Frequently Asked Questions

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Q:

CFP^CM Certification is regarded as the highest level of certification in the field of Financial Planning globally. CFP^CM Certification is granted to those who meet the strict criteria set by Financial Planning Standards Board India (FPSBI) that include clearing the 4Es criteria i.e. Education, Examination, Experience and Ethics. The CFP^CM Certified professionals undergo rigorous academics and training sessions to obtain the certification, which equip them to deal with the real life problems from the day one of getting certification.

The CFP^CM Certificant can use the marks CFP^CM and CERTIFIED FINANCIAL PLANNER^CM that are owned outside the U.S. by Financial Planning Standards Board Ltd. (FPSB). Financial Planning Standards Board India is the marks licensing authority for the CFP^CM marks in India, through agreement with FPSB Ltd., US.

CFP^CM Certification is for financial services professionals, customer relationship officers, insurance agents, stock brokers, those looking to expand their careers in the financial services business, and graduates who want to be professionally and globally recognized.

The career in Financial Planning is gaining immense popularity globally, mainly due to the following reasons:

Any individual who is earning well and needs a professional to manage his finances, looks for a Financial Planner. And considering the fact that people’s incomes are on the rise, they are seeking guidance to invest their finances at all right places that get them maximum benefits.

Also businesses such as Banks, Financial Planning Outfits, Wealth Managers, Life Insurers, Accounting Firms, Stock brokers hire professionals who are experts in financial planning. Financial Planners offer expert opinions on issues related to retirement planning, estate planning, tax planning, investment planning, insurance planning, financial management of small businesses and trusts, stock broking, debt and risk analysis.

Please see the section 'Benefits of CFP^CM Certification' to know details.

Besides, some more benefits include:

• Free subscription to Financial Planning Journal - India’s leading financial planning publication with news, analysis and comments on current issues.
• Newsletter.
• Special rates to attend seminars, forums and conferences organized by FPSB India.

Financial Planners may earn in any of the following three ways:

1) A Planner can be paid by a salary paid by the company for which the Planner works; by fees based on an hourly rate, a flat rate, or on a percentage of the assets and/or income.
2) By commissions paid by a third party from the products sold to clients to carry out the Financial Planning recommendations.
3) By a combination of fees and commissions whereby fees are charged for the amount of work done to develop Financial Planning recommendations and commissions are received from any product sold.

As the profession is in its nascent stage various models are being tried and tested by the Financial Planners in India. But the trend shows that in times to come, it'll be Fee-only Model like other professions, i.e. medical, law, accountancy, etc.

Financial Planning Standards Board India (FPSB India) offers the CERTIFIED FINANCIAL PLANNER^CM or CFP^CM Certification Program in India. FPSB India is the only licensing body that awards CFP^CM Certification in India through an affiliation agreement with FPSB Ltd., US.

Financial Planning Standards Board India (FPSB India) is a Public – Private Enterprise and a Professional Standards Setting body that proactively guides the development and promotion of standards for Financial Planning professionals to benefit and protect the public in India. FPSB India is a Professional Membership & Certification organization, part of leading Global Confederation established by prominent financial service corporations (the Charter Members), which has been set up with an objective to professionalize the concept of Financial Planning in India.

Yes, currently CFP Certification is offered and recognized in over 23 countries including Australia, Austria, Belgium, Brazil, Canada, China, China Taipei, France, Germany, Hong Kong, Indonesia, Ireland, Japan, Malaysia, New Zealand, Republic of Korea, Singapore, South Africa, Switzerland, Thailand, United Kingdom and United States of America.

FPSB, Denver, US enters into licensing and affiliation agreements with non-profit organizations (or their equivalent) around the world that allows the organizations to establish and operate the CFP certification program in a country or region. FPSB Affiliates who meet and maintain FPSB’s affiliation criteria of high standards are authorized to administer the CFP certification program on behalf of FPSB in a country or region. FPSB India is one of the Affiliates of FPSB, Denver, USA.

CFP certification undertaken in any of the affiliate country is recognized globally and governed by cross border policy usage.

To benefit and protect the public, FPSB regulates how CFP professionals use FPSB’s CFP or CERTIFIED FINANCIAL PLANNER marks outside the borders of the country or region in which they first received CFP certification.

Incidental Use
FPSB permits incidental use of the CFP marks by CFP professionals outside the country or region of their initial certification. Incidental use consists of displays of the CFP marks in/on:
• articles published in a new country or region.
• business cards or brochures distributed while traveling abroad.
• websites targeted toward stakeholders in the country or region of initial certification that are viewable outside the area’s borders.

Cross-Border Use
If an individual wishes to hold himself or herself out as a CFP professional or use the CFP marks outside his or her country or region of initial certification for anything other than incidental use, the CFP professional can pursue one of two options:

1. Cross-Border Certification: An individual using the CFP marks in more than one country or region can become cross-border certified by obtaining CFP certification from the FPSB Affiliate in the new country or region and abiding by the certification renewal requirements of both FPSB Affiliates. Once the CFP professional has completed the process, he or she can identify himself or herself as a CFP professional in those territories as well.

2. Restricted Use of the CFP Marks: If an individual does not want to/cannot become certified in a new territory, he can always communicate the fact that he or she has obtained CFP certification in the country or region of initial certification.

CFP Certification worldwide is awarded by FPSB Affiliates to competent and qualifying candidates fulfilling the 4Es Criteria of CFP Certification, i.e. Education, Examination, Experience and Ethics.

For details, refer section Path towards CFP^CM Certification.

The Six modules under the CFP^CM Certification Education Program are -

1. Introduction to Financial Planning: this module does not have an individual exam and is embedded with other five modules
2. Risk Analysis & Insurance Planning
3. Retirement Planning & Employee Benefits
4. Investment Planning
5. Tax Planning & Estate Planning
6. Advanced Financial Planning.

The Curriculum for the CFP^CM Certification is global in outlook but has been localized as per the laws and regulations governing a particular country. The Syllabus is made by leading industry practitioners and academicians and is reviewed periodically to ensure that the curriculum is up-to-date and relevant to those working in the Financial Planning industry.

FPSB India has authorized Education Providers (EPs) to deliver the CFP^CM Certification Education Program to the students. The mode of delivery adopted by the EPs may range from distance learning, e-learning mode, part time to full time Education Programs.

Candidates also has an option to adopt the "Self Study” mode whereby they can choose any study material available in the market.

Challenge Status / Exam 5 is now available in both English and Hindi. To apply for the appropriate one, the relevant option in the Examination Enrollment Form needs to be filled.

There are two pathways through which an aspirant can register for the CFP^CM Certification program namely:
1) Regular Pathway through either Education Providers or “Self Study”
2) Challenge Status Pathway

The candidate for enrolling with FPSB India for pursuing CFP^CM Certification is required to be SSC or Class 10 pass, but he/she needs to be HSC or Class 10+2 pass for being awarded the CFP^CM Certification, subject to fulfilling experience criteria. The education and experience criteria are explained in the section, Path towards CFP^CM Certification:

# Professionals with qualification such as MBA, CA, CFA, etc. may add 20-25% to expected pay packet

A) Education Provider mode

There are various costs associated with the CFP^CM Certification program. The costs may vary based on the Education Provider chosen and number of attempts s/he requires to pass the examinations.

A brief estimate of associated costs is listed below;

• Student Registration Fees with FPSB India: Rs. 10,000/- (valid for 1 year.
• Education Program Fees: Each of the Education Providers (EP) have their own fee structure for the Education Program ranging from anywhere between Rs. 10,000/- to Rs. 1,00,000/- depending on the Program mode (online, distance learning or classroom) the candidates chooses.
• Exam 1-4 Fees: Rs. 2,000/- per exam per attempt.
• Exam 5 Fees: Rs. 5,000/- per attempt.
• CFP^CM Certification Fees: Rs. 5,000/- and to be renewed annually

B) “Self Study” mode

The candidate needs to pay registration fees (with FPSB India) of Rs. 10,000/- (valid for 1 year), procure the courseware/study material of choice from the market. The fees for Exam 1-4, Exam 5 and Certificationis the same for both.

FPSB India proposes to start a Mentorship program very soon which is expected to provide a structural approach to “Self Study” mode. Students opting for “Self Study” mode may choose to approach an FPSB India approved mentor for guidance and advice. In this initiative, a Mentor is expected to provide students with support, counsel, develop friendship, provide reinforcement and constructive examples for successfully attaining CFP^CM Certification. FPSB India may also facilitate certain course-ware for students at a nominal cost.

Under “Self Study” mode for registration, a student may directly enroll with FPSB India by paying the Student Registration Fees. The student has an option to study by self through material available in the market. The student may also decide to enroll for various available Education Programs (Distance Learning, Classroom Training, Web-based training, etc.) of choice.

Hence, the student will be free to opt for training programs if s/he finds value in education programs delivered by the Education Providers. This proposal will ensure a student is not prohibited from pursuing the CFP^CM Certification even if a student is competent to pursue the same through self study in a cost effective manner.

Yes, student’s loan for pursuing CFP^CM Certification can be availed through any of the public/private sector banks. However, this loan is currently available only on the education fee (to be paid to the EP) and not on the registration and exam fee which the student needs to pay to the Board. Some Education Providers also accept the fee in installments.
HDFC Bank has tied up with few of the Education Providers for offering education loan to CFP^CM students.

All the Education Providers are authorized by FPSB India following a rigid eligibility criteria. FPSB India regularly audits the EPs to ensure that education is delivered professionally and as per the set standards. However, each EP is free to choose it's own mode of education delivery as well as design the study material. To this end, students are advised to evaluate the EP before enrolling. Following are some of the evaluation criteria:

• Mode of Education Delivery – distance education/classroom/online
• Faculty Credentials and Support
• Study Material, workbooks and sample papers
• Cost Structure and payment options
• Geographical coverage and accessibility
• Online support provided

Associate Financial Planner (AFP) Certification has been established by FPSB India to professionalize the product based advisory and specialized advisory services. It is targeted towards existing professionals who want to upgrade their Financial Planning knowledge without actually undergoing the entire CFP^CM Certification Program.

Please see AFP Certification section for details.

An AFP certificant is one who is trained and is competent to recommend the full range of a financial product to match the needs of his/her clients. S/he understands the financial planning process and is able to explain the process to clients and provide clients with only segmented or modular plans but is not able to write comprehensive financial plans. Eg. A candidate who has cleared AFP (Risk Analysis & Insurance Planning) can be relied upon for an expert advice on the subject of Insurance. However the advice has to be taken in isolation of other aspects of personal finance which may or may not yield the desired result.

In order to earn the AFP certification, a candidate is required to complete any one of Exam 1 – 4. After fulfilling the education and examination requirements, the candidate will have to fill up a certification form. An acknowledgment of the right of FPSB India to enforce its Professional Standards and Code of Ethics which must have been made by the candidate. The final step would be to convert the student certificant status into an AFP certification status. This would require payment of an annual subscription fee of Rs. 1,500/- to FPSB India before the AFP certificate is conferred. There will be no pro-rated refund on the student certificant fee paid.

AFP being a professional certification, the certificant will be required to fulfill the Continuing Professional Development credit hours requirement of 15 credit hours per two-year reporting periods.

A CFP^CM certificant, besides being able to discharge the service that an AFP certificant can, would also be highly trained, technically competent and s/he would have had some significant practical experience. S/he would also be able to draft comprehensive financial plans of international standards for individuals. A CFP^CM certificant can be relied not only on the matters of comprehensive financial planning but also on individual subjects, be it taxes, insurance, investments or retirement.

In order to earn the CFP^CM marks, you are required to complete the following course(s):

A candidate would also need to:

• Pass all the Module Examinations through the regular mode/pass the last module through Challenge Status mode.
• Be a certificant of FPSB India.
• Have at least three years of relevant working experience.

Qualifying work experience can be earned prior to, concurrent with, or subsequent to your education and examination requirements under the regular mode. However in case of Challenge Status student, the work experience has to be compulsorily earned before the examination.

Having fulfilled the education, examinations and experience requirements, the candidate will be required to fill up a certification form. S/he will also be required to disclose past or pending litigation or agency proceedings, if any. An acknowledgement of the right of FPSB India to enforce its Rules of Professional Standards and Code of Ethics on you must also be made.The final step would be to convert the Student certificant status into a CFP^CM certificant status. This would require payment of an annual subscription fee of Rs.5,000/- to FPSB India before the CFP^CM mark is conferred. There will be no pro-rated refund on the AFP / Student Certification fee paid.

Being a professional certification, a candidate will be required to fulfill the Continuing Education (CE) points requirement of 15 CE points per year reporting period.

A candidate appearing for CFP^CM Certification examination through regular mode will require at least three months in completing certification. However, a candidate appearing through Challenge Status mode can complete it within a month.
An applicant is required to complete the CFP^CM Certification Program within a maximum period of seven years from the date he/she registers for the CFP^CM Certification Education program.

In CFP^CM Certification students are assessed on the following:

• Professional advice and understanding of clients’ needs; the fact-finding process; and the elements of good practice.
• Knowledge and application of protection of capital, savings and investment, and retirement related products.
• Knowledge of Indian financial services industry regulatory framework and taxation.

Yes. You can maintain your AFP license, but it is advised that you continue with the program that would ultimately lead you to the prestigious CFP^CM mark that is globally recognized. If for some reason you are unable to continue with the program, you have a maximum of seven years to complete the CFP^CM Certification Education Program course from the date of your first module registration.

In such a scenario, re-register to the CFP^CM Certification Education Program course and undergo all the 1-6 modules again.

FPSB India offers only CFP^CM Certification and AFP Certification Programs. There are no other certifications, programs or degrees offered by FPSB India.

In this case, a Special Certificate will be issued to the candidate by FPSB India mentioning the successful completion of CFP^CM Certification examination criteria. The candidate will be required to pay an annual fee equivalent to the certification fee. Only after completion of three years work experience, CFP^CM Certification shall be allotted.

• Application Fee of Rs. 5,000.
• Self-declaration Form duly signed by the candidate and the Special Declaration Form signed by the HR head of the company, if he/she is employed. In case the candidate is self-employed, then the form has to be signed by a Gazetted Officer.
• Qualification certificates (signed by the HR Head or Gazetted Officer as applicable).
• Work- experience certificates (signed by the HR Head or Gazetted Officer as applicable).

Please note that incomplete applications can be subject to significant delays.

OCMS is the abbreviation of Online Certification Management System. It is an online system developed by FPSB India to ease the registration for CFP^CM, AFP and Challenge Status as well as renewal of certifications.