CFP PROFESSIONAL COMPETENCY EXAMINATION FEBRUARY 2019

Transcription

1 CFP PROFESSIONAL COMPETENCY EXAMINATION FEBRUARY 2019 Introduction: Thank you for registering for the CFP Professional Competency Examination (PCE) to be written on Thursday 14 February It is important to see the clients in the case studies as real people with real financial planning problems to solve. Both case studies are based on very real scenarios that you may encounter as a future CFP professional. The case studies assume that your level of knowledge (at NQF level 8) is in place and that you have some experience in financial planning. The PCE is not a theoretical / academic exam but a practical Professional Competency Examination that tests your ability to perform the activities of a financial planner on a day to day basis. For ease of reference: NQF 8 1 means you are able to demonstrate the following: Scope of knowledge In respect of which a learner is able to demonstrate: knowledge of and engagement in an area at the forefront of a field, discipline or practice; an understanding of the theories, research methodologies, methods and techniques relevant to the field, discipline or practice; and an understanding of how to apply such knowledge in a particular context. Knowledge literacy In respect of which a learner is able to demonstrate an ability to interrogate multiple sources of knowledge in an area of specialisation and to evaluate knowledge and processes of knowledge production. Method and procedure In respect of which a learner is able to demonstrate an understanding of the complexities and uncertainties of selecting, applying or transferring appropriate standard procedures, processes or techniques to unfamiliar problems in a specialised field, discipline or practice Problem solving In respect of which a learner is able to demonstrate an ability to use a range of specialised skills to identify, analyse and address complex or abstract problems drawing systematically on the body of knowledge and methods appropriate to a field, discipline or practice Ethics and professional practice In respect of which a learner is able to demonstrate an ability to identify and address ethical issues based on critical reflection on the suitability of different ethical value systems to specific contexts 1 See SAQA s NQF Level descriptors 1

2 Accessing, processing and managing information In respect of which a learner is able to demonstrate an ability to critically review information gathering, synthesis of data, evaluation and management processes in specialised contexts in order to develop creative responses to problems and issues Producing and communicating information In respect of which a learner is able to demonstrate an ability to present and communicate academic, professional or occupational ideas and texts effectively to a range of audiences, offering creative insights, rigorous interpretations and solutions to problems and issues appropriate to the context Context and systems In respect of which a learner is able to demonstrate an ability to operate effectively within a system, or manage a system based on an understanding of the roles and relationships between elements within the system Management of learning In respect of which a learner is able to demonstrate an ability to apply, in a self-critical manner, learning strategies which effectively address his or her professional and ongoing learning needs and the professional and ongoing learning needs of others Accountability In respect of which a learner is able to demonstrate an ability to take full responsibility for his or her work, decision-making and use of resources, and full accountability for the decisions and actions of others where appropriate. The case studies: The CFP PCE exam consists of two case studies (50 marks each) and tests all the financial planning components as well as your ability to perform the core competencies of a financial planner which is to collect, analyse and recommend a financial planning solution in the end. An additional 15 minutes will be allowed per case study to give candidates more time to read through the facts of the case studies. Times for the sessions are therefore: Session 1: 09h00 12h15 Session 2: 13h15 16h30 2

3 GUIDELINES DISCLAIMER and IMPORTANT NOTES 1) The following exam guideline serves the purpose of merely being a guide to assist candidates with exam preparation. 2) All learning outcome statements mentioned below must be studied including all aspects relating to the financial planning components which are: -Financial Management -Asset Management -Retirement Planning -Tax Planning -Risk Planning -Estate planning and -Ethics and Standards, and Law 3) It is vital that candidates understand the Competencies that a Financial Planner must have before attempting to write the Professional Competency Examination refer to the FPI s Financial Planner Competency Profile. Learning outcome statements as per the Financial Planner Curriculum (available on ) Financial Management Analysis of Financial Information Personal Financial Ratios Cash Management and Budgeting (individuals as well as corporates) Personal Financial Statements Asset Management Investment Types Investment Structures Types of Investment Risk Measurement of Investment Risk Portfolio Management Techniques 3

4 Personal Retirement Personal Savings Theory Behavioural Finance Economic Environment Risk Management Business Insurance and taxation Life Insurance and taxation Disability Insurance/Income Replacement Health Insurance and basics of Short term insurance Critical Illness Insurance (includes Dread Disease and Trauma) Tax Planning Assessment Rules Personal Taxation (incl. income tax, capital gains tax and estate duty) Corporate Taxation (incl. income tax, capital gains tax, estate duty and other related taxes) Retirement Planning Government Pension Employer / Employee Programmes Personal Retirement Personal Savings Estate Planning Wealth transfer and trusts Administration of deceased estates as well as an understanding of intestate and testate succession Ethics and Standards and law FPI Code of Ethics and Financial Planning Practice Standards Incorporating the Rules of Conduct Regulatory Environment (includes but is not limited to RDR, TCF, PPR, FSR act, FAIS Act; General Code of Conduct for authorised Financial Services Providers and Insurance Act) 4

5 Special consideration should be given to the following: Matrimonial property regimes; Estate duty calculations; Accrual calculations; Capital gains tax calculations; Cash liquidity position of a deceased s estate; Tax-free savings accounts (TFSAs) and retirement annuity funds (RAs); Retirement income options/products/strategies; Behavioural biases; Trusts and the taxation of trusts; Retirement fund benefits at retirement, death, resignation and retrenchment; Business financial planning: identification and analysis of business risks as well as recommendation of suitable solutions; Investment vehicles: detailed knowledge on features, benefits and application/suitability to client needs; The ASISA Retail Effective Annual Cost (EAC) Standard and the ASISA Retail Effective Annual Cost (EAC) Communication; Current status of fit and proper requirements applicable to representatives and Key Individuals; Article: Ombud urges full disclosure when buying insurance available at Article: Momentum responds to social media backlash over R2,4m claim available at and The impact of any of the following events on the financial planning (including all aspects listed under the learning outcomes above) of a client: o Death of a client and/or spouse o Disability of a client and/or spouse o Severe illness of a client and/or spouse o Retrenchment of a client and/or spouse o Divorce o Emigration Should you need any assistance please do not hesitate to contact us. Lelané Bezuidenhout, CFP : /6000 Fatima Fakier : /6000 or Joan Sallie : /6000 Or certification@fpi.co.za Wishing you a blessed festive season and a prosperous 2019! Your FPI Certification Team 5