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CFP®

Certification
Assessment Handbook

Semester 2, 2007
CFP Certification Assessment Handbook

Published by Finsia Education

First published 2003; revised 2004, 2005, 2006, 2007

© Financial Planning Association of Australia Limited 2007.

®
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.

Correct as at 12 January 2007


FPA Mission and Role
FPA and its members strive to improve the financial wellbeing of all Australians and to
support and enhance the professionalism of financial planners.
On behalf of its members, the financial planning profession and the Australian people, FPA
focuses its work on:
• Professional education and continuing professional development
• Support for members in maintaining and enhancing ethical and professional standards
• Representing members’ views to government, regulators, the media, and other
stakeholders to ensure effective input into policy and legislative decision-making
• Raising the awareness of Australians about the need for and value of professional
financial planning advice.
®
Welcome to the CFP Certification Assessment
More people than ever are entering the financial planning profession and we recognise the
commitment you are about to make, both in terms of becoming a CERTIFIED
FINANCIAL PLANNER™ professional and in maintaining your certification during your
financial planning career. The CERTIFIED FINANCIAL PLANNER and CFP marks will
provide you with the means to set yourself apart from others calling themselves financial
planners.

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

Useful Technical Resources 6


CFP Education Materials 6

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 Oral Presentation 28


Due date for assessment documentation: 28
Arranging the oral presentation 28
Responsibilities of the assessor 29
Assessment location 29
Audio-visual recording of the presentation 29
Guidelines for the audio-visual recording 29
Oral presentation of Financial Plan 30
Assessment Criteria 31

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.

Candidates are required to pass all components.

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

2007 Key Dates


SEMESTER 2

Application Closing Date Friday 17 August

Case study facts for assignment available on website Monday 27 August

Last Date for Withdrawal Friday 14 September

Last Date to apply for extension 12 noon EST


on submission of assignment Friday 28 September

Financial Plan Assignment Due Tuesday 9 October

First Date for Oral Presentation Wednesday 10 October

Last Date for Oral Presentation Wednesday 31 October

Examination Thursday 1 November

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.

Faxed or emailed submissions will not be accepted.

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CFP® Certification Assessment Handbook

Useful Technical Resources


The following publications from CCH Australia may prove useful. Make sure that the most
recent edition is obtained:
• Australian Master Tax Guide
• Australian Master Financial Planning Guide
• Australian Master Superannuation Guide

These references may also be helpful:


• Taxpayers Australia, Tax Summary 2006/2007
• FPA Code of Ethics and Rules of Professional Conduct (available on the FPA website)
• A Guide to Australian Government Payments (updated quarterly, available on
Centrelink website).

CFP Education Materials


The course materials for units CFP2–CFP4 of the CFP Certification program may be useful
in preparation for the Certification Assessment and can be ordered from the FPA. An order
form can be downloaded from the FPA website at
<http://www.fpa.asn.au/files/PubMailOrder.pdf>.

The topic areas for CFP2–4 are on the following pages.

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CFP® Certification Assessment Handbook

CFP2 Applied strategies 1


Introduction to strategy development Debt management strategies
• The art of strategy • Components of debt

• The strategy development process • Entering debt arrangements

• Developing client centred strategies • The cost of borrowing

• Generating, selecting and presenting strategies • Types of lenders

• Conducting a review of strategies • Consumer debt

• Building wealth with debt


Applied structures • Reducing the risk of debt

• Structures in the context of client strategy • The effects of debt on estate planning

• Taxation of structures • Debt management checklist

• The interrelationship of structures

• Individual ownership/sole trader Risk management strategies


• Partnerships • Personal and business risk
• Joint ventures • Insurance policy ownership decisions

• Companies

• Trusts
• Superannuation structures

• Strategies using structures

Salary packaging strategies


• Common misconceptions

• Salary sacrifice arrangements

• Salary sacrifice into superannuation

• Salary packaging a motor vehicle

• Other items that can be salary packaged

• Employee share plans

• When packaging may not be effective

• Packaging to reduce income below thresholds


• The employer’s viewpoint

• The salary packaging contract

• Fringe benefits tax


• Reporting fringe benefits

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CFP® Certification Assessment Handbook

CFP3 Applied strategies 2


Leaving the workforce: Issues and strategies Strategies for expatriates
• Shifting demographics • The costs of relocating

• Life issues for retirees • Is your client a resident of Australia?

• Retrenchment and redundancy • Double tax agreements


• Illness or accident • Ten key tax-planning concepts for
non-residents

Superannuation strategies • Why expatriate clients should invest


back into Australia
• Self-managed versus small APRA funds
• Contribution strategies • Superannuation: onshore versus
offshore
• Surcharge strategies
• Eligible termination payments • Tax consequences of returning to
Australia
• Investments in superannuation funds
• Reasonable benefit limits • Australian tax implications of
retaining offshore investments
• Income streams: pensions and annuities

• Splitting superannuation on divorce

Pension and benefit strategies


• Income and support payments

• Income and assets testing

• Gifting

• Pensions and benefits strategy integration

• Living arrangements

• Using home equity to supplement retirement


funding

Estate planning strategies


• The role of the financial planner in estate
planning

• Jointly made agreements

• Challenges to deceased estates

• Business succession planning

• Taxation issues

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CFP® Certification Assessment Handbook

CFP4 Investment strategies


Asset allocation
• Methods of determining appropriate asset
allocation for a client

• Appropriate and alternative portfolio


construction

Investment types and alternatives


• Current issues relating to investment

• New product platforms, strategies and


methodologies

• Appropriate investment selection

Portfolio construction
• Applied investment decision-making
(decisions based on critical analysis using
an appropriate mix of solutions)

Managing investment risk


• Client attitudes to risk

• Strategies for managing minimising and/or


transferring investment risk in order to
achieve optimum outcomes for clients

Applied decision-making case study

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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:

Failure to attempt an assessment component


Generally speaking, if a candidate does not complete a component of the Certification
Assessment, the certification assessment fee and the opportunity to carry forward
successful assessment results to the next assessment period is forfeited.
Certain allowances are made for medical or other emergencies.

Medical or other emergencies


The CFP Certification Committee will consider waiving forfeiture of fee or result carry
over in case of medical emergency or other misadventure. The request for such waiver
must be made in writing and supported by a medical certificate. The request must be
received within three weeks after the date of the exam or assessment deadline. Requests
will be reviewed on a case-by-case basis.
The following circumstances will not be considered:
• Holidays
• Seminars
• Heavy workload
• Business trip
• Personal matters
• Non-attendance due to misreading the information supplied.

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Special Examination Arrangements


A candidate who is absent for the whole or a part of an examination due to ill-health or
other misadventure and who is subsequently approved by the CFP Certification
Committee, may negotiate a special examination date during the current assessment
period. Conditions apply and such arrangements are not automatically available. Any
costs associated with a special examination are borne by the candidate.

Special Arrangements for Oral Presentation assessment


A candidate who is unable to complete the oral presentation due to ill-health or other
misadventure and who is subsequently approved by the CFP Certification Committee,
may negotiate a special assessment date during the current assessment period. Conditions
apply and such arrangements are not automatically available. Any costs associated with a
special assessment are borne by the candidate.

Extensions to due dates


Extensions to due dates will not generally be granted. However, in exceptional
circumstances an extension may be granted provided it has been applied for and agreed
to by the FPA prior to the due date. Refer to 2007 Key Dates on page 5.

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.

No application will be considered after the publication of results.

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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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:

Code Result Descriptor

P CFP Certification Standard Satisfied

N CFP Certification Standard Not Satisfied

NA No Attempt

RI Result Incomplete

RW Result Withheld

Scores, percentages or grades are not provided for the Certification Assessment.

Marginal Result Review Policy


The CFP Certification Standards Manager shall ensure that a review has been carried out
on the marks and examination results of all Candidates who are identified as having
failed an Assessment Component, or whose results are on the borderline between a pass
and a fail result.

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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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.

Re-mark of Assignment and/or Examination at candidate’s request


A candidate may apply for a re-mark of the assignment and/or examination answer sheet
upon payment of an appropriate fee. The fee covers the cost of the re-mark and FPA’s
administrative costs.
A Request for Re-mark must be submitted within ten (10) working days from first
receiving the assessment result by mail. The request must be submitted on the ‘Request
for Re-mark form’.
Please refer to the guidelines and ‘Request for Re-mark form’ published in the Subject
Room at <http://www.finsia.edu.au/fpa> for more detailed information.

Feedback to the CFP Certification Committee


The CFP Certification Committee will review comments relating to the assessment
components but will not make written responses to comments.

Past Examination Papers


All examination booklets, answer sheets, assessment documents, comments, assignments
and assessment material or calculation of assessment marks are the property of the FPA.
Exam material is not available for review.

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The Financial Plan


Due date: Semester 2, 2007
(refer to page 25 for more information) Tuesday 9 October 2007

Last date for extension requests: 12 noon EST


Friday 28 September 2007

Page length: Maximum 55 pages (excluding appendices)


(refer to page 16 for more information)

Standard Required: Candidates should strive for a score of


(refer to page 4 for more information) 75% in order to meet the required
standard.

THE CASE STUDY FACTS WILL BE AVAILABLE ON THE SECURE


WEBSITE ON MONDAY 27 AUGUST 2007

As a part of the CFP Certification Assessment, successful completion of this assignment is


essential. Candidates are expected to devote sufficient time to the preparation of the
financial plan to cover each of the 15 essential steps or elements to be included in the
body of a plan. The 15 steps are those required to develop a plan to CFP certification
standard.
The submission should clearly demonstrate the candidate’s capacity to develop a sound
financial plan, supported by technical and professional knowledge and skills. In essence,
the requirement of this assignment is to produce a technically sound plan that
communicates in a logical and succinct manner to the client and conforms to regulations
and legislation.

The assignment requires the preparation of a comprehensive financial plan,


NOT a commercial Statement of Advice.

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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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.

Essential structural elements of the plan


1. A table of contents page must be included in your financial plan, indicating page
numbers and showing a clear hierarchy of headings. Appendix items should also be
clearly identified and page numbers for these provided in the table of contents.
2. Your financial plan must contain an executive summary (no more than two typed
pages when formatted). This should be addressed under the four subheadings of:
• ‘Statement of present position’;
• ‘Objectives’;
• ‘Strategies and recommendations’; and
• ‘Projections’.

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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Key points to consider in developing the financial plan


The financial fact finder is the basis for your recommendations. You are required to
prepare a comprehensive financial plan (not a commercial Statement of Advice) that
succinctly addresses the client’s needs, concerns and financial objectives.
Explanations must be clear and concise, in terms the client would understand. You must
demonstrate your understanding of any related technical issues by referring to them as
necessary at appropriate points in the plan.
Your explanations must be clearly framed in the context of the client’s situation. The
inclusion of technical material of a generic or general nature — that is, not clearly linked
to the client’s specific needs, concerns and financial objectives — will not be considered
favourably.
Appendices and attachments can be useful supports to your plan. You should use them
sparingly so that they enhance the clarity of the proposed plan. They therefore must be
clearly relevant and cross referenced to the body of the plan. Appendices of a general
nature that are not relevant to the plan content or client’s situation will not be considered
favourably.

Use of financial planning software


Financial planning software may be used to provide projections to support your
calculations. The software should be appropriately referred to in your reference list or as
a footnote to the page on which it appears. Certainly, scenarios may be created by the
software for you to discern what may be the best approach for your client. However,
should only this material be used to generate your financial plan, or if indeed software
has determined your strategy without any need for your input as a planner, this will be
deemed unacceptable. You should ensure that the plan you submit demonstrates your
understanding of the rationale required to make a recommendation that is appropriate to
the client’s situation, goals and concerns raised.

Inclusions not required


Do not attach any of the following to your plan — research profiles, investment
memoranda, insurance quotations, product brochures, prospectuses or any product
advertising material.
To demonstrate your knowledge of their content, ideally have the first page of the
appendices provide a list of those things that would ordinarily be provided to the client
in this way. The plan should still make reference to ‘research reports provided’, and so
on, to satisfy the requirements of providing such material.

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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.

Referral to external professionals


In normal commercial practice, if parts of your work require referral to external
professionals (eg. lawyers, accountants), it is expected that the strategic advice on the
recommended structure of the client’s situation resulting from this consultation is
provided in the body of the client’s financial plan.
Such advice must be integrated into the plan document as part of the recommendations
to the client, in a way that supports the assessment criteria of providing the clients with a
document that logically communicates your solutions.
Please be aware that it is not acceptable to simply state that a matter will be referred to a
professional without any direct discussion of the problem at hand nor some form of
solution to the problem identified.
However, you do not need to prepare and provide a copy of referral letters to other
professionals.

Other sources of information


The use of material from other sources must be appropriately acknowledged and
referenced. Paraphrasing or quoting of a source without including an appropriate
reference is plagiarism and will be penalised and/or investigated under the definition of
assessment irregularity. The opinions or words of others should not be presented as if
they were your own, and all such sources must be acknowledged appropriately.
For the purposes of estate planning, the client comes under the jurisdiction of your own
State/Territory.

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CFP® Certification Assessment Handbook

Steps in developing the plan


The following is an outline of the steps you should take to cover the 15 essential elements
that your developed plan should demonstrate. The associated questions are to give you
an indication of the types of issues that should be addressed.
Please note that the associated questions may not represent all of the considerations
necessary for satisfactory coverage of each of the steps. There may well be other issues
that need to be discussed. Similarly, some questions may not be directly relevant to the
case in question.
Also note that in developing a logical sequence for your plan, these steps may not
necessarily occur in numerical order. The order will in part be determined by the strategy
priorities established for the client.
This assignment aims to assess your ability to put all of the 15 steps of plan preparation
into practice and to test your ability to give appropriate and focused advice.

You must provide a comprehensive explanation of all pertinent issues.


Marks will be deducted if information is included in your plan without explanation
of its relevance to these clients.

Step 1: Gather client data


The interview that you have with the clients should initiate enough data to give you a
comprehensive understanding of the clients and their approach to a range of issues,
especially the development of a clear risk profile.
Issues include:
(a) What is the clients’ view of risk and investment preferences?
(b) How is the client data to be stored for compliance purposes?

Step 2: Goal and objective identification


Issues include:
(a) Are their goals realistic and achievable?
(b) What are the true factors that motivate them?
(c) How much capital would be needed to meet their retirement goals?
(d) Is capital likely to remain intact or diminish in value in relation to the nominated
life expectancy?
(e) Do they have the savings capacity, and can it be increased?

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CFP® Certification Assessment Handbook

Step 3: Issue and problem identification


(a) What are the actual existing concerns?
(b) Are there any potential and future problems?
(c) Do they have a manageable debt level?
(d) Is the stated risk profile consistent with the expressed concerns?

Step 4: Assumptions (financial and technical)


How do the following impinge upon the plan?
(a) tax rates (2007–08 year)
(b) inflation (assume an annual CPI increase of 3%)
(c) AWOTE indexation (assume 3.5%)
(d) investment earnings (assumptions on rates of return must be realistic and reflect
industry norms — see ‘A word about projections’ below)
(e) life expectancy — 2000–2002 life tables apply
Note: These assumptions must be identified in the body of the plan, not on the A4 page
where points of clarification re the client interview are to be recorded.

Step 5: Balance sheet/net worth now


In what ways will the following issues affect your plan construction?
(a) investment assets
(b) personal use assets
(c) loans

Step 6: Cash flow


Issues include:
(a) What is the income need of the clients?
(b) Will the client’s income needs be met over the next 12-month period?
(c) How will you demonstrate to the client that their continuing income needs will be
met up to and throughout retirement?

Step 7: Income tax


What are the fundamental tax issues that will need to be addressed?
(a) current tax
(b) recommended tax structures
(c) proposals for reducing tax

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Step 8: Risk management and insurance


On what basis will your plan reflect the key issues in risk management?
(a) What are the insurance needs?
(b) How appropriate are the current insurances — both level of cover and structure?
(c) What insurances are required in terms of additions, modifications, and why? What
levels of cover are required? Have you considered all forms of personal risk, and
general insurance?

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.

Step 10: Retirement planning


The clients wish to retire within a specific time frame — how best will you help them
plan for this? Consider/demonstrate:
(a) current investment choices;
(b) estimated outcomes of the recommended strategies over time; and
(c) eligibility for social security benefits.

Step 11: Estate planning


Questions, issues and strategies to consider include:
(a) Are there sufficient assets (eg. investments, life insurances) to meet the client’s
wishes?
(b) Are there appropriate mechanisms in place to ensure that assets (in terms of
ownership or control) are transferred to the appropriate person or entity?
(c) When should assets be transferred and/or sold, and by whom?
(d) What taxation implications are there (eg. CGT)?
(e) Are there appropriate powers of attorney?

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Step 12: Recommendations


How will you rationalise and provide a strong argument that the recommendations you
make have the capacity to meet the client’s goals and objectives? Consider:
(a) cash flow strategy;
(b) investments;
(c) investor’s risk tolerance/profile; and
(d) insurance needs.

Step 13: Implementation


The plan must demonstrate how you will put the recommendations into place. An action
list should provide a summary of what needs to be done, by whom, and by what date.
An Authority to Proceed should accompany the plan.

Step 14: Periodic review


You must indicate benchmarks to the client’s current financial position and expected
position at the time of review.
(a) What level of service is proposed? (And how will you justify this, given the client’s
needs and circumstances?)
(b) How often are reviews to be carried out?
(c) Are there any other features and benefits?
(d) What is the cost of the service?

Step 15: Compliance and legal requirements


Your submission must comply with all legal and other standards.

Advice on meeting compliance requirements


It is imperative that you thoroughly familiarise yourself with ASIC Policy Statements on
Disclosure and other relevant matters. In addition, you should review the FPA Rules of
Professional Conduct, in particular Rule 106. The FPA Code of Ethics and Rules of
Professional Conduct can be downloaded from the FPA website at
<http://www.fpa.asn.au/files/PubCodeOfEthics.pdf>.
Note: Failure to comply with either the Corporations Act and Financial Services
Reform Act as expressed through the ASIC Policy Statements and/or the FPA
Code, and/or errors in dealing with compliance requirements, will be penalised.

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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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.

Addressing the client’s risk profile


It is imperative that the client be given a clear explanation of their risk profile and how
this will impact on appropriate investment strategies. You should address the
relationship between the client’s stated risk profile and their financial concerns, as well as
the asset classes and products recommended.

A word about projections


It is important that you base your projections on realistic assumptions with regard to
rates of return and economic factors. Such rates and information should be based on
estimates from reputable research houses or other reliable sources recognised within the
financial planning industry.

Diagrams and tables


When included in the main text, diagrams and tables should be clearly and fully analysed
and explained. Do not assume that the data supplied in diagrams and tables are
self-evident! Always consider using tables or diagrams if they would add to a client’s
understanding. Diagrams and tables should be clearly titled and numbered sequentially.

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.

Additional parts of the financial plan ‘inadvertently’ left out


Just as it is unprofessional to forward additional bits of a financial plan after its
completion and delivery to a client, it is considered unprofessional to forward an
incomplete plan and expect that additions will be accepted.
Therefore, parts of a financial plan ‘inadvertently’ left out of the first submission and
sent on at a later date will not be accepted, nor will amendments be accepted.
Candidates’ first submission is the only submission that will be assessed.
The onus is on candidates to thoroughly check and proofread their work prior to
submission.

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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.

Refer to the Style Guide published in the Subject Room at


<http://www.finsia.edu.au/fpa> for more detailed information.

Copies of your plan


Occasionally, items can go astray in the post. For this reason it is your responsibility to
keep a copy of your financial plan — always keep the final version rather than an early
draft. FPA or its provider will not take responsibility for lost mail.

Postal address for submission


The relevant assignment attachment sheet should be attached to the front of the financial
plan. The plan, together with the statutory declaration, should then be forwarded to:
CFP Assignment Submission
CFPC — Certification Assessment
Locked Mail Bag 11
Australia Square, NSW 1215

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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.

The mark allocation below is a guide only.


The final allocation of marks will depend on the specific case study facts and is discussed
and agreed by the CFP certification assessors at the Assessors Standardisation meeting.

Section Mark allocation


• Compliance 4
• Contents page 2
• Executive summary 5
• Present position/current situation 4
• Financial objectives 4
• Risk profile and concerns 8
• Investment strategies 20
• Insurance 7
• Estate planning 8
• Investment product selection 4
• Action to proceed 4
• Ongoing service & review 6
• Financial statements 8
• Assumptions 4
• Overall presentation. 12

Please note: No more than 20 per cent of your plan should be related to investment
strategies.

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CFP® Certification Assessment Handbook

The Oral Presentation


Due date for assessment documentation:
Semester 2, 2007 not before Wednesday 10 October 2007
no later than Friday 2 November 2007
(last date for presentation is 31 October 2007)

Note: No extensions will be granted unless under exceptional circumstances and


negotiated with the FPA.
Following submission of the financial plan case study, candidates are required to identify
a suitable assessor, preferably their supervisor who is a CFP practitioner and present the
plan to him/her. The presentation is audio-visually recorded and the supervisor is also
required to complete an assessment document relating to the communication skills of the
candidate. The candidate submits the recording of the presentation and the completed
assessment document to the FPA for further assessment by an FPA appointed assessor.
The technical accuracy and/or suitability of the strategies of the financial plan are not
assessed during the presentation.

Arranging the oral presentation


Assessor
The candidate is required to identify a suitable person within their organisation to act as
the assessor. Ideally the internal assessor should hold CFP certification. The following
positions are acceptable:
• Candidate’s supervisor or financial planning manager
• Director/Compliance Manager of the applicant’s practice*#
• Regional/State Manager*#

* Individuals nominated as internal assessors under these categories must have


knowledge and experience of the financial planning process.
#
Assessors must not be related to the candidate.

Candidates are required to provide contact details of the assessor on the enrolment form.

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CFP® Certification Assessment Handbook

Responsibilities of the assessor


The assessor takes the role of the client during the presentation. The assessor is also
required to complete an assessment document relating to the communication skills of the
candidate.
Candidates will be able to download an Assessor Guide from the website that must be
given to the Assessor. The Guide includes general instructions about the oral
presentation, a copy of the facts of the financial plan case study and a copy of the
assessment document to be completed.

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

The assessment criterion on pages 31–32 provides information on the areas to be


assessed during the presentation. The technical accuracy of the plan is not assessed
during the presentation.

It is recommended that candidates use the Executive Summary of the plan


as the basis for the presentation.

Assessment location
Where possible, an undisturbed assessment site should be used for the presentation.

Audio-visual recording of the presentation


Candidates are required to audio-visually record the presentation and submit the
recording of the presentation and the assessment document that has been completed by
the assessor to the FPA. The recording of the presentation will be reviewed by a CFP
practitioner appointed by the FPA.

Guidelines for the audio-visual recording


• VHS video-tapes, DVDs or CDs are acceptable.
• The minimum recording duration of a video-tape should be 2 hours to ensure that
sufficient recording time is available on the tape.
• Start recording the presentation at the beginning of the tape.
• Label the video-tape, DVD or CD with your name and candidate number.
• Check the recording before submission to ensure that there are no vision or audio
faults.
• Submit the video-tape, DVD or CD to the FPA in a padded envelope.

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Oral presentation of Financial Plan


Assessment Outcomes:
To assess the candidate’s ability to:
• Communicate the strategies contained in the financial plan in a clear, concise and
easily understood dialogue to the client;
• Comply with industry regulations and codes of practice.

Note: Validity, appropriateness, completeness, and technical correctness of the written


financial plan are assessed separately and assessors are not responsible for these
evaluations here.

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.

Assumptions for the oral presentation:


Assume that the client’s initial meeting was with another adviser in your organisation.
During this initial meeting, the Fact Find was completed. The original adviser has since
left the organisation and the client has been referred to you. When you called the client
to confirm that the information in the Fact Find was correct, the client agreed that you
were to proceed with the preparation of a financial plan.

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CFP® Certification Assessment Handbook

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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CFP® Certification Assessment Handbook

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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CFP® Certification Assessment Handbook

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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CFP® Certification Assessment Handbook

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.

Rules Governing the Examinations


The examination is closed book, which means that no unauthorised material can be
brought into the examination room. This includes mobile phones, laptop computers and
paging devices. Calculator guides are also not permitted.

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.

During the Examination


When instructed by the examination supervisor, candidates must complete personal
details on the front cover of the answer booklet, multiple-choice answer sheet and
answer booklet(s) (where applicable), including the tear-off attendance slip.
Candidates may not enter the examination room more than 45 minutes after the
commencement of reading time, nor are candidates allowed to leave during the first
45 minutes or last 10 minutes of the examination.

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.

Problems Encountered During the Examination


Candidates who experience any problems or difficulties during the course of the
examination are asked to state their case, with supporting documentation, in writing,
within 72 hours of the examination. Use the ‘Application for Special Consideration’ form
in this handbook and see ‘Special Consideration’ earlier in this handbook.

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CFP® Certification Assessment Handbook

Consequences of Failure to Comply with Regulations


Candidates who fail to comply with any instructions relating to the examination may
have their result withheld.

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 ................................................................................................................................

...................................................................................................................................

in the State 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 .................................................................................................................

in the State of .............................................................................................................

this............................. day of...............................................Two thousand and seven

before me (witness signature)......................................................................................

(witness name and capacity) .......................................................................................

(witness’s address) ......................................................................................................

THE FOLLOWING PEOPLE ARE ACCEPTABLE AS WITNESSES OF STATUTORY DECLARATIONS:


Dentist Pharmacist Stipendiary Magistrate
Barrister Accountant Secretary of a Building Society
Clerk of Courts Clerk of Petty Sessions A Principal in the Teaching Service
Bailiff Justice of the Peace Registered Patent Attorney
Judges Associate Veterinary Surgeon A member of the Police Force
Solicitor Shire Secretary Municipal or Shire Councillor
Sheriff Registered Chartered Accountant Medical Practitioner
Town Clerk/City Manager Minister of Religion designated Permanent Commissioned Officers
as authorised Marriage Celebrant of the Regular Defence Forces
Members and former Members
of State or Federal Parliament

The signatory’s name, address and authority must be printed nearby

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CFP® Certification Assessment Handbook

Personal Information Update


As these forms are electronically scanned please write clearly in the boxes, one letter per box.
If you name has changed please include a certified copy of your Change of Name Certificate or
Marriage Certificate.
Member/FPA ID Number ………………
First ………………………………………………
Middle ………………………………………………
Preferred ………………………………………………
Last ………………………………………………
DOB ………………
We require two mail addresses in case mail is returned from one of them.

Business Address: (include Business Name in address if applicable)

………………………………………………
………………………………………………
………………………………………………
………………………………………………
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.

Business Phone …………………………


AH Phone …………………………
Mobile …………………………
Fax …………………………
Email …………………………………………………
…………………………………………………
Current Employer …………………………………………………
…………………………………………………
…………………………………………………
Position/Title …………………………………………………
…………………………………………………
…………………………………………………

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 …………………………………………………
…………………………………………………
…………………………………………………

Signature: __________________________________________ Date: ______________

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

CFP® Certification Assessment


Withdrawal Form
Please photocopy and complete in BLOCK letters
FPA ID number: ________________________

Personal Details:
(Dr/Mr/Mrs/Ms/Miss)

Given Names: ___________________________________ Surname: ___________________________

Postal address: ___________________________________________________________________

_____________________________________________ Postcode: ________________________


Phone: _______________________________________ Fax: _____________________________

Mobile: _______________________________________Email: ___________________________

Applicants Declaration:
I wish to withdraw from the CFP Certification Assessment
(Please appropriate box)

New – (First time enrolment)


I understand that as I have submitted my application by Friday 14 September 2007, I will
receive a refund of $715 (member) or $1072.50 (non-member).

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.

Signature: _______________________________________________________Date: ___________________

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

CFP® Certification Assessment


Change to Examination Location
Please photocopy and complete in BLOCK letters

Requested changes to your examination centre must be submitted no later than


Friday 20 October 2007 (Semester 2).

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).

Change from:____________________________ To: __________________________________

Signature: __________________________________________ Date: ______________________

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

CFP® Certification Assessment


Application for Special Consideration
Semester 2, 2007

FPA Identification Number

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

Candidate’s Signature: ____________________________________ Date: _________________

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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