CFP Syllabus Module 1 FPSB Investment Planning Specialist Guide

FPSB® Investment Planning Specialist
Guide
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FPSB Investment Planning Specialist Guide (1 June 2020 -31 March 2021)
Copyright © 2020, Financial Planning Standards Board Ltd. All rights reserved. Page 2 | 41
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Contents
Contents 3
About FPSB Ltd. and FPSB Programs in India 4
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FPSB Investment Planning Specialist Overview 5
Step 1: Education 5
Period for Course Completion 6
Education 8
1. Self-Paced Education 8
2. Instructor-Led Education 8
3. Recognition of Prior Learning 9
Step 2. Exam 10
Step 3. Ethics 14
Ethics Attestation 14
Step 4. Initial and Ongoing Certification 16
Ongoing FPSB Investment Planning Specialist Certification Requirements 16
FPSB Coursework as Continuing Professional Development 16
Using your Badge and Certification Name Correctly 16
Appendix A. FPSB Investment Planning Specialist Competency Profile 17
Module IA. Global Personal Financial Management 17
Module IB. India-Specific Personal Financial Management 19
Module IIA. Global Investment Planning and Asset Management 20
Module IIB. India-Specific Investment Planning and Asset Management 28
Module IIIB. India-Specific Regulatory Environment of Financial Sector 34
Appendix B. FPSB Certification Code of Ethics (for all FPSB certifications) 36
Appendix C. Pricing 38
Appendix D. Frequently Asked Questions 39
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About FPSB Ltd. and FPSB Programs in India

Financial Planning Standards Board Ltd. (FPSB) is the global standards setting body for
financial planning and owner of the CFPCM, CERTIFIED FINANCIAL PLANNERCM and
marks outside the United States. FPSB is proud to offer FPSB’s Investment Planning Specialist
program, one of three pathway courses to CFP certification in India:
 FPSB® Investment Planning Specialist

 FPSB® Risk and Estate Planning Specialist
 FPSB® Retirement and Tax Planning Specialist
Each certification carries its own stand-alone coursework, exam and credential. Importantly the
coursework required for FPSB’s pathway certifications also fulfills part of the required education
for CFPCM certification in India.
Interested professionals can begin their journey toward CFP certificating by registering with
FPSB to begin the coursework for any of the three pathway certifications (in any order). This
guide will focus on the FPSB Investment Planning Specialist certification.
For more information about FPSB and its certification programs in India, please
visit www.india.fpsb.org.
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FPSB® Investment Planning Specialist Overview

Take Your Career to the Next Level
Whether taken online or with an instructor, the FPSB® Investment Planning Specialist course
explains the process for developing strategies and techniques to optimize a clients’ investments
in light of their risk profile, financial capacity and constraints. The course is designed to help you
understand the different types of securities, investment theory and practice, portfolio
construction and management, investment strategies and tactics, securities laws and regulatory
compliance.
Steps to Initial Certification
The requirements for FPSB Investment Planning Specialist certification are as follows:
1. Successfully complete FPSB’s education modules for:
o Personal Financial Management
o Investment Planning and Asset Management
o Regulatory Environment, Law and Compliance
2. Pass the FPSB Investment Planning Specialist exam, which aligns to the topics
identified in the FPSB Investment Planning Specialist Competency Profile (Appendix A):
3. Successfully complete the FPSB Ltd. Ethics Course
4. Complete your certification application, which includes your agreement to comply with
FPSB Ltd.’s Code of Ethics and payment of an annual certification fee
Step 1: Education
FPSB Investment Planning Specialist
1) Education 2) Exam 3) Ethics 4) Certification

Application
3 Education Modes Topics FPSB Online Ethics Application for

-Self-Paced Learning -Personal Course certification
-Instructor-led Financial
Learning Management Agreement to abide
-Recognition of Prior -Regulations by FPSB Code of
Learning -Investments Ethics
2 hour
75 multiple choice
questions
Criteria to Register
Candidates who are at least age18 and have completed HSC/12th pass (Std XII/HSC) may
register with FPSB and begin the FPSB Investment Planning Specialist education course
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Period for Course Completion

Individuals must complete the FPSB Investment Planning Specialist certification program within
three years of first registering with FPSB Ltd. and must renew their registration on an annual
basis. After three years in the system, FPSB Ltd. will consider the student registration invalid.
Students should consider the feasibility of completing the program in this timeline before
registering.
Module Name and Description
The Personal Financial Management module provides an overview of how to evaluate

and collect client information. Students will learn how to evaluate investment strategy
Personal options and develop financial management strategies based on a client’s unique
Financial situation. Students will learn how to develop an implementation plan that will provide
Management the client an opportunity to meet his or her financial management goals and objectives.
The Investment Planning and Asset Management module provides an overview of
global and local economic institutions and other factors, such as the stock exchange,
asset classes and securities, that impact investment planning as well as principles of
investment risk. Students will learn various methods of computing expected returns
Investment from stocks, bonds and integrated portfolios, including investment risk and valuation
Planning and ratios Through this module, students will become familiar with the concepts of buying
Asset and selling securities, pooled investment products and behavioral finance, and learn
Management how to interview clients to develop a personal risk profile.
The Regulatory Environment module provides an overview of key foundational
Regulatory legislation and regulations. Through this module students will become familiar with
Environment, various regulatory bodies and varying economic, social and political environments.
Compliance Other fundamental topics covered in the module include anti-money laundering and
and Law behavioral finance.
FPSB Ltd. Educational Resources
FPSB Ltd. will provide program participants with digital textbooks, supplemental post-chapter
practice quizzes, post-module exams and supplemental course materials through its online
learning portal, FPSBlearning. All FPSB Ltd. education materials are aligned to the FPSB
Investment Planning Specialist learning objectives described in Appendix A. All students,
regardless of education mode, are required to purchase these materials.
Global Modules/Chapters
Personal Financial Investment Planning and Regulatory Environment, Law

Management Asset Management and Compliance
1.1 Personal Financial 2.1 Asset Classes and 3.1 Introduction to the Regulatory
Situation Securities Environment
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3.2 Legislated “Client Best Interest”

1.2 Time Value of Money 2.2 Pooled Investment Products Requirement
1.3 Cash Flow Demands and 2.3 Principles of Investment 3.3 Economic Environment and
Conflicts Risk Financial Advice
1.4 Budget and Emergency 2.4 Investment Performance 3.4 Social and Political
Funds Management Environments
1.5 Debt and Financing
Alternatives 2.5 Investment Theory 3.5 Compliance and Implications
1.6 Financial Management

Strategies 2.6 Asset Allocation 3.6 Anti-Money Laundering
2.7 Wealth Management

2.8 Behavioral Finance
2.9 Investment Objectives,
Constraints and Suitability
India Specific Modules/Chapters

Personal Financial Investment Planning and Regulatory Environment, Law
Management Asset Management and Compliance
1.1 Cash Management/ Liquid 2.1 Introduction to Indian 3.1 Regulatory System and
Investment Products in India Financial Markets Environment
1.2 Sources of Personal
Credit/Debt in India 2.2 The Investment Landscape 3.2 Role of Regulators
3.3 Acts Relevant to Corporate
2.3 Investing in Capital Markets Entities, Securities and External
1.3 Credit/Debt Management and Investment Products Trade
2.4 Investment Discipline, Tools 3.4 Consumer Grievances

and Strategies Redressal
2.5 Evaluation of Investment 3.5 Other Acts, Statutes and
Alternatives and Investment Regulations Relevant to Financial
Performance Consumers
2.6 Financial Advisory and 3.6 Regulation of Market
Financial Planning Intermediaries in Financial Products
2.7 Comprehensive Financial
Planning
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Education
Candidates may complete the FPSB Investment Planning Specialist education requirement and
become eligible to sit for the certification exam in one of three ways:
1. Self-Paced Education
Students who register with FPSB and select “Self-Paced Learning” will receive a password for
FPSB’s online learning portal, FPSBlearning, where they can read and interact with FPSB’s
various learning materials at their own speed and test their knowledge with quizzes and module
tests to validate their learning experience. The self-paced education path may be most
appealing to experienced investment professionals or self-starters who enjoy studying on their
own schedule.
*Self-paced learners who do not pass all FPSB Investment Planning Specialist module exams
after the two attempts will be asked to pursue the instructor-led path by enrolling with an
Authorized Education Provider (AEP).
2. Instructor-Led Education
Candidates who want an immersive educational experience with hands-on learning and access
to an FPSB Authorized Education Provider should register for “Instructor-Led Learning” when
signing up with FPSB. FPSB Authorized Education Providers offer both classroom and online
education experiences. When registering with FPSB, individuals who sign up for instructor-led
education will be asked to select from amongst FPSB’s authorized providers, which are also
listed on the FPSB Ltd. website.
Candidates who opt for FPSB’s instructor-led education can expect to receive the below
teaching hours per module.
Estimated
Teaching
Modules
Hours
Personal Financial Management 10
Investment Planning and Asset Management 40
Regulatory Environment, Law and Compliance 10
Minimum Hours of Education 60
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3. Recognition of Prior Learning

Candidates who have already completed alternative coursework that covers the FPSB
Investment Planning Specialist learning objectives may be eligible to have that coursework
recognized by FPSB as meeting the education requirement of its FPSB Investment Planning
Specialist Certification without completing the FPSB Investment Planning Specialist course
(either self-paced or instructor-led). Candidates wishing to have their prior learning recognized
must submit satisfactory evidence that their prior coursework meets FPSB’s established
learning objectives by holding any of the below qualifications or certifications. Candidates will be
asked to select “Recognition of Prior Learning” when registering with FPSB and upload a copy
of their current certificate in the MyFPSBlearning platform.
Qualification/Certification Accepted for Education Waiver Provider Institution

NISM Series X-A: Investment Adviser (Level-1)
Certification Examination + NISM Series X-B: Investment National Institute of Securities
1 Adviser (Level-2) Certification Examination Markets (NISM)
NISM Series XI: Equity Sales Certification Examination +
NISM Series V-C: Mutual Fund Distributors (Level 2)
2 Examination NISM
NISM Series XII: Securities Markets Foundation
3 Certification Examination NISM
NISM Series XV: Research Analyst Certification
4 Examination NISM
5 Chartered Wealth Manager NISM
NISM - Post Graduate Diploma in Management
6 (Securities Markets) NISM
7 Post Graduate Certificate in Securities Markets NISM and ICICI Bank
NISM-ICFL Certification in Equity Trading and NISM and ICICI Centre of
8 Investment Financial Learning (ICFL)
9 NISM-ICFL Advanced Certification in Financial Markets NISM + ICFL
10 Wealth Management Certificate (Advanced Level) CIEL Learning
Indian Institute of Banking &
11 Advanced Wealth Management Diploma Course Finance (IIBF)
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Step 2. Exam

Application

-Self-Paced Learning -Personal Financial Course certification
-Instructor-led Learning Management
-Recognition of Prior -Regulation Agreement to abide
Learning -Investments by FPSB Code
of Ethics
2 hour
75 multiple choice
questions
Upon successful completion of the FPSB Investment Planning Specialist education requirement,
whether through an FPSB instructor-led or self-paced education course or through recognition
of prior learning, candidates will be able to sit for the FPSB Investment Planning Specialist
exam. FPSB will allow students to schedule and sit for exams from the 15th to 21st of each
month.
The exam assesses the level of knowledge, skill and ability needed to earn the FPSB
Investment Planning Specialist credential, including the functions of collection, analysis and
synthesis (detailed further below). Each question on the exam focuses primarily on a specific
element of competency from the FPSB Investment Planning Specialist Competency Profile
(Appendix A), and may require integration across several competencies.
Exam Overview
● 75 multiple-choice questions (4 possible answer choices)

● Computer-based testing format
● Duration - two hours
● Financial calculators permitted (data must be erased)
● There will be two possible marks: correct, with points allotted; or incorrect, for zero
points. Students will not have points deducted (referred to as ‘negative marking’)
Areas of Practice
The exam will test the following areas of practice, which are also described to in more detail in
the FPSB Investment Planning Specialist Competency Profile (Appendix A).
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Global Areas of Practice
Personal Financial Investment Planning and Regulatory Environment,

Management Asset Management Law and Compliance
Investment Objectives, Introduction to the Regulatory
Personal Financial Situation Constraints and Suitability Environment
Cash Flow Demands and Legislated ‘Client Best

Conflicts Asset Classes and Securities Interest’ Requirement
Budget and Emergency Economic Environment and
Funds Pooled Investment Products Financial Advice
Debt and Financing Social and Political
Alternatives Principles of Investment Risk Environments
Financial Management Investment Performance
Strategies Management Compliance and Implications
Time Value of Money Investment Theory Anti-Money Laundering
Asset Allocation
Wealth Management
Behavioral Finance

India Specific Areas of Practice
Personal Financial Investment Planning and Regulatory Environment,

Management Asset Management Law and Compliance
Cash Management/ Liquid Introduction to Indian Regulatory System and
Investment Products in India Financial Markets Environment
Sources of Personal
Credit/Debt in India The Investment Landscape Role of Regulators
Acts Relevant to Corporate
Investing in Capital Markets Entities, Securities and
Credit/Debt Management and Investment Products External Trade
Investment Discipline, Tools Consumer Grievances
and Strategies Redressal
Evaluation of Investment Other Acts, Statutes and
Alternatives and Investment Regulations Relevant to
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Performance Financial Consumers
Regulation of Market
Financial Advisory and Intermediaries in Financial
Financial Planning Products
Comprehensive Financial
Planning
The FPSB Investment Planning Specialist exam will test the knowledge, skills and abilities from
the FPSB Investment Planning specialist education modules in the below proportions. However,
there will not be specific sections allocated to the modules. Instead, questions relating to each
module will appear in no specific order throughout the exam.
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Likewise, although the FPSB Investment Planning Specialist textbooks draw a distinction
between “global” and “India-specific” education content, exam questions will not be specifically
identified as such, and will appear in no specific order throughout the exam.
Difficulty Levels
The FPSB Investment Planning Specialist certification exam is designed to assess knowledge,
skills and abilities in the areas of collection, analysis and synthesis in approximately the
following proportions:
Collection: gathering Analysis: considers Synthesis: integrates the

information and identifying issues, performs financial information needed to
related facts by making analysis and assesses the develop and evaluate
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required calculations and resulting information to be strategies to create an

arranging client able to develop strategies investment plan.
information for analysis. for the client. This
During the collection includes: (1) considering
function, the core potential opportunities and
competency is to collect constraints in developing
both the quantitative and strategies, and (2)
qualitative information assessing information to
required to provide develop strategies.
investment advice.
Step 3. Ethics

Application

of Ethics
2 hour
75 multiple choice
questions
FPSB requires all individuals who hold one of its certifications to successfully complete the
FPSB Ethics Course, which conducted online in MyFPSBlearning. This course is included with
the purchase of the FPSB Investment Planning Specialist course materials. The interactive
FPSB Ethics Course consists of recorded instruction that can be taken in one or multiple sittings
with knowledge checks throughout. Once completed, the FPSB Ethics Course is valid for all
FPSB Ltd. certifications offered in India.
Ethics Attestation
After candidates have passed the FPSB Ethic Course, they must, as part of the FPSB
Investment Planning Specialist certification process, attest and agree to abide by the FPSB
Code of Ethics.
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Introduction Codes of Ethics
Learning Objectives Learning Objectives

● Explain why financial services professionals ● Identify the purposes of codes of ethics
should study ethics ● Distinguish between the reasonable
● Describe the difference between values and person standard and the professional
principles practice standard
● Describe the relationship between ethics ● Identify the eight principles of FPSB’s
and the law Code of Ethics
● Describe a financial services professional ● Apply the principles of FPSB’s Code of
● Identify characteristics of a professional Ethics to various case studies and
● Evaluate the public perception of the examples
financial services profession ● Construct a personal code of ethics
Knowledge Items Knowledge Items

● Why financial services professionals should ● The purpose of a code of ethics
study ethics ● Business conduct standards
● The difference between values and ● Reasonable person standard
principles ● Professional practice standard
● Ethics and the law ● Eight principles of FPSB’s Code of Ethics
● Characteristics of a financial services ● Personal code of ethics
professional
● Public perception of the financial services
profession
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Step 4. Initial and Ongoing Certification

Application

of Ethics
2 hour
75 multiple choice
questions
Ongoing FPSB Investment Planning Specialist Certification Requirements

To maintain the right to use the FPSB Investment Planning Specialist credential, certification
holders must maintain their professional skills, knowledge, and abilities through ongoing
learning activities.
FPSB Ltd. requires FPSB Investment Planning Specialists to renew their certification annually.
To remain certified as an FPSB Investment Planning Specialist certification holders must:
✔ Commit to adhere to FPSB Ltd.’s Code of Ethics and any applicable laws and
regulations.
✔ Obtain at least five Continuing Professional Development (CPD) hours/points. All points
must be completed before applying for renewal of certification. At least two CPD
hours/points need to directly relate to FPSB Ltd.’s Code of Ethics.
FPSB Coursework as Continuing Professional Development

FPSB Investment Planning Specialists who continue on as students with FPSB can meet their
annual CPD requirement through the coursework for FPSB’s other financial certifications – as
proven by registration in the FPSB Risk and Estate Planning Specialist, FPSB Retirement and
Tax Planning Specialist, or CFPCM certification programs.
Using your Badge and Certification Name Correctly

FPSB will post guidance on how to correctly identify yourself as an FPSB Investment Planning
Specialist. All certification holders will be required to abide by the guidance as part of the FPSB
Code of Ethics.
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Appendix A. FPSB Investment Planning Specialist Competency Profile
Module IA. Global Personal Financial Management
Chapter 1: Personal Financial Situation
Learning Objectives
1-1 Identify the types of information to collect regarding a client’s assets and liabilities
1-2 Evaluate whether a client is living within financial means
Knowledge Items
1.1 Living within financial means
1.1.1 Statement of financial position – Balance sheet
1.2 Assets
1.3 Liabilities
1.3.1 Net worth
Chapter 2: Cash Flow Demands and Conflicts
Learning Objectives
2-1 Identify the types of information to collect regarding a client’s cash flow and financial
obligations
2-2 Identify types of conflicting demands on cash flow
Knowledge Items
2.1 Cash flow statement
2.2 Conflicting demands
Chapter 3: Budget and Emergency Fund
Learning Objectives
3-1 Identify the types of information to collect to prepare a client’s budget
3-2 Describe how to prepare statements of a client’s net worth, cash flow and budget
3-3 Determine a client’s ability to save
3-4 Analyze the adequacy of a client’s emergency fund
Knowledge Items
3.1 Budget creation and evaluation
3.1.1 Special needs and goals
3.2 Types of budgets
3.2.1 Financial ratios
3.3 Emergency fund and funding vehicles
3.4 Building cash reserves
3.5 Income generation
Chapter 4: Debt and Financing Alternatives
Learning Objectives
4-1 Evaluate the implications of a client’s attitude toward debt
4-2 Identify types of credit
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4-3 Analyze financing alternatives
Knowledge Items
4.1 Credit use and potential problems
4.2 Mortgages and other installment loans
4.3 Revolving credit
4.4 Leasing versus buying
Chapter 5: Financial Management Strategies
Learning Objectives
5-1 Determine potential financial management strategies for a client
5-2 Identify the advantages and disadvantages of financial management strategies
5-3 Optimize financial management strategies to make recommendations
5-4 Prioritize action steps to assist a client in implementing financial management strategies
Knowledge Items
5.1 Developing and optimizing financial management strategies
5.2 Implementing financial management strategies with a client
Chapter 6: Time Value of Money
Learning Objectives
6-1 Describe the impact of rate assumptions on goal achievement
6-2 Calculate the present value of a single sum or payment
6-3 Calculate the future value of a single sum or payment
6-4 Calculate the interest rate or compounding period
6-5 Calculate the periodic payment
6-6 Calculate the present value for an inflation-adjusted (serial) payment
6-7 Calculate the inflation-adjusted (serial) payment for a future sum
6-8 Calculate the present value or internal rate of return of unequal cash flows
Knowledge Items
6.1 Time value of money (TMV) concepts and assumptions
6.1.1 Solving time value of money problems
6.2 Basic time value of money calculations
6.2.1 Capitalization of a number
6.2.2 Present value of a single sum
6.2.3 Future value of a single sum
6.2.4 Number of compounding periods and interest rate per compounding period
6.2.5 Present value of an annuity
6.2.6 Future value of an annuity
6.2.7 Periodic payment or receipt
6.3 Intermediate time value of money calculations
6.3.1 Inflation and serial payments
6.3.2 Present value of an annuity due (PVAD) of a serial payment
6.3.3 Serial payment for a future sum
6.4 Advanced time value of money calculations
6.4.1 Internal rate of return with unequal cash flows
6.4.2 Net present value calculation with unequal cash flow
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Module IB. India-Specific Personal Financial Management
Chapter 1: Cash Management/ Liquid Investment Products in India
Learning Objectives
1-1 Identify types of cash management and liquid products in India
Topics
1.1. Savings bank account, Recurring Deposit and Fixed Deposit with graded maturity profile
1.2. Corporate Deposit, Post Office Term Deposit
1.3. Ultra-Short duration fund, low duration fund, Liquid scheme, Money Market Mutual Fund
Chapter 2: Sources of Personal Credit/Debt in India
Learning Objectives
2-1 Compare different sources from which to borrow funds
2-2 Identify types of credit
Topics
2.1 Structured Lending Institutions
2.1.1 Public Sector and Private Sector Banks, Small Banks, Co-operative Banks, Regional
Rural Banks, Payment Banks
2.1.2 Financial Institutions, State Financial Corporations
2.1.3 Non-banking Financial Companies (NBFC), Housing Finance Companies, Gold
Finance Companies, Micro-Finance Institutions
2.2 Unregulated lending
2.2.1 Moneylenders
2.2.2 Chit Funds
2.2.3 Cooperative Credit Societies
2.3 Others
2.3.1 Loans and Advances from Employer
Chapter 3: Credit/Debt Management
Learning Objectives
3-1 Identify nature and types of debt
3-2 Explain CIBIL score and purpose
3-3 Understand types of loans to suit purpose and tenure
3-4 Analyze debt and financing alternatives
Topics
3.1 Nature and Types of Debt, Productive and Unproductive Debt
3.2 CIBIL1 Score
3.2.1 CIBIL collects and maintains credit records of individuals as well as commercial
entities
3.2.2 Banks/NBFCs access CIBIL score to ascertain creditworthiness of individuals
3.2.3 Tracks Debt repayment history, Credit limit utilization/enhancement, disputes,
repayment capacity, etc.
1
TransUnion CIBIL, a venture between TransUnion and Credit Information Bureau (India) Limited. CIBIL score is a
three-digit number between 300 and 900.
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3.3 Types of Loans to finance varied goals

3.3.1 Consumer Loan, personal Loan, Credit Card Debt, Vehicle Loan
3.3.2 Mortgage, Fixed Rate vs. Variable Rate
3.3.3 MIBOR2, MCLR3 in determining interest level
3.3.4 Loan against Property or Securities, Gold loan, Gold Monetization scheme
3.3.5 Reverse Mortgage
3.4 Using the right credit to finance goals
3.5 Analysis of Debt and Financing Alternatives
3.5.1 Loan Repayment Schedules
3.5.2 Refinancing - Loan Restructuring, Present value of future payments
3.5.3 Varying Interest Rates - Fixed EMI vs. Fixed Tenure, Option of Bullet payments
3.5.4 Hire purchase
Module IIA. Global Investment Planning and Asset Management
Chapter 1: Investment Objectives, Constraints and Suitability
Learning Objectives
1-1 Describe the steps of the initial client interview process
1-2 Explain the characteristics of various investor personality types
1-3 Identify the types of information to collect from a new client
1-4 Identify factors that affect a client’s risk tolerance
1-5 Identify a client’s potential tax issues
1-6 Describe the characteristics of a client’s financial life stages
1-7 Describe the characteristics of a well-defined investment goal
1-8 Describe common categories of investment objectives
1-9 Explain the primary purpose of an Investment Policy Statement (IPS)
1-10 Identify components of an Investment Policy Statement (IPS)
Knowledge Items
1.1 Engaging investment clients
1.1.1 The initial client interview
1.1.2 Discovery process
1.1.3 Investor personalities
1.1.4 Gathering client data
1.2 Risk tolerance and suitability
1.2.1 Determining investor risk tolerance
1.2.2 Risk tolerance questionnaires
1.2.3 Suitability using risk tolerance information
1.2.4 Matching return expectations with risk tolerance
1.2.5 Risk-return application
1.3 Potential tax issues
1.3.1 Taxability of a portfolio
2
Mumbai Interbank Offered Rate
3
Marginal Cost of Funds based Lending Rate
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1.3.2 Effect of selling property

1.3.3 Real property
1.3.4 Capital assets gains and losses
1.3.5 Good record-keeping
1.4 Understanding life stages
1.5 Establishing goals and timelines
1.5.1 SMART goals
1.6 Defining and determining investment objectives
1.6.1 Inappropriate portfolio assets
1.6.2 Portfolio proposal
1.7 Investment Policy Statement (IPS)
1.7.1 Putting the pieces on paper
1.7.2 Advisor as investment manager
1.7.3 Advisor as investment intermediary
1.7.4 The value of advisor monitoring and follow-up
Chapter 2: Asset Classes and Securities
Learning Objectives
2-1 Describe the characteristics of common stock
2-2 Explain the purpose of an Initial Public Offering (IPO)
2-3 Explain dividends
2-4 Calculate the dividend payout ratio
2-5 Explain key dates associated with stock dividend payouts
2-6 Explain stock splits and reverse stock splits
2-7 Explain why a company would use a stock split or reverse stock split
2-8 Calculate the intrinsic value of a dividend-paying stock using the dividend discount model
2-9 Describe alternative valuation methods for stocks that do not pay a dividend
2-10 Describe the characteristics of a bond
2-11 Identify the types of bonds issued by various entities
2-12 Calculate a bond’s current price/value
2-13 Describe the characteristics of preferred stock
2-14 Calculate the inherent value of preferred stock using the zero-growth model
2-15 Describe the advantages and disadvantages of owning real estate
2-16 Calculate the value of income-producing real estate using the net income method
2-17 Identify strategies used to employ call and put options
2-18 Explain structured products
2-19 Explain how futures contracts are used to hedge a long or short position
2-20 Explain alternative investments
Knowledge Items
2.1 Equity/common stock
2.1.1 Capitalization of a business
2.1.2 Rights
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2.1.3 Initial Public Offering (IPO)

2.2 Buying and selling securities
2.2.1 Primary market
2.2.2 Secondary market
2.2.3 Third market
2.2.4 Fourth market
2.2.5 Types of orders
2.3 Types of return from common stock
2.3.1 Dividends
2.3.2 Stock splits
2.3.3 Equity valuation methods
2.3.4 Additional valuation ratios
2.4 Fixed income securities
2.4.1 Cash and equivalents
2.4.2 Bonds
2.4.3 Types of bonds and issuers
2.4.4 Bond risks and returns
2.4.5 Buying and selling bonds
2.4.6 Bond yields
2.4.7 Bond price / valuation calculations
2.4.8 Duration and immunization
2.4.9 Convexity
2.4.10 Bond portfolio examples
2.4.11 Yield curve and risk-free rate of return
2.5 Preferred stock
2.5.1 Preferred stock valuation (zero-growth model)
2.6 Real assets
2.6.1 Real estate (and taxation)
2.6.2 Considerations of real estate ownership
2.6.3 Forms of real estate ownership
2.6.4 Valuation of income producing property
2.6.5 Real assets and collectibles
2.7 Derivatives
2.7.1 Options contracts, key terms, rights and obligations
2.7.2 Options strategies
2.7.3 Structured products/market-linked securities
2.8 Commodities
2.8.1 Futures and forward contracts
2.9 Alternative investments
2.9.1 Venture capital
2.9.2 Private equity
2.9.3 Hedge funds
Chapter 3: Pooled Investment Products
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Learning Objectives
3-1 Describe the characteristics of mutual funds
3-2 Identify the advantages and disadvantages of mutual funds
3-3 Describe the characteristics of closed-end funds
3-4 Identify the advantages and disadvantages of closed-end funds
3-5 Describe the characteristics of Exchange-Traded Funds (ETFs)
3-6 Identify the advantages and disadvantages of Exchange-Traded Funds (ETFs)
3-7 Describe the characteristics of Exchange-Traded Notes (ETNs)
3-8 Identify the advantages and disadvantages of Exchange-Traded Notes (ETNs)
3-9 Describe the characteristics of Unit Investment Trusts (UITs)
3-10 Identify the advantages and disadvantages of Unit Investment Trusts (UITs)
3-11 Describe the characteristics of managed accounts
3-12 Identify the advantages and disadvantages of managed accounts
3-13 Explain key considerations when evaluating and selecting pooled investment products
Knowledge Items
3.1 Mutual funds
3.1.1 Characteristics
3.1.2 Advantages of mutual funds
3.1.3 Disadvantages of mutual funds
3.1.4 The fund prospectus
3.1.5 Fund reporting
3.1.6 The name game and types of mutual funds
3.1.7 Purchasing strategies
3.2 Closed-end funds
3.2.1 Characteristics, advantages and disadvantages
3.3 Exchange Traded Funds (ETFs)
3.4 Exchange Traded Notes (ETNs)
3.5 Unit Investment Trusts (UITs)
3.6 Managed accounts
3.7 Considerations in investment product analysis/selection
3.7.1 Fund comparison
3.7.2 Manager discretion
3.7.3 Total costs
3.7.4 Turnover
3.7.5 Individual securities versus pooled holdings
Chapter 4: Principles of Investment Risk
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Learning Objectives
4-1 Explain the various sources of systematic investment risk
4-2 Explain the various sources of nonsystematic investment risk
4-3 Calculate the standard deviation of a single asset
4-4 Calculate the standard deviation of a two-asset portfolio
4-5 Explain covariance and its main limitation
4-6 Explain how correlation coefficient is used in the construction of investment portfolios
4-7 Analyze the correlation coefficient between two different assets
4-8 Analyze the coefficient of determination
4-9 Analyze beta
4-10 Evaluate the uses of beta in security selection/risk measurement
Knowledge Items
4.1 Total risk
4.1.1 Types of investment-related risk
4.1.2 Systematic risk
4.1.3 Nonsystematic risk
4.2 Risk measurements
4.2.1 Standard deviation
4.2.2 Covariance
4.2.3 Correlation coefficient (R)
4.2.4 Coefficient of determination
4.2.5 Beta
Chapter 5: Investment Performance Management
Learning Objectives
5-1 Compare and contrast measures of return: weighted average, time-weighted, dollar-
weighted, holding period
5-2 Apply Sharpe Ratio to measure risk-adjusted return
5-3 Apply Sharpe Ratio to make fund comparisons
5-4 Apply Treynor Ratio to measure risk-adjusted return
5-5 Apply Treynor Ratio to make fund comparisons
5-6 Apply Jensen Index to measure risk-adjusted return
5-7 Describe methods of constructing market benchmarks
5-8 Describe the primary approaches to fundamental analysis
5-9 Identify the basic assumptions of technical analysis
5-10 Evaluate the rules of contrarian investing
Knowledge Items
5.1 Types and measures of return
5.2 Evaluating performance
5.2.1 Weighted-average return
5.2.2 Time-weighted return
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5.2.3 Dollar-weighted return

5.2.4 Holding-period return
5.3 Assessing/comparing performance
5.3.1 Sharpe Ratio
5.3.2 Treynor Ratio
5.3.3 Jensen’s Index / Alpha
5.3.4 Benchmark construction and comparisons
5.3.5 Application of performance measures
5.4 Historical returns by asset class
5.5 Fundamental analysis
5.5.1 Top-down analysis
5.5.2 Bottom-up analysis
5.6 Technical analysis
5.6.1 General assumptions of technical analysis
5.6.2 Contrarian investing rules/strategies
5.6.3 Price and volume based rules
Chapter 6: Investment Theory
Learning Objectives
6-1 Explain the assumptions of Modern Portfolio Theory (MPT)
6-2 Explain how Modern Portfolio Theory (MPT) is used to evaluate and construct client
portfolios
6-3 Explain the concept of optimal portfolio
6-4 Calculate the required rate of return using the Capital Asset Pricing Model (CAPM)
6-5 Illustrate the three forms of the Efficient Market Hypothesis (EMH)
Knowledge Items
6.1 Modern Portfolio Theory (MPT)
6.1.1 Assumptions
6.1.2 The efficient frontier and optimal portfolios
6.1.3 Capital Asset Pricing Model (CAPM)
6.1.3.1 Capital market line
6.1.3.2 Security market line
6.2 Arbitrage pricing theory
6.3 Efficient Market Hypothesis (EMH)
6.4 Random walk theory
Chapter 7: Asset Allocation
Learning Objectives
7-1 Identify the advantages and disadvantages of asset allocation strategies
7-2 Identify the advantages and disadvantages of asset rebalancing strategies
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7-3 Identify the advantages and disadvantages of active and passive asset management
strategies
Knowledge Items
7.1 Asset allocation
7.1.1 Strategic allocation
7.1.2 Tactical allocation
7.1.3 Dynamic allocation
7.1.4 Core/satellite allocation
7.1.4.1 Asset allocation process
7.1.4.2 Asset classes and individual securities
7.2 Rebalancing strategies
7.2.1 Time-based
7.2.2 Threshold-based
7.2.3 Time-and threshold-based
7.3 Active management
7.3.1 Passive management
7.3.2 Designing a portfolio
Chapter 8: Wealth Management
Learning Objectives
8-1 Evaluate implications of concentration of a client’s investment holdings
8-2 Evaluate strategies to address a concentrated position
8-3 Analyze a company’s financial statements
8-4 Evaluate alternative investments for inclusion in a client’s portfolio
8-5 Describe the characteristics of venture capital
8-6 Describe the characteristics of private equity
8-7 Describe the characteristics of hedge funds
8-8 Describe the characteristics of managed futures
8-9 Describe the characteristics of private banking services
Knowledge Items
8.1 Wealth management process
8.2 Executive stock options
8.3 Concentrated stock positions
8.3.1 Concentrated stock definitions and risks
8.3.2 Options to address
8.4 Corporate finance / financial statement analysis
8.4.1 Liquidity ratios
8.4.2 Activity ratios
8.4.3 Profitability ratios
.5 Alternative investments for high net worth individuals
8.5.1 Managed futures
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8.6 Private banking

8.6.1 Private banking versus wealth management
8.6.2 Private banking services
Chapter 9: Behavioral Finance
Learning Objectives
9-1 Describe a client’s behavioral, information processing and emotional biases
9-2 Explain the theories of how money makes clients think and behave
9-3 Describe methods to help clients “behave” their way to success
Knowledge Items
9.1 Behavioral biases
9.1.1 Cognitive dissonance
9.1.2 Conservatism
9.1.3 Confirmation
9.1.4 Representativeness
9.1.5 Illusion of control
9.1.6 Hindsight
9.2 Information processing biases
9.2.1 Anchoring and adjustment
9.2.2 Mental accounting
9.2.3 Framing
9.2.4 Availability
9.2.5 Ambiguity aversion
9.2.6 Self-attribution
9.2.7 Outcome
9.2.8 Recency
9.3 Emotional biases
9.3.1 Loss aversion
9.3.2 Overconfidence
9.3.3 Optimism
9.3.4 Self-control
9.3.5 Status quo
9.3.6 Endowment
9.3.7 Regret aversion
9.4 The psychology of money
9.5 Choice architecture
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Module IIB. India-Specific Investment Planning and Asset Management
Chapter 1: Introduction to Indian Financial Markets
Learning Objectives
1-1 Understand the Indian economy and structures
1-2 Describe the securities market and the key players
Topics
1.1. The Indian Economy
1.2. Structure of Financial Markets in India
1.3. The Securities Markets – Structure and Key Players
1.4. Role of Participants in the Securities Markets
Chapter 2: The Investment Landscape
Learning Objectives
2-1 Explain varying markets and key players
2-2 Distinguish the investment landscape
Topics
2.1 Debt Markets
2.1.1 Depth of Debt Markets and Key Players
2.1.2 Types of Fixed Income Instruments and their tax aspects
2.1.3 Structure of Interest Rates, Repo, Reverse Repo, MIBOR, MCLR, Issue of
Government Securities and Auction of Treasury Bills
2.1.4 Trading in Debt Products – Institutional and Individual
2.2 Equity Markets
2.2.1 Major Stock Exchanges, Stock Index – Basis and Composition
2.2.2 Investing in Equity Shares – Shareholders’ Rights
2.2.3 Shareholding – Promoters, Institutions and Retail Investors
2.2.4 Equity Derivatives Market – Indicators, Pricing Mechanism, hedging and arbitrage
strategies
2.3 Commodities Markets
2.3.1 Structure, Exchanges and Regulation
2.3.2 Commodities Futures and their Settlement Mechanism
2.4 Foreign Exchange Markets
2.4.1 Structure, Functions and Regulation
2.4.2 Pricing of Forwards & Futures and Interest Rate Swaps
2.4.3 Concept of Interest Rate Parity
2.5 Real Estate, Precious Metals and Collectibles
2.5.1 Forms of Realty – Land, Residential and Commercial
2.5.2 Gold, Silver, Diamonds, Art and Antiques
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Chapter 3: Investing in Capital Markets and Investment Products
Learning Objectives
3-1 Identify the needs and objectives of your clients and their specific category
3-2 Understand norms and operations for introducing clients to various investments
3-3 Discuss direct investments in equity and debt products
3-4 Understand mutual funds and other pooled investments
3-5 Explain small savings instruments and other schemes
Topics
3.1 Operational Aspects
3.1.1 Know Your Client (KYC) and client acquisition process; PAN, Aadhaar, etc.
3.1.2 Common Reporting Standard (CRS) and Foreign Account Tax Compliance Act
(FATCA)
3.1.3 Investor Types, Norms for Non-Resident Indian Investors, Power of Attorney, etc.
3.1.4 Change in Status of Special Investor Categories
3.2 Direct Investing
3.2.1 Demat Account and Depository Participant
3.2.2 Dematerialization/Re-materialization of Securities
3.2.3 Equity shares, Derivatives, Corporate Bonds, NCDs, Bank and Company FD
3.3 Portfolio Management Schemes (PMS)
3.3.1 Type of Investors, Scheme Types
3.3.2 Fee Structure and Regulation
3.4 Mutual Funds
3.4.1 History and Evolution, SEBI (Mutual Funds) Regulations, 1996
3.4.2 Regulatory Framework, Role of Association of Mutual Funds in India (AMFI)
3.4.3 Process and Benefits
3.4.4 Main Features, NAV and other Concepts, Terminology, Modes of investing
3.4.5 Types of Products
3.4.5.1 Equity Diversified Schemes – Large/ Mid/ Small Cap funds, Fund of Funds
(FoF), International Funds, Arbitrage Funds
3.4.5.2 Features of Sector funds, Index funds, Exchange Traded Funds (ETF) and
Gold ETFs, Commodity ETFs
3.4.5.3 Income or Debt Schemes – Ultra Short term, Short term, Long term and
Dynamic bond funds
3.4.5.4 Government Securities Schemes (Gilt/G-Sec) and Fixed Maturity Plans
(FMP)
3.4.5.5 Hybrid Funds/Balanced schemes and Monthly Income Plans (MIPs)
3.4.5.6 Liquid Funds and Money Market Mutual Funds (MMMFs)
3.4.6 Taxation Aspect of Mutual Fund Products
3.4.6.1 Categorization of Equity-oriented fund or Income/Debt fund
3.4.6.2 Basis of redemption – Long-term (Equities and Debt) or Short-term
3.5 Investor’s rights to various disclosures under Mutual Fund schemes
3.6 Other Pooled Investments
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3.6.1 Alternative Investment Funds (AIF)

3.6.1.1 Private Equity (PE), Venture Capital (VC), Hedge funds, Managed futures, Art
and Antiques, Commodities and derivatives contracts
3.6.1.2 Regulation of AIFs
3.6.2 Real Estate investment Trusts EITs) and Infrastructure Investment Trusts (InvITs)
3.7 Small Savings Instruments and other schemes with sovereign guarantee
3.7.1 Public Provident Fund (PPF)
3.7.2 National Savings Certificates (NSC)
3.7.3 Kisan Vikas Patra (KVP)
3.7.4 Post Office Monthly Income Scheme (POMIS)
3.7.5 Senior Citizens Savings Scheme (SCSS)
3.7.6 Sukanya Samriddhi Yojana
3.7.7 Sovereign Gold Bonds (SGBs)
Chapter 4: Financial Advisory and Financial Planning
Learning Objectives
4-1 Illustrate the need for financial advisory services
4-2 Determine the financial position of clients
4-3 Assess insurance needs and requirements
4-4 Construct the retirement planning process
4-5 Analyze tax efficiencies
4-6 Understand estate planning
Topics
4.1 Need for Financial Advisory Services
4.2 Financial Advisory and Execution
4.3 Scope of Financial Planning Services
4.4 Financial Planning and Delivery Process
4.5 Evaluating the financial position of clients: Assets, Liabilities and Net worth
4.5 Analysis of Household Budget and Contingency Planning
4.6 Determination of Financial Goals of Investments/Assets and Strategies
4.7 Risk Management and Insurance
4.7.1 Life Insurance Needs Analysis, Economic Value, Covering Future Income
Stream
4.7.2 Assets Coverage, Health and Mortgage Insurance, Liability Cover
4.8 Retirement planning
4.10.1 Retirement Objectives: Living Expenses, Gifts/Bequest and Charity
4.10.2 Assessment of Life Parameters, Economic Indicators, Investment Returns,
Special Needs
4.10.3 Analysis of Retirement Products: Provident Funds, NPS, Other Vehicles
4.10.4 Retirement Funds, Pension/Annuities, Fixed and Liquid Assets, Other
Income Sources
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4.9 Personal Tax Optimization, Tax incidence and Tax Efficiency

4.11.1 Tax Compliances, Tax Incidence of Holding, Transfer and Liquidation of
Assets
4.11.2 Tax Efficiency of Investment Products and Other Transactions
4.10 Estate Planning
4.12.1 Characteristics and efficiency of various Estate vehicles - Wills and Trusts
4.12.2 Tax Efficiency of Gifts, Transfers on Succession
4.12.3 Succession planning for Businesses: Family Office and Family Trust
Module IIIA. Global Regulatory Environment, Law and Compliance
Chapter 1: Introduction to the Regulatory Environment
Learning Objectives
1-1 Explain how the regulatory environment is related to financial services
1-2 Describe the various regulatory bodies, their function and responsibilities
1-3 Demonstrate Knowledge Items of relevant regulatory, economic and political environments
1-4 Demonstrate relevant Knowledge Items of law and consider and discuss the impact of
compliance issues on the practice of financial advice
Knowledge Items
1.1 What is financial regulation?
1.1.1 Economic
1.1.2 Safety
1.1.3 Corporate governance and securities regulation
1.1.4 Information
1.2 Regulators
1.3 Legislation and regulation
Chapter 2: Legislated “Client Best Interest” Requirement
Learning Objectives
2-1 Describe the legal framework within which financial advisors operate and their legal, social
and ethical responsibilities
Knowledge Items
2.1 The fiduciary standard
2.2 Fiduciary duty and suitability
Chapter 3: Economic Environment and Financial Advice
Learning Objectives
®
3-1 Demonstrate basic Knowledge Items of micro- and macro-economic environment effects as
they apply to financial planning and financial advice
3-2 Explain the impact of monetary and fiscal policy
3-3 Understand the normal business cycle and its impact on financial planning and financial
advice
3-4 Understand economic indicators and their impact
Knowledge Items
3.1 Monetary and fiscal policy
3.1.1 Monetary policy
3.1.2 Open market operations
3.1.3 Discount rate
3.1.4 Reserve requirements
3.1.5 Fiscal policy
3.1.6 Economics 101
3.2 Economic indicators
3.3 Business cycle
3.3.1 Expansion
3.3.2 Downturn and contraction
3.3.3 Recession and depression
3.3.4 Recovery
3.4 Economic indicators revisited
3.4.1 Economics overview
3.4.2 Macroeconomic schools of thought
Chapter 4: Social and Political Environments
Learning Objective
4-1 Demonstrate Knowledge Items of social and political environments relevant to financial
planning, financial advice and the economic environment
Knowledge Items
4.1 Government and politics: local government sentiment
4.1.1 Local economic environment
4.1.2 Regional economic environment
4.1.3 Global economic environment
4.2 Social welfare policy
4.3 Retirement policy
Chapter 5: Compliance and Implications
Learning Objectives
5-1 Describe the impact of legal, regulatory and ethical compliance issues on the practice of
financial advice
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Knowledge Items
5.1 Disclosure documents
5.2 Potential conflicts of interest
Chapter 6: Anti-Money Laundering
Learning Objectives
6-1 Understand money laundering, its purpose and practice
6-2 Identify global laws and regulations designed to counter money laundering
6-3 Understand how to avoid money laundering personally and by clients
6-4 Describe how financial advisors can comply with relevant anti-money laundering regulation
6-5 Assess the potential risks affecting the financial system, their impact on financial service
products, providers, clients and economic performance
6-6 Assess relevant case histories involving financial advisors
Knowledge Items
6.1 The three stages of money laundering
6.2 Global rules and regulations
6.3 Detecting money laundering
6.4 Case studies
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Module IIIB. India-Specific Regulatory Environment of Financial Sector
Chapter 1: Regulatory System and Environment
Learning Objectives
1-1 Explain how the Indian financial sector is governed
1-2 Understand the multiple Acts, Rules and Regulations and the five majority bodies
Topics
1.1 Reserve Bank of India (RBI)
1.2 Securities and Exchange Board of India (SEBI)
1.3 Insurance Regulatory and Development Authority of India (IRDAI)
1.4 Pension Fund Regulatory and Development Authority (PFRDA)
1.5 Forward Markets Commission (FMC) [merged with SEBI on September 28, 2015]
Chapter 2: Role of Regulators
Learning Objectives
2-1 Identify the role of regulators
Topics
2.1 Regulation-making
2.2 Executive functions
2.3 Administrative law functions
2.4 Consumer Protection
2.5 Micro-prudential Regulation – Manage Systemic Risk
2.6 Resolution
2.7 Financial Inclusion and Market Development
2.8 Capital Controls
2.9 Public Debt Management
2.10 Monetary Policy
Chapter 3: Acts Relevant to Corporate Entities, Securities and External Trade
Learning Objectives
3-1 Distinguish Acts in India specific to financial sector regulation
Topics
3.1 The Companies Act, 2013 (erstwhile 1956)
3.2 The Indian Trusts Act, 1882
3.3 The Securities Contracts Regulation Act, 1956
3.4 The Foreign Exchange Management Act, 1999
3.5 The Prevention of Money Laundering Act, 2002 (PMLA)
3.6 The Insolvency and Bankruptcy Code, 2016 (IBC)
3.7 Negotiable Instruments Act, 1883
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3.8 The Forward Contracts Regulation Act, 1952

3.9 The Indian Contract Act, 1872
3.10 The Indian Partnership Act, 1932
3.11 The Limited Liability Partnership Act, 2008
Chapter 4: Consumer Grievances Redressal
Learning Objectives
4-1 Understand consumer grievances redressal under various regulators
4-2 Distinguish nuances of comprehensive consumer empowerment in the digital era
Topics
4.1 Redress in Banking – The Banking Ombudsman Scheme 2006 (amended July 1, 2017)
4.2 Investor Grievance Redress Mechanism – SEBI Complaints Redress System (SCORES)
platform
4.3 Insurance Ombudsman Scheme
4.4 Stipendiary Ombudsman – PFRDA
4.5 The Consumer Protection Act, 2019 (new act)
Chapter 5: Other Acts, Statutes and Regulations Relevant to Financial Consumers
Learning Objectives
5-1 Understand other Acts, Statutes and Regulations impacting financial consumers
Topics
5.1 Right to Information Act, 2005 RTI)
5.2 SEBI (Disclosure and Investor Protection) Guidelines, 2000 (DIP)
5.3 IRDAI (Protection of Policyholders’ Interests) Regulations, 2017
Chapter 6: Regulation of Market Intermediaries in Financial Products
Learning Objectives
6-1 Compare regulations of market intermediaries in financial products
Topics
6.1 SEBI (Intermediaries) Regulations, 2008
6.2 SEBI (Investment Advisers) Regulations, 2013
6.3 SEBI (Self-Regulatory Organizations) Regulations, 2004
6.4 PFRDA Retirement Adviser) Regulations, 2016
6.5 PFRDA (Point of Presence) Regulations, 2015
6.6 IRDA (Licensing of Insurance Agents) Regulations, 2000
®
Appendix B. FPSB Certification Code of Ethics (for all FPSB certifications)
FPSB LTD. CODE OF ETHICS
Observing the highest ethical and professional standards allows professionals to serve
the interests of clients and promote the profession for the benefit of society. As part of
their commitment, professionals should provide appropriate disclosures and comply with
ethical standards when delivering advice to clients. FPSB has incorporated ethical
behavior and judgment, and compliance with ethical standards, into its global standards
for professionals. To ensure these obligations are understood, FPSB incorporates
ethical standards into its certification requirements.
FPSB’s Code of Ethics Principles are statements expressing in general terms the
ethical standards that professionals should adhere to in their professional activities. The
comments following each Principle further explain the intent of the Principle. The
Principles are aspirational and are intended to provide guidance for professionals on
appropriate and acceptable professional behavior.
FPSB’s Code of Ethics Principles reflect professionals’ recognition of their

responsibilities to clients, colleagues and employers. The Principles guide the
performance and activities of anyone involved in the practice of advice; the concept and
intent of these Principles are adapted and enforced on professionals by FPSB through
rules of professional conduct.
Principle 1 – Client First

Place the client’s interests first.
Placing the client’s interests first is a hallmark of professionalism, requiring the specialist
to act honestly and not place personal gain or advantage before the client’s interests.
Principle 2 – Integrity
Provide professional services with integrity.
Integrity requires honesty and candor in all professional matters. Professionals are
placed in positions of trust by clients, and the ultimate source of that trust is the
specialist’s personal integrity. Allowance can be made for legitimate differences of
opinion, but integrity cannot co-exist with deceit or subordination of one’s principles.
Integrity requires the specialist to observe both the letter and the spirit of the Code of
Ethics.
Principle 3 – Objectivity
Provide professional services objectively.
Objectivity requires intellectual honesty and impartiality. Regardless of the services
delivered or the capacity in which a specialist functions, objectivity requires that
professionals ensure the integrity of their work, manage conflicts of interest and
exercise sound professional judgment.
Principle 4 – Fairness
®
Be fair and reasonable in all professional relationships. Disclose and manage

conflicts of interest.
Fairness requires providing clients what they are due, owed or should expect from a
professional relationship, and includes honesty and disclosure of material conflicts of
interest. Fairness involves managing one’s own feelings, prejudices and desires to
achieve a proper balance of interests. Fairness is treating others in the same manner
that you would want to be treated.
Principle 5 – Professionalism
Act in a manner that demonstrates exemplary professional conduct.
Professionalism requires behaving with dignity and showing respect and courtesy to
clients, fellow professionals, and others in business-related activities, and complying
with appropriate rules, regulations and professional requirements. Professionalism
requires the specialist, individually and in cooperation with peers, to enhance and
maintain the profession’s public image and its ability to serve the public interest.
Principle 6 – Competence
Maintain the abilities, skills and knowledge necessary to provide professional
services competently.
Competence requires obtaining and maintaining an adequate level of abilities, skills and
knowledge in the provision of professional services. Competence also includes the
wisdom to recognize one’s own limitations and when consultation with other
professionals is appropriate or referral to other professionals necessary. Competence
requires the specialist to make a continuing commitment to learning and professional
improvement.
Principle 7 – Confidentiality
Protect the confidentiality of all client information.
Confidentiality requires that client information be protected and maintained in such a
manner that allows access only to those who are authorized. A relationship of trust and
confidence with the client can only be built on the understanding that the client’s
information will not be disclosed inappropriately.
Principle 8 – Diligence
Provide professional services diligently.
Diligence requires fulfilling professional commitments in a timely and thorough manner
and taking due care in delivering professional services.
®
Appendix C. Pricing
Enrollment - Enrollment fees are annual and are valid across all courses available. For
example, a student can enroll on 1 Jan and take all courses within 365 days without additional
charge.
Renewal - Renewal fees must be paid upon expiration of enrollment, and are valid for an
additional 365 days.
Self-Paced / Instructor-Led Registration Fee US$165 One-time enrolment fee

Recognized Prior Learning Registration Fee US$260 *Textbook fee is included
Student Renewal Fee US$110 Annual
Specialist Education Materials
- Textbooks Per course,
US$60
- Interactive Courses Required for all students
- Practice questions
CFP Certification Textbook US$120 Required for all students
Specialist Certification Exams US$61 Per exam per attempt
CFP Certification Exam US$122 Per exam per attempt
Specialist and CFP Certification /Renewal US$120 Annual
®
Appendix D. Frequently Asked Questions

Step 1: Education
1. Am I required to purchase the textbooks?
Yes, all individuals registered with FPSB are required to purchase the textbooks.
Your purchase includes access to the interactive courses and questions.
2. May I print or purchase a printed copy of the textbooks?
FPSB does not allow for printing of FPSB textbooks for copyright purposes. Each
time you’d like to access the textbooks, please log into your FPSB online platform,
MyFPSBlearning.
3. How long may I remain a student?
FPSB recommends completing the FPSB Investment Planning Certification
Specialist within the same year you start, but recognizes that the learning
process may take longer due to personal choices or circumstances. After three
years, a student would need to re-register with FPSB (and pay the registration
fee again). FPSB strongly encourages you to complete the certification in the
recommended time frame.
4. I heard about challenge status and self study. Where can I find information
about those?
For anyone registering after 31 May 2020, Challenge Status and Self Study are
no longer options. You may find it helpful to review ‘Recognition of Prior
Learning’ and ‘Self-paced learning’ respectively as those concepts are similar.
Step 2: Exam
5. I’d like to register for the exam now. How may I do this?
FPSB will announce the first exam window soon.
6. Is there a possibility to skip the FPSB Investment Planning Specialist exam on
the path to CFP certification?
No, all individuals who wish to pursue CFP certification must also pass the three
exams first, i.e. exams for FPSB Investment Planning Specialist, FPSB®
Retirement and Tax Planning Specialist, and FPSB® Risk and Estate Planning
Specialist.
7. How was the exam created?
CFP professionals in India and internationally created exam questions, and the
FPSB exam panel reviewed the weighting and composition of questions. Each
question has been reviewed by multiple CFP professionals in India as a requisite
step in exam creation.
8. When can I take the exam?
FPSB will open one-week exam windows each month. Students may sign up to
take the exam only after they have completed the education requirement for their
chosen education mode:
● Self-paced learning: Passing the three Module tests in MyFPSBlearning
● Instructor-led learning: FPSB-Authorized Education Provider has
determined pass/fail for students and notified FPSB
● Recognition of prior learning: FPSB grants recognition upon approval of
submitted evidence
9. What resources may be available to study for the exam?
®
FPSB encourages students to study the learning objectives and

knowledge items in the FPSB Investment Planning Specialist Competency
Profile; the exam blueprint; and the questions in MyFPSBlearning.
10. When will I know my score on the exam?
FPSB will take the first exam cohort data to determine the pass/fail score. This
will take up to 8 weeks. After setting the score (estimated August 2020), the
passing percentage will be set and future exam-takers will know their results
within 15 days.
11. Is there a limit to the number of times I may take the FPSB® exam?
There is no limit to the number of times you may take the exam. You may only
take the FPSB Investment Planning Specialist exam once in the one-week exam
window each month.
Step 3: Ethics
12. What are steps to complete the Ethics course?
This is an online ethics course in the FPSB online portal. You must go through
the course at your own pace and complete the knowledge check questions.
Step 4: Certification
13. How long does the process take?
This depends on the individual and different factors such as industry experience,
time to prepare, familiarity and propensity to take exams (in general), and the
extent of studying before the exam. Typically, preparations require 8-12 weeks of
study for the FPSB® Investment Planning Specialist exam.
14. How long is certification valid for?
The certification is valid for one year. An individual may renew certification after
completing the 5 Continuing Professional Development (CPD) points and
completing the other renewal requirements in the FPSB online platform.
15. How does this certification validity combine with other FPSB certifications?
Your initial certification is valid for 365 days. Additional course certifications can
be earned in that period. All specialist certifications will be benchmarked and
renewed on the date of your initial certification. For example, Sajju passes the
FPSB Investment Planning Specialist exam and certifies as such on December
31, 2020, he will renew a year from then. During that year, he may choose to
certify as FPSB Retirement and Tax Planning Specialist on June 30 and FPSB
Risk and Estate Planning Specialist on September 30. All these certifications will
renew on the same date, December 31, 2021 as they are all specialist
certifications. CFP certification will reset the renewal date to begin on the date of
CFP certification, at which point all specialist certifications earned remain valid
and will be marked to this new date.
16. If I pass the exam, may I use the marks?
No, you must be certified to use the marks.
®
Other Questions
17. I work in a firm with a lot of colleagues who want to pursue FPSB’s
certifications. We’re speaking with the corporate training department. How
does this work for us?
FPSB encourages your employer to contact us. You may individually take this as
a self-paced training, and may want to have a corporate trainer in your HR or
training department provide coaching. Alternatively, your employer may want an
FPSB-Authorized Education Provider to teach the course under the instructor-led
mode.
18. I registered before 1 June 2020, and would like to become an FPSB Investment
Planning Specialist. How may I do that?
At present, FPSB does not offer a path to transition from what is referred to as
the Legacy program (registration before 1 June 2020) and this updated education
and exam structure.
19. I’d like to learn about the other certifications. How do I do that?
You may visit https://india.fpsb.org/students/ to learn more about the other
certifications.
20. I have a different query. Who should I contact?
Student registration and payment questions: IndiaCFPStudent@fpsb.org
Exam registration questions: IndiaCFPStudent@fpsb.org
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CFP Syllabus Module 1 FPSB Investment Planning Specialist Guide

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CFP Syllabus Module 1 FPSB Investment Planning Specialist Guide

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FPSB® Investment Planning Specialist

About FPSB Ltd. and FPSB Programs in India

 FPSB® Investment Planning Specialist

FPSB® Investment Planning Specialist Overview

Steps to Initial Certification

FPSB Investment Planning Specialist

1) Education 2) Exam 3) Ethics 4) Certification

3 Education Modes Topics FPSB Online Ethics Application for

Period for Course Completion

Module Name and Description

The Personal Financial Management module provides an overview of how to evaluate

FPSB Ltd. Educational Resources

Personal Financial Investment Planning and Regulatory Environment, Law

3.2 Legislated “Client Best Interest”

1.6 Financial Management

2.7 Wealth Management

India Specific Modules/Chapters

2.4 Investment Discipline, Tools 3.4 Consumer Grievances

3. Recognition of Prior Learning

Qualification/Certification Accepted for Education Waiver Provider Institution

FPSB Investment Planning Specialist

1) Education 2) Exam 3) Ethics 4) Certification

3 Education Modes Topics FPSB Online Ethics Application for

● 75 multiple-choice questions (4 possible answer choices)

FPSB Investment Planning Specialist

Personal Financial Investment Planning and Regulatory Environment,

Cash Flow Demands and Legislated ‘Client Best

FPSB Investment Planning Specialist

Personal Financial Investment Planning and Regulatory Environment,

Performance Financial Consumers

Collection: gathering Analysis: considers Synthesis: integrates the

required calculations and resulting information to be strategies to create an

FPSB Investment Planning Specialist

1) Education 2) Exam 3) Ethics 4) Certification

3 Education Modes Topics FPSB Online Ethics Application for

Introduction Codes of Ethics

Learning Objectives Learning Objectives

Knowledge Items Knowledge Items

Step 4. Initial and Ongoing Certification

FPSB Investment Planning Specialist

1) Education 2) Exam 3) Ethics 4) Certification

3 Education Modes Topics FPSB Online Ethics Application for

Ongoing FPSB Investment Planning Specialist Certification Requirements

FPSB Coursework as Continuing Professional Development

Using your Badge and Certification Name Correctly

Appendix A. FPSB Investment Planning Specialist Competency Profile

Module IA. Global Personal Financial Management

Chapter 1: Personal Financial Situation

Chapter 2: Cash Flow Demands and Conflicts

Chapter 3: Budget and Emergency Fund

Chapter 4: Debt and Financing Alternatives

4-3 Analyze financing alternatives

Chapter 5: Financial Management Strategies

Chapter 6: Time Value of Money

Module IB. India-Specific Personal Financial Management

Chapter 1: Cash Management/ Liquid Investment Products in India

Chapter 2: Sources of Personal Credit/Debt in India

Chapter 3: Credit/Debt Management

3.3 Types of Loans to finance varied goals

Module IIA. Global Investment Planning and Asset Management