BECOME A CERTIFIED FINANCIAL PLANNER® PRACTITIONER
More than a decade ago, financial planners were almost unheard
of. With Malaysians becoming more affluent, the demand
for the service of financial planners is growing rapidly.
People these days have more sophisticated demands. They
are no longer satisfied with simple investment planning,
and are seeking out financial planners not only to manage
their wealth but also to extend their kitty while maintaining
or improving their lifestyle. Why financial planning?
Financial Planning is the process
of meeting an individual’s life goals through
the proper management of his finances. Life goals can
include creating wealth, buying a house, going for vacations, saving for
a child’s education or planning for retirement.
OVERVIEW of KMDC PROGRAM – ESSENTIAL INFORMATION 2009
The CERTIFIED FINANCIAL PLANNER® and CFPCERT TM 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 international CFPCERT TM Council works to ensure
that a well-defined six-step process used by a financial
planner will place the client’s interest and needs
first. As of September 2008, there are more than 111,000 CFP certified
practitioners worldwide and the number is growing.
In Malaysia, CFPCERT TM certification programme has becoming more and more popular. The Financial Planning Association of Malaysia (FPAM) currently enjoys with more than 11,000 members and over 4000 of them are CFP certified
practitioners with another 7000 of them still pursuing CFPCERT TM certification programme. Majority of Malaysia's CFPCERT TM 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 CFPCERT TM holders in Malaysia are from non financial corporations.
The 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
Taxation planning
Investment planning
Retirement planning
Estate planning
Financial plan construction and professional responsibilities
The Financial Planning Process
The financial planning process is
defined by the CFPCERT TM Board involves the following six
key steps:
·
Gathering client data, including goals
·
Analysing and evaluating your financial status
·
Developing and presenting financial planning recommendations
and/or alternatives
·
Implementing the financial planning recommendation
·
Monitoring the financial planning recommendations
A Professional Certification Recognised Globally and Locally
The CFPCERT TM program is recognized globally and locally by Bank Negara and Securities Commission.
Local Recognition of CFPCERT TM by Bank Negara and Securities Commission
Bank Negara has recognized the CFPCERT TM qualification as a prerequisite for application of the Financial Adviser’s licence. Prior to this, Modules 1 and 2 of the CFPCERT TM certification program had been recognized by Bank Negara for the purpose of complying with the requirement that all life insurance agents of more than one year need to attend these modules. The latest recognition by Bank Negara is a further testament of the standard of the CFPCERT TM qualification and its credo of the "Highest Standard in Financial Planning".
Earlier, CFPCERT TM was already recognised by Securities Commission as a prerequisite for application of the Investment Adviser’s licence.
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). CFPCERT TM certification standards for each country/ region have been adapted to meet domestic marketplace, regulatory and educational needs. For data on the global growth of CFPCERT TM Professionals over the past decade, visit Global Growth of CFP Professionals. For an overview of the international CFPCERT TM certification program and the state of the financial planning profession globally, visit FPSB web site HERE.
The CERTIFIED FINANCIAL PLANNER® certification will be earned by individuals who
have demonstrated technical competency combined with
practical experience which enables them to write a comprehensive,
functional financial plan for an individual, all the
while conforming to the international CFPCERT TM mark.
The Associate Financial Planner Malaysia will
be competent to recommend general financial planning
strategies and to advise on the appropriate selection
and use of various financial products for individuals,
e.g., insurance, unit trust and a broad range of securities
and banking products.
The CFPCERT TM and AFPM Certification Requirements
In order to be certified, a candidate
for the CFPCERT TM certification must meet all four requirements
of the certification process described below, while
a candidate for the AFPM certification must meet the
education, examination and the ethics requirements. In Malaysia, KDU Management Development Centre (KMDC) is the leading education provider of CFPCERT TM programme. For enrolment and more information about CFPCERT TM course offered in Malaysia, please contact KMDC.
Before applying for the Certification
Examination, a candidate must complete academic coverage
of the financial planning curricula including :
- Foundation in Financial Planning
- Risk management and insurance planning
- Tax planning
- Investment planning
- Estate planning and Retirement planning
- Financial Plan Construction and Professional Responsibilities Examination
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.
Experience
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.
Ethics
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 CERTIFIED FINANCIAL PLANNER®Practitioner :
* 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.
Entry Requirements & Exemptions
Option A: Full CFP Certification Program
Candidates without any relevant qualifications are required to undergo the full CFPCERT TM certification course, which comprises 6 modules (Module 1 to 6).
Course duration: The shortest possible time frame to complete the program is 18 months. Minimum academic requirements: SPM or equivalent
Option B: Partial Exemption on Modules
FPAM - Financial Planner Association of Malaysia recognizes that certain professional qualifications cover some of the components in financial planning and has decided to waive certain modules for eligible members.
Holders of these degrees and/or credentials are exempted from the following modules:
Qualification
M 1
M 2
M 3
M 4
M 5
M 6
Chartered Financial Practioners (Namlifa)
x
-
-
-
-
-
MII Dip. in Financial Planning
x
-
-
-
-
-
Chartered Life Underwriters
x
x
-
-
-
-
Life Underwriters Training Council of Fellows
x
x
-
-
-
-
Graduate Diploma in Applied Finance and Investment
x
-
-
x
-
-
Member of Malaysian institute of Taxation
-
-
x
-
-
-
Bachelor Degree (Finance/Accounting/Economics)
- must included taxation module
Option C – CFP Challenge Status- skip Modules 1-5 and go straight to the last paper, Module 6
Candidates having the following qualification and/or professional credentials and have gained 3 years of personal finance related experience are eligible to apply for the CFP Challenge Status. This CFP Challenge Status is only open for Malaysians.
1. Qualifications:
· Professional Accountants (MIA, CPA (M), CPA (Aust.), AICPA, CA, ACCA, CIMA and AIA)
· Chartered Secretaries (ICSA & Fellow of MACS)
· Chartered Financial Consultants (CHFC)
· Chartered Financial Analysts (CFA)
· Doctorate in Business Administration (DBA)
· 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. (For definition of relevant financial planning experience, please click here)
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 CFPCERT TM certification examinations.
RM200 (Charter member), RM250 (Corporate member) or RM300 per sitting**
FPAM Membership Fee **
RM50 per annum (Trade member, Module 1 & Module 6 Challenge Status), RM120per annum (Associate member, Modules 2-6)
*Corporate Discount (Premium Fee) * You are eligible for the Corporate Rate (@about 20% discount) if you are attached to any financial institution, for example, banks, units trusts, insurance, financial planning, wills & trusts and finance company.
**FPAM Membership Charter Members are corporations that play an active role to support the development of the financial planning industry. If you are attached to a company or institution that is a Charter Member of FPAM, then you only need to pay RM200 examination fee per examination sitting instead of RM300.
Corporate Members are corporations that are interested in financial planning and subscribe as a member of FPAM. If you are attached to a company that is a corporate member of FPAM, then your examination fee is RM250 per examination sitting.
Trade Member – must be involved in financial product distribution, advisory and or education. All candidates who enrolled for CFP Module 1 or Challenge Status must apply to become FPAM Trade member. Associate member: must have passed CFP Module 1 course.
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 5, a 2-hour examination with 60 multiple choice questions each. For CFP Module 6 examination, Paper 1 (3-hour) consists of 60 multiple choice questions, and Paper 2 (3-hour) consists of essay questions on financial plan construction and case study.
For each CFP module, students need to fulfill a minimum of 40 contact hours. This financial planning program is designed for working professionals, thus most classes are held during weekends.
Besides face-to-face workshop with the facilitators, there will be online support, and study manual, lecture notes, sample examination papers and reference materials will be provided.
Complete CFPCERT TM program in 3 Stages: There are 3 stages. Unless exemption is granted, for most people, they have to begin with Module 1. Once passed Module 1, then you will move on to Stage 2, i.e. Modules 2-5. In this stage, you may choose to study all four modules or any module(s) in any sequence in one semester. Once you have passed all four modules in Stage 2, then you will take up the last paper, that is Module 6.
KMDC provides 54-63 hours of workshop for each CFP module. Classes are held mostly on weekends, some on weekdays, usually from 9:00am till 5:00pm. You may choose Saturday Class or Sunday Class or Weekday Class. For each module, you only need to attend a total of 6-7 days of workshop. Each module can be completed in 7 – 15 weeks.
3 Venues: Kuala Lumpur (next to Central Market), Petaling Jaya (Damansara Uptown 5, opposite Standard Chartered Bank) and Penang (KDU College). Outstation and in-house classes available on demand.
Besides CFP workshops, KMDC also provides additional training workshops, mock examination and revision seminars at no extra cost.
Shortest Time frame to complete the program: 1.5 years; most people requires 2 years to complete. For Challenge Status students who were exempted 5 modules, it is possible to complete in 6 months.
1. Registration: Submit by hand or fax KMDC Admission Form to KMDC business office at Damansara Uptown, Petaling Jaya. Fax numbers: 03-7712 3366 or 03-7726 9559. Tel: 03-7712 3388 Email: start@kmdc.com.my
2.Payments:
First of all, determine how much you need to pay.
Suppose you are a new candidate and applying to start CFP Module 1 with KMDC:
Corporate rate(Premium fee @ about 20% discount - if you are attached to any financial institution or if you are fresh graduate or full time student):
Tuition Fee: RM1300 + Application Fee: RM100 = RM1400
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 new candidates.
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 Maybank account:
Name: KDU Management Development Centre Sdn. Bhd.
Account No.:514196 – 326142
Bank: Maybank Damansara Utama Branch
Once payment is made, write your name onto the bank-in slip, and then fax this slip together with KMDC Admission Form to KMDC, fax number: 03-7712 3366 or 03-7726 9559
c. Cheque Payment via mail or Cash: send the cheque together with KMDC Admission Form to KMDC Business Office via mail or make a visit to our office and pay cash:
KDU Management Development Centre Sdn. Bhd.
Level 8, Uptown 1, No. 1 Jalan SS 21/58, Damansara Uptown
47400 Petaling Jaya, Selangor, Malaysia.
3. FPAM’s Fees: For fees payable to FPAM, i.e. FPAM Trade membership 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.
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: Risk Management & Insurance 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.
Module 3: 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: Investments
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.
Module 5: Estate Planning and Retirement Planning
This course is taught in two sections; the estate planning and retirement planning.
Module 6: Financial Plan Construction and Professional Responsibilities
This course is for students who have completed Module 1 to 5 or preparing to attempt the CFPCERT TM Challenge 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.
KMDCis the Malaysian market leader in CFPCERT TM education: In Klang Valley, we have over 50% market share and in whole Malaysia, 43%.
Good reputation: High quality education assured. KMDC provides high quality education and continue to seek improvement.
Best performer in CFPCERT TM examination – over 85% pass rate: KMDC has constantly achieved over 85% total average pass rate in the past 3 examinations.
Best value: KMDC provides extra training, mock exam/revision seminar, financial planning software and additional contact hours – about 14–23 hours more than the required 40 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 and or Weekday sessions, and you may choose to attend classes at KMDC PJ or KL centre or both; and we provide replacement, 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.
More information about Malaysia's CFPCERT TM programme and about KMDC CFP facilitators, exam results & etc; and to download documents and forms, here are the links:
Corporate rate available for all employees (both full time and part time) of financial institutions and media companies: enjoy about 20% off the standard fee.
PROGRAM – ESSENTIAL INFORMATION 2009
