
PlanningStandardsBoardLtd.InstituteofFinancialPlanningisthemarkslicensingauthorityfortheCFPmarksin
theUnitedKingdom,throughagreementwithFPSB.
Page11
PartB TechnicalCompetences
Please
note,
candidates
will
be
assessed
on
three
of
these
technical
competences.
Candidates
should
read the information at the start of the case studyfor guidance on which of the technical areas toaddress. Insomecases,thetechnicalareaswillbespecified,inothers,candidatescanselectfromalist.1:Personalriskmanagement/insurance1.1 M Haveneedsandobjectivesbeenstatedandquantified/qualified?
1.2Hastheclientsfinancialexposuretomortalityrisk(riskofdeath)andmorbidityrisk(riskof
illhealthorinjury)beendiscussed?
1.3Haveexistingriskmanagementstrategiesorinsurancepoliciesbeenanalysedandtakeninto
account(includingsocialsecurity,pensionsoremployeebenefits)?
1.4
Havethesolutionsbeenexplained,e.g.intermsofproviding:
acapitalsumtorepaydebt; acapitalsumforaspecificpurpose; acapitalsumtoproduceanincomebyinvestment; areplacementregularincomestreambyinsurance?
1.5Arethesolutionsclearlyexplainedtotheclientstatingwhyrecommendedandhowitsolves
theproblem?
1.6 Havetaxationconsiderationsofsolutionsbeentakenintoaccount?
1.7Have appropriate qualifications, caveats and implications been stated (e.g., taxation,
underwriting,legalorgenericcontractlimitations)?
1.8 Aretheproposedsolutionsaffordablewithinparametersagreedwiththeclient?
1.9 Dothesolutionsmatchtheclientsagreedinvestmentriskattitude(whererelevant)?
1.10Istheownershipandmethodofarrangingpolicies/assetsclearlyexplained(i.e.underwriting
process,whotakesactiontoimplementthisprocess)?
1.11 Havesocialsecuritybenefitsbeentakenintoaccountwhereapplicable?
1.12 M Doeachoftheproposedsolutionsmeettheclientsagreedobjectivesasfullyaspossible?
1.13 M Arethesolutionsgenerallytechnicallyaccurate?
2:Investments2.1 M Haveneedsandobjectivesbeenstatedandquantified/qualified?
2.2
Haveexisting
portfolio
parameters
been
clearly
established
and
stated
(i.e.
which
assets
are
tobeincluded/excluded,istheportfoliojointorindividual)?
2.3 Arerealisablecapitalassetstakenintoaccountwherenecessary?
2.4Ifajointportfolioisbeingrecommended,haveagreedindividualownershiplimitationsbeen
addressedandstated?
2.5
Withintheclientsexistingagreedportfolio,havetheassetsbeenanalysedbytaxation,
vehicle(i.e.producttype),ownership,underlyingassets/fund,incomeproducedandthen
comparedagainstthedesiredmodelportfolioparametersagreedwiththeclient?
2.6Hasconsiderationbeengiventocomparingtheclientsagreedrisktoleranceagainstthe
existingportfolioandgapsidentified?
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2.7
Hasconsiderationbeengivento:
systematicandnonsystematicrisk(theriskwithinmarketoreconomy);
absoluterisk(theriskofariseorfallinvalue); comparativerisk(theriskofariseorfallcomparedagainstinflationoranotherasset)?
2.8
Hasconsiderationbeengiventodiversificationtoreducetheriskassociatedwithasset
concentration:
withinmarket/sectors
withinassettypes
2.9 Hasallowancebeenmadeforliquidity(bothcurrentrequirementandfuturerequirements)?
2.10 Haveallassumptionsandtimescalesbeenidentifiedandexplained?
2.11Arealltheassumptionsreasoned,reasonableandtakeaccountofvariationsinreturnsof
differentassetclasses(i.e.outorunderperformance)?
2.12
Has
account
been
taken
of
both
current
and
future
income
requirements?
2.13 Hasasset/productownershipbeenstatedandjustified?
2.14Haveanyrelevantimplications,limitationsorlegal/taxationconditionsbeenstatedand
explainedtotheclient?
2.15 MDoestherecommendedportfolioclearlymeettheclientsagreedobjectivesandneedsas
fullyaspossible?
2.16 M Arethesolutionsgenerallytechnicallyaccurate?
3:PersonalRetirementPlanning(includingBusinessOwners)3.1 M Haveneedsandobjectivesbeenstatedandquantified/qualified?
3.2
Has
an
analysis
been
carried
out
of
income
and
capital
required
to
achieve
current
or
future
objectivesandneedsandthetimescale(s)applicable?
3.3 Haveexistingoranticipatedassetsorcapitalbeentakenintoaccount?
3.4Hasreferencebeenmadetospecificobjectives(e.g.pensionfunding,longtermcarecosts)
andindividualsolutionsdesignedandintegratedtomeetthesevariousobjectives?
3.5 Haveassumptionsbeenstatedandaretheyreasonedandreasonable?
3.6 Havesocialsecuritybenefitsandcontributionsbeentakenintoaccount?
3.7 Havetaxationconsiderationsbeentakenintoaccount?
3.8 Aresolutionsconsistentwiththeclientsagreedinvestmentattitude?
3.9Canthecapitalorexpendituresfromincomerequiredbeaffordedbasedontheclients
agreed
cashflow/expenditure
pattern?
3.10 Haveappropriatemortalityandmorbidityrisksbeentakenintoaccountandquantified?
3.11 Havesolutionsbeenrecommendedtotheseriskswhererequired?
3.12Haveanyrelevant implications, limitationsor legal/taxationconditions/consequencesbeen
statedandexplained?
3.13 MDothesolutionsrecommendedclearlymeettheclientsagreedneedsandobjectivesasfully
aspossible?
3.14 M Arethesolutionsgenerallytechnicallyaccurate?
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TheInstituteofFinancialPlanningLimited.
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Reg.
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No.
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V.A.T
No.
489
2013
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CFPCM,CERTIFIEDFINANCIALPLANNER
CMand arecertificationmarksownedoutsidetheU.S.byFinancial
PlanningStandardsBoardLtd.InstituteofFinancialPlanningisthemarkslicensingauthorityfortheCFPmarksin
theUnitedKingdom,throughagreementwithFPSB.
Page13
4:EstatePlanning4.1 M Havetheclientsestateplanningneedsandobjectivesbeenclearlyquantified/qualified?
4.2
Hasconsideration
been
given
to
the
most
appropriate
method(s)
of
achieving
the
clients
wishes,e.g.
Useofwills Useoftrusts Useof powersofattorney Useofgifts?
4.3Havetaxationconsiderationsbeentaken intoaccountforboththeclientandthe intended
beneficiaries?
4.4 Haveappropriate/relevantimplicationsorlimitationsbeendrawntotheclientsattention?
4.5Haveanyknockoneffectsonotherareasoffinancialplanningbeendrawntotheclients
attentionandexplained(e.g.longtermcare/depletionofestatevalue)?
4.6 Hasthepotentialneedtorefertotheclientsspecialist legaland/ortaxationadvisersbeenstatedandexplained?
4.7Hasthemostappropriateownershipofassetstoachievetheclientsobjectivesbeenstated
andexplained?
4.8Is thereevidence that theclient is recommended todrawupnewWillsoramendexisting
Willsortrustsorwillmaintainuptodatelegaldocumentstoachievetheobjectives?
4.9 MDotherecommendationsclearlymeettheclientsagreedobjectivesandneedsasfullyas
possible?
4.10 M Arethesolutionsgenerallytechnicallyaccurate?
5:Educationalfunding5.1 M Haveneedsandobjectivesbeenstatedandquantified/qualified?
5.2Hasananalysisbeencarriedoutofincomeandcapitalrequiredtoachievecurrentorfuture
objectivesandneedsandthetimescale(s)applicable?
5.3 Haveexistingoranticipatedassetsorcapitalbeentakenintoaccount?
5.4
Has reference been made to obstacles of achieving the clients specific objective (e.g.
pension funding, longtermcarecosts)and individual solutionsdesignedand integratedto
meetthesevariousobjectives?
5.5 Haveassumptionsbeenstatedandaretheyreasonedandreasonable?
5.6 Havesocialsecuritybenefitsandcontributionsbeentakenintoaccount?
5.7 Havetaxationconsiderationsbeentakenintoaccount?
5.8 Aresolutionsconsistentwiththeclientsagreedinvestmentattitude?
5.9Canthecapitalorexpendituresfromincomerequiredbeaffordedbasedontheclients
agreedcashflow/expenditurepattern?
5.10 Haveappropriatemortalityandmorbidityrisksbeentakenintoaccountandquantified?
5.11 Havesolutionsbeenrecommendedtotheseriskswhererequired?
5.12Haveanyrelevant implications, limitationsor legal/taxationconditions/consequencesbeen
statedandexplained?
5.13 MDothesolutionsrecommendedclearlymeettheclientsagreedneedsandobjectivesasfully
aspossible?
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5.14 M Arethesolutionsgenerallytechnicallyaccurate?
6:Special
Needs
(e.g.
long
term
care/structured
settlements)
6.1 M Haveneedsandobjectivesbeenstatedandquantified/qualified?
6.2
Has reference been made to obstacles of achieving the clients specific objective (e.g.
pension funding, longtermcarecosts)and individualsolutionsdesignedand integratedto
meetthesevariousobjectives?
6.3 Haveexistingoranticipatedassetsorcapitalbeentakenintoaccount?
6.4 Haveassumptionsbeenstatedandaretheyreasonedandreasonable?
6.5Have social security benefits and contributions been taken into account (e.g. attendance
allowance)?
6.6 Havetaxationconsiderationsbeentakenintoaccount?
6.7
Aresolutions
consistent
with
the
clients
agreed
investment
attitude?
6.8Can the capital or expenditures from income required be afforded based on the clients
agreedcashflow/expenditurepattern?
6.9 Haveappropriatemortalityandmorbidityrisksbeentakenintoaccountandquantified?
6.10 Havesolutionsbeenrecommendedtotheseriskswhererequired?
6.11Haveanyrelevant implications, limitationsor legal/taxationconditions/consequencesbeen
statedandexplained(e.g.preservationofestatevalue)?
6.12 MDothesolutionsrecommendedclearlymeettheclientsagreedneedsandobjectivesasfully
aspossible?
6.13 M Arethesolutionsgenerallytechnicallyaccurate?
7:TaxationandNationalInsurance7.1 M Haveneedsandobjectivesbeenstatedandquantified/qualified?
7.2 Istherereferencetoanddiscussionofeachclientstaxationposition?
7.3 Aretaxesreferredtotheonlyrelevanttaxeswithothertaxesnotrelevant?
7.4
Doesreferencetotaxesinclude(whereappropriate):
Incometaxes(e.g.CorporationTax/IncomeTax) Capitaltaxes(e.g.CGT/IHT) Advaloremtax/duty(e.g.,VAT/StampDuty) NationalInsuranceContributionsLocal
taxation
(e.g.
Council
Tax/Rates)
7.5Is there sufficient detail to compute/has computation been done to produce an
approximatedtaxliabilityforeachrelevanttax?
7.6 Istaxationcommentgenerallytechnicallyaccurate?
7.7Does it clearly identify the highest marginal rate(s) of taxation applicable to each year
coveredbytheplan?
7.8Have all relevant allowances, exemptions, reliefs or other allowable deductions been
identifiedandtakenintoaccount?
7.9 Haveanyrelevantimplications(e.g.AgeAllowancereduction)beenidentifiedand
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Page15
discussed?
7.10
Havetaxefficientinvestmentsand/orothertaxmitigationactionsbeendrawntotheclients
attention(possiblyinothersectionsofthereportprovidingtheclientsattentionisdrawnto
theappropriatesection)?
7.11Is referencemade toanappropriate specialistadviser, ifneeded,withaclearexplanation
givenastowhythisisrequired?
7.12 MDo the recommendationsclearlymeet the clientsagreedobjectivesandneedsas fullyas
possible?
7.13 M Arethesolutionsgenerallytechnicallyaccurate?
8:DebtManagement8.1 M Hastheclientsproblem/requirementbeenclearlydefined,agreedandstated?
8.2 Haveanycrisispoints/timescalesbeenidentified,agreedandstated?
8.3 Havetheclientsassetsandliabilitiesbeenquantified,qualifiedandanalysed?
8.4 Hastheclientsincomeandexpenditurebeenquantified,qualifiedandanalysed?
8.5 Hasthedebtservicingabilityandhistorybeenanalysedandassessed?
8.6 Haverelevantlegal,taxationandcostconstraintsbeentakenintoaccount?
8.7 Whererelevant,hastheclientbeenadvisedofother/specialistsourcesofadvice?
8.8 Hasrenegotiationorrefinancingofdebtonimprovedtermsbeenconsidered?
8.9 Haveappropriatemortalityandmorbidityrisksbeenanalysedandcommentedupon?
8.10Haveappropriateandtechnicallyaccuraterecommendationsbeenmade includingrelevant
legal,taxationandownershipimplications?
8.11 M Arerecommendationsclearlystated,justifiedanddotheymeettheclientsobjectives/needsasfullyaspossible?
8.12 M Arethesolutionsgenerallytechnicallyaccurate?
9:BusinessSuccessionPlanning
9.1 MHave the clients succession planning options and objectives been clearly and accurately
stated?
9.2Hastheneed to refertobusiness legaldocumentsbeenconsidered,statedandexplained,
e.g.,PartnershipAgreementorCompanyMemorandumandArticlesofAssociation?
9.3
Has considerationbeengiven to themostappropriatemethod(s)ofachieving the clients
wishes,e.g.
Useofwills Useoftrusts Useofpowersofattorney Useofgifts Sharepurchaseagreements
9.4 Hasfundingofsharepurchasebeenconsidered(whererelevant)?
9.5Havetaxationconsiderationsbeentaken intoaccountforboththeclientandthe intended
beneficiaries/purchaser?
9.6 Aretimescalesofsuccessionplanningobjectivesdiscussed(e.g. lackoftrainedchildtotake
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Page16
overthebusiness)?
9.7 Haveappropriate/relevantimplicationsorlimitationsbeendrawntotheclientsattention?
9.8
Hasbusiness
valuation
been
explored
and
the
implications,
complexities
and
potential
solutionsexplained?
9.9Haveanyknockoneffectsonotherareasoffinancialplanningbeendrawntotheclients
attentionandexplained?
9.10Hasthepotentialneedtorefertotheclientsspecialist legaland/ortaxationadvisersbeen
statedandexplained?
9.11 M Aresolutionsrecommendedgenerallytechnicallyaccurate?
9.12 MDothesolutionsrecommendedclearlymeettheclientsagreedneedsandobjectivesasfully
aspossible?
10:AcquisitionorDisposalofaBusiness
10.1 MHave
needs
and
objectives
been
stated
and
quantified/qualified
and
agreed
where
appropriate?
10.2Has the client been advised to consultwith other relevant advisers (legal, tax, pension,
etc.)?
10.3Has the acquisition or disposal method been discussed, implications stated and a
recommendationstated?
10.4Haveallassumptionsandtimescalesbeen identifiedandexplained (i.e.whenconsidering
disposingorbuyingabusiness)?
10.5Hastheclientbeenappraisedoftheneedforvariousguarantees/undertakings/warranties
andconfidentiality?
10.6Where relevant, has the client been advised of theneed for a businessplan, cash flow
forecast,operating
budget
and
profit
growth
forecast?
10.7Have theclientsassetsbeenanalysedandassessedregarding financinganacquisitionor
proceedsofadisposal?
10.8 Havetherelevantlegalstructuresbeendiscussedandagreed?
10.9Havetherelevantlegal/taxationconstraintsbeendiscussed/agreed(e.g.employmentlaw/
socialsecuritylaw/companylaw)?
10.10 Havetheemployeerelationsimplicationsbeenconsidered?
10.11 Haverelevanttaxmitigationoptionsbeenidentified,discussedandagreed/recommended?
10.12
Havetherelevantoptionsforfinancing(saleorpurchase),consideration(saleprice/value)
and payment (timing and amounts) been identified, considered and agreement
reached/recommendationmade(whereappropriate)?
10.13 MDo
the
solutions
recommended
clearly
meet
the
clients
needs
and
objectives
as
fully
as
possible?
10.14 M Arethesolutionsrecommendedgenerallytechnicallyaccurate?
11:BusinessRiskManagement/Insurance11.1 M Haveneedsandobjectivesbeenstatedandquantified/qualified?
11.2Haveexisting riskmanagement strategiesor insurancepoliciesbeenanalysedand taken
intoaccount(includingsocialsecurityorpensions)?
11.3 Havethesolutionsbeenexplained,e.g.intermsofproviding:
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4.CFPCM
CertificationKnowledgeSyllabus
CFP Certification candidates must provide evidence that they have met the knowledge and
understandingrequirementssetout intheKnowledgeSyllabus (below). At leastthreeyearsrelevant
financialplanningexperiencemustbedemonstratedinadditiontotheknowledgerequirement.
FinancialPlanningisamultidisciplinaryprofession. Thereforeanyprofessionalqualificationrelevantto
personaland/orbusinessFinancialPlanningwillnormallybeconsideredasevidenceofmeetingallor
partof theCFPCertificationKnowledgeSyllabus requirements. However, the followingqualifications
aredeemed sufficient (*as long as specific examination subjects arepassed), tomeet theknowledgerequirementsinconjunctionwiththeCFPCertification:
Tobe
eligible
to
embark
on
the
process
of
becoming
aCFP
practitioner
there
are
three
compulsory
criteriawhichmustbemet:
Aminimumofthreeyearsexperienceoffinancialservices AnFSSCAppropriateExaminationforAdvisingonPackagedProducts Anexaminationpassineachofthefollowingareas:
Taxation
FinancialPlanning
AdvancedTechnicalArea
Forfurtherdetails,pleaseseetheIFPwebsite:
http://www.financialplanning.org.uk/planners/cfp_entry_requirements.cfm
4.1The
Financial
Planning
Process
4.1.1 Candidatesshouldknow,understandandbeabletoapplytheFinancialPlanningprocessandhowitdiffersfromthefinancialadvisoryprocess.
TheFinancial
Planningprocess:
gatheringdata establishingclientobjectives processingandanalysinginformation recommendingacomprehensiveplan implementationoftheplan reviewingtheplan
Thefinancialadvisoryprocess:
gatheringdata establishingclientobjectives processingandanalysinginformation
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Page19
recommendingasolution implementingthesolution
4.1.2
Candidates
should
know,understand
and
be
able
toapply:
theskillsrequiredtogatherandrecorddata theskillsrequiredtoagreeandrecordclientneeds,objectivesandpriorities thedifferencebetweenobjectives,goalsandneeds theneedforgoodwritten,verbalandnonverbalcommunication theneedtoquantifyandqualifydata theneedtoestablishattitudinaldata,especiallyregardinginvestment,morbidityandmortality
risks
theneedtolinkriskattitudetotimeandpurpose
4.1.3Candidates
should
knowandunderstandtheimportanceofandbeabletoapply:
experience legalknowledge taxationknowledge productknowledge professionalcontacts interpersonalskills tosynthesiseasolutiontomeetaclientsagreedneeds,prioritiesandaspirationsasfullyas
possible
4.1.4Candidates
should
know,understandandbeabletoapplytheFinancialPlanningprocessto
differenttypesofclient:
individuals soletraders/partnerships companiesandothercorporatebodies trustfundsandothercollectiveentities
4.2PersonalFinancialPlanning
4.2.2Candidates
should know, understand, and be able to apply the following to the level of
performingrelativelystraightforwardcomputationsbasedongivendata:IncomeTax
residenceanddomicilestatus schedules rates reliefs allowances paymentdates
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taxableincometypes nontaxableincometypes benefitsinkind earnedandunearnedincome taxationdeductedatsource taxcredits
NationalInsurance
contractedinliabilityforemployerandemployee contractedoutliabilityforemployerandemployee selfemployedliability benefitsinkind voluntarycontributions
CapitalGains
Tax
(CGT)
residenceanddomicilestatus gainsandlosses indexation reliefsandallowances exemptions basisofchargeandassessment paymentdates
InheritanceTax(IHT)
residenceanddomicilestatus basisofcharge chargeablelifetimegifts potentiallyexempttransfers reliefsandallowances exemptions theNilRateBand nonchargeablelifetimegift
4.2.2 Candidates should be able to demonstrate an awareness and applicationof the taxationaspectsofthefollowing:
socialsecuritybenefitsentitlementfortheselfemployedandemployees rulesforpensionprovisionfortheemployedandemployees taxationofpensionbenefitsandsocialsecuritybenefits taxationofotheremployeebenefits,e.g.ProfitRelatedPay,ShareOptionSchemes,ProfitSharingSchemesandCafeteriaBenefits/BenefitsinKind
typesofhousepurchaseborrowingandrepaymentvehicles marriage,separation,divorceandmaintenance bringupchildren retirementandAgeAllowance
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4.2.3Candidates
should
be
able
to
demonstrate
knowledge,
understanding
and
application
of
the
taxationofthefollowingtypesofinvestmentsinFinancialPlanning:
Onshore
depositbasedinvestments governmentbonds(gilts)LocalAuthoritybonds equitiesincludingInvestmentTrusts NationalSavings CorporateBonds insurancepolicies/funds unittrusts/openendedinvestmentcompanies(OEICS) IndividualSavingsAccounts(ISAs) PermanentInterestBearingShares(PIBS) VentureCapitalTrusts EnterpriseInvestmentSchemes Property(includingroomlettings) Lloydsmembership forestry/woodlands employeeshareschemes privatecompanyinvestment commodities derivatives
Offshore rollupfunds distributorandnondistributorfunds currencyfunds offshoreinsurance,OEICandUCITfunds
4.2.4 Candidatesshouldknow,understandandbeabletoapplythefollowinglegalaspectsoftrusts:
definition certainties relationshipbetweentrusteeandbeneficiary rightsanddutiesoftrustees thefunctionofthetrustdeed creationofatrust statutoryandnonstatutorytrusts theprovisionsoftheMarriedWomensPropertyAct1882 theprovisionsoftheTrusteeAct1925 theLawofPropertyAct1925
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Page22
typesoftrust;base,discretionary,powerofappointment,lifeinterest accumulationandmaintenance,express,implied,constructive,overseas/offshore
4.2.5Candidatesshouldknow,understandandbeabletoapplythefollowinginvestmentaspects
oftrusts: theprovisionoftheTrusteeInvestmentAct1961 thepowerscontainedwithinthetrustdeed theownershipofassets apportionmentofcapitalandincome dutyofconversion theobligationtoseekinvestmentadvice
4.2.6Candidates
should
know,understandandbeabletoapplythefollowingaspectsoftaxation
aspectsoftrusts: theapplicationofIncomeTaxtotrusteesandbeneficiaries theapplicationofCapitalGainsTaxtosettlors,trusteesandbeneficiaries theapplicationofInheritanceTaxtosettlors,trusteesandbeneficiaries calculatesimpleexamplesoftaxliabilitiesforeachoftheabove,basedongivendata theabilityoftruststoregisterforVAT theneedfortrustaccountsandtaxreturns
4.2.7 Candidatesshouldknow,understandandbeabletoapplythefollowingaspectsofWillsandintestacy:
conditionsforavalidWill Intestacyrules postdeathdeedofvariation Willtrusts rightstodisdain jointtenancyandtenancyincommon provisionsoftheAdministrationofEstatesAct1925.
4.2.8
Candidates
should
know,understand
and
be
able
to
applythe
uses
of
trusts
for
tax
mitigationandwiderFinancialPlanningincluding: certaintyofintention avoidanceordeferraloftaxation usesinfamilyprotection usesinbusinessprotection usesininvestmentstrategy usesinfamilyorbusinesssuccessionplanning usesinpensionplanning
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4.2.9Candidates
should
know,understandandbeabletoapply theuseoftrusts inestablishing
andadministering: personalpensionschemes occupationalpensionschemes unittrusts charitabletrustsandeducationaltrusts taxationimplicationsofeachoftheabove
4.2.10 Candidates should know, understand and be able to apply the importance and use ofcompoundinterestindetermining:
therelativevalueofonesumtoanother,overtime theaccumulationofmoney,overtime thedepreciationofmoney,overtime
4.2.11 Candidates should know, understand and be able to apply the following aspects ofinvestmentrisk:
absoluterisk relativerisk relativeriskovertime(e.g.,inflation) riskinrelationtoobjective clientfocusedriskattitudes theprobabilityofclientshavingdifferentriskattitudesrelatedtodifferentobjectives riskandreturn(capitalandinterest)
4.2.12 Candidates should know, understand and be able to apply the following aspects ofmorbidityandmortalityrisk:
applicationtolifeandhealthinsurances underwriting lifestyle occupation thenatureoftheriskthatcanbecoveredandmanaged theimportanceoftheclientsattitude
4.2.13 Candidates should know, understand and be able to apply the following aspects ofinvestmentportfolioconstruction:
theprinciplesofmeetingclientsneedsinportfolioconstruction theprinciplesofbalanceconcentrationanddiversification
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Page24
therelevanceoftime,liquidityandtaxationinselectinginvestmentvehicles commoninvestmentterminologyandmarketpractices
4.2.14 Candidates should be able to demonstrate and apply a detailed knowledge ofUK and
overseasinvestmentvehiclesinportfolioconstruction: depositbasedinvestments bondsandotherfixedinterestsecurities(governmentandcorporate) packagedinvestmentproducts(insuranceandfriendlysocietypolicies) collectiveinvestmentvehicles(OIECS,investmenttrustsandunittrusts) equities(quotedandunquoted) physicalcommodities(includingfutures) derivatives(futuresandoptions)special
tax
incentives
schemes
(enterprise
investment
schemes
and
venture
capital
trusts,
enterprisezonesetc.)
property(commercial,residentialandholiday) Lloydsinsurancemarketmembership collectibles(antiques,worksofart,etc.) principal retirementplanningvehicles (personalandemployer sponsoredpension fundsorsimilar)
4.2.15 Candidatesshouldknow,understandandbeabletoapplytheprinciplesof: benchmarkingofperformanceobjectives performancemeasurement
4.2.16 Candidatesshouldbeabletodemonstratetheneedformonitoringandreviewofportfolioagainstclientsevolvingneeds,objectivesandpriorities.
4.3RetirementPlanningforIndividualsandBusinesses
4.3.1 Candidatesshouldknow,understandandbeabletoapply: thelegalframeworkofpensionprovisionforindividualsandemployees therelationshipbetweenprivateandstatepensionprovision thetaxationframeworkofpensionprovisionforindividualsandemployees theprinciplesofcarrybackandcarryforwardofunusedpersonalpensionrelief understandtherelationshipbetween:
o retirementannuitypolicies;o personalpensionpolicies;o occupationalpensionschemes.
4.3.2 Candidatesshouldknow,understandandbeabletoapplytheuseofpensionstosoletraders,partnersandthoseinnonpensionableemployment.
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4.3.3Candidates
should
know,understandandbeabletoapply:
thelegalframeworkforoccupationalpensions thetaxationframeworkforoccupationalpensions thebasisofapprovalandexemptapproval fundingmethodsandlimits;and investmentprinciplesasappliedtopensionfunds.
4.3.4 Candidates should be aware of the relationship between UK State and private pensionprovisionandoverseasstateandprivatepensionprovision.
4.3.5 Candidatesshouldknow,understandandbeabletoapplyinrelationtooccupationalpensionschemes:
constraintsoncontribution theoptionsavailabletoearlyleavers theoptionsonretirement(normal,earlyandlate) thebenefitlimitsonretirement(normal,earlyandlate) thebenefitlimitsondeathinservice
4.3.6 Candidatesshouldhaveaworkingknowledgeofandbegenerallyabletoapply: the method of transfer and restrictions on transfers between occupational schemes,personalpensionsandretirementannuities
theprinciplesoftransfervalueanalysis regulatory requirements concerningassumptions, transfers,optoutsandnonjoiners fromoccupationalschemes
theimplicationsofthePensionAct1995 theimplicationsforpensionprovisionofdivorce thebenefit limitsandoperationofpublicor formerpublicsectorSuperannuationSchemes(e.g.,CivilService)
theimplicationsforpensionprovisionofbusinessinsolvency,saleoracquisition
4.3.7 Candidatesshouldknow,understandandbeable toapply theeligibility,benefits, funding,contributions,andinvestmentrulesrelatingto:
executivepensionplans smallselfadministeredschemes contractedout/inmoneypurchaseschemes contractedout/infinalsalaryschemes Hybridschemes(moneypurchaseorfinalsalaryunderpin)
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CFPCM,CERTIFIEDFINANCIALPLANNER
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Page26
Mainschemeandfreestandingadditionalvoluntarycontributions fundedandunfundedunapprovedretirementbenefitschemes personalpensionandretirementannuity selfinvestedpersonalpension incomedrawdownandphasedretirement
4.3.8 Candidatesshouldknow,understandandbeabletoapplytheuseofproductsandthelegalandtaxationframeworktomeetaclientsretirementplanningrequirements.
4.4FinancialPlanningfortheBusinessOwner
4.4.1 Candidates should know, understand and be able to apply the legal framework forbusinesses:
soletrader partnership limitedpartnership cooperative unincorporatedassociation companies(privatelimited,limitedbyguaranteeandpubliclimited) theroleofthememorandumandarticlesorpartnershipdeed therightsanddutiesofdirectors/partnersandshareholders theaccountingrequirementsofsoletraders,partnershipsandlimitedcompanies theformationrequirementsofeachtypeofbusinessentity
4.4.2 Candidates should know, understand and be able to apply the taxationframework forbusinesses:
NationalInsurance VAT IncomeTax CorporationTax CapitalGainsTax
4.4.3Candidates
should
knowandunderstandthe legalandfinancial implicationsofbankruptcy
andinsolvency.
4.4.4 Candidatesshouldbeabletointerpretbusinessaccountsincluding:
balancesheet profitandlossaccount cashflowforecast operatingbudget
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8/3/2019 CFP Syllabus 2010
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TheInstituteofFinancialPlanningLimited.
Acompany
limited
by
Guarantee.
Reg.
in
England
No.
2109630.
V.A.T
No.
489
2013
33
CFPCM,CERTIFIEDFINANCIALPLANNER
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4.4.5 Candidatesshouldknow,understandandbeabletoapply: theprincipalmethodsofraisingfinance thelegal,taxationandfinancingissuesrelatingtoabusinesssaleorpurchase
4.4.6 Candidatesshouldknow,understandandbeabletoapplythekey legal/taxationprinciplesandproductstobusinessriskprotectionincluding:
keypersoninsurance shareprotectioninsurance loanprotection partnershipprotection useoftrusts taxation theneedforcommercialinsurance
4.4.7 Candidatesshouldknow,understandandbeabletoapplythekeylegal/taxationprinciplesandproductstobusinesssuccessionplanning.
4.4.8 Candidates should be generally aware of the legal and taxation implications of employingpeopleincluding:
employeerights antidiscriminationlegislation employerduties
4.4.9 Candidatesshouldknow,understandandbeabletoapplytokeytaxation/legalprinciplesandproductstoemployeebenefitsandremunerationplanningincluding:
remunerationplanning pensionschemedesign benefitsinkind medical/dentalplans maternity/paternityschemes shareoptionandprofitrelatedpayschemes cafeteriabenefitplans