CFP – Certified Financial Planner Certification Programme Overview
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The CFP – CERTIFIED FINANCIAL PLANNER CERTIFICATION is recognized globally as the highest standard in personal financial planning with more than 170,000 CFP – Certified Financial Planner professionals worldwide.
To become a CFP – Certified Financial Planner , candidates are required to pursue the 4-module CFP course which takes 1.5 to 2 years to complete at a cost of about RM8000. Entry requirement is a bachelor degree, however, candidates without a degree but have many years of relevant work experience can go through the Prior Learning Recognition Assessment (PLRA) route to gain entry to the CFP – CERTIFIED FINANCIAL PLANNER certification programme.
Financial planners help their clients, generally, individuals or business owners, reach their financial goals. To remain current with the latest investment strategies and products, financial planners must be serious about ongoing professional education.
Creating a Financial Plan
Financial planning establishes both personal and financial goals for a client. The process is a continuous one and requires taking stock of all a person’s existing resources, developing a plan to utilize them, and then systematically implementing the plan to achieve your short- and long-term goals.
A comprehensive financial plan is often composed of a number of financial assets in a person’s life, including:
- Estate Planning
- Retirement Planning
- Investment Management
- Tax Planning
- Employee Benefits
Financial planning is a dynamic process. Financial goals may evolve over the years due to shifts in a client’s lifestyle or circumstances. That’s why a financial plan must be monitored and reviewed periodically so necessary adjustments can be made.
Source: Financial Planning Standard Board
CFP – Certified Financial Planner Certification – Who is This for?
The CFP – Certified Financial Planner qualification is popular among these 3 groups:-
1. Professionals offering financial services related to financial planning
2. College students and fresh graduates seeking to pursue relevant and significant professional courses that can offer an edge over thousands and lakhs of aspirants
3. Adults seeking mid-career change or post-retirement career.
4. Adults who just want to acquire knowledge and skills in personal financial planning but have no intention to become a CFP.
Professionals who offer services related to financial planning:-
Accountants, Bankers, Unit Trust Consultant, Financial Planners, Estate Planners,
Insurance Advisors, Investment Advisors, Solicitors, Stockbrokers, Real Estate Broker
Commission-based financial advisors do take note:-
Prepare for the future should a fee-based environment become imminent due to regulatory changes and consumer awareness. Taking up the CFP certification programme will help strengthen your skills in need-based selling, and have lifetime clients as well as income sustainability.
The Benefits of CFP Certification
Only those who have met the rigorous requirements to earn the CFP designation can claim the title of a Certified Financial Planner.
CFP professionals are held to strict ethical standards to ensure their recommendations are always in the clients’ best interest. They are required to also have years of experience delivering financial planning services to clients and pass the CFP Exam.
Being a CFP holder can rapidly advance your career in financial planning and generate more income. That’s because high net-worth clients actively seek out of CFP professionals and they often bring with them larger portfolios of assets.
How to Become a Certified Financial Planner® (CFP®)?
Administered by the Financial Planning Association of Malaysia (FPAM) the Certified Financial Planner (CFP) designation is the gold standard of the industry, it is globally recognised and locally applicable and demonstrates a financial planner’s commitment to education, professionalism and client-centered planning.
Candidates desiring to become a CFP professional must pursue a 4-module CFP programme with an approved CFP education provider, and take extensive examinations in the areas of financial planning, tax planning, insurance planning, investment planning, estate planning and retirement planning, as well as meet a range of requirements.
KMDC – An Approved Education Provider of CFP Course
KMDC is an approved and the largest education provider for CFP – Certified Financial Planner education programme in Malaysia. We have been offering CFP education since 2003. There are two learning modes: Blended Learning Mode – instructor-led face-to-face workshop with online support; and Online Learning Mode – distance learning with online support.
CFP – Certified Financial Planner Programme – What Will You Learn?
The CFP – CERTIFIED FINANCIAL PLANNER qualification is for those wishing to practice the profession of financial planning and who wish to master a certain level of theoretical knowledge and practical application of financial planning in such areas as:
General principles of financial planning
Risk management & insurance planning
Financial plan construction and professional responsibilities
26 Countries & Territories Recognised CFP – Certified Financial Planner Qualification
A total of 26 countries and territories recognised CFP – Certified Financial Planner professional qualification, that included USA, Canada, China, Japan, South Korea, Taiwan, Hong Kong, United Kingdom, Australia, New Zealand, France, Germany, Switzerland, Netherlands, Austria, Ireland, South Africa, Israel, Columbia, Brazil, India, Thailand, Turkey, Indonesia, Singapore and Malaysia.
As of December 2018, there are 181,360 CFP certified practitioners worldwide and the number is growing. With a net increase of 5,787 CFP professionals over the previous year, FPSB and its global network of affiliate organizations in 26 territories experienced annual growth of 3.3%.
“To establish financial planning as a recognized global profession, FPSB has set itself an ambitious goal to have 250,000 CFP professionals in 40 territories by 2025,” said Noel Maye, CEO of FPSB.
Source: Financial Planning Standard Board
In Malaysia, CFPCERT TM certification programme has becoming more and more popular. The Financial Planning Association of Malaysia (FPAM) currently has 2287 CFP certified members as of end of 2018, with another few thousands of them have or currently pursuing CFPCERT TM certification programme. Majority of Malaysia’s CFPCERT TM holders are mainly from financial industry: about 24% are attached to Unit Trust companies, 20% from financial advisory industry, 14% from banks, 13% from insurance companies, with another 14% are accountants. About 5% of CFPCERT TMholders in Malaysia are from non-financial corporations.
The CFP – Certified Financial Planner certification programme is also locally recognised by Bank Negara and Securities Commission besides recognized globally in 26 countries and territories.
Bank Negara Malasyia (BNM) has recognized the CFP – Certified Financial Planner qualification as a prerequisite for application of the Financial Adviser’s licence. (Click here for BNM’s Guidelines on Application of Financial Adviser’s Licence)
CFP – Certified Financial Planner is also recognised by Securities Commission (SC) as a prerequisite for CMSL – Capital Market Services License.
The recognition by Bank Negara and Securities Commission is a further testament of the standard of the CFP – Certified Financial Planner qualification and its credo of the “Highest Standard in Financial Planning”.
|Prerequisite for CMSL||SC|
|Module 1 holders able to recommend full range of financial products||SC|
|Eligible for Internship Program for licensed financial planners||SC|
|Prerequisite for FA License||BNM|
|Module 1 & 2 required to renew life insurance license||BNM & LIAM|
|Module 3 holders exempted from CUTE||FiMM|
|Eligible for CPD points under FIMMs’ Continuing Professional Development Programme||FiMM|
|Eligible for withdrawal for education purposes||EPF|
|Eligible for training grant under the Human Resources Development Fund||HRDF|
|Eligible for financing and scholarship under the Bumiputera Dealer Representatives Education Fund||BDREF|
|Exempted from Pre-Contract Examination for Insurance Agents (PCEIA) Part A, B & C||MII|
Requirements for CMSRL (Capital Markets Services Representative’s License) & FARL (Financial Adviser Representative’s License)
– CFP Module 1: Foundation in Financial Planning
– CFP Module 3: Investment Planning and Retirement Planning
– CFP Module 4: Financial Plan Construction and Professional Responsibilities (familiarisation workshop only)
CFP – CERTIFIED FINANCIAL PLANNER – MARK OF GLOBAL EXCELLENCE
The CERTIFIED FINANCIAL PLANNER and CFP certification marks identify what a financial planner is, establishes a standard of professional practice and creates a “mark of quality” that consumers can recognize and for which practitioners may aspire to attain.
The financial planner who uses this mark is recognized as having met the highest standards for the practice of financial planning. The Financial Planning Standard Board (FPSB) works to ensure that a well-defined six-step process used by a financial planner will place the client’s interest and needs first.
CFP – CERTIFIED FINANCIAL PLANNER professionals meet competency, ethics and professional practice standards based on an international platform of education, examination, experience and ethics/professional practice requirements (the 4Es). CFP certification standards for each country/ region have been adapted to meet domestic marketplace, regulatory and educational needs.
The Financial Planning Process of a CFP – Certified Financial Planner
The financial planning process is defined by the CFPCERT TMBoard involves the following six key steps:
|· Establish and Define the Relationship with the Client|
· Gathering client’s information, including goals
· Analysing and evaluating the Client’s financial status
· Developing and presenting financial planning recommendations and present them to Client
· Implementing the Client’s financial planning recommendation
· Review the Client’s situation
The 4 Es of CFP – Certified Financial Planner Certification Programme
The CFP certification programme evolves around ‘4Es’ – Education, Examination, Experience and Ethics – which are the cornerstones of the professional.
Before applying for the Certification Examination, a candidate must complete academic coverage of the financial planning curricula including :
– Foundation in Financial Planning and Tax Planning
– Insurance Planning and Estate Planning
– Investment planning and Retirement Planning
– Financial Plan Construction and Professional Responsibilities
Upon successful completion of the academic requirement, the candidate is eligible to apply for the Certification Examination. The Certification Examination is designed to assess the candidate’s ability to apply his financial planning education to financial planning situations in an integrated format, thereby protecting the consumers by assuring that the financial planner is at the appropriate level of competency required for practice.
This centres on work which involves personal financial planning-related experience. It is designed to provide the public with the assurance that the candidate understands the counseling nature of personal financial planning. The requirement is three years, performed before or after the successful completion of the Certification Examination.
Once the education, examination and work experience requirements are met, the candidate for the CFPCERT TM certification will receive a Declaration Packet which includes an ethics statement form and his licence application with a bill for the initial licence fee. The candidate for the AFPM certification will also receive a Declaration Packet on completion of the education and examination requirements.
Prior to certification, the candidates will be required to disclose past or pending litigation or agency proceedings and to acknowledge the right of FPAM to enforce its Professional Standards and Code of Ethics through due process described.
Benefits of Becoming a CFP – Certified Financial Planner
By completing globally recognised CFP certification requirements, a CFP – CERTIFIED FINANCIAL PLANNER professional demonstrates to clients and potential clients a commitment to professionalism and that he or she has met rigorous competency, ethics and professional practice standards to provide comprehensive financial planning services. The benefits of becoming a CFP – CERTIFIED FINANCIAL PLANNER including:
- Acquire knowledge and develop expertise in retirement planning, insurance, investment, tax and estate planning.
- Be associated with the most internationally recognized and accepted designation in financial planning.
- Earn your credibility and respect from the public and distinguish yourself from your competitors.
- Increase your business earning potential and add to your career growth and professional fulfillment.
CFP – CERTIFIED FINANCIAL PLANNER professionals rate compliance with relevant laws and regulations, adherence to an ethical code and acting in the best interest of clients as most important when providing financial planning advice to clients.
Your clients will have more confidence in you as they rely on the CFP – CERTIFIED FINANCIAL PLANNER marks to help them identify competent, ethical financial planners who have committed to placing their clients’ interests first.
Your employer will value you more as Financial services firms value CFP – CERTIFIED FINANCIAL PLANNER professionals for their contributions to productivity and profitability, as well as for lowering firms’ compliance risks and increasing client satisfaction.
REGULATOR Last but not least, the CFP – Certified Financial Planner in Malaysia is also well prepared for the future should a fee-based environment become imminent due to regulatory changes and consumer awareness.
CFP Entry Requirements, Modular Exemptions and Challenge Status
CFP Entry Requirements
Entry requirements: From 2014 onwards, the CFP minimum entry qualification is a bachelor’s degree (any discipline).
For Non-degree holders, provided that they have at least 5 years of relevant work experience, they can opt for Prior Learning Recognition Assessment (PLRA) – a multiple-choice test. Once passed, they are eligible to apply for CFP programme. Candidates are only allowed to register for the PLRA assessment 2 times and there must be a break of 6 months between the attempts.
For University/College Students majoring in finance, banking, investment, accounting or related subjects, would be required to enrol in Module 1 and proceed to other modules as per other exam based students. After passing Module 4, students will remain as an Associate member of FPAM until attainment of the 3 years of relevant work experience. Students are required to upgrade to Certified membership within 4 years of completing Module 4 or their Bachelor degree, whichever is later.
For anyone who just want to acquire knowledge and skills in personal financial planning only, and have no intention of becoming a CFP, then minimum requirement is SPM/GCE ‘O’ Level/High School or equivalent. You will be attending CFP workshop only and there will be no examination.
CFP Partial Exemption
FPAM recognizes that certain professional qualifications cover some of the components in financial planning. Holders of the following qualifications are granted exemption as listed below (terms and conditions apply)(X denotes exemption):
|Licensed Unit Trust & Private Retirement Scheme Consultants (FIMM)||x||-||-||-|
|RFP Module 1 (degree holders)||x||-||-||-|
|MFPC Registered Financial Planners (degree holders)||x||x||-||-|
|Chartered Financial Practioners (Namlifa)||x||-||-||-|
|MII Dip. in Financial Planning||x||-||-||-|
|Chartered Life Underwriters||x||-||-||-|
|Life Underwriters Training Council of Fellows||x||-||-||-|
|Graduate Diploma in Applied Finance and Investment||x||-||-||-|
Terms and Conditions:
1. All must have a Bachelor degree with the exception of Unit Trust & PRS Consultants; and
2. All must attend CFP Tax workshop and purchase the subject manual except RFP holders.
Unit Trust and Private Retirement Scheme Consultants (collectively known as “Consultants”) that are actively registered with Federation of Investment Managers (FIMM):-
a) The Consultant must pass Computerised Unit Trust Examination (CUTE) or Private Retirement Scheme (PRS) Examination;
b) The Consultant must have a degree OR a diploma with minimum 5 years of relevant work experience;
c) The Consultant must attend CFP Tax Workshop and purchase the subject manual;
d) The Consultants who are exempted from CUTE or PRS examination are not eligible for the CFP Module 1 exemption and they must have a Bachelor degree in order to gain entry to CFP programme.
How to apply for CFP Partial Exemption?
Download this Application form for Partial Exemption and follow the instructions on the form, submit required documents such as your degree certificate with the completed form and send it to FPAM or KMDC.
CFP Challenge Status
Only Malaysians who possess the following qualifications or professional credentials with 3 years relevant work experience in personal finance* are eligible to apply. Exemption is for Modules 1-3 of the CFP certification. Applicants are allowed only 3 consecutive attempts under this option.
· Professional Accountants (CA(M), CPA(M), CPA(Australia), AICPA, ACA, ACCA, ICMA and AIA)
· Chartered Secretaries (ICSA & Fellow of MACS)
· Chartered Financial Consultants (ChFC)
· Chartered Financial Analysts (CFA)
· Islamic Financial Planner (IFP) – Applicants are required to attend Insurance Planning & Estate Planning workshop in addition to the Module 4 workshop.
· PhD (Business, Accounting & Economics)
· Masters (Business Administration/Finance/Economics/Accounting) from accredited universities
2. Members must have 3 years of personal finance related experience which can be in any or all the following areas: Insurance, mutual funds, securities, asset management, accounting, estate planning, banking, taxation, trusts, retirement planning and financial planning. The 3 years of relevant work experience must be within the 5 years prior to application for Challenge Status.
3. There will be three (3) consecutive examination attempts only for the challenge status commencing immediately after obtaining approval from FPAM. After the 3 attempts or non-attempts, they must enroll for the normal CFP certification examinations.
How to apply for CFP Challenge Status?
CFP Course Packages & Fees
|CFP Module||Standard Package||Corporate Package*||FIMM Package**||1+1 Bundle Package***||Seniors & Youth****||Challenge Status*****|
Foundation in Financial Planning
Insurance & Estate Planning
Investment & Retirement Planning
Financial Plan Construction & Professional Responsibilities
|KMDC Application Fee|
(applies to new student only)
What are Included: KMDC Course Manual (soft copy) & notes , Online Quiz – Sample Exam Questions with answers, Face-to-Face Workshop with online support for Blended Learning OR for e-Learning students – online support with video lectures; What are Excluded:– FPAM Membership Fee, Examination Fee & FPAM Course Manual and SST. (Please note: 6% SST may be imposed from March 1, 2019 – subject to confirmation by the authority)
*Corporate Package: For those attached to financial institution (banks, unit trusts, insurance, financial services). Submit name card or company letter for verification purpose.
**FIMM Package: Only for members of FIMM who are exempted from Module 1.
***1+1 Bundle Package: Sign up any 2 modules. Candidates left with final module (Module 4) do not qualify. Maximum 2 consecutive semesters are allowed and the fee paid is considered fully consumed once the class commenced.
****Senior/Youth Package: Special rate for Malaysian youth aged 18-23 or seniors aged 51 and above with no further discounts.
*****Challenge Status Package: for those obtained FPAM’s approval and are exempted from Module 1 – Module 3. They will enrol for Module 4 only. (Check HERE to see if you are eligible for Challenge Status) Pay Standard tuition fee RM1900 for Module 4 and application fee RM300, and are not eligible to Corporate Rate, Seniors & Youth Package or any other promotions or discount.
Question: Is there any financial aids available for studying CFP?
There are 3 possible ways to get some funding to finance your study.
- EPF WithDrawal:- if you are a EPF (Employee Provident Fund) member, then as long as you have sufficient fund in your EPF Account 2, you will be eligible to make a request to withdraw your EPF money for the CFP course fee. Terms and Conditions apply. (Click HERE for information about EPF Withdrawal)
- HRDF – if you employer contributes to HRDF – Human Resource Development Fund, you may request your company to sponsor your CFP study by claiming HRDF. (Click HERE for information about HRDF Claim)
- FPAM Sponsorship Programme: click HERE to download the application procedures.
CFP – How to Enrol
1. Registration: Submit by hand or email or fax KMDC CFP Application Form to KMDC. Business office at Level 3, Admin. Block, KDU University College Utropolis Glenmarie Campus, Jalan Kontraktor U1/14, Seksyen U1, 40150 Shah Alam, Selangor Darul Ehsan, MALAYSIA. Fax numbers: 03-5565 0797. Tel: 03-5565 0799/0798, Email: firstname.lastname@example.org
We accept Cash, Credit Card, Cheque, Bank Transfer.
Please note: you only pay for the module(s) that you plan to study for the coming semester, not the whole program. Application fee is one-time only and only applies to first-timer.
a. Credit Card: authorize KMDC to charge your credit card by filling up your credit card details on the KMDC Admission form.
b. Deposit cheque or cash into KMDC’s RHB Bank account:
Name: KDU Management Development Centre Sdn. Bhd.
Account No.: 212 349 000 543 53
Bank: RHB Bank Bhd.
c. Cash Payment or bank transfer: please make a visit to our office and pay cash or charge credit card or make a bank transfer online and notify KMDC on your payment.
3. FPAM’s Fees: For fees payable to FPAM, i.e. FPAM Trade membership fee and examination fee, please authorize FPAM to charge your credit card by filling up the details in FPAM Trade Member Application Form or issue cheque payable to Financial Planning Association of Malaysia. KMDC will not accept cash on FPAM’s behalf. FPAM Examination Fee can be settled at a latter stage.
CFP Education Programme – 4 Modules, 1-2 years to complete
The CFP – Certified Financial Planner certification course consists of four (4) modules with 60 hours of classroom-based lectures per module followed by examinations. Candidates who have completed the AFPM programme (Module 1) will go through only the last three (3) modules. Shortest time frame to complete the programme is 12 months. Candidates taking the AFPM or CFP – Certified Financial Planner certification will be required to first be Trade Members of the Financial Planning Association of Malaysia (FPAM).
For each CFP module, students need to fulfill a minimum of 60 contact hours. This financial planning program is designed for working professionals, thus most classes are held during weekends.
Online Learning Mode & Blended Learning Mode
2 Learning Modes: Students can choose either Blended Learning Mode or Online Learning Mode:
Blended Learning – Besides face-to-face instructor-led workshop, there are online support with study manual, lecture notes, online interactive quizzes, online discussion and reference materials provided via e-learning portal. The Blended Learning mode is best suit those who stay in Klang Valley and would be able to attend face-to-face classes.
Online Learning – Students can also opt for online learning – this especially suits those not living in the Klang Valley or busy professionals that prefer a more flexible learning mode.
Complete CFPCERT TM program in 3 Stages: Unless exemption is granted, most candidates will have to pass Module 1, then move on to Module 2 and Module 3. In Stage 2, complete both modules or either one in one semester. Module 4 is the final stage after you have passed Module 2 and Module 3.
KMDC – Education Provider of CFP
KMDC provides 60 -72 hours of workshop for each CFP module. Classes are held on weekends, 9:00am till 5:00pm. For each module, candidates need to attend a total of 8-9 days of workshop. Each module can be completed in 8-9 weeks.
Venue: KDU University College Utropolis Glenmarie Campus, Glenmarie, Shah Alam
Outstation and in-house classes available on demand.
Intakes: 2 semesters per year, each semester there will be 1-2 intakes for each module.
1st semester: Taxation Class usually starts late February or March, while Module 1 -4 will start late March or April.
2nd semester: Taxation Class will start in mid July or early August, while Module 1-4 will commence in September/October.
FPAM conducts two examination sittings per year: mid June and mid December. Examinations will be held in Kuala Lumpur, Penang, Johor Baru, Kuching and Kota Kinabalu.
For CFP Module 1 to Module 3, a 3-hour examination (multiple choice questions) For CFP Module 4 examination, Paper 1 (3-hour) consists of multiple choice questions, and Paper 2 (3-hour) consists of essay questions on financial plan construction and case study.
CFP Examination Fee: RM300 per sitting
Charter Members: RM200 per examination sitting
Corporate Members: RM250 per examination sitting
CFP Examination Fee is payable to FPAM – Financial Planning Association of Malaysia.
FPAM Membership Fee
Trade Member: RM50 per annum. All candidates who enrolled for CFP Module 1 course must apply to become FPAM Trade member.
Associate member: RM150 per annum. All must have passed CFP Module 1 course.
Course Description of CFP Education Programme
Module 1: Foundation in Financial Planning
CFPCERT TM course provides a comprehensive examination of the entire financial planning process, along with an overview of the specific areas of personal income tax planning, risk management and insurance, investment planning, retirement planning, and estate planning.
Module 2: Insurance Planning & Estate Planning
This CFPCERT TM module covers various aspects of fundamental concepts in risk management and insurance, including how insurance rates are developed, what types of contracts are available, how to read insurance proposals, and how life insurance is used in financial planning. Other topics include health insurance plan and legal aspects of insurance. The second part of this module covers estate planning.
Module 3: Investments &Retirement Planning
This course explores the securities market, sources of information, risk/return, equities, stocks, bonds, derivatives, unit trusts, real estate and culminates in portfolio construction and analysis, plus Retirement planning.
Optional Module: Tax Planning
Participants in this course study Malaysian taxation for tax aspects of investments, EPF and unit trusts. The course also introduces other special tax considerations.
Module 4: Financial Plan Construction and Professional Responsibilities
This course is for students who have completed Module 1 to 3 or preparing to attempt the CFPCERT TMChallenge Status. The course introduces methods of gathering client data and teaches students how to work with clients to set goals. Students learn how to process and analyze information, construct personal financial statements, and understand a written comprehensive financial plan, including implementing, monitoring, and reviewing the plan.
KMDC – the Malaysian Market Leader in CFP Education Programme
- Good reputation: High quality education assured. We provide high quality education and continue in seeking improvement.
- Offer 2 modes of learning: Blended Learning Mode – instructor-led workshop with online support AND Online Learning Mode for those staying outside Klang Valley with online support and live streaming lecture and recorded video and online discussion.
- Best performer in CFPCERT TM examination: KMDC has constantly achieved over 80% total average pass rate in the past 5 years.
- Best value: KMDC provides extra training, revision seminar, mock exam, sample exam materials and additional contact hours.
- Best facilitators: a strong team of facilitators who are highly qualified industry practitioners.
- Administrative support and service: KMDC is known for providing fast, hassle-free and efficient support and services to our learning community.
- Flexibility and more choices: KMDC CFP timetable is specially tailored and designed for busy professionals, you have the choices of Saturday and or Sunday sessions, and we provide repeat and re-sit (must be within 2 years from 1st sitting) opportunities.
- Up-to-date study manual, lecture notes, sample examination papers and reference materials are provided.