Certificate in Paraplanning Handbook 2013 - Financial · PDF fileCertificate in Paraplanning Handbook 2013 IFP - QU36 02/13 . CFPCM, CERTIFIED FINANCIAL PLANNERCM and are certification

CFPCM, CERTIFIED FINANCIAL PLANNERCM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing authority

for the CFP marks in the United Kingdom, through agreement with FPSB.

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Certificate in Paraplanning

Handbook 2013

IFP - QU36 02/13



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Contents 1 The Certificate in Paraplanning – Setting the standard in Paraplanning ....................................... 5

1.1 Who is the Certificate in Paraplanning designed for? ................................................................ 5

1.2 What is tested and how? ............................................................................................................ 5

1.3 Is the Certificate in Paraplanning right for me? .......................................................................... 5

2 Preparing for the Examination ........................................................................................................ 6

2.1 What are the entry requirements? ............................................................................................. 6

2.2 Study routes ................................................................................................................................ 6

3 The Examination ............................................................................................................................. 6

3.1 Registering for the Examination ................................................................................................. 6

3.2 Before the examination .............................................................................................................. 7

3.3 On the day of the examination ................................................................................................... 7

3.4 After the Examination ................................................................................................................. 7

Successful candidates ............................................................................................................................. 7

Unsuccessful candidates ......................................................................................................................... 7

3.5 Enquiries and appeals policy and procedures ............................................................................ 8

Appeals .................................................................................................................................................... 8

Administrative check............................................................................................................................... 8

Appeal against result .............................................................................................................................. 8

Unresolved appeals ................................................................................................................................. 8

All other complaints ................................................................................................................................ 8

3.6 Education level ............................................................................................................................ 9

3.7 Customer service standards ........................................................................................................ 9

3.8 Reasonable adjustments and special considerations policy and procedures .......................... 10

Special consideration/needs ................................................................................................................. 10

3.9 Malpractice procedures ............................................................................................................ 10

Examples of malpractice ....................................................................................................................... 11

In the event of malpractice ................................................................................................................... 11

Investigation of malpractice (in accordance with OFQUAL guidance) ................................................. 11

Process for investigation (from OFQUAL guidance) ............................................................................. 12

Stage 1: Briefing and record-keeping.................................................................................................... 12

Stage 2: Establishing the facts .............................................................................................................. 12

Stage 3: Interviews ................................................................................................................................ 12

Stage 4: Other contacts ......................................................................................................................... 12

Stage 5: Documentary evidence ........................................................................................................... 13



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Stage 6: Conclusions ............................................................................................................................. 13

Stage 7: Reporting ................................................................................................................................. 13

Stage 8: Actions ..................................................................................................................................... 13

3.10 Position statement on use of Welsh and Irish .......................................................................... 13

3.11 Equality of opportunity policy ................................................................................................... 13

3.12 Confidentiality Policy ................................................................................................................ 13

3.13 Data Protection statement ....................................................................................................... 14

Data Protection ..................................................................................................................................... 14

3.14 Guidelines for challenging the validity of FPSB UK’s certifying procedures ............................. 14

Eligibility determinations ...................................................................................................................... 14

General certification process ................................................................................................................ 15

4 Certification Requirements ........................................................................................................... 16

Policy on changes to certification requirements .................................................................................. 16

4.1 Changes to Requirements ......................................................................................................... 16

4.2 Impact on Paraplanners ............................................................................................................ 16

Candidates who are part-qualified ....................................................................................................... 16

Candidates who hold qualifications/examinations that are not listed ................................................. 16

Entry Requirement Enquiries: ............................................................................................................... 16

APPENDIX I ............................................................................................................................................ 22

FPSB UK Principles of Financial Planning Unit ...................................................................................... 22

APPENDIX II ........................................................................................................................................... 27

Certificate in Paraplanning: Fees and Dates ......................................................................................... 27

APPENDIX III .......................................................................................................................................... 30

The Role of the Paraplanner ................................................................................................................. 30

Paraplanner Job Role ............................................................................................................................ 30

Appendix IV ........................................................................................................................................... 33

Recommended reading list ................................................................................................................... 33

Appendix V ............................................................................................................................................ 35

Recommended websites: ...................................................................................................................... 35



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Development needs Paraplanners are no longer simply technicians providing support services, they’re an intrinsic part of successful Financial Planning practices. The IFP has led the profession in our support of this growing community and I hope that we can extend this support directly to you. Of course, some Paraplanners may aim to ultimately become a Financial Planner, obtaining the prestigious CERTIFIED FINANCIAL PLANNERCM

certification, the highest global standard in Financial Planning. Others however wish to remain as a Paraplanner throughout their career. Whichever route you plan to take, we can provide the help to support your career success. The Paraplanner job profile was developed by the Institute of Financial Planning to highlight the key competences required for the role. This sets out not just the functions of the role but also the skill set required for an individual to undertake those functions When it comes to professional qualifications, there are plenty of exams that test your technical knowledge around pensions, tax, investments etc. The Financial Services Authority (FSA) has raised the bar on qualifications and on professionalism with the RDR. Clients too are now demanding the highest standards from those businesses and professionals they choose to work with. The current climate demands that you have the right credentials to demonstrate your abilities to both peers and clients. In many cases, Paraplanners aim to be at least as well qualified as the Planners they work with, something which is often now commonplace. As a Paraplanner, there can be no better way to demonstrate your competence than by achieving success in the Certificate in Paraplanning, and becoming an Accredited Paraplanner. We would like to acknowledge the support of Scottish Widows in helping to develop this qualification, which was the first ever specialist qualification designed for Paraplanners in the UK. Designed and operated by FPSB UK, it tests the skills, knowledge and competence required for the role of a Paraplanner. It is not designed as a replacement or equivalent of other qualifications I personally believe it will set the standard for Paraplanning in years to come. I wish you well as you develop your career whether as a Paraplanner, or in due course, a Financial Planner.

Lucy Courtenay Qualifications Director, FPSB UK



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1 The Certificate in Paraplanning – Setting the standard in

Paraplanning

As the Financial Planning profession grows, it’s more important than ever to set yourself apart

with the right professional credentials. Proving your skills as a Paraplanner is essential if you are to

demonstrate your competence in this key area. Success in the Certificate in Paraplanning is the

ideal way to improve your Financial Planning knowledge, skills and competence. It was the first

qualification of its kind in the UK, providing a specialist examination for Paraplanners

1.1 Who is the Certificate in Paraplanning designed for?

The qualification is designed for Paraplanners at any stage in their career. The syllabus is based on

the job description for a Paraplanner developed by the IFP and the standards developed by the

Financial Skills Partnership (formerly FSSC). The Certificate in Paraplanning is ideal for

Paraplanners who wish to demonstrate their knowledge, skills and competence by obtaining a

recognised Paraplanning qualification. The qualification is also an ideal step towards obtaining

CERTIFIED FINANCIAL PLANNERCM certification – the global standard of excellence in Financial

Planning – for those who wish to follow this path.

In order to obtain the Certificate in Paraplanning candidates will need to hold a pass in a Personal

Taxation unit and pass the Principles of Financial Planning unit. Once a candidate has passed this

unit they will then be awarded the Certificate in Paraplanning, and may subsequently apply to the

IFP to become an Accredited Paraplanner subject to meeting the criteria.

1.2 What is tested and how?

The Principles of Financial Planning unit consists of a two hour online examination. The

examination comprises 30 multiple choice questions as well as detailed responses to a client case

study, including financial calculations.

1.3 Is the Certificate in Paraplanning right for me?

If you are currently working as a Paraplanner, whether in-house or outsourced, then this

qualification is for you. It will help you by building on your existing skills and helping you become

more effective at in your job. Ultimately, this will not only be of benefit to you in your career but

also to your employer and clients too. If you are thinking of becoming a Financial Planner in the

future, then this is an ideal step towards CFPCM Certification as it covers some of the core

competences tested as part of this globally recognised qualification.



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2 Preparing for the Examination

2.1 What are the entry requirements?

In order to sit the Principles of Financial Planning examination, you should hold a pass in a

recognised Personal Taxation paper. Alternatively, a Diploma recognised by the FSA for giving

retail investment advice will also meet the entry requirements. The entry requirements may be

updated from time to time and you should check the website for the most up to date information

www.financialplanning.org.uk/qualifications Whilst it is not essential to hold an FSA-recognised

Diploma or another Appropriate Examination for giving advice, candidates may find this useful

preparation and valuable if they wish to give regulated advice in the future.

2.2 Study routes

The IFP and other training providers offer a range of study options for candidates. This helps to

maximise flexibility and to ensure that each candidate can access the combination which is most

appropriate for their own individual needs. To help you prepare effectively for the exam, the IFP

has created three study routes. Which route you choose will depend on your experience and

learning style. For those wishing to have more support and guidance it is recommended you opt

for the package which includes the Paraplanner Exam Workshop. This two day exam workshop will

guide you through the processes and standards which are required in order to pass the

examination.

In addition to this the IFP has also developed an online e-learning programme. User friendly and

with its modular approach, this is the ideal way to work through the requirements from your own

office or home. You can find more information on the IFP website

http://www.financialplanning.org.uk/certificate-paraplanning

3 The Examination

The Principles in Financial Planning exam is delivered online using a bespoke platform or on paper.

This is available at a number of centres throughout the UK.throughout the UK. Details of dates

and venues can be found in Appendix II and at www.financialplanning.org.uk/dates-and-rates-0.

3.1 Registering for the Examination

In order to register for the Certificate in Paraplanning, you should complete the registration form

(available at the back of this document or download from the website) and send it to the FPSB UK

with your payment. You should decide where and when you wish to sit the examination. Due to

our partnership with Calibrand, we may be able to offer additional dates and venues – please

contact us for further details.

FPSB UK reserves the right to cancel, withdraw or substitute venues / dates if there are insufficient

candidates.

http://www.financialplanning.org.uk/qualifications

http://www.financialplanning.org.uk/certificate-paraplanning

http://www.financialplanning.org.uk/dates-and-rates-0



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3.2 Before the examination

Two weeks before the examination you will be sent a list of rules and regulations, along with

confirmation of the date, time and venue of the exam. Any related materials will also be sent to

you before the exam. You will also be provided with a logon to the online testing platform so that

you can practise the specimen paper and familiarise yourself with the format of the exam.

3.3 On the day of the examination

You should arrive 15 minutes before the scheduled start time of the examination. If you arrive

late, you may not be allowed to sit the examination. You should bring photo identity with you

such as a Driving Licence or a Passport as this may be checked by the official to verify your identity.

You may bring a silent, non-programmable calculator with you to use during the examination. The

calculator must not be capable of storing any data. If you wish to check that your calculator is

allowed, please contact FPSB UK for guidance. It is acceptable to use a scientific or financial

calculator provided that it meets the criteria above.

If you bring a phone or similar device with you, you should ensure that it remains switched off

throughout the examination. Failure to comply with this requirement may disqualify you from the

examination.

The time allowed for the examination is two hours, you may leave early if you wish provided that

you do not disturb other candidates.

The examination consists of two parts: the first part will be 30 multiple choice questions and the

second part will be based around a case study and you will be required to answer a number of

questions based on the case study. Tax tables and other reference materials will be provided and

you should not bring these with you.

3.4 After the Examination

Results will be sent out approximately 4 - 6 weeks after the examination via email or post. The

nominal pass mark is 65% although the actual pass mark may vary slightly to reflect the difficulty

of the particular examination that you took. If you meet the eligibility criteria, you will be sent a

certificate showing that you have achieved the Certificate in Paraplanning.

Successful candidates If you have passed the Examination, then you may apply to become an Accredited Paraplanner. In

order to use the designation Accredited Paraplanner you must join the IFP. You will then be

eligible to use the logo and acronym APP on all business stationery.

Unsuccessful candidates If you do not reach the required pass standard, you may attempt the examination again by

completing the entry form sent to you with your result.



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3.5 Enquiries and appeals policy and procedures

Appeals We operate a clear and transparent appeals process in line with the regulatory arrangements of

the Ofqual.

Administrative check An administrative checking service is available to candidates who have failed a written paper. The

service will check that all parts of the exam have been marked and that the marks have been

totalled and recorded correctly. It will also check that any special consideration has been taken

into account, where applicable. Requests for administrative checks should be made by way of

letter addressed to the Qualifications Co-ordinator to arrive no later than 14 days following receipt

by the candidate of the result to which the administrative check relates. We will acknowledge the

request within seven days of receipt. The result of the administrative check will be sent to the

candidate within 14 days of receipt. Candidates who are not satisfied with the administrative

check can appeal against their result. (See below).

Appeal against result Appeals should be made by way of letter to the Qualifications Director to arrive no later than 14

days following receipt by the candidate of the outcome of the administrative check. In the event

that a candidate wishes to appeal, all the documents relating to their examination will be

considered by the Senior Examiner. The cost of an appeal is £75 which will be refunded if the

appeal is successful. As part of the consideration, a review of the original marking will be carried

out and the Senior Examiner may wish to conduct a viva assessment at a mutually convenient

time. To ensure independence, the senior assessor will not have been involved in the assessment

of the candidate previously. We will acknowledge the appeal within seven days of receipt. The

result of the appeal will be sent to the candidate within 28 days of receipt.

The decision of the Senior Examiner is final.

Unresolved appeals Candidates who have reason to believe that the appeal has not been conducted correctly should

write to the Chairman of the FPSB UK Examination and Certification Committee by way of letter

within 14 days of receipt of the result of their appeal. The letter should provide a detailed

explanation as to why the candidate believes the appeal has been conducted incorrectly, with

evidence to support this explanation. The Chairman has the discretion to put the matter to the

Examination and Certification Committee if they believe the candidate has suitable grounds for

complaint. In this case, the candidate will be notified of the referral within 14 days of receipt of the

letter and of the committee’s decision within 14 days of the meeting. If the Chairman finds

insufficient grounds for referral, they will notify the candidate within 14 days of receipt of the

letter, giving the reasons why. In all cases, the decision of the Chairman is final.

All other complaints Any complaint in respect of any other matter, including inter‐alia but with limitation, the

assessment or examination environment or facilities, including the invigilation of the examination,

or the conduct of any other person whether candidate or staff of the FPSB UK or any other matter



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surrounding the registration for the assessment must be made by way of letter addressed to the

FPSB UK Qualifications Director to arrive no later than 14 days following the date of the

examination or the date on which the matter complained of occurred if some other date.

We will acknowledge the complaint, in writing, within seven days of receipt. The

acknowledgement will set out the date by which the candidate can expect a response to the

complaint. Following investigation of the complaint a full response will be sent to the complainant,

within the timescale set out in the FPSB UK’s acknowledgement of the complaint, setting out the

steps taken during the course of the investigation, the results of the investigation and the final

decision on the matter.

3.6 Education level

FPSB UK is recognised as an Awarding Organisation by Ofqual. The FPSB UK Level 4 Certificate in

Paraplanning is on the Qualifications and Credit Framework register.ofqual.gov.uk/ (ref

S/009/388).

3.7 Customer service standards

We are committed to providing high quality services, events, qualifications, and education for all

our stakeholders in support of building the profession of Financial Planning in the UK.

This statement will help us monitor our service and continually improve that service.

You can expect us to:

Give prompt, helpful and friendly response to telephone and e-mail enquiries, normally within two working days

Answer telephone calls promptly and professionally

Respond to written correspondence within seven working days

Deal with complaints promptly providing an initial response within five working days

Deal with financial transactions within two months

Protect confidential information

Provide regular updates on our website to keep stakeholders informed of all our latest news and guidance in all areas

Provide regular updates via post, the monthly membership magazine Financial Planner, and email and respect your wishes with regard to email communications

Maintain full and accessible current information on our fees and regularly review our pricing to ensure we offer value for money

Give professional and individual advice where appropriate when you seek clarification prior to any assessment or event

Offer qualifications with appropriate national accreditation and international recognition

Support our facilitators, candidates and staff through forward-looking course material, publications and training

Include clear and simple guidance notes in all our course material and handbooks, and where possible offer these online

Have confidential and secure procedures for storing case studies, written papers and blank certificates

http://register.ofqual.gov.uk/



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Ensure that candidates are examined by highly trained professional assessors

Dispatch confirmation of results within the timeframes and through the methods announced in our supporting documents

Respond to formal appeals as detailed in our course material, with an independent opinion at the ultimate level

Ensure that candidates have access to suitable assessment facilities

Immediately investigate allegations of malpractice in relation to our assessment system

Keep records of candidates’ achievements and respond to legitimate requests for these records

Continue to ensure that we are committed to providing equality of opportunity and treatment for all, and that we will not unlawfully or unfairly discriminate directly or indirectly on the basis of gender, age, ethnic origin or disability in our dealings with candidates, facilitators, assessors.

Use best practices and implement policies and procedures to ensure that candidates are dealt with on a consistent and fair basis

Undertake to listen to and consult with Welsh speaking candidates to determine their needs and monitor verifiable demand for Welsh language assessment

Provide our candidates and other stakeholders with the opportunity to comment on all aspects of our service by contacting us at any time

Comply in all areas of the UK Data Protection Act

Comply with all current relevant statutory legislation.

If you wish to comment on this statement or any service offered by us, please contact us by email:

[email protected] or call the office on 0117 945 2470.

3.8 Reasonable adjustments and special considerations policy and procedures

Candidates who may require any concession or assistance as a result of any disability or for any

other reason should contact us in writing or by telephone before applying for the examination.

Guidance can then be given and, if considered necessary, suitable arrangements can be put in

place.

Special consideration/needs If there are any special needs the candidate may have, these should be made known to us at the

time of registration. If at any time a candidate feels there are circumstances that need to be taken

into account in marking their examination they should raise these issues with us.

3.9 Malpractice procedures

Malpractice is defined as any deliberate activity, neglect, default or other practice that

compromises the integrity of the assessment process and/or the validity of the qualifications we

offered. Malpractice may include a range of issues from the failure to maintain appropriate

records or systems to the deliberate falsification of records in order to claim certificates.

We will investigate all cases of alleged malpractice. The main purpose of an investigation is to

establish if any regulations have been breached and to determine whether there is any

irregularity. Where cases of malpractice are found, we will take appropriate action in order to

maintain the integrity of its qualifications.

mailto:[email protected]



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Members of the IFP guilty of malpractice will be treated in accordance with the IFP Code of Ethics

and Practice Standards. Candidates may also be referred to IFP Disciplinary Committee or the

appropriate trade body or regulator.

We are obliged to refer all proven cases of malpractice to OFQUAL in respect of all regulated

qualifications. In addition, we may refer cases to the Financial Services Authority.

Examples of malpractice

1. A candidate arranging for another person to sit the assessment or to write any part of it on their behalf.

2. Impersonating another candidate by sitting an assessment for them or submitting work on their behalf.

3. Submitting any work which is not the candidate’s own original work. 4. Copying the work of another candidate. 5. Allowing another candidate to copy their work. 6. Taking forbidden items into the examination room. This may include, but is not limited to,

mobile phones, personal organisers, computers, notes or books. 7. Communicating with another candidate during the assessment. 8. Working collaboratively with another person during the assessment. 9. Plagiarism or misrepresentation. 10. Including offensive or inappropriate material within the assessment. 11. Identifying themselves or their company within the assessment. 12. Wilfully failing to follow instructions given by a Qualification Coordinator. 13. Behaving in a disruptive manner during the assessment. 14. Falsifying documentation or certificates. 15. Knowingly allowing a candidate to breach regulations or commit malpractice.

In the event of malpractice In the event of suspected malpractice, you should advise us in writing with full details of the

events with any relevant documentary evidence. We will instigate an investigation and advise the

candidate(s) of the investigation.

Investigation of malpractice (in accordance with OFQUAL guidance) The purpose of the investigation is:

1. To establish the facts relating to allegations/complaints in order to determine whether any

irregularities have occurred. 2. To identify the cause of the irregularities and those involved. 3. To establish the scale of the irregularities. 4. To evaluate any action already taken. 5. To determine whether remedial action is required to reduce the risk to current candidates and

to preserve the integrity of the qualification. 6. To ascertain whether any action is required in respect of certificates already issued. 7. To obtain evidence to support any sanctions to be applied to the candidate and/or to

members of staff, in accordance with the Institute’s own internal procedures. 8. To identify any patterns or trends.



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Process for investigation (from OFQUAL guidance)

Stage 1: Briefing and record-keeping Anyone involved in the conduct of an investigation should have a clear brief and understanding of

their role. All investigators must maintain an auditable record of every action during an

investigation to demonstrate that they have acted appropriately. All material associated with an

investigation will be securely stored in case of subsequent legal challenge.

Stage 2: Establishing the facts Investigators should review the evidence and associated documentation, including awarding body

guidance on the delivery of the qualifications and related quality assurance arrangements.

Issues to be determined:

What occurred (nature of malpractice/substance of the allegations)

Why the incident occurred

Who was involved in the incident

When it occurred

Where it occurred – there may be more than one location

What action, if any, the centre has taken.

Stage 3: Interviews Interviews should be conducted in accordance with the relevant codes for interviewing of the

nation concerned. Thorough preparation is needed prior to any interview. Interviews should

include prepared questions; responses should be recorded.

Interviewers may find it helpful to use the ‘PEACE’ technique:

Plan and prepare

Engage and explain

Account

Closure

Evaluation.

Face-to-face interviews should normally be conducted by two people with one person primarily

acting as interviewer and the other as note-taker. Those being interviewed should be informed

that they may have another individual of their choosing present and that they do not have to

answer questions. These arrangements aim to protect the rights of all individuals.

Stage 4: Other contacts In some cases, candidates or employers may need to be contacted for facts and information. This

may be done through face-to-face interviews, telephone interviews, by post or by email.

Whichever method is used, the investigator will have a set of prepared questions. The responses

will be recorded in writing as part of confirmation of the evidence. Investigators should log the

number of attempts made to contact an individual.



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Stage 5: Documentary evidence Wherever possible, documentary evidence should be authenticated by reference to the author;

this may include asking candidates and others to confirm handwriting, dates and signatures.

Receipts should be given for any documentation removed from a centre. Independent expert

opinion may be obtained from subject specialists about a candidate’s evidence and/or from a

specialist organisation such as a forensic examiner, who may comment on the validity of

documents.

Stage 6: Conclusions Once the investigators have gathered and reviewed all relevant evidence, a decision is made on

the outcome.

Stage 7: Reporting A draft report is prepared and factual accuracy agreement obtained. The final report is submitted

to the relevant regulatory authority.

Stage 8: Actions Any resultant action plan is implemented and monitored appropriately.

3.10 Position statement on use of Welsh and Irish

All training and assessment documents are published in English. We continually monitor the need

for documents in other languages specifically Welsh and Irish. In the event of sufficient demand,

we will arrange for translation of materials and assessments. The assessments will be based on

English law and practice. Candidates wishing to be assessed on the basis of Scottish law and

practice should advise us at registration that they wish to answer on this basis.

3.11 Equality of opportunity policy

We comply with all UK and European laws applicable in relation to discrimination on any grounds.

Accordingly, we are committed to providing equality of opportunity and fair treatment for all. We

will not discriminate on the basis of gender, age, marital status, sexual orientation, ethnic origin,

religion, culture or disability in dealing with candidates. When candidates first register for a

qualification, they will be given a candidate number for their assessment. Throughout the

assessment process, financial plans are labelled only with this number so anonymity is maintained.

The case studies used are based on real-life scenarios and are checked carefully to ensure that

they do not have any unfair bias or inaccuracies.

3.12 Confidentiality Policy

Any information relating to a candidate or potential candidate will always be regarded as

confidential information.

All materials, documents, and information that are provided or marked confidential will be held in

the strictest confidence and will not be discussed with anyone outside the IFP group, unless we

have your authority. Additionally, those in receipt of Confidential Information as a result of



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working for the IFP group will only use it as necessary to perform their responsibilities in relation

to FPSB UK and not for any other purpose.

Computer systems are secured against unauthorised access or amendment and against loss

through accidental or deliberate damage, erasure or disclosure. Only authorised members of staff

are allowed direct access to the candidate assessment records. Manual records, including indexes

and computer printouts, are secured against unauthorised access or amendment and against loss

through accidental or deliberate damage, erasure or disclosure. Records are not normally taken

out of the building, but where this is necessary, extreme care is used in ensuring that no material is

lost or damaged in the process.

Any manual record containing confidential information that it is no longer necessary to retain is

shredded prior to disposal. Under no circumstances are such manual records discarded in any

other manner.

No question that involves confidential information will ever be answered over the telephone

without establishing the identity and authenticity of the caller - and if necessary confirming with a

manager if it is appropriate to impart the information.

3.13 Data Protection statement

Data Protection Any information that candidates provide to us will be added to our candidate database and will be

processed in accordance with the Data Protection Act 1998.

The information contained in our candidate database is used:

To enable us to deal with your registration and application and to provide you with the services requested

For internal record keeping

To enable us to send further information to you that we consider may be of interest to you

For general administration purposes in connection with any of the above.

We will not pass the information supplied by you to any other person, firm or company without

your prior written consent. We will not transfer any information you give us outside the EU.

Candidates have the right under the Data Protection Act 1998 to apply for a copy of any personal

information we hold about them and to have any inaccurate information corrected. To exercise

this right candidates should call us on 0844 873 3325 or email:

[email protected].

In accordance with UK Data Protection legislation, we reserve the right to charge a small

administration fee for providing this information.

3.14 Guidelines for challenging the validity of FPSB UK’s certifying procedures

Eligibility determinations If you have submitted your ‘Qualification Review Application’ and it has been declined by the

Examination and Certification Committee, you may challenge the validity of any decision by writing




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to our Qualifications Director on the below address stating your reasons and enclosing any

evidence that you have.

General certification process If you have any concerns regarding the general process, you may challenge the validity of any

decision or procedures by writing to our Qualifications Director on the below address or to

[email protected] stating your reasons and enclosing any evidence that you

have.

FPSB (UK) Limited

One Redcliff

Bristol

BS1 6NP

You will receive an acknowledgement within five working days and a more detailed response

within one month.


CFPCM, CERTIFIED FINANCIAL PLANNERCM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Institute of Financial Planning is the marks licensing

authority for the CFP marks in the United Kingdom, through agreement with FPSB.

4 Certification Requirements

Policy on changes to certification requirements

4.1 Changes to Requirements

All changes to certification requirements will be published in the Certificate in Paraplanning

Handbook, and will be issued as news items in both the next available E-News bulletin, the

Financial Planner magazine and on the website www.financialplanning.org.uk/qualifications. In

the Introduction to Certificate in Paraplanning any changes in certification requirements within the

previous two years of publication will also be referenced.

4.2 Impact on Paraplanners

Successful candidates who meet the eligibility requirements may apply to the IFP to become a

Accredited Paraplanner. The IFP will assess all candidates for accreditation against the most

current accreditation requirements with immediate effect from the publication of such changes.

Candidates who are part-qualified Candidates are strongly advised to complete the Personal Taxation unit before entering for the

Principles of Financial Planning unit. Experience shows those embarking on the examination

process without the full entry requirements dramatically reduce their chances of passing the

examination.

Candidates who hold qualifications/examinations that are not listed If you hold an examination or qualification that is not included within any of the above lists and

you believe it to be relevant, you may apply for a review by the Examination and Certification

Committee.

You will need to fully complete a ‘Qualification Review Application’ and submit this to the FPSB UK

together with the syllabus relevant to your qualification and an administration fee of £20. Please

note, if any application is received either incomplete or without these items it will be returned.

Candidates should allow between 8 – 12 weeks for a review.

A Qualification Review Application can be downloaded from the website and is located within the

‘CFPCM Certification’ section under “Entry Requirements”: www.financialplanning.org.uk.

Entry Requirement Enquiries: If you have a specific query about entry requirements for the Certificate please contact us:

FPSB (UK) Limited

One Redcliff

Bristol

BS1 6NP

Tel: 0844 873 3325 Fax: 0117 929 2214 Email: [email protected]

http://www.financialplanning.org.uk/qualifications

http://www.financialplanning.org.uk/




Appendix I

APPENDIX I

FPSB UK Principles of Financial Planning Unit Qualification Framework QCF

Title Principles of Financial Planning

Unit Reference Number Y/504/3214

Unit Level Level 4

Guided Learning Hours 80

Unit Credit Value 8

Assessment Guidance This unit will be assessed by the following:

examination comprising MCQ and written

questions

N.B. This unit assumes a thorough understanding of personal taxation and candidates must be able

to demonstrate a pass in an appropriate taxation unit prior to commencing this unit.

Learning Outcome – the learner will Assessment Criterion – the learner can

1 Demonstrate an understanding of savings

and investments, both single premium and

regular premium solutions, and their tax

treatment and application in the Financial

Planning process

1.1 Understand the differences between active and

passive investment strategies

1.2 Understand structured products

1.3 Understand tax wrappers

1.4 Explain product wrapper selection, where

appropriate, including open-ended versus

closed-ended wrappers, to maximise tax

efficiency

1.5 Understand onshore and offshore investments

and their tax treatments and applications

2 Demonstrate an understanding of, and the

ability to analyse, protection solutions, their

tax treatment and application in the

Financial Planning process

2.1 Understand whole of life policies

2.2 Understand term assurance policies

2.3 Understand income protection policies

2.4 Understand critical illness policies

2.5 Understand private medical and accident

insurances

2.6 Understand long-term care and special needs



Appendix I

planning

2.7 Analyse how different protection solutions are

used to meet client needs and their tax

treatment


ability to analyse, retirement solutions and

their tax treatment and application in the


3.1 Understand the structure, characteristics and

application of occupational, personal and state

pension schemes to an individual’s retirement

planning

3.2 Explain the introduction and impact of auto-

enrolment and employees’ options including

NEST

3.3 Understand “non-pension” retirement planning

products

3.4 Explain options for taking benefits at

retirement

3.5 Analyse the implications of retirement, divorce,

ill-health and death

4 Demonstrate an understanding of estate

planning and its application in the Financial

Planning process

4.1 Understand the basics of wills and will planning

i. Events that invalidate wills ii. Deeds of variation and will trusts

iii. The laws of intestacy 4.2 Understand powers of attorney including

Lasting Powers of Attorney

4.3 Understand the types of trusts available, their

taxation and application


ability to apply, Financial Planning

fundamentals

5.1 Understand the key roles involved in Financial

Planning

5.2 Understand the six-step Financial Planning

process

5.3 Understand the key components of a Financial

Plan

5.4 Understand the importance of assumptions in

the Financial Planning process

6 Demonstrate an understanding of ethics and

Codes of Practice and their application in the


6.1 Understand FSA Approved Persons

Requirements (APER) and how they relate to

roles within firms

6.2 Understand the IFP Code of Practice

6.3 Understand continuing professional

development

7 Demonstrate an understanding of risk and 7.1 Understand different types of risk to which a



Appendix I

its application in the Financial Planning

process

client may be exposed

i. Systemic and non-systemic risk ii. Economic, political, market, volatility,

longevity, deviation from an index, inflation/ deflation etc

7.2 Determine what clients understand by risk

i. Not achieving expectations – returns, outcome etc

ii. Risk of losing money / value iii. Risk tolerance and capacity for loss

7.3 Understand the relationship between risk and

return

7.4 Understand how to mitigate investment risk

while maintaining target returns

i. Diversification ii. Hedging

8 Demonstrate an understanding of assets and

liabilities and their application in the


8.1 Identify assets, liabilities including loans and

debts, and irregular capital receipts from client

information

8.2 Prepare a Net Worth Statement

i. During lifetime ii. On death

iii. On specific events such as illness, disability and retirement

8.3 Calculate investible capital / excess liabilities

9 Demonstrate an understanding of income

and expenditure and their application in


9.1 Identify gross and net income receipts and

expenditure

9.2 Identify benefits in kind and other non-cash

receipts

9.3 Prepare Income and Expenditure Analysis

9.4 Calculate net spendable income/income

shortfall

10 Demonstrate an understanding of areas for

Financial Planning and how to apply them

10.1 Prioritise client needs, goals and objectives

10.2 Identify additional issues and problems

10.3 Analyse existing resources towards needs,

goals and objectives and additional issues and

problems, where appropriate

11 Demonstrate an understanding of

assumptions and their application in the


11.1 Understand the importance of assumptions in


11.2 Understand use of assumptions to project

future values of assets, liabilities, incomes,



Appendix I

expenditure and cost of goals and objectives

11.3 Understand the effects that changing

assumptions may have on a Financial Plan

12 Demonstrate an understanding of research

and its application in Financial Planning

process

12.1 Understand what information may be missing

from a fact find or client meeting notes

12.2 Understand where and how to obtain further

information

13 Demonstrate an understanding of asset

allocation and its application in the


13.1Understand different asset classes: cash, fixed

interest, property, equities and alternative

investments

13.2 Analyse existing asset allocation vs. risk profile

13.3 Determine appropriate asset allocation for

client circumstances

13.4 Understand how to achieve appropriate asset

allocation

13.5 Understand portfolio drift and rebalancing

14 Demonstrate an understanding of the

principles and application of cashflow

forecasting

14.1 Analyse cashflow at key lifestages

i. Current ii. At retirement

iii. On ill-health iv. On death

15 Demonstrate an understanding of the

required documentation and its application

in the Financial Planning process

15.1 Understand the documentation required to

be provided to the client and when it should

be provided

15.2 Draft initial recommendations for the

Financial Plan

i. Understand the advantages and disadvantages of different strategies

ii. Understand the implications of the different strategies on other parts of the Financial Plan

iii. Know what should be included in a “Suitability” letter

iv. Understand what should be included in a Financial Plan

15.3 Understand what is required to ensure that all

recommendations and documentation are

compliant and technically correct

15.4 Assess the appropriateness, affordability and

relevance of the current recommendations



Appendix I

16 Demonstrate an understanding of client

reviews and their application in the


16.1 Understand the reasons for reviewing a

Financial Plan

16.2 Understand the process of a review and what

may be discussed at a review meeting

16.3Understand how to initiate the review meeting

and gather data

16.4 Understand actions that may be required

after the review

i. Reassessing and rebalancing asset allocation

ii. Review of existing financial solutions



Appendix I

APPENDIX II

The Principles of Financial Planning Exam: Fees and Dates FPSB (UK) offers a range of options for candidates to maximise flexibility and to ensure that each candidate can access the combination which is most appropriate their own individual needs.

Examination Dates 2013*

All examinations will take place in Bristol and regional venues on the dates below

Bristol Exams

30th January FPSB UK Office 26th February FPSB UK Office 27th March FPSB UK Office 24th April FPSB UK Office 29th May FPSB UK Office 26th June FPSB UK Office 31st July FPSB UK Office 28th August FPSB UK Office 25th September FPSB UK Office 30th October FPSB UK Office 27th November FPSB UK Office 18th December FPSB UK Office

Regional Exams

28th February London 28th March Manchester 25th April London 30th May Scotland* 27th June London 29th August London 26th September Manchester 31st October London 28th November Scotland* 19th December London

2013 Fees

£165 Exam entrance and assessment

*All dates are subject to minimum numbers. FPSB UK reserve the right to change the date and / or venue in the event of this requirement not being met. Entries should be received by FPSB UK 30 days before the Examination date. Other venues and dates may be available subject to sufficient numbers. Please contact [email protected] for details

Please note that VAT is not applicable to qualification related fees.




Appendix I

The Principles of Financial Planning

EXAM REGISTRATION FORM

1. Candidate Information

First Name: Title:

Last Name:

Job Title:

Company/Organisation:

Company Address:

Town / City: Postcode:

Telephone:

Email:

IFP Member? Yes No Membership No.:

2. Exam and Assessment

Bristol Exams Regional Exams

30th January FPSB UK Office

26th February FPSB UK Office 28th February London

27th March FPSB UK Office 28th March Manchester

24th April FPSB UK Office 25th April London

29th May FPSB UK Office 30th May Scotland*

26th June FPSB UK Office 27th June London

31st July FPSB UK Office

28th August FPSB UK Office 29th August London

25th September FPSB UK Office 26th September Manchester

30th October FPSB UK Office 31st October London

27th November FPSB UK Office 28th November Scotland*

18th December FPSB UK Office 19th December London Time and venue of exams will be advised two weeks before exam date. *Venue city dependent on demand



Appendix I

3. Eligibility Requirements

Please refer to the entry requirements which can be found in the CFPCM

Certification Handbook and Certificate in Paraplanning Handbook. You will need to send in evidence of your examination passes (Certified copies or a CII learning statement is acceptable) along with this registration form in order to be eligible to register for the examination. Please indicate whether you are entering the exam as a CFP Certification or a Certificate in Paraplanning candidate.

#

Certified Financial PlannerCM

Certification candidate Certificate in Paraplanning candidate

Please list relevant exam passes-

#Only candidates that fulfil the entry requirements for CFP Certification will be allowed to request the CFP Certification

case study upon successful completion of the Principles of Financial Planning exam.

4. Payment

Total Amount Payable: £ 165.00

CHEQUE I enclose a cheque made payable to FPSB (UK) Limited for £165

CARD Please debit my card for the GRAND TOTAL above. Please select card type:

Mastercard Visa Visa Debit Other (Amex not accepted):

Name on card (as printed):

Card number:

Expiry date: 3 digit security no:

Card address (if diff to above):

Post Code:

Signature:

By checking this box you are agreeing to the Terms and Conditions of Booking. FPSB UK strongly recommend that you

read the booking terms and conditions as set out on the IFP website: www.financialplanning.org.uk.

Signed: Date:

Please return to: FPSB UK, One Redcliff Street, Bristol, BS1 6NP. P: 0844 873 3325. E: [email protected]




Appendix I

APPENDIX III

The Role of the Paraplanner For some Paraplanners the role is a stepping stone to becoming a Financial Planner, for others it is a career in its own right.

Paraplanner Job Role It is assumed that a Paraplanner is not authorised to give investment advice, that the Financial Planning practice comprises one or more of the following:

Financial Planners who are CFPCM Professionals

Paraplanners

Administrators. It is recognised that there will be differences but the following job role is based on this model which can be easily adapted to other arrangements. It is important that the Financial Planner, Paraplanner and administrators work well together as a strong team, offering assistance to clients irrespective of whether or not the Financial Planner is available. The Paraplanner role may be broken down into four key parts:

A. Preparing and maintaining the client file

B. Preparing recommendations

C. Implementing recommendations

D. Review.

A. Preparing and maintaining the client file Generally the Financial Planner should collect the qualitative information (client attitudes, life goals etc) leaving the Paraplanner to collect all the quantitative detailed information required to compile a financial plan. The Paraplanner may attend client meetings. Specific activities include:

Check all compliance paperwork is present

Confirm client risk profile is determined

Discuss client objectives with planner

Identify and obtain the information necessary to compile financial cashflow forecast

Compile draft net worth statement; income and expenditure statements and financial cashflow forecast and discuss with planner.



Appendix I

B. Preparing recommendations Identify areas for planning

Undertake research both independently and with the Financial Planner to identify suitable solutions to meet the clients needs

Prepare information/comparisons for analysis by planner

Liaise with client’s legal and tax advisers (if applicable)

Consider current and future allocation of assets for investment strategy with regard to client risk profile

Prepare draft recommendation reports to be discussed / signed off by planner.

C. Implementing recommendations Prepare suitability letters in accordance with the agreed recommendations

Complete application / proposal forms

Ensure all compliance paperwork is in order

Make changes to clients’ investments as instructed

Implement the chosen investment strategies.

D. Review Act as main point of contact and deal effectively with queries from clients and other

parties through effective communication

Establish and build strong relationships with clients and attend client meetings with planner if required

Organise future planning meetings with client

Review investment portfolio, asset allocation, risk profile etc

Send planning figures to client for update and revision in preparation for next meeting

Initiate review meetings with clients.

Key skills/Experience required

Essential Understanding of the Financial Planning process

Ability to work within defined business processes

Ability to achieve agreed outcomes without supervision

Prioritise and plan own workload

Detailed and accurate

Articulate

Excellent inter-personal skills, both written and verbal

Ability to multi-task and prioritise effectively

Good IT skills

Good report writing skills

Ability to work independently and in a team.



Appendix I

Desirable Broad knowledge of financial services world

High level of technical knowledge.

Desirable

FPSB UK Certificate in Paraplanning

Appropriate Examination for Advising on Packaged Products / Retail Investment Products

Personal Taxation Trusts

Investments

Other technical areas (Pensions, Long-term Care)

CFPCM Certification.



Appendix I

Appendix IV

Recommended reading list

As well as studying the syllabus, we recommend that you familiarise yourself with the techniques associated with creating a comprehensive financial plan by consulting the following books:

SDB Training – Easy Steps Guides: (www.sdbtraining.co.uk)

Income Tax Calculations

IHT Calculations

CGT Calculations.

Financial Calculations Guide

Whillans Tax Tables – latest edition www.lexisnexis.co.uk

Time Value of Money Booklet (IFP) Available from the IFP either with or without a financial calculator, the booklet breaks down a variety of time value of money calculations into easy to remember steps. www.financialplanning.org.uk

Tolley’s Estate Planning Considers all aspects of estate planning, showing you how to formulate strategies for the provision, holding and devolution of personal and family resources. www.lexisnexis.co.uk

Financial Freedom – using the WealthFlow system by Duncan Glassey CFP

CM. Can be purchased from the IFP.

Clarify what financial planning means to you

Track and measure financial success

Feel more comfortable with your professional advisers.

Seven Stages of Money Maturity by George Kinder. From where do our attitudes about money come – how do they influence our lives? How can we approach financial planning with honesty and without fear?

The Life Assurance and Pensions Handbook - Taxbriefs This is the market leading guide for Advisers, updating legal and regulatory changes and acting as comprehensive aide memoir for advisers. www.taxbriefs.co.uk

Taxbriefs Tax Guide (latest edition) - Taxbriefs The most complete tax planning guide designed for advisers, covering not only personal tax issues but also the taxation of business.

Professional Advisers Fact File - Taxbriefs A handy source of data that every adviser needs to answer client questions and help explain and promote various aspects of financial planning.

http://www.sdbtraining.co.uk/

http://www.lexisnexis.co.uk/


http://www.lexisnexis.co.uk/

http://bookshop.blackwell.co.uk/jsp/search_results.jsp;jsessionid=5CBB1C97A27C084B0F6427F607DD9D6A.bobcatm2?title=RSM+Robson+Rhodes+Personal+Financial+Planning&titleStem=&otherbooks=true&titleOp=AND

http://bookshop.blackwell.co.uk/jsp/search_results.jsp;jsessionid=5CBB1C97A27C084B0F6427F607DD9D6A.bobcatm2?publisher=Tottel+Publishing

http://www.taxbriefs.co.uk/



Appendix I

DIY Financial Planning Guide By Jane Wheeler. Jane is a Fellow of the Institute of Financial Planning, a CERTIFIED FINANCIAL PLANNER

CM

professional and a Chartered Financial Planner. The Guide is based on Jane’s useful book for consumers on Financial Planning called “Sorted!” It gives helpful tips and guidance around key Financial Planning steps. Download DIY Finanical Planning Guide - http://www.financialplanning.org.uk/pdfs/DIY%20Financial%20Planning%20Guide.pdf

Hutton on Estate Planning The indispensable guide to private client capital tax planning written by Matthew Hutton (who has over 25 years of experience in advising, writing and lecturing on this subject) www.hutton-estate-planning.co.uk

Calibrand Diploma in Professional Financial Advice Training materials to support the Diploma – available free from www.calibrand.com

The process of financial planning – Taxbriefs A practical guide for financial advisers looking to begin re-engineering the way they give financial advice.

www.taxbriefs.co.uk

http://www.financialplanning.org.uk/pdfs/DIY%20Financial%20Planning%20Guide.pdf

http://www.financialplanning.org.uk/pdfs/DIY%20Financial%20Planning%20Guide.pdf

http://www.calibrand.com/

http://www.taxbriefs.co.uk/



Appendix I

Appendix V

Recommended websites:

We also recommend that you familiarise yourself with the various technical data and techniques

associated with creating a comprehensive financial plan by consulting the following websites:

Useful websites

1. FSA PWC document on assumptions for projection rates: www.fsa.gov.uk/pubs/other/projection_rates.pdf 2. Debt Management Office for information on the UK gilts market: www.dmo.gov.uk/ 3. International Property Databank index: www.ipdindex.co.uk/results/indices/indices.asp 4. Retail Prices Index history www.statistics.gov.uk/STATBASE/tsdataset.asp?vlnk=229 5. Barclays Capital Equity Gilt Study: www.barcap.com/egs/ 6. Official life expectancy data: www.gad.gov.uk/Life_Tables/Interim_Life_Tables.htm 7. Citywire ‘Deathometer’ – estimates life expectancy: www.citywire.co.uk/Deathometer/Home.aspx 8. School fees and escalation rates: www.isc.co.uk/index.php/347 9. Institute of Financial Planning – branch meetings, more courses, CFPCM certification and much

more: www.financialplanning.org.uk 10. Association of Investment Companies – investment trust and closed-ended investment

company data: www.theaic.co.uk 11. Investment Management Association – OEIC and unit trust data: www.investmentuk.org

http://www.fsa.gov.uk/pubs/other/projection_rates.pdf

http://www.dmo.gov.uk/

http://www.ipdindex.co.uk/results/indices/indices.asp

http://www.statistics.gov.uk/STATBASE/tsdataset.asp?vlnk=229

http://www.barcap.com/egs/

http://www.citywire.co.uk/Deathometer/Home.aspx

http://www.isc.co.uk/index.php/347


http://www.theaic.co.uk/

http://www.investmentuk.org/

Documents

Certificate in Paraplanning Handbook 2013 - Financial · PDF fileCertificate in Paraplanning Handbook 2013 IFP - QU36 02/13 . CFPCM, CERTIFIED FINANCIAL PLANNERCM and are certification