Q1 What is Financial Planning?
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.
Q2 What is a Financial Planner?
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 approach makes the financial planner different from other financial advisors who may be trained only on specific areas of your financial needs.
Q3 What is the Financial Planning Process?
The process consists of six steps:
i. Establishing and defining the client-planner relationship
The financial planner should explain clearly or document the services to be provided to you and define both his and your responsibilities. The planner should explain fully how he will be paid and by whom. You and the planner should agree on how long the professional relationship should last and on how decisions will be made.
ii. Gathering client data, including goals
The financial planner should ask for information about your financial situation. You and the planner should mutually define your personal and financial goals, understand your time frame for results and discuss, if relevant, how you feel about risk. The financial planner should gather all the necessary documents before giving you the advice you need.
iii. Analysing and evaluating your financial status
The financial planner should analyse your information to assess your current situation and determine what you must do to meet your goals. Depending on what services you have asked for, this could include anlaysing your assets, liabilities, cash flow, current insurance coverage, investments and tax strategies.
iv. Developing and presenting financial planning recommendations and/or alternatives
The financial planner should offer financial planning recommendations that address your goals, based on the information you provide. The planner should go through the recommendations with you to help you understand them to help youmake informed decisions. The planner should also listen to your concerns and revise the recommendations accordingly.
v. Implementing the financial planning recommendations
You and the planner should agree on how the recommendations will be carried out. The planner may carry out the recommendations or serve as your “coach”, coordinating the whole process with you and your other professionals like your lawyers or stockbrokers.
vi. Monitoring the financial planning recommendations
You and the planner should agree on who will monitor your progress towards your goals.
If the planner is in charge of the process, he should report to you on a time basis mutually agreed upon to review your situation and adjust the recommendations, if needed, to complement the changes in your life.
Q4 What is the minimum qualification needed to take up the course for the AFPM and CFP certifications?
To qualify for the AFPM certification, the candidate must at least be a holder of SPM or its equivalent, and for the CFP course, he must either ba an AFPM licensee or holder of STPM or its equivalent.
Q5 What is the difference between the AFPM and a CFP certification?
To attain the AFPM mark, you need to complete the following:
i Be a trade member of FPAM with minimum SPM or its equivalent,
ii Pass Module 1 - Foundations in Financial Planning
To attain the CFP mark, you must in addition to the above, required to sit and pass the examinations for:
Module 2 Risk Management & Insurance Planning
Module 3 Taxation Planning
Module 4 Investment Planning
Module 5 Estate Planning & Retirement Planning
Module 6 Financial Plan Construction & Professional Responsibilities
For full CFP certification, one should also meet the following criteria:
i. be a current AFP or trade member of FPAM
ii. have at least 3 years’ relevant working experience
Q6 Is there a time frame to complete each module?
There is no rigid time frame as the examinations are conducted once every 6 months.
Q7 Is there a time frame to complete the 6 modules?
There is no rigid time frame. Modules 1 to 5 must be completed before you are eligible to attempt Module 6. A candidate has the choice to attempt Modules 2 to 5 in any sequence.
Q8 How long would it take to complete the 6 modules if taken in sequence?
The shortest time frame would be 18 months.
Q9 How many questions will there be in each module ?
There will be 60 questions in each module.
Q10 Are the examinations on an objective basis ?
Module 1 to Module 5 Multiple Choice Questions (objective basis)
Module 6 comprises one paper with 60 Multiple Choice Questions and the second paper on Case Studies requiring essay type answers.
Q11 What is the examination period for both papers in Module 6?
The examination for Module 6 will be in 2 parts, the 1st part will be a 3 hours examination on 60 multiple choice questions and the 2nd part will be a 3 hours subjective paper on Financial Plan construction. Both papers would be conducted on the same day.
Q12 If I fail a module, is there a re-sit and what is the time frame for a re-sit?
You will have to re-register for the module that you fail in. You can register for the next available examination sitting.
Q13 Do I pay for the whole exam or just the cost of the re-sit?
You pay only for those modules that you wish to re-sit. However your education provider may charge you extra on tuition fees.
Q14 Is it just one exam to earn the CFP mark or several exams over a period of time?
You have to pass all examinations on 6 modules.
Q15 Can I complete the AFPM Course and come back some time later to complete the CFP course?
Yes, but we would encourage you to complete the program without a break so that in the shortest time possible you can be the proud holder of the CFP mark that is internationally recognised.
Q16 Can I do the six modules with a period of rest in between Modules?
Yes.
Q17 What is the Re-certification process?
Once certified, a CFP practitioner is required to maintain technical competence and fulfill ethical obligations. Every two years, he/she must complete a minimum of 30 hours of continuing education, staying current with development in the financial planning profession to better serve his clients. Two of these 30 hours are spent studying or discussing FPAM's Professional Code of Ethics and Practice Standards.
In addition to the biennial continuing education requirement, every CFP practitioner voluntarily discloses any public, civil, criminal or disciplinary action that may have been taken against him during the past two years as part of the Re-certification process.
Q18 What is Practice Standards?
To help you understand what to expect from the financial planning process, CFP practitioners 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 meeting. These standards are based on a six-step financial planning process :
Establishing and defining the client-planner relationship
Gathering client data including goals
Analysing 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
Q19 If I start with a full-time course and decide to switch to part-time or distance learning, or vice versa, is this possible ?
No.
Q20 Is there a refund if I discontinue a module?
Please refer to the independent Education Providers for their registration policy.
Q21 What can a CFP do that a AFPM 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 and 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.
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.
Q22 Is there a re-sit if I fail any paper in a module or any module?
Yes, you can re-register for the next sitting.
Q23 How do I register for the AFPM or CFP course?
You may visit the Education Provider and collect the Forms, or
You may email your selected Education Provider and they will forward the forms to you, or
You may email us your request and we will forward the forms to you, or
You may forward the duly completed forms to your selected Education Provider or to the Financial Planning Association of Malaysia.
Q24 How do I register any complaint or grievance that I may have with the Education Providers?
You may write in to :
The Principal Officer
Financial Planning Association of Malaysia
Lot 16-02, 16th Floor, Block B, HP Towers
No.12 Jalan Gelenggang, Bukit Damansara
50490 Kuala Lumpur
Telephone: + 603-2095 7713
stating the details. Please provide your contact details
Q25 Are the Education Providers approved by the Authorities?
Yes. The provision of education will be undertaken by suitably qualified Education Providers approved by Financial Planning Association of Malaysia (FPAM). Approval may be granted by the Association subject to the Education Providers fulfilling standard requirements in:
- Established track record in the provision of Education.
- Capability to teach the AFPM/CFP program as outlined in the syllabus.
- Employment of suitable academic/support staff to ensure completion of programs.
- Adherence to all FPAM rules and regulations.
Q26 Is CFP certification program popular in other countries/regions?
Yes, besides Malaysia, CFP is widely recognized in the USA, Canada, Japan, Australia, Hong Kong, China, Taiwan, Indonesia, India, Singapore, United Kingdom, New Zealand, Germany, France, South Korea, Brazil, Austria, South Africa and Switzerland; while Thailand, Ireland and Netherlands are joing in as FPSB Associate members.
Q27 Besides what the Education Providers provide, what else will FPAM do to support the students?
FPAM provides a comprehensive website support. Students can access the website for additional information and also link onto the website of the CFP Board of Standards in Denver. The websites also keep the students abreast with development in the financial world. A library has been set-up at FPAM premises for students and members, who may,
in the near future, fully utilize the reference materials and books available. FPAM is still in the process of compiling the required titles for the library.
Q28 Do the Education Providers charge the same for the course?
The approach of the independent Education Providers in providing the AFPM/ CFP courses may differ, depending on their methodology and education structure used, but in compliance with the syllabus of FPAM. The fees for the courses are set by the Education Providers within the approved range of fees approved by FPAM.
Q29 What is a Charter Member?
Charter Members are corporate members of FPAM that contribute their support for the development of the financial planning industry in Malaysia.
If you are employed by any of FPMA's Charter Members, you would qualify for the Charter Member’s rate; i.e. pay only RM200 examination fee per examination sitting, while others pay RM300.
Q30 Can an individual be a Charter Member?
No.
Q31 What are the 4E’s?
Education
Examination
Experience
Ethics
Education
Before applying for the Certification Examination, a candidate must complete academic coverage of the financial planning syllabus :
Foundation in Financial Planning (for the AFPM mark)
Risk Management and Insurance Planning
Tax Planning
Investment Planning
Estate Planning & Retirement Planning
Financial Plan Construction & Professional Responsibilities
(Certification/Comprehensive/Challenge Exam)
Examination
Once a candidate has completed the Education requirement, he can enroll for the Certification Examination. The examination is designed to assess the candidate’s ability
to apply the knowledge he has acquired from the Modules to real financial planning situations in an integrated format, thereby protecting the public by assuring that the candidate has acquired the acceptable level of competency required for practice.
Experience
In addition to completing the financial planning education and examination requirements, the candidate is required to show evidence of having worked in a financial planning related position for a period of at least three years before or after the successful completion of the Certification Examination.
Ethics
Once the candidate has completed the above 3 E’s, the candidate will receive a Declaration Packet which includes an ethics statement form and licence application with a bill for the initial licence fee. Prior to certification, the candidate will be required to disclose past or pending litigation or agency proceedings and to acknowledge the right of FPAM to enforce its Code of Ethics and Professional Responsibility.
Q32 Is it true that a CFP licensee can have his licence revoked?
Yes
Q33 What is so special about the CFP Mark?
The CFP mark identifies those 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 CFP Mark 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.
FPAM has been awarded the licence to conduct courses in Malaysia in line with these international standards.
Q34 What is the difference between a Certified Financial Planning Practitioner and the other kinds of financial advisors?
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 a six-step Financial Planning Process, documented by the CFP Board of Standards through their research on the “Job Analysis” of what a financial planner is expected to be.
Q35 Where are KMDC CFP leanring centres in Malaysia located?
Business Office:
KDU Management Development Centre
Level 8, Uptown 1,
No. 1, Jalan SS 21/58, Damansara Uptown
47400 Petaling Jaya, Selangor, Malaysia.
Tel: +603-7712 3388; +6012-3989030
Fax: +603-7712 3366
Business Hours: Monday - Friday 9:00am - 6:00pm
Email: start@kmdc.com.my
Website: www.kmdc.com.my
KMDC CFP Petaling Jaya Learning Centre:
Uptown Conference Centre (opposite Standard Chartered Bank)
Level 12, Tower A, Uptown 5,
5, Jalan SS21/39,Damansara Uptown,
47400 Petaling Jaya,
Selangor Darul Ehsan,
MALAYSIA
Tel: 012- 398 9030
Fax: 03-7712 3366
Email: start@kmdc.com.my
KMDC CFP Kuala Lumpur Learning Centre:
FTMS College
24-30, Jalan Hang Kasturi
50000 Kuala Lumpur
(Near Central Market, same row and next to McDonald's and Watson's)
Tel: 012- 398 9030
Fax: 03-7712 3366
Email: start@kmdc.com.my
KMDC CFP Penang Learning Centre :
KDU College32, Jalan Anson,
10400 Pulau Pinang.
Tel: +604-226 6368 Ext:215
Fax:+604-228 0362
Email: sbooi@kdupg.edu.my
