CERTIFIED FINANCIAL PLANNER
What is CFP?
CFP or Certified Financial Planner is a certification given by the Financial Planning Standards Board (FPSB) to individuals who wish to take up financial planning as a profession. The CFP is recognized internationally and considered the best for financial planning training, education and ethics to practice. The FPSB defines financial planning as a “process of developing strategies to help people manage their financial affairs to meet life goals.” It includes analyzing the client’s financial status, developing a financial plan for the client and implementing it for the client’s benefit.
A Certified Financial Planner can find several career opportunities in financial advisory services as well as in the finance sector. A financial planner can offer services in the capacity of a consultant or represent his/her organization for offering financial planning services to individuals and organisations.
To earn the CFP certification, professionals must fulfil certain eligibility criteria and complete the 6-module CFP Certification Education Programme.
Certified Financial Planner or CFP is offered by the Financial Planning Standards Board (FPSB) in financial planning. CFP duration varies and ranges between 6 months to 2-3 years. The CFP certification course is known globally and is trusted for giving training in the field of Financial Planning, Education and Morals.
Why study CFP?
The Certified Financial Planner or CFP professional certificate is widely recognized and accepted across the globe for its standard for financial planning professionals worldwide. It will teach you how to build trust and assist customers in an increasingly complex advice world.
The Certification in Financial Planning will help you in the following ways.
- It will make you proficient in making a robust and recurring financial planning framework
- Allows each client to consistently deliver a pure financial planning proposal. It allows you to easily prove decisions which reduces your risk of compliance.
- It will help increase customer confidence to help them achieve their life goals.
- Enhanced relations with customers leading ultimately to customer references.
- Provides advanced career opportunities in financial services along with a greater job satisfaction
- It is a high-income generation course with dynamic working opportunities (individual or firm) and gives you a good reputation in the business world.
Who should study CFP?
- The professionals can take this course as an addition to the current profession for a better paycheck.
- Individuals who plan to be financial advisors in the future can pursue this course.
- CFP can be pursued by students who are fond of financial studies.
- Individuals seeking a career change with the highest level of job satisfaction.
- Since the CFP accepts students from all courses with any Major, it offers students a great opportunity to turn their career into something that might interest them.
Types of CFP Courses
CFP certification can be opted in two modes– Regular Pathway and the Challenge Status Pathway depending upon the candidate’s eligibility and qualification.
Regular Pathway
- Students enrolled in a Bachelor’s degree program typically apply for CFP through the regular Pathway.
- Candidates must pass NSE exams 1-4.
- Candidates after qualifying the exams 1, 2, 3 and 4 are eligible to take exam 5, for Advanced Financial Planning.
Challenge Status Pathway
- To obtain CFP certification, students must only pass the final exam, Advanced Financial Planning.
- A candidate must have this relevant work experience before taking Exam 5 under the Challenge Status pathway.
CFP: Admission Process
CFP: Eligibility Criteria
To be eligible to pursue a CFP course, candidates are required to fulfill the eligibility requirements for the course. It has been discussed in detailed manner below.
The registration process for Regular Pathway is given below for your reference:
- One must get an NCFM number from the official website of the NSE Academy’s.
- Then one must fill the registration form to become a member of a FPSB Ltd.
- The Student Registration Fee must be paid.
- FPSB Ltd. activates the student on the NSE test portal after verification.
The Challenge Candidate Pathway registration process is as follows:
- After successful registration, candidates will get an NCFM number on the NSE Academy’s official website.
- Fill out a Challenge Candidate Registration Form and email the relevant self-attested, scanned papers to IndiaCFPExperience@fpsb.org, together with your NCFM number, to register as a Challenge Candidate with FPSB Ltd.
- After the verification process, one needs to pay the required fees for the registration.
- After the payment, FPSB Ltd. activates the candidate on the NSE exam portal.
CFP Exam
The CFP exam is a MCQ based test consisting of a 170-question with a duration of two 3-hour sections during one day. Furthermore, each section is divided into two distinct subsections. The exam includes stand-alone questions, as well as questions associated with case studies.
- Registration is open for the March 2022 exam. The registration begins on Oct 20, 2021 to Feb 22, 2022. The exam will be conducted on March 8-15, 2022.
- To appear for the July session, the registration will begin from March 17, 2022 and the exam will be conducted on July 12-19, 2022.
- For the November session, the registration will open on July 14, 2022 and the exam will take place between November 1-8, 2022.
| Exam | Duration |
|---|---|
| Investment Planning Specialist Certification Retirement and Tax Planning Specialist Certification Risk Management and Estate Planning Specialist Certification | 3 hours, 85 multiple choice questions, computer-based test for each track exam |
| Certified Financial PlannerCM Certification | 3 hours 85 questions, computer-based test with case studies |
CFP Fees
CFP fee structure is different for Regular Pathway and Challenge Status Pathway. Take a look at registration, exam and certification fees of both:
Fee Structure: Regular Pathway
| Description | Fees |
|---|---|
| Student Registration Fees with FPSB India | Rs 16, 385 (valid for one year) |
| Exam Fees (Paper 1-4) | Rs 4,130 per exam per attempt |
| Exam Fees (Paper 5) | Rs 8,260 per attempt |
| CFPCM Certification Fees | Rs 7,080 (renewed annually) |
Fee Details: Challenge Status Pathway
| Mede of enrollment | Fees | Description |
|---|---|---|
| FPSB India (Direct) | Rs 29,955 | Registration fees (valid for one year), certification fees and administration & processing fees. |
| Through Charter Members of FPSB India | Rs 15,795 | Registration fees (valid for one year), initial CFP certification fees, administration and processing fees. |
Online CFP Course
CFP Online program provides students with a strong option for entering the financial planning field, taking less time than the Master’s and allowing students to study on their own time, without making sacrifices in their professional or personal lives.
CFP Online Financial Planning Certificate programs prepare the students for this course through a curriculum in accordance to CFP standards.
Most people lack the knowledge to accurately develop their own long-term financial plans and needs, often not knowing where to start out . However, knowledgeable certified financial planners can simplify the method of monetary planning for people and families and check out to assist them get the foremost out of their money for the long run.
Given below are some of the popular Online CFP Courses which are offered by various platforms.
| Course | Provider | Average Fees (INR) |
|---|---|---|
| Introduction to Financial Planning – CFP Certification | Udemy | INR 3,200 |
| Financial Planning Certificate | Imarticus Learning | INR 58,000 |
| CFP Certification | ICICI Direct | – |
| Certified Financial Planner Challenge Status | Apna course | INR 15,000 |
| CFP Certification course | Proschoolonline | INR 52,000 |
CFP Syllabus
The CFP Syllabus constitutes of 6 modules which are discussed below along with the topic covered.
| Module | Topics |
|---|---|
| Introduction to Financial Planning | Financial Planning Process that includes client interactions, time value of money applications, etc. |
| General principles such as education planning, etc. | |
| Risk Analysis and Insurance Planning | Introduction to Risk Analysis, its strategies, and its applications, etc. |
| Insurance Concepts, Insurance Policies, Environment of an Insurance Advisor, | |
| Retirement Planning and Employee Benefits | Introduction to Retirement Planning, Retirement Benefits, Retirement Planning, and Strategies, etc. |
| Pension sector reforms, Reform proposals, etc. | |
| Investment Planning | Introduction to Investment Planning, Investment vehicles, Investment strategies, Regulation of an investment advisor, Application to clients, etc. |
| Tax Planning & Estate Planning | Tax Planning Considerations, Tax Computations, etc. |
| Estate Planning | |
| Advanced Financial Planning | Financial Planning Process that includes gathering client data and determining goals and expectations, etc. |
Know More: CFP Exam Syllabus, Study Material & Course Material
Top CFP Colleges in India
There are several government and private institutions offering the CFP course. Some of the top government and private colleges to pursue the CFP course are mentioned below.
CFP Colleges: Top Government Colleges
| College Name | City | Average Annual Fees |
|---|---|---|
| Indian School of Business Management and Administration | Hyderabad | INR 20,990 |
| Indian School of Business Management and Administration | Patna | INR 20,900 |
| Indian School of Business Management and Administration | New Delhi | INR 25,900 |
CFP Colleges: Top Private Colleges
| College Name | City | Average Annual Fees |
|---|---|---|
| IMS ProSchool Pune | Pune | INR 30,000 |
| ICICIdirect Centre for Financial Learning (ICFL) | Kolkata | INR 30,000 |
| ICOFP Delhi – International College of Financial Planning | New Delhi | INR 35,000 |
| ICOFP Mumbai – International College of Financial Planning | Mumbai | INR 37,500 |
| ICFL – Icicidirect Centre For Financial Learning | Pune | INR 37,500 |
Read More: CFP Colleges in India 2022
CFP Course: Skills Required
To pursue a career as a financial planner a candidate should have the following skills.
| Communication Skills | Interpersonal Skills |
| Stress Management | Energetic |
| Analytical skills | Problem solving skills |
| Persistence | Organization skills |
| Passion | Attention |
CFP: Course Comparison
CFP vs CFA
| Parameters | CFP | CFA |
|---|---|---|
| Organizing Body | Managed and Controlled by Certified Financial Planner board. | Managed and Controlled by American Institute of Certified Public Accountants. |
| Course Pattern | The course consists of only one level | The course is divided into 4 Assessment Exams: Financial Accounting and reporting Business Environment and Concept Audit & Attestation Regulation |
| Duration | 6 Months or more | 1.5 years |
| Syllabus | General Principles of Financial Planning Estate Planning Investment Planning Education Planning Retirement Savings & Income Planning Risk Management & Insurance planning Tax Planning Professional Conduct & Regulation | Financial Statement Accounts Corporate Governance Entity Federal Taxation Individual Federal Taxation Professional Responsibilities, Ethics & General Principles Economic Concepts & Analysis |
| Fees | INR 76,445 | INR 1,11,870 |
| Jobs | Tax Consultant, Financial Planner, Estate Planner, Investment Planner etc | Public Accountant, Forensic Accountant, Financial Analyst, Financial Advisor etc |
CFP vs CPA
| Parametres | CFP | CPA |
|---|---|---|
| Organizing Body | Managed and Controlled by Certified Financial Planner board. | Managed and Controlled by American Institute of Certified Public Accountants. |
| Pattern | The course consists of only one level. | The course is divided into 4 Assessment Exams: Financial Accounting and reporting Business Environment and Concept Audit & Attestation Regulation |
| Duration | 3 years | 1.5 years |
| Syllabus | General Principles of Financial Planning Estate Planning Investment Planning Education Planning Retirement Savings & Income Planning Risk Management & Insurance planning Tax Planning Professional Conduct & Regulation | Financial Statement Accounts Corporate Governance Entity Federal Taxation Individual Federal Taxation Professional Responsibilities, Ethics & General Principles Economic Concepts & Analysis |
| Fees | INR 85,000 | INR 70,000 |
| Jobs | Tax Consultant, Financial Planner, Estate Planner, Investment Planner etc | Public Accountant, Forensic Accountant, Financial Analyst, Financial Advisor etc |
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