Financial Planning is the process of meeting your life goals through the proper management of your finances. These goals may include buying a home, saving for your child’s education, starting a business or planning for comfortable retirement.
A financial planner is someone who uses the financial planning process to draw-up a plan with an objective to meet your life goals. The planner takes a “big picture” view of your financial situation and make financial planning recommendations that are right for you. He takes into consideration all of your needs - budgeting, saving, taxes, investments, insurance and retirement planning. He can also work with you on a single financial issue but within the context of your overall financial situation.
This makes the financial planner different more comprehensive in his approach than other financial advisors who may be trained only on specific areas of your financial needs.
Practice Standards were developed to help CFP practitioners better understand and implement the financial planning process. These standards also explain what is expected of a CFP practitioner and are to be adhered to when providing financial planning advice.
Practice Standards describe the process that a financial planner should reasonably be expected to follow during a financial planning meeting. These standards are based on the six-step financial planning process :
- Establishing and defining the client-planner relationship
- Gathering client data including goals
- Analyzing and evaluating the client’s financial status
- Developing and presenting financial planning recommendations and/or alternatives
- Implementing the financial planning recommendations
- Monitoring the financial planning recommendations
The CFP mark identifies individuals who have met the education, examination, experience and ethics requirements established by the Financial Planning Standards Board Ltd. (FPSB). FPSB owns the CFP Mark outside the United States and licenses qualified individuals to use this mark and refer themselves as “CFP Licensees”. The CFP designation is an internationally recognised mark for the highest level of competence in financial planning.
Financial Planning Association of Malaysia - FPAM, is the marks licensing authority in Malaysia in line with the international standards.
A CFP Practitioner follows certain standards - called Practice Standards - when providing financial planning advice. Practice Standards describe the process you should reasonably expect a financial planner to use during a financial planning engagement. These standards are based on the six-step Financial Planning Process, documented by the Financial Planning Standards Board through their research on the “Job Analysis” of what a financial planner is expected to be.
B13. How do I know whether my application is successful?
Upon approval, FPAM will allocate you a reference number to quote when you subsequently register for the examination. If your application is disapproved, FPAM will return you the whole set of documents.
B14. If I were granted Challenge Status, is there a time limit on when I must pass the Module 4 examination?
CFP Challenge Status candidates are given 3 exam sittings to complete their Module 6 exam. Failing which they are required to enroll for the full CFP Certification Programme.
B15. When are the CFP examinations held?
The examinations are held twice a year, usually in mid June and mid December. Please check KMDC web page HERE for the dates and venues of the examinations.
B16. What is the format of the examinations for CFP certification?
CFP Module 1 to 3 consists of 75 multiple choice questions each to be completed in 3 hours.
Module 4 comprises of 2 papers. Paper 1 is a 75 multiple choice questions paper to be completed in 3 hours and Paper 2 is an essay styled case study question paper to be completed in 3 hours. Both the papers would be conducted on the same day.
B17. Where are the CFP examination held?
|Kuala Lumpur/Klang Valley
||Universiti Malaya (Dewan Peperiksaan)
||Universiti Sains Malaysia (Dewan Peperiksaan A & B)
||Universiti Teknologi Malaysia (Dewan Peperiksaan P16)
||Universiti Malaysia Sarawak
||Universiti Malaysia Sabah
Check KMDC web page HERE for more information about CFP examination held in Malaysia.
B18. When is the CFP examination registration closing date?
There are two main exam sittings per year; in mid June and mid December. The closing date for examination registration is usually about 8 weeks from the examination date. Check FPAM web site for more information.
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B19. How much is the CFP Examination Fee?
That depends on whether you are attached to FPAM's Charter member or Corporate member or none. Charter and corporate member are corporations that support FPAM in the development of the financial industry.
|FPAM's CFP Examination Fee:
|Staff of FPAM's Charter member
||RM212 per exam sitting
|Staff of FPAM's Corporate member
||RM265 per exam sitting
||RM318 per exam sitting
To check if your employer is the Charter or Corporate member of FPAM, Click HERE.
ISSUES RELATED TO EPF WITHDRAWAL, HRDF CLAIMS AND TAX RELIEF
B20. Can I withdraw from EPF to pay for CFP education? Or Can my company make HRDF claim if they sponsor my study?
Yes. Your CFP tuition fee and examination fee are now eligible for EPF withdrawal, provided you are a member of EPF and at least a diploma holder. For more information about EPF withdrawal scheme, please visit EPF's web site:Click HERE
For detail instruction on how to withdraw EPF for your CFP education, CLICK HERE
As for HRDF, if your company contributes to HRDF (Human Resource Development Fund), and sponsor your CFP study, then the company is eligible to make HRDF claim.
Click here for more information about HRDF Claim
B21. Is CFP fee tax deductible?
No at the moment, only membership fees are eligible for claiming tax deduction.
POPULARITY AND BENEFITS OF CFP PROGRAMME
B22. Is CFP certification programme recognised and popular in Malaysia and other countries/regions?
Yes, besides Malaysia, CFP is widely recognized in 26 countries and regions: USA, Canada, Japan, Australia, Hong Kong, China, Taiwan, Indonesia, India, Singapore, United Kingdom, New Zealand, Germany, France, South Korea, Brazil, Austria, South Africa, Switzerland, Thailand, Ireland, Israel, Columbia, Brazil, Turkey and the Netherlands. (Check this site)
As of end of 2014, there are 157, 586 CFP certified practitioners worldwide and the number is growing.
In Malaysia, CFP certification programme has becoming more and more popular. The Financial Planning Association of Malaysia (FPAM) currently has 2484 certified practitioners.
Majority of Malaysia's CFP holders are mainly from financial industry: about 65% of them are attached to banks, unit trust, insurance, financial advisory and stock broking companies, with another 18% are accountants. About 16% of CFP holders in Malaysia are from non financial corporations.
B23. I am an Accountant. What are the benefits for me if I were to pursue CFP qualification?
The CFP qualification is very popular with accountants in Malaysia. In fact 16% of total CFP members are accountants (661 members). This is the largest among all professions. Members of professional accounting bodies like MIA, CIMA, ACCA, ASCPA, AIA are exempted from the first 5 modules of the certification exams. They only have to sit for Module 4, the last paper.
Accountants normally do well for the paper as their background in accounting & finance gives them the analytical skill that is so vital for the exams. Their background also enables them to grasp the concepts easily.
The benefits of the CFP programme for accountants are:
- Financial planning is an added value service that they can provide to their clients. Most of them already provide accounting, tax or audit services to their clients. Financial Planning would be an extra service that they can provide.
- They already have an existing client base to tap on should they want to expand their business. These clients already have a rapport and business relationship with them and the trust is already there. Unlike others who need to build a client base, accountants already have an existing one.
- The CFP qualification is recognized worldwide. Accounting is one of the professions most in demand worldwide and accountants are very mobile. Having a globally recognized qualification gives them an added advantage.
- Accountants provide many value added services. Financial planning is one of them and it is one of the fastest growing professions worldwide.
- The CFP qualification is also a qualification to enter the financial services sector for those who wish to switch profession. For those who wish to enhance their career and climb the corporate ladder, the CFP is one of the most recognized qualifications. Most of the financial institutions in Malaysia are Charter members of FPAM and send their employees to undergo the CFP course.
B24. What are Continuing Education (CE) requirements that I have to fulfill?
Certified members must complete 30 hours of Continuing Education (CE) every two years in order to renew their CFP licence. It is mandatory that certified members must devote 2 CE hours to update himself/herself on the Code of Ethics and Professional Responsibility.
Associate members must complete 20 hours of CE every two years.
Excess credits acquired in one reporting period cannot be carried over to another reporting period.
Continuing Education Audit
Random audits will be conducted to ensure that Certified and Associate members fulfill their continuing education requirement.
Members selected for the CE audits will be required to complete the CE report and submit proof of CE activities participation.
Certified and Associates members are therefore required to keep supporting documentation in the event they are audited or to show proof of attendance.
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C. CFP ADMIN MATTERS, WORKSHOPS & EDUCATION PROVIDER - KMDC
C1. How do I register for the CFP Certification programme?
You may download forms from this web page - just scroll down to the bottom of the page and click on the links provided there; or check this web page for detail instructions; or email KMDC: firstname.lastname@example.org; or call us: 012-3989030 (weekends), 03-5565 0799/0798 (during office hours).
For registration of CFP course with KMDC, follow these simple steps:
1. Applicants can download KMDC Application Form HERE and submit it to us together with your other documents (e.g. certified transcripts, business card or company's letter).
2. Candidates enrolling for the CFP programme (Module 1, Challenge Status and all first timers) must be FPAM's Trade members.
The Trade member fee is RM53 per annum. Do download FPAM Trade Member Application Form HERE
3. For your convenience sake, you may fax to us your forms and documents to 03-5565 0799/0798. For payments, just fill up the authorise column on KMDC Application Form and FPAM Trade Member Application Form to authorise KMDC to charge your tuition fee and FOR FPAM to charge your membership fee respectively.
For detail information on how to enrol and make payments for CFP course, please click HERE.
C2. Have the CFP Education Providers, including KMDC, been approved by the relevant authorities?
The provision of education is undertaken by suitably qualified Education Providers duly approved by FPAM. Approval is granted by FPAM subject to the Education Providers having fulfilled certain requirements such as:
i. Having an established track record in the field of education
ii. Capable of teaching the CFP certification program
iii. Employment of professional academic and support staff to ensure comprehensiveness of programs
iv. Adherence to all of FPAM’s rules and regulations
C3. Is KDU Management Development Centre (KMDC) one of the education providers approved by FPAM to conduct the CFP program?
Yes. In fact, we are now the leading CFP education provider in Malaysia with highest market share and we are always the top performer in CFP examination.
CFP COURSE FEE
C4. Do the CFP Education Providers charge the same for the CFP course?
The approach of the independent Education Providers in providing the CFP course may differ slightly, depending on their methodology and course materials but in compliance with the syllabus determined by FPAM. The fees for the courses are set by the Education Providers within the range approved by FPAM.
Below is the FPAM's recommended CFP course fees:
Module 1 -4: RM2014 inclusive of 6% GST per module
For KMDC CFP Fee, please read Question C6 below or click HERE.
C5. Who entitled to special discounted rate? Do you offer special rate for those working in the financial institutions and students?
Yes, KMDC offers corporate rate for all staff that attached to any financial institutions, e.g. banks, unit trust, insurance, financial advisory and stock broking companies, financial service providers and full time students (including fresh graduates). They will enjoy a saving of RM100 per module. Do read Question C6 below.
C6. How much is the total cost if I were to take CFP programme with KMDC?
Standard Fee (2015)
KMDC Corporate Rate (2015)*
1900 + 6% GST = 2014
1800 + 6% GST = 1908
1900 + 6% GST = 2014
1800 + 6% GST = 1908
1900 + 6% GST = 2014
1800 + 6% GST = 1908
1900 + 6% GST = 2014
1800 + 6% GST = 1908
KMDC Application Fee
300 + 6% GST = 318
200 + 6% GST = 212
Total Tuition Fee**
|Add RM206 or RM265 or RM318 per exam sitting. For those who are attached to Charter member of FPAM, pay only RM206 per exam sitting; and those attached to the corporate member of FPAM, pay only RM265. Otherwise, pay RM318 per exam sitting. To check information on FPAM membership - Charter Member and Corporate Member, click HERE.
FPAM Membership Fee
|FPAM Trade Membership (Module 1 & Challenge Status): RM53 per annum; FPAM Associate membership (Module 2-4): RM159 per annum. You need to be a member of FPAM to be eligible to sit for FPAM CFP examination.
* Those entitled to KMDC Corporate Fee included all staff from ANY financial institutions, such as banks, unit trust, insurance, financial advisory and stock broking companies, financial service providers and full time students including fresh graduates.
**Note: the Tuition fee mentioned above excluded FPAM examination fee, FPAM membership fee and KMDC application fee.
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C7. What is KMDC's refund policy if I decide to discontinue a module?
KMDC's policies on Refund of Fees:
All fees paid are NOT refundable unless the course does not commence or the candidate’s application is rejected by KMDC. Once the course commenced, the course fee is considered fully consumed. Withdrawals: All withdrawals must be in writing at least 5 working days prior to the commencement date for full refund, administrative charge of RM200 will apply. Once the course has commenced, if candidate wishes to withdraw, he/she must write in within 10 working days from the commencement date of the course, only 50% of course fee will be refunded less administrative charge of RM200. Strictly no refund for ‘No Show’ or withdrawal after 10 working days from the commencement date.
Part Time & Full Time Study for Busy Working Professionals
C8. Does KMDC offer any part-time CFP course?
KMDC offers CFP programme as part-time course only. That is, most CFP classes are conducted during weekends. Only a few classes are offered during weekdays when a minimum number of participants are met.
C9. If I want to take up full time study in CFP, would that be possible?
Possible. Just enrolled in several CFP modules in one semester. If you enrolled in 3-4 CFP modules in a semester, your study load is equivalent to full time study in colleges or universities. However, as mentioned earlier, most CFP classes are conducted on weekends.
C10. Do you offer evening CFP classes?
Currently, KMDC does not offer any evening class in KL or PJ. We do not recommend evening class as the traffic situation in the city will most likely makes you late for class; furthermore, most people find it tough to pay attention in class after a hectic day of work.
C11. Can I study CFP course with KMDC outside the Klang Valley?
Yes, we have coordinators in a few major cities towns and cities across Malaysia and we do offer outstation classes on demand.
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C12. Is it compulsory to attend CFP lectures/workshops? Can I just purchase your CFP materials and do my self study?
In compliance with the FPAM requirements of 40 contact hours, KMDC provide at least 48 and up to 63 hours of face-to-face lectures/workshops/and revision sessions.
C13. When do I need to register for CFP course?
There are two semesters per year. For first semester, CFP classes commence from February after Chinese New Year and end in early June just before the June Examination. For the second semester, CFP classes start in July till early December. December examination will usually be held in mid December. Please check KMDC CFP Timetable and register for your desired CFP class(es) at least one week before the commencement date stated in the KMDC CFP timetable.
C14. Is KMDC CFP Timetable flexible enough to suit my busy lifestyle?
KMDC's delivery strategy allows FLEXIBILITY to you in view of your hectic working schedules. We offer Saturday, Sunday and weekday sessions. For each module, there will be 3 to 8 intakes per semester. Some intakes will commence early while some will commence in the middle of the semester, and the last intakes will start just about 2 months before the examination. Thus, you do have many choices.
However we recommend that you enroll and start early in order to accommodate the demands of your personal and professional lives. In addition, you can now sit for a few modules simultaneously and is still able to manage each module comfortably following the recommended study schedule.
LEARNING SUPPORT FOR CFP STUDENTS
C15. What kind of learning support and materials will be given to me by KMDC?
KMDC offers 8-9 full day face-to-face CFP workshops including revision seminar for each module with contact hours 60 - 72 hours. Besides that, we provide free training workshop on "Financial Calculator and Time Value of Money". For study materials, we provide you KMDC CFP manuals, lecture notes, sample exam papers (soft copy only) and online materials. KMDC also organizes financial planning seminars regularly for our CFP learning community and the public. Besides that, KMDC provides online Financial Planning software, PlanPlus from Canada for every CFP students enrolled with us.
C16. How does KMDC ensure that I can pass my CFP examination?
KMDC provides you with extra hours of face-to-face workshops - from 2015 onwards, up to 72 hours for CFP Module 2-4, and up to 64 hours for Module 1 - compare with FPAM's requirement of 60 contact hours per module. We provide normal lectures/workshops, mock exam and revision seminars, extra free training sessions on financial calculator and time value of money, and online learning portal, Schoology.com, loaded with thousand of mock exam and review questions and other course materials. Each CFP learning members will also be given a few sets of sample exam papers in advance. Our CFP timetable is so flexible that you have many choices - and able to repeat all the sessions for a small fee or replace the session(s) that you missed for free. Read Question C19 for details.
The best of all -- we have a team of highly qualified facilitators who are industry practitioners and well liked by our CFP learning community. To check the profiles of our CFP facilitators, click HERE.
KMDC has built up its reputation as CFPeducation provider that provides high quality education with value-added service. Our CFP examination results also speaks for itself - we are always the top performer with highest pass rate. Do check HERE for KMDC past CFP examination results and awards.
C17. What is the duration for each CFP module?
Based on a 18 or 20-week semester with the common expectation that you would spend between seven to ten hours per week studying and preparing for your CFP course. You may take a longer or shorter period to complete each module.
For example, your CFP Module 2 class commences in late February, and there are 9 full day sessions to attend. Thus, you will likely to complete the module in about 10 - 12 weeks depending on the CFP Schedule.
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STUDY OPTIONS PROVIDED BY KMDC
C18. How to complete all four CFP modules in 1 year?
Join the early intake of CFP programme in either Semester 1 or 2, go for the special exam sitting for Module 1 in March or September; then enrol for Module 2 and 3 in the second intake at the smae semester, and sit for June or December examination for both modules. In the next semester, provided you passed all the examinations, take on Module 4 in your 3rd exam sitting.
Remember: do enroll early as early birds do get to enjoy a lot more privileges.
C19. I do not want to rush to complete my CFP course in 1 year, but, if I do one module at a time, it will take 2 years to complete. That is a bit too long for me. What is your recommendation?
We recommend that you study CFP Module 1 in your first exam sitting, then take on CFP Module 2 & 3 in your second exam sitting, and Module 4 in your 3rd exam sitting. Thus, you will be able to complete all four modules in 1.5 years.
DEFERMENR, REPEAT/RESITS. SIT-IN
C20. Suppose I am unable to cope with the workload and the study load or sit for the CFP exam, can I defer my exam sitting?
Yes, you can just attend the classes and need not register for the coming examination but enroll for the next exam sitting instead. Please do inform us your intention in wiring.
C21. I understand KMDC does offer opportunities for CFP learning members to repeat/re-sit for CFP sessions for a small fee. Please elaborate.
Yes, we do offer opportunities for our CFP learning members to repeat or re-sit or sit in for their CFP sessions.
Repeat - KMDC CFP learning members who signed up for the early intake of CFP session, for example, Mr. Tan enrolled for Module 4 early intake which starts in February. He will complete his Module 4 in late March, and wants to repeat Module 4 with another facilitator in the coming April intake. As long as the seats are available (some CFP classes do fill up fast), he can do so by enrolling himself into this April intake of Module 4 and pay a small administrative fee to KMDC. In this way, he learns more and better prepared for the coming examination.
Another example, Cik Norila enrolled for Module 1 and will sit for CFP Module 1 examination in June; at the same time, she enrolled and paid for Module 2 and Module 4 tuition fee as well - her intention is to only attend the CFP Module 2 & 4 workshops and will only sit for the exams of these two modules next round in December. She can repeat Module 2 & 4 in the coming semester and this time, she only requires to pay a small administrative fee for each module in order to attend the workshop for the second time. As for the exam fee, She of course has to pay her exam fees to FPAM.
Re-sit - Normally refers to learning members that failed his or her CFP examination previously and want to re-sit for the same module in the next semester. A small administrative fee applies - this is to cover the costs of refreshments and lecture notes.
The 2015 course fee for Resits and Repeats mentioned above varies, it depends on which option you choose. Option 1: RM424 only for 8 day of classes inclusive of lecture notes, sample exam papers and refreshments. Option 2: RM477 only for 9 day of classes which included 1-Day exam revision seminar, lecture notes, sample exam papers and refreshments. CFP course manual is excluded as the learning members should already been given one copy of course manual the first time he or she enrolled for that particular CFP module previously.
Refresher Course - for KMDC CFP alumni who have completed his/her CFP course and fully certified, and yet they want to come back for refresher course. They only need to pay RM424 for 8 day of normal sessions inclusive of course manual, lecture notes and refreshments.
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C22. I have completed CFP course years ago and I would like to update myself - does KMDC offer any refresher course?
Yes, we do. If you are a CFP holder and KMDC alumnus, and wish to do a refresher course (any CFP modules), you can enrol with us - each module will cost only a fraction of the full tuition fee, i.e. at RM300 per module for 6-day workshop. For non KMDC alumni, the fee for refresher course is RM600 per module.
C23. I was with other CFP education provider and completed a few CFP modules, and now I have decided to join KMDC, can I?
Of course, you are welcome to join KMDC CFP courses. Talk to our staff to see if you are entitled to any special offers.
C24. I failed my CFP module while with other education provider, can I take advantage of your refresher course to repeat the module that I failed?
Yes, you can repeat the failed module with us provided you signed up and make payment for at least one new CFP module with us.
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ISSUES RELATED TO INTERNATIONAL RECOGNITION, MIGRATION AND WORKING OVERSEAS
C25. I plan to migrate to Australia, is CFP qualification recognised there? Should I complete my CFP course here in Malaysia before moving there?
Yes, CFP is recognised in Australia. It is advisable that you complete your CFP course here in Malaysia first then complete a top exam in Australia. Also do check with the Australian authority (www.fpa.asn.au) from time to time for latest updates on the conversion process. In Australia, the minimum entry requirement for CFP is a bachelor degree.
C26. I plan to migrate to Australia in 6 months time and I have only completed CFP Modules 1 & 2. I only have time to complete another 1 module, i.e. Modules 3. I understand that I am not eligible to sit for Module 4 examination before I have passed Modules 1-3. Please advice.
Sign up and attend all remaining modules, i.e. Modules 3 and 4. Sit for Modules 3 examination in the here in Malaysia - you still have time to do that. Then, when you go over to Australia, do your own revision and prepare for Module 4 examination. Provided you have passed Modules 3, register and come back to Malaysia for Module 4 examination.
C27. I will be leaving for Singapore to work, and I have completed only 3 CFP modules, can I continue to study CFP there?
You will have to complete your CFP course in Malaysia. If you have done 3 CFP modules here and want to continue it in other country like Singapore, you will be required to start all over again. However, if you have completed your CFP course here in Malaysia, you will then do a conversion examination there in Singapore. Perhaps, you should consider signing up for our weekend CFP classes and come back to attend classes and examination in Malaysia.
Please check with the Singapore authority (w align="left"ww.fpas.org.sg) for latest updates on the conversion process.
CFP EDUCATION PROVIDER - KMDC
C28. What is KMDC and which is the largest Financial Planning education provider in Malaysia?
KDU Management Development Centre Sdn. Bhd. - KMDC, is an education provider and training provider for working professionals and corporate in Malaysia. It is a subsidiary of PAramount Corporation and sister company of KDU University College and Sri KDU Smart School. KMDC has since 2003, providing CFP Certification course to the public. Though we are not the pioneer and in fact a late comer in CFP education, we manage to achieve the Number 1 Market Leader position since 2008. KMDC's market share is still on the rise. In Klang Valley and Penang, we have over 75% market share (2012 June) and in whole Malaysia, 55%. This information is based on the statistics provided by FPAM as of June 2012.
C29. May I know KMDC CFP Examination results?
Yes, we are very transparent about our examination results. KMDC is also proud to announce that we constantly achieve high pass rate for CFP examination. For a consecutive of 10 examinations in the past 5 years, KMDC has achieved an average of 84% pass rate. We are also the top award winner - in 2011, out of 13 FPAM CFP Award, KMDC wins 12.
For more information on CFP examination results and awards, please click the link below:
C30. Does KMDC offer any other courses/programmes besides CFP ?
Yes, we do. We offer a series of management development programmes, executive seminars and workshop, in-house training and other certification courses, such as Project Management. Do visit the sites below for more information:
KMDC Programme Main Page: http://www.kmdc.com.my/html/programmes/programmes_main.html
KMDC Programme Calendar: http://www.kmdc.com.my/html/programmes/prog_calendarMonth.htm
KMDC Programme Portfolio /In-House Training/Custom Programme: http://www.kmdc.com.my/html/programmes/programmes_portforlio_Custorm&InHouse.html
C31. Where is KMDC Business Office and learning centre located?
We are at Level 3, KDU Univeristy College Glenmarie Campus,located in Utroplis, Glenmarie, Shah Alam, Selangor, Malaysia:
KMDC @KDU University College, Glenmarie Campus
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D. FPAM'S MEMBERSHIP AND CFP LICENSE
D1. What are the different types of FPAM's membership available?
FPAM membership consists of individuals and companies who practice or support the financial planning profession respectively. As a professional association, FPAM requires its members to abide by a Code of Ethics and Professional Standards.
To protect the consumer and thereby instilling public confidence in its certified licencees, FPAM will investigate formal complaints through a Review and Disciplinary System.
There are five categories of members:
1. Charter Member
This category of members are corporations that support the development of the financial planning industry.
2. Corporate Member
Invited corporations with interest in financial planning.
3. Certified Member
Certified Members CFP are individuals who have earned the CFP certification. The have passed the certification examinations after completing the CFP Course provided by approved Education Providers.
They have also acquired three years’ relevant experience and agreed to abide by the Professional Standards and Code of Ethics.
The CFP qualification is an internationally recognised mark and symbolises the highest level of professionalism in financial planning.
4. Associate Member
Associate members are individuals who have earned the AFPM certification. They have shown technical competency by completing the AFPM course provided by approved Education Providers. They also need to abide by the Professional Standards and Code of Ethics.
5. Trade Member
Trade members are individuals who undertake to pursue the CFP and AFPM courses provided by approved Education Providers.
D2. What are the differences between being an Associate Member and a Certified Member
An Associate member is someone who has completed the Foundation In Financial Planning module (CFP Module 1) and registered as an Associate member of FPAM. He or she understands the 6-step financial planning process and is able to explain the process to clients and provide clients with only segmented plans but would not be competent enough to write a comprehensive financial plan. He or she agrees to abide by the FPAM Code of Ethics and Professional Responsibilities.
A Certified member is someone who has completed the CFP certification course and after meeting the 4E requirements of certification (Education, Examination, Experience and Ethics) is awarded the CFP Mark, the highest standard in financial planning. A Certified member is able to take the clients through the 6- step process of financial planning and write and execute a comprehensive financial plans for his or her clients as well as monitor the status / progress of the implementation of the clients’ plans. He or she would have at least 3 years of relevant experience and agree to abide by the FPAM Code of Ethics and Professional Responsibilities.
D3. What can a CFP do that an AFP(M) cannot do?
An AFPM licensee is one who is trained and is competent to recommend the full range of financial products to match the needs of his clients. He/she understands the financial planning process. He/she is able to explain the process to clients and provide clients with only segmented plans but would not be competent enough to write comprehensive financial plans.
A CFP licensee would be able to do all that an AFPM licensee can do plus write and execute comprehensive financial plans for his/her clients, as well as monitor the status of the clients' plans.
D4. Who are FPAM’s Charter Members?
FPAM's Charter Members are corporate members of FPAM who contribute and support the development of the financial planning industry in Malaysia.
If you are employed by any of FPAM's Charter Members, you are entitled to the Charter Member’s employees’ rate for examination registration fees. Click on the link here to check for the Charter members of FPAM: http://www.kmdc.com.my/html/programmes/cfp_links.html
D5. Can an individual apply to be a FPAM's Charter Member?
No. Only institutions can apply to be Charter members
D6. What does the Re-certification process entail?
Once certified, a CFP practitioner is required to maintain technical competence and fulfill ethical obligations. Every two years, he must complete a minimum of 30 hours of continuing education to keep abreast of current developments in the financial planning profession in order to better serve his clients. Two of the 30 hours are to be spent studying or discussing FPAM’s Professional Code of Ethics and Practice Standards.
In addition to the biennial continuing education requirement, every CFP practitioner must also voluntarily disclose any public, civil, criminal or disciplinary actions that may have been taken against him in the past two years as part of the continuing Re-certification process.
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D7. What additional support does FPAM provide to its members?
FPAM has a comprehensive web site which students can access for updated information on the latest developments in financial planning. There are also links to the web sites of other financial planning bodies worldwide.
There is also a mini library at FPAM’s premises with reference materials and books on financial planning for use by its members.
D8. What is so special about the Mark?
The mark identifies individuals who have met education, examination, experience and ethics requirements established by the Certified Financial Planner Board of Standards, Inc., (CFP Board) of Denver, Colorado. The CFP Board owns the Certificate and licenses qualified individuals to use this mark and refer themselves as " Licensees". The designation is an internationally recognised mark for the highest level of competence in financial planning.
FPAM has been awarded the licence to conduct courses in Malaysia in line with these international standards.
D9. When do I qualified for the Mark?
You will earn your Certificate once you have completed and pass all six (6) modules with 3 years of relevant Financial Planning work experience.
D10. What do you mean by "relevant Financial Planning work experience"?
Relevant financial planning work experience can be obtained from the following 3 work areas:
(i) Working in the financial services industry
(ii) Self employed, sole proprietors, partners or directors in industries relating to financial planning or financial services
(iii) Insurance/unit trust/will writing/trusts agents and remisers
For detail information about relevant financial planning work experience, click HERE.
D11. Is it true that a licensee can have his license revoked?
D12. I have passed Module 4, how to apply to be fully certified financial planner?
Having passed CFP Module 4 does not automatically elevate you to fully certified financial planner. You will have to apply and these are the procedures:
- Option 1: Submit proof (document) that you have at least 3 years of relevant working experience outlining details from your present/past employer (in company’s letterhead) over the immediate 3 years from the date of the application including employer details, (name of company, telephone number, person to contact) positions held and primary duties. OR
- Option 2: Complete the CFP Application Working Experience Summary Form certified by your employer with Company’s stamp ( Name, Designation and contact number)
- Complete FPAM's Certified Member Application Form and enclose together with payment of RM424 payable to “Financial Planning Association of Malaysia”
For Challenge Stastus candidates:
- Complete the Certified Application Form and enclose together with payment of RM424 payable to “Financial Planning Association of Malaysia”
- Certified working experience letter will not be required (this had been given to FPAM earlier when you applied for Challenge Status)
Certified acceptance Letter and Certificate will be sending to your correspondence address via registered mail in ONE month from the date of the application.
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As we have highlighted earlier, CFP is both internationally and locally recognised. However, the choice is yours to make.
It is possible to seek dual recognition, or pursue RFP and CFP concurrently.
The Islamic Financial Planner (IFP) is a training and certification programme designed especially for professionals and executives serving the retail segment of the Islamic financial market. This programme is a joint collaboration between Islamic Banking and Finance Institute Malaysia (IBFIM) and the Financial Planning Association of Malaysia (FPAM).
Islamic Financial Planner (IFP) qualification has been recognised by Bank Negara Malaysia (BNM) for the purpose of becoming a Financial Adviser’s representative. The business of financial advisory in respect of insurance products is a regulated activity under the purview of BNM. IFP qualification has also been recognised by Securities Commission for the purpose of applying for a Capital Markets Services Representative’s License (CMSRL) to carry out the regulated activity of financial planning.
Yes, the IFP Challenge has been introduced. Candidates qualified for the IFP Challenge status will need to attend classes and pass the Module 4 (M4) examination.