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Certification
Assessment Handbook
Semester 2, 2007
CFP Certification Assessment Handbook
®
CFP , CERTIFIED FINANCIAL PLANNER™ and are certification marks owned outside
the U.S. by Financial Planning Standards Board Ltd. Financial Planning Association of
Australia Limited is the marks licensing authority for the CFP marks in Australia, through
agreement with FPSB.
This subject material is issued by the Financial Planning Association of Australia (FPA) on
the understanding that:
1. The FPA, its directors, author(s), or any other persons involved in the preparation of
this publication expressly disclaim all or any contractual, tortious, or other form of
liability to any person (purchaser of this publication or not) in respect of the publication
or any consequences arising from its use, including any omission made by any person in
reliance upon the whole or part of the contents of this publication.
2. The FPA expressly disclaims all and any liability to any person in respect of anything
and of the consequences of anything done or omitted to be done by any such person in
reliance, whether whole or partial, upon the whole or any part of the contents of this
subject material.
3. No person should act on the basis of the material contained in the publication without
considering or taking professional advice.
Since their creation over 30 years ago, the CFP marks have come to represent standards of
excellence and demonstrate to the public and your peers, your commitment to a career in
financial planning. The CFP marks are owned by the Financial Planning Standards Board
Ltd (FPSB), formerly the International CFP Council. The FPA was the first international
member of the International CFP Council, a body which has now grown to 18 members.
FPSB is responsible for overseeing the global CFP certification program, currently
represented by 18 affiliates, two associate member organisations and more than 72,000
individuals using the CFP marks worldwide. For more about FPSB, visit
<http://www.fpsb.org>.
FPA is licensed by the Financial Planning Standards Board Ltd (FPSB) to use the CFP
marks outside the United States of America. FPSB, a Delaware-based association, exists to
benefit the global community by establishing, upholding and promoting worldwide
professional standards in financial planning. Its commitment to excellence is represented by
the CFP and CERTIFIED FINANCIAL PLANNER marks.
The CFP Certification Assessment is an important part of the CFP certification process.
CFP certification differs from an educational qualification in that it is based on the
development of a financial planning profession and continues to evolve with the profession.
The CFP Certification Assessment is a measure against the CFP standard and as such
incorporates knowledge acquired through education programs with knowledge, skills and
understandings gained through practical experience.
We appreciate the commitment you have made and wish you every success with the
CFP Certification Assessment.
Jo-Anne Bloch
Chief Executive Officer
Contents
About CFP® Certification 1
Overview of CFP® Certification Assessment 2
Financial Plan 2
Oral Presentation 2
Multiple-choice Examination 3
Standard Required 4
Financial Plan 4
Oral Presentation 4
Examination 4
2006 Key Dates 5
Policies 10
Confirmation of enrolment 10
Study Groups 10
Learning Materials 10
Withdrawal 11
Deferral 11
Special Examination Arrangements 12
Special Arrangements for Oral Presentation assessment 12
Extensions to due dates 12
Unauthorised Extensions 12
Special Consideration 13
Assessment Irregularity 13
Results 14
Marginal Result Review Policy 14
Feedback to candidates 14
Re-mark of Assessment 15
Feedback to the CFP Certification Committee 15
Past Examination Papers 15
The Financial Plan 16
Essential structural elements of the plan 17
Key points to consider in developing the financial plan 18
Use of financial planning software 18
Inclusions not required 18
Compliance 19
Referral to external professionals 19
Other sources of information 19
Steps in developing the plan 20
Assessment Criteria 27
The Examination 33
Examination Arrangements 33
Remote candidates 33
Format 33
Standard Required 34
Rules Governing the Examinations 34
Required Items 34
Reading Time 34
Calculator Policy 35
During the Examination 35
Conclusion of Examination 35
Problems Encountered During the Examination 35
Consequences of Failure to Comply with Regulations 36
Suggestions 36
Forms
Statutory Declaration 37
Personal Information Update 38
Withdrawal Form 40
Change to Examination Location 41
Application for Special Consideration 42
CFP® Certification Assessment Handbook
®
About CFP Certification
The CFP certification process assures the public that those who have been authorised to use
the CFP certification marks by the FPA have met rigorous professional standards and have
agreed to adhere to the principles of integrity, objectivity, competence, fairness, diligence,
professionalism, confidentiality and compliance.
To become certified, you are required to meet the following four initial certification
requirements (known as the four ‘Es’):
• Education
• Examination
• Experience
• Ethics.
Candidates who are accepted for enrolment into the CFP Certification Assessment unit
have satisfied the education criteria for CFP status.
Following successful completion of the CFP Certification Assessment unit (the examination
requirement), candidates may submit an application for CFP status where the experience
and ethics pre-requisites will be evaluated.
Acceptance to enrol in the CFP Certification Assessment unit does not imply that your
application for CFP status will be approved.
Further information is published in the ‘Guide to CFP Certification’.
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CFP® Certification Assessment Handbook
®
Overview of CFP Certification Assessment
The CFP Certification Assessment comprises the following components:
1. Financial Plan Case Study
2. Oral presentation of Financial Plan Case Study
3. Examination.
Financial Plan
Candidates are required to prepare a comprehensive financial plan (including a Statement
of Advice) for a fictitious client(s) based on case study information that is provided. The
issues presented in the case study are complex and of a level that a CERTIFIED FINANCIAL
PLANNER practitioner is expected to advise on. The issues presented in the case study may
not be representative of the issues normally dealt with by candidates in their current role.
Candidates are advised not to rely exclusively on a Statement of Advice template used by
their Licensee. ASIC have stated that ‘the primary purpose of an SOA is as a disclosure
document’ (Source: Example SOA Guide August 2005) and the SOA may not satisfy the
requirements for a comprehensive financial plan.
Oral Presentation
An important part of the financial plan case study is an oral presentation of the financial
plan. Candidates are required to identify a suitable assessor, preferably their supervisor (a
CFP practitioner) and present the plan to the supervisor. The presentation is audio-visually
recorded and the supervisor completes an assessment document relating to the
communication skills of the candidate. The candidate submits the audio-visual recording
and the completed assessment document to the FPA for further assessment by an FPA
appointed assessor who is a CFP practitioner. The technical accuracy and/or suitability of
the strategies of the financial plan are not assessed during the presentation.
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CFP® Certification Assessment Handbook
Multiple-choice Examination
The multiple-choice examination comprises one six-hour multiple-choice examination
conducted over two, three-hour sessions and will cover the following broad technical
knowledge areas:
• insurance planning
• investment planning
• taxation planning
• retirement planning (superannuation, social security)
• estate planning
• licensing and regulatory requirements
• rules of professional and ethical behaviour, and relevant industry codes of conduct.
The examinations are designed to measure candidates’ critical thinking, analytical and
evaluative skills. Candidates must be able to apply their technical knowledge to a variety of
complex financial planning scenarios. (This knowledge is not equivalent to Tier 1 PS 146,
which is the minimum knowledge level stipulated by legislation.)
Candidates who do not deal with these technical areas as part of their current role are
strongly encouraged to adequately research and prepare for the examination.
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CFP® Certification Assessment Handbook
Standard Required
Candidates are required to pass all elements of the Certification Assessment Unit in
order to satisfy the examination requirement for CFP certification.
The pass standard is determined by the CFP Certification Committee comprised of CFP
practitioner members of the FPA.
After completion of all components, candidates will receive an overall result. Candidates
who have not been successful will be advised if they are required to take one, two or all
assessment components again in the following semester. Carryover of any component that
the candidate has successfully achieved is only available for the next offering of the
assessment.
If a second attempt at one or more assessment components is unsuccessful, candidates will
be required to re-apply to attempt all of the Certification Assessment components and/or to
complete further studies before attempting Certification Assessment again.
Financial Plan
Candidates will be assessed as either meeting the standard or not meeting the standard.
Candidates should strive for a score of 75% in order to meet the required standard.
Assessors will use a marking guide reflecting the relative importance of areas that need to
be addressed in the financial plan. More information regarding the assessment of the
financial plan is provided on pages 16–27. Candidates who do not meet the standard will
be provided with feedback on the areas that were not to the standard required.
Assignments will not be returned to candidates.
Oral Presentation
Candidates will be assessed as either meeting the standard required of the oral presentation
or not meeting the standard. The criteria that need to be addressed in the oral presentation
are provided on pages 29–33.
Examination
The examination pass standard is set by the CFP Certification Committee. As Certification
Assessment is the highest level of assessment to achieve CFP status, the examination pass
standard must comply with standards set by the CFP Board of Standards and the Financial
Planning Standards Board Ltd. It is based on the level of skills and applied knowledge
expected of a CFP practitioner. Candidates should expect a standard of around 70% in
order to pass the examination component.
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CFP® Certification Assessment Handbook
Note: The financial plan and the oral presentation documents and audio-visual recording
must be received by the due date. You should allow sufficient time for postage to
meet these deadlines. However, we will make some accommodation for late
submissions, provided they are postmarked on the due date. If mailing on the due
date, please retain proof of mailing.
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• Structures in the context of client strategy • The effects of debt on estate planning
• Companies
• Trusts
• Superannuation structures
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• Gifting
• Living arrangements
• Taxation issues
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Portfolio construction
• Applied investment decision-making
(decisions based on critical analysis using
an appropriate mix of solutions)
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CFP® Certification Assessment Handbook
Policies
Confirmation of enrolment
Following the receipt and approval of the CFP Certification Assessment application, you
will be sent log-in and password details by email to enable you to log into a secure
website. All information regarding policies and all assessment components will be posted
on the website at <http://www.finsia.edu.au/fpa>.
The details of the financial plan case study for Semester 2 will be available on the secure
Student website at <http://www.finsia.edu.au/fpa> on Monday 27 August 2007.
Study Groups
The FPA provides you with an opportunity to be in contact with other candidates for the
purposes of exchanging ideas and study techniques.
By ticking the Study Group checkbox on the application and enrolment form, you are
authorising the FPA to release your contact details to other Study Group participants.
You will receive a list of candidates in your area who are enrolled in the CFP
Certification Assessment. It is then up to you to make further contact for the purposes of
establishing a study group.
You will be mailed information in spreadsheet format, within two weeks of the
commencement of the assessment period.
The Study Group list is only made available for the purposes of assessment study. You
cannot use the list for any other purpose. Any unauthorised use of the list may
contravene privacy laws and may be investigated by the FPA and the Privacy
Commissioner.
Note: The forming of groups to share ideas and define the requirements of an
assignment is an accepted and encouraged practice. However, it is neither
acceptable nor ethical for members of the group to submit answers/parts of
assignments which are substantially similar or identical to the work of others. All
work submitted for assessment must represent an individual’s own interpretation
of any discussions or projects undertaken in a group. Please refer to the
Assessment Irregularity policy on page 13.
Learning Materials
The CFP Certification Assessment unit is the final evaluation of a candidate’s readiness
and ability to meet CFP certification standards. As the unit is not part of an education
process but an assessment, learning materials are not supplied. Please refer to pages 6–9
for suggested learning resources.
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CFP® Certification Assessment Handbook
Withdrawal
Candidates can elect to withdraw from the CFP Certification Assessment and receive a
refund less administrative fees (see ‘Application and Enrolment’ form) before the last
date for withdrawal.
The last date for withdrawal for Semester 2, 2007 is Friday 14 September 2007.
Candidates who withdraw after the last date for withdrawal, will be required to re-apply
and enrol at the next available offering of the CFP Certification Assessment. No refund
applies.
No withdrawal will be accepted after the case study due date. The result will be recorded
as N (CFP standard not satisfied).
Deferral
All assessment components that comprise CFP Certification Assessment must be
attempted during one assessment period. That is, components of assessment (for
example, the examination) cannot be deferred to the following assessment period.
Given this requirement, please note the following:
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CFP® Certification Assessment Handbook
Unauthorised Extensions
The assignment will be accepted up to two weeks after the due date and will be marked.
However, please note that the Marginal Result Review Policy will not apply and
candidates forfeit the right to an Assignment Re-mark.
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CFP® Certification Assessment Handbook
Special Consideration
A candidate whose performance in an examination or other assessment has been affected
by illness or other serious cause may submit an ‘Application for Special Consideration’
form to the Certification Standards Manager for special consideration. A medical
condition or other Unusual Circumstance of fewer than four (4) consecutive days
duration immediately prior to, or inclusive of, the assessment due date will normally not
be considered sufficient grounds for special consideration.
Applications should be lodged either immediately following the occurrence, or not later
than midday on the third working day after the date of the examination or assessment
deadline. An application for special consideration must be supported by appropriate
evidence, such as a medical certificate.
Such evidence may be submitted separately from the application itself, as long as it is
received not later than five working days from the occurrence, or following the day of
the examination, or assessment deadline.
Assessment Irregularity
Irregularity is the unauthorised use or attempted use by or for any Candidate of any
means to gain an unfair advantage in an Assessment Component. It includes any action
taken by a Candidate which would constitute an unfair advantage or intentionally
fraudulent act to demonstrate competency in any Assessment Component. An
Irregularity includes Misconduct, Plagiarism and Collusion.
When an apparent Irregularity is suspected in an assignment, test, essay, performance,
exhibition or other piece of work for assessment, the member of staff who detects the
apparent Irregularity will inform the CFP Certification Standards Manager.
The CFP Certification Standards Manager will assess whether or not there is prima facie
evidence to suggest that there has been an Irregularity. If the CFP Certification Standards
Manager decides that there is insufficient evidence to suggest that an Irregularity has
occurred they will conclude the matter. At this stage no penalty will be applied to the
Candidate and no notation will be made on the Candidate’s record.
If the CFP Certification Standards Manager believes that there may have been an
Irregularity, the matter will be referred to the Investigations Manager for investigation.
The piece of assessed work in which the Irregularity is suspected will be retained by the
FPA and the result withheld until the investigation is complete.
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CFP® Certification Assessment Handbook
Results
Progressive results for the components of the CFP Certification Assessment are not
available. The final result for Semester 2 will be advised to candidates in December.
The result of the Certification Assessment is ‘CFP Certification Standard satisfied’ or
‘CFP Certification Standard not satisfied.’ The primary goal of the Certification
Assessment is to separate those who have met the certification standard (satisfied) from
those who have not (not satisfied.)
The following result categories are used to record the performance in the Assessment:
NA No Attempt
RI Result Incomplete
RW Result Withheld
Scores, percentages or grades are not provided for the Certification Assessment.
Feedback to candidates
If the result is that the CFP Certification Standard is not satisfied, the candidate will be
advised of the result (CFP Certification Standard satisfied/ CFP Certification Standard
not satisfied) for each assessment component. Carryover of any successful result is only
available for the next offering of the assessment.
If a second attempt at one or more assessment components is unsuccessful, the candidate
is required to re-apply to attempt all of the Certification Assessment components and/or
to complete further studies.
Candidates who fail to reach the required standard for the exam will receive feedback on
the topics on which the candidate’s exam performance was below the required standard.
Score, percentages or grades are not provided on the exam.
Candidates who fail to reach the required standard for the financial plan case study will
receive feedback on the areas of the plan that require improvement. The financial plan is
not returned to candidates.
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CFP® Certification Assessment Handbook
Re-mark of Assessment
If a Candidate is dissatisfied with an aspect of the outcome of an Assessment
Component, a re-mark of a Candidate’s assessed work may take place.
A re-mark of the assignment involves an independent reassessment of the assignment by
another assessor appointed by the FPA, whilst a re-mark of an examination involves a
manual check of the Candidate’s answer sheet against the examination solution.
A re-mark of the oral presentation will include a repeat of the oral presentation.
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CFP® Certification Assessment Handbook
Any appendices included as additions to the body of the plan must be relevant to the
client’s circumstances and must be cross-referenced from the relevant section of the plan.
Please note: The body of the plan is limited to 55 pages (based on single line spacing,
standard Times New Roman, Arial or Palatino 12-point font size, standard margins, and
appropriate use of tables, graphs and/or figures). The body of the plan does not include
the cover sheet, covering letter, A4 page for clarification of the client interview or
contents page(s). Nor does it include the appendices. All other material, including the
executive summary, is counted in the 55-page limit. A maximum of 20 per cent of the
plan should be allocated to investment strategies.
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CFP® Certification Assessment Handbook
Note also that the plan should not contain unnecessary generic material provided by an
Australian Financial Services Licence holder. It must be specific to the client.
Please refer to the Style Guide published on the secure Student website at
<http://www.finsia.edu.au/fpa> and to
Presentation Style on page 26 for more detail.
The executive summary should be in précis form and be able to stand alone as a
document of information to the client.
3. All pages of the plan must be numbered consecutively, including appendices.
4. After the contents page and executive summary, the structure of the plan is a matter
of professional judgment. Whatever way the information is presented, it must be
logical and facilitate client understanding of the plan. Irrespective, all 15 essential
elements must be included within the body of the plan as this is the criteria against
which the plan will be marked. Refer to page 27 for an indication of mark allocation.
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CFP® Certification Assessment Handbook
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Compliance
The plan must demonstrate a clear understanding of the following:
• all ASIC compliance requirements (ie. Corporations Act and Financial Services
Reform Act); and
• all FPA ethical and compliance requirements.
Assumptions about the Licensee will be supplied with the Case Study facts.
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Step 9: Investments
How will you demonstrate that you appreciate their investment status and on what basis
will you make recommendations? Aspects to include:
(a) analysis of current investments to meet nominated goals and issues;
(b) description and analysis of recommended investments to meet nominated goals and
issues; and
(c) consideration of asset allocation with respect to client’s risk profile.
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CFP® Certification Assessment Handbook
Disclosure of capacity
We recommend that you meet your obligation of disclosure of capacity (ie. adviser’s
identification, licensee identification, and relationship between adviser and licensee)
through the cover sheet and accompanying letter (with appropriate letterhead).
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CFP® Certification Assessment Handbook
Disclosure of interests
To meet the disclosure of interests requirement, we recommend that the plan contain a
separate ‘Disclosures’ section, identified as such in the ‘Table of Contents’ page.
It is not only important to disclose all fees, commissions, and so on; they should also be
clearly presented to the client in such a way that they can readily determine the total
costs of the recommendations.
Note that all commissions, even if fully rebated, must be disclosed.
Disclaimer
You are required to clearly communicate to the client any limitations to the advice given.
You are advised to do this in your plan through a formal ‘Disclaimer’ section.
Appendices
Some data is more conveniently placed in an appendix rather than included in the main
text. However, remember to be selective of the data included and indicate in the main
text why an appendix is included and what it shows. If data is to be placed in an
appendix, this must be clearly referenced in the body of the plan.
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CFP® Certification Assessment Handbook
Due date
It is essential that the financial plan and oral presentation document and video-tape are
received by the date stipulated. Candidates must allow sufficient time for postage to meet
the deadlines, although some accommodation will be made for the vagaries of the postal
system.
Provided submissions are postmarked on the due date, they will be accepted
as being on time, even if they arrive later due to the postal system.
Candidates who mail their submission on the due date are advised
to retain proof of mailing.
Faxed or emailed submissions will not be accepted.
Submissions will be accepted up to two weeks after the due date and will be marked.
However, please note that the Marginal Result Review Policy will not apply and
candidates forfeit the right to an Assignment Re-mark if the submission is an
Unauthorised Extension. Please refer to page 12.
Submissions received more than two weeks after the due date without extension approval
will not be assessed. Candidates will receive a result of CFP standard not satisfied.
Before submitting the financial plan, make sure that all key areas have been addressed
and that all pages and necessary documentation are included in the submission. This
includes the statutory declaration provided at the end of this handbook, and the
assignment attachment sheet that will be mailed separately.
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CFP® Certification Assessment Handbook
Presentation style
When presenting the financial plan:
• the plan must be typed on A4 paper;
• use only minimum 12 point font, preferably Times New Roman, Arial or Palatino;
• use uniform margins of 3.0 cm at the top, bottom, and left, of every page. 2.0 cm is
sufficient for the right hand margin;
• number all pages sequentially;
• Do NOT submit assignments in folders. Simply staple together the pages of the
assignment along with the appropriate attachments using a single staple in the top left
hand corner of the page.
• where required, include any calculations;
• any published material you refer to should be properly referenced; and
• attach the assignment attachment sheet and statutory declaration to the front of the
plan prior to posting.
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CFP® Certification Assessment Handbook
Assessment Criteria
General criteria
Assessors will look for the following:
• attention to all key areas (15 steps in preparing a plan to CFP certification standard);
• relevance and attention to the specific client situation;
• depth of analysis of client-specific situation;
• appropriateness of financial ‘solutions’;
• demonstrated understanding of financial planning principles and concepts;
• quality of presentation of the plan — logical structure, language suited to the client,
use of tables, diagrams and so on to aid client understanding;
• accurate use of terminology;
• accuracy of calculations; and
• compliance with all ASIC and FPA Code requirements.
Specific criteria
The following are the areas that will be considered when assessors are marking the plan.
Please note: No more than 20 per cent of your plan should be related to investment
strategies.
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Candidates are required to provide contact details of the assessor on the enrolment form.
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CFP® Certification Assessment Handbook
The Assessment document to be completed by the Assessor will be available on the secure
Student website at <http://www.finsia.edu.au/fpa>
on Wednesday 10 October 2007
Assessment location
Where possible, an undisturbed assessment site should be used for the presentation.
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Instructions:
1. Where possible, an undisturbed assessment site should be provided for the
presentation.
2. The assessor will take the role of the client at appropriate points during the
presentation and will ask appropriate questions. The assessors therefore have a dual
role: to assess the candidate for certification purposes and to assess the presentation as
it would be viewed by a client.
3. The assessor is responsible for keeping all information relating to this oral
presentation confidential. This includes the presented plan, responses on the
assessment document, overall results and any comments.
4. The assessment should take between 45 and 60 minutes, and one of the criteria is
keeping within that limit. Within this time period, the candidate is expected to
demonstrate the following presentation sequence:
• Greeting ‘client’, introduction of self
• Formal requirements
Note: For the purposes of the oral presentation only, candidates may use their
current AFSL Financial Services Guide. It is not essential to use the AFSL
details stipulated for the assignment
• Summary and presentation/discussion of the strategy presented in the financial
plan
• Provision for questions
• Conclusion of meeting with appropriate elements.
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Assessment Criteria
1. Personal presentation. Is the candidate’s personal presentation appropriate to the
client/environment? For example, in rural locations, a smart casual appearance
may be more appropriate in setting the client at ease.
2. Greeting. Did the candidate greet and welcome the client in a professional manner
that helps the client feel at ease?
3. Effective non-verbal and verbal communication skills. Did the candidate show
genuine interest in the client? Good communicators use active-listening skills and
non-verbal as well as verbal techniques. Active listening and non-verbal methods
include nodding, leaning forward, using ‘open’ gestures, repeating phrases back to
the client. Verbal communication skills include well-modulated voice, clear
articulation, speech that is neither too fast nor slow.
4. Explain the key points of the strategy. Did the candidate provide a macro
explanation of the strategy? The aim of the presentation is to explain the overall
strategy in clear concise language, not to provide a detailed justification for the
strategy. Did the candidate use industry terminology or jargon? If used, did the
candidate explain industry terms so that the client can understand?
5. Explain the rationale for the strategy. Does the rationale as explained by the
candidate inspire confidence that the candidate has sound technical knowledge?
Does the rationale indicate that the candidate understands the needs of the client?
Did the candidate confirm with the client that the needs, objectives and concerns
upon which the rationale was based were unchanged?
6. Monitor client understanding of the strategy. Did the candidate pause at intervals
to check the client understands? Did the candidate re-phrase
information/explanations if the client seemed confused? Did the candidate make an
effort to engage the client? That is, did they involve the client in discussion using
methods such summarising, monitoring responses and paying attention to client
reactions?
7. Explain investment risks. The candidate should clearly explain the potential risks
of the recommended strategy.
8. Use visual aids. If appropriate, did the candidate use visual aids to help the client
understand? The aids could be a chart or table from the plan, or a diagram drafted
on a piece of paper during the presentation.
9&10. Keep the meeting moving and effectively manage the time. Did the candidate
show an awareness of the time constraint by progressing through the meeting? The
candidate is required to present the information within the allocated time. The
candidate should use time well to present the information (without rushing) but
also make adjustments to the pace of the presentation to meet client’s needs and
preferences.
11. Knowledge of specific technical area. The explanation of the technical area should
clearly demonstrate the candidate has a sound knowledge of that area.
12. Explanation of technical area. If the candidate used industry terminology/jargon,
was an explanation given that the client would understand? Was the candidate
able to vary the explanation to enhance the client’s understanding?
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13. Financial Services Guide. The candidate is required to provide an FSG. The
candidate must also explain who they work for, their experience and
qualifications, the range of products and services, how they charge for services,
relationships/association with investment companies and complaints procedures
available.
14&15. Fees, charges and commissions. Did the candidate explain the fees and charges
in dollar terms so that the client understands the impact of the fees and charges on
the investments?
16. Product Disclosure Statement. The candidate is required to give the client a
product disclosure statement where a recommendation has been given to acquire a
financial product or an offer is made for a financial product.
17. Answer questions appropriately. Did the candidate respond well to questions asked
by the client, demonstrate patience and clearly answer questions fully and
completely?
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The Examination
The examination will be conducted over two, three hour sittings scheduled in the
morning and afternoon on the same day. Candidates must pass the examination as well
as the other assessment components in order to pass the CFP Certification Assessment.
Examination Arrangements
Both parts of the examination will be held on the same day at examination centres
nominated by candidates at enrolment. Alternative arrangements may be made in cases
of debilitating medical conditions (excluding colds and minor ailments).
Please note: Alternative dates and times will not be arranged if you have simply misread
the information supplied.
Candidates who require alternative examination arrangements must advise FPA Logistics
(email: fpalogistics@finsia.edu.au) as a matter of urgency when a problem arises. This
must be prior to the examination date. All requests must include relevant supporting
information.
Information regarding the venue, date and time of the examination is published in the
Subject Room of the website <http://www.finsia.edu.au/fpa>.
Remote candidates
Candidates who have nominated their examination location as REMOTE will be
contacted directly by the FPA to confirm the address for the examination given on the
enrolment form. Candidates should note that costs associated with the examination
venue hire must be paid directly by the candidate. Details for the FPA-appointed
independent supervisor will be advised to the candidate one week before the examination
date.
Format
The examination consists of multiple-choice questions. The reason for this format is to
ensure consistency and reliability, and to allow comparison of results. Each question will
be worth one mark. Marks are awarded for each correct answer.
The examination is designed to measure candidates’ critical thinking, analytical and
evaluative skills. Candidates must be able to apply technical knowledge to a variety of
complex financial planning scenarios.
Exam Part A
Part A will test applied knowledge using a mix of stand-alone questions, and small case
studies which lead to between 2 and 5 questions on a particular content area
(eg. superannuation, estate planning). There are ninety (90) questions.
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Exam Part B
Part B will consist of larger case studies, each with between 15 and 20 questions
requiring the ability to apply integrated understandings across a variety of content areas.
There are sixty (60) questions.
Standard Required
The examination pass standard complies with standards set by the CFP Board of
Standards and the Financial Planning Standards Board . It is based on the level of skills
and applied knowledge expected of a CFP practitioner. Candidates should expect a
standard of around 70% in order to pass the examination.
Candidates must complete and sign the security declaration on the cover of the
examination question booklets, which states that you will not transcribe or copy
examination questions or answers in any format for removal from the examination room.
Candidates must comply with all directions given by the examination supervisors.
Required Items
Candidates are required to bring the following items to the examination:
• photographic identification (eg. driver’s licence, passport or a statutory declaration
confirming your identity) — failure to provide photographic identification or a
statutory declaration may result in results being withheld;
• legible pens or pencils (2B) and an eraser for use on multiple-choice answer sheets;
and
• a hand-held, non text-retrievable, non-programmable calculator (refer ‘calculator
policy’ below)
Reading Time
Writing, marking and the use of calculators is not permitted during reading time. During
reading time candidates may not:
• mark the examination paper in any way;
• complete personal details on examination stationery; or
• use calculators.
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CFP® Certification Assessment Handbook
Calculator Policy
Candidates are permitted to use a hand-held, non-text retrievable, non-programmable
calculator during the examination.
The following models of business calculator are suitable:
• Texas Instruments BA11 Plus
• Hewlett-Packard 12C
• Sharp EL-733, EL-733A, EL-735
• Hewlett Packard 10B, 10BII.
Prior to entering the examination room, all programmable calculator memory must be
cleared. All calculators are checked prior to the commencement of the examination.
Supervisors are instructed to confiscate unauthorised calculators.
Conclusion of Examination
Candidates must leave in accordance with instructions given by the examination
supervisor after all examination materials have been collected and checked.
Candidates must return to the supervisor the examination question booklet and any
corresponding examination stationery (multiple-choice answer sheet, answer booklet/s
and any additional paper distributed to the candidates).
Note: Failure to return the examination question paper and additional paper may result
in the result being withheld.
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CFP® Certification Assessment Handbook
Suggestions
Do:
• be early
• bring spare pens, pencils, an eraser, a sharpener and a watch
• bring a calculator in accordance with the calculator policy
• read the instructions carefully and ensure that you mark the answer sheet as
instructed
• read the questions carefully
• answer every question (even if unsure of the answer)
• keep track of time
• answer the questions in order. However, leave any you have difficulty with to come
back to later
• check you have an answer for every question on the answer sheet.
Don’t:
• be late
• forget your calculator, pens, pencils, eraser, sharpener and watch
• give more than one answer to each question
• lose track of time; be aware of the time throughout the examination
• spend too much time on one question; do the easy ones first and only dwell on the
difficult ones in the time left over
• leave early without thoroughly checking that you have answered every question
according to instructions.
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CFP® Certification Assessment Handbook
Statutory Declaration
Dated / /2007
I, .................................................................................................................................
of ................................................................................................................................
...................................................................................................................................
sincerely declare the attached financial plan submitted for assessment is my own
work except where specifically acknowledged and referenced.
And I make this solemn declaration conscientiously believing the same to be true and
by virtue of the provisions of an Act of Parliament rendering persons making a false
declaration punishable for wilful and corrupt perjury.
Signature.....................................................................................................................
Declared at .................................................................................................................
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CFP® Certification Assessment Handbook
Suburb
State
Postcode
Country
Other Address:
Suburb
State
Postcode
Country
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CFP® Certification Assessment Handbook
Members Business Phone, Fax and Email may be published on the FPA website.
If you hold a Proper Authority or are an Authorised Representative please complete and
attach a copy of your Proper Authority or certified evidence of your status as an
Authorised Representative.
Principal/Dealer
Mail to:
Certification Standards Manager
Financial Planning Association
PO Box 109, Collins Street West, Melbourne VIC 8007
The FPA deals with personal information in accordance with the Statement of Privacy
Policy and Member Privacy Statements available on the FPA website —
<www.fpa.asn.au>
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CFP® Certification Assessment Handbook
Personal Details:
(Dr/Mr/Mrs/Ms/Miss)
Applicants Declaration:
I wish to withdraw from the CFP Certification Assessment
(Please appropriate box)
Repeat – (Re-enrolment)
I understand that as I have submitted my application by Friday 14 September 2007, I will
receive a refund of the fee paid less $260 (member) and $390 (non-member).No refund is
payable for applicants repeating the oral presentation only.
Late Withdrawals
I understand that as I have submitted my application after the prescribed closing date of
Friday 14 September 2007, no refund is payable.
I understand that by withdrawing I will not be eligible to carry over any completed assessment
results and I will not be eligible for repeat fees when I next enrol in this assessment. I also
understand that if this application is submitted after an assessment due date, the result will be
recorded as N.
Mail to:
CFP Certification Assessment, FPA,
PO Box 109 Collins Street West, Melbourne VIC 8007
Fax: (03) 9627 5280
®
CFP , CERTIFIED FINANCIAL PLANNER™ and are certification marks owned outside the U.S. by Financial Planning
Standards Board Ltd. Financial Planning Association of Australia Limited is the marks licensing authority for the CFP marks in
Australia, through agreement with FPSB.
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CFP® Certification Assessment Handbook
ID number: ________________________
Personal Details:
(Dr/Mr/Mrs/Ms/Miss)
Given Names: __________________________________________________________________
Surname: ______________________________________________________________________
Mailing address: ________________________________________________________________
_______________________________________________________ Postcode: ______________
Contact telephone BH: ___________________________ AH: ___________________________
Mobile: ________________________________________ Fax: ___________________________
Email: _________________________________________________________________________
Examination Location:
(Refer to list on the Application and Enrolment Form).
Mail to:
Certification Standards Manager
Financial Planning Association
PO Box 109, Collins Street West, Melbourne VIC 8007
Fax to: (03) 9627 5280
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CFP® Certification Assessment Handbook
I, ____________________________________ ______________________________________
Given Name Surname
of ____________________________________________________________________________
Street
_______________________________ _________________ _________________________
Suburb / Town Postcode Telephone
wish to apply for special consideration in respect of the following assessment:
(Please tick )
Assessment component Exam/submission/assessment date
Assignment Tuesday 9 October 2007
Oral Presentation Wednesday 31 October 2007
Certification Examination Thursday 1 November 2007
on the following grounds:
(Please tick )
Medical
Compassionate
Hardship/Trauma
The following documentation is attached to support this application:
(Please tick )
Medical Certificate
Statutory Declaration
Statement signed by an appropriate professional
Important Notice:
1. Please Fax this form to: – (03) 9627 5280 WITHIN 72 HOURS of the
exam/submission/assessment date.
2. Mail the original form and supporting documentation WITHIN 5 WORKING DAYS to:
Mail to:
CFP Certification Assessment, Special Consideration Application
Financial Planning Association
PO Box 109, Collins Street West, Melbourne VIC 8007
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