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How to Become a Certified Financial Planner (CFP) in Malaysia?

Graduates of Banking & Finance or Finance who are interested to obtain professional recognition and certification may go for the Certified Financial Planner (CFP) from Financial Planning Association of Malaysia (FPAM). There are 4 modules in the course and the shortest time to complete is 9 months.

Malaysian Finance Professionals have to pass all the 4 modules in order to become a Certified member. However, exemptions are granted to individuals who have certain academic qualifications.

The CFP CERT TM mark identifies individuals who have met the education, examination, experience and ethics requirements established by the Financial Planning Standards Board Ltd. (FPSB). FPSB owns the CFP Mark outside the United States and licenses qualified individuals to use this mark and refer themselves as “CFP professionals”. The CFP certification is an internationally recognised mark for the highest level of competence in financial planning.

FPAM is the marks licensing authority in Malaysia in line with the international standards.

A CFP CERT TM Practitioner follows certain standards – called Practice Standards – when providing financial planning advice. Practice Standards describe the process you should reasonably expect a financial planner to use during a financial planning engagement. These standards are based on the six-step Financial Planning Process, documented by the Financial Planning Standards Board through their research on the “Job Analysis” of what a financial planner is expected to be.

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What is the Financial Planning Association of Malaysia?

The Financial Planning Association Malaysia (FPAM) is Malaysia’s leading association for financial planning with the goal of equipping individuals with applicable skills and knowledge on finance management

Financial Planning Association Malaysia (FPAM) is a non-profit organization with a vision and mission to establish the global CFP CERT TM mark as the leading symbol of excellence for personal financial planning and to promote its recognition as a profession to benefit all Malaysians. We also strive to promote Financial Literacy across the breath of the population of Malaysia.

Benefits of CFP Qualification

About the CFP Mark

FPAM is the exclusive licensee of the CFP CERT TM mark in Malaysia. CFP is a professional certification programme which revolves around the 4Es – “Education, Examination, Experience and Ethics”, forming the cornerstones of the profession. CFP Professionals are valued as financial planners, quality trainers, lecturers and financial intermediaries.

The CFP Mark in Financial Planning

The CFP CERT TM, marks identify what a financial planner is, establish a standard of professional practice and create a ‘mark of quality’ that consumers can recognize and which practitioners aspire to attain. Financial Planning Standards Board (FPSB) is the global certification body in Financial Planning.

Benefits of the Qualification

Holders of the CFP credential are eligible for exemption from the Computerized Unit Trust Examination (CUTE) and Private Retirement Scheme Examination conducted by the Federation of Investment Managers Malaysia (FIMM).
Fees for the programme are eligible for withdrawals for education purposes under the Employees Provident Fund (EPF) and for training grant under the Human Resource Development Fund (HRDF).
Individual modules of the certification programme are eligible for CPD points under FIMM’s Continuing Professional Development programme.
The preferred qualification for employment and promotion by financial institutions dealing in personal financial
The CFP CERT TM mark stands out for its adherence to global standards for cross-border recognition.
Enhance employment and career opportunities especially in the financial services industry as in banks, insurance companies, unit trust companies, asset management companies and others.
Recognition by peers and fellow professionals as having met the global benchmark for competency, ethics and professional practice standards in financial planning services.
Recognition by the public of having a professional qualification that inspires trust among financial consumers.
Qualification recognized and granted exemption in 24 countries and growing.
Opportunity to increase revenue stream by offering more financial products and services to your clients.
Client satisfaction by providing comprehensive approach to financial planning.
Recognition and exemption by a wide number of bodies including regulators.
Practitioners’ Workshop – Guidance and workshops to enhance professional practice.

What is the format of the examinations for CFP certification program?

Module 1 to 3 consists of 75 multiple choice questions to be completed in 3 hours.
Module 4 comprises of 2 papers. Paper 1 is a 60 multiple choice questions paper to be completed in 3 hours and Paper 2 is an essay styled case study question paper to be completed in 3 hours.

Is there a time frame to complete each module?

There is no fixed time frame and the examinations are conducted once every 6 months.

Is there a time frame to complete all the 4 modules?

There is no fixed time frame. Modules 1 to 3 must be completed before you are eligible to attempt Module 4. A candidate can attempt Modules 2 to 3 in any sequence.

What is the shortest time frame to complete all the 4 modules?

The shortest time frame required is 9 months.

Recognition of CFP Certification in Malaysia

		CFP
Prerequisite for CMSL	SC	√
Module 1 holders able to recommend full range of financial products	SC	√
Eligible for internship Program for licensed financial planners	SC	√
Prerequisite for FA License	BNM	√
Module 1 & 2 required to renew life insurance license	BNM & LIAM	√
Module 3 holders exempted from CUTE	FIMM	√
Eligible for CPD Points under FIMM’s Continuing Professional Development Programme	FIMM	√
Eligible for withdrawal education purposes	EPF	√
Eligible for training grant under Human Resource Development Fund	HRDF	√
Exempted from Pre-Contract Examination for Insurance Agents (PCEIA) Part A, B, C	MII	√

Disclaimer: Candidates who granted exemptions from the CFP certification course, might not apply to the above. Kindly contact the respective organisation to enquiry for the above recognition.

PATHWAYS TO CFPCERTIFICATION

How to be certified?

All candidates must be registered with approved education providers and attend the pre-requisite number of lecture hours. There are 3 options to complete the certification course as seen in this diagram below:

Certification Pathway Options

Option A

Interested parties with at least a Bachelor’s degree are required to sit for the entire certification course, which comprises of the following Modules.

Module 1 – Foundation in Financial Planning and Tax Planning
Module 2 – Insurance Planning & Estate Planning
Module 3 – Investment Planning and Retirement Planning
Module 4 – Financial Plan Construction and Professional Responsibilities

The shortest time frame to complete the program is 9 months

Option B

FPAM recognizes that certain professional qualifications cover partial components in financial planning. Holders of the following qualifications are granted exemption as listed below (terms & conditions apply):

Table 1

NO	QUALIFICATIONS	M1	M2
1	Active FIMM member who have passed “CUTE” or “PRS” examination.	√
2	Registered Financial Planners (MFPC)	√	√
3	Shariah Registered Financial Planners (MFPC)	√	√

Option C

Only Malaysians who possess the following qualifications or professional credentials with 3 years relevant work experience in personal finance* are eligible to apply. Exemption is for Modules 1 to 3 of the certification. Applicants are allowed only 3 consecutive attempts under this option. (terms & conditions apply)

Table 2

1	Professional Accountants (CA(M), CPA (M), CPA (Aust), AICPA, ACA, ACCA, ICMA and AIA)
2	Chartered Secretaries (ICSA & Fellow of MACS)
3	Chartered Financial Consultants (ChFC)
4	Chartered Financial Analyst (CFA)
5	PhD (Business, Accounting or Economics)
6	Masters (Business Admin / Finance / Economics / Accounting) from accredited universities
7	Islamic Financial Planner (IFP)

* personal finance related experience can be in any of the following areas: insurance, mutual funds, securities, asset management, accounting, estate planning, banking, taxation, trusts, retirement planning and financial planning and must be within the 5 years prior to application

Application Process

Complete the relevant forms, and attach duly certified certificates, academic transcripts and letters from employer(s) confirming work experience on the employer(s)’ letterhead. Forms are available from FPAM’s website or approved education providers.

Application for Modular Exemption under Option B or Challenge Status under Option C, must be submitted at least 2 months before registration for the examination and must be submitted individually. Failure to comply with the above conditions will result in your application not being processed in time for the next examination.

Examination Format for CFP Certification Examination

Module 1	75 Objective Questions to be completed in 3 hours
Module 2	75 Objective Questions to be completed in 3 hours
Module 3	75 Objective Questions to be completed in 3 hours
Module 4 Paper 1	60 Objective Questions to be completed in 3 hours
Module 4 Paper 2	Prepare a Financial Plan based on case study to be completed in 3 hours

What is the Certified Financial Planner (CFP) Course from Financial Planning Association of Malaysia (FPAM)