CERTIFICATE FOR FINANCIAL ADVISERS - CeFA
MODULE 1
Unit 1- Introduction to Financial Services Environment and Products
The purpose and structure of the UK financial services industry |
The main financial asset classes and their characteristics, covering past performance, risk and return |
The main financial services product types and their functions |
The main financial advice areas |
The process of giving financial advice, including the importance of regular reviews of the consumer’s circumstances |
The basic legal concepts relevant in financial advice |
The UK taxation and social security systems and how they affect personal financial circumstances |
The impact of inflation, interest rate volatility and other relevant socio-economic factors on personal financial plans |
Unit 2 - UK Financial Services and Regulation
The main aims and activities of the Financial Services Authority (FSA) and its approach to ethical conduct by firms and individuals |
How other non-tax laws and regulations are relevant to firms and to the process of advising clients |
The FSA’s approach to regulating firms and individuals |
How the FSA’s rules affect the control structures of firms and their relationship with the FSA |
How the FSA’s Conduct of Business Rules apply to the process of advising customers/clients |
How the Anti-Money Laundering rules apply to dealings with private and intermediate customers |
The main features of the rules for dealing with complaints and compensation |
How the Data Protection Act 1998 affects the provision of financial advice and the conduct of firms generally |
MODULE 2
Unit 3 - Principles of Investment
The macro-economic factors that affect investment returns |
The basic principles of taxation applying to the investments of UK resident and domiciled individuals |
The role of ethical investment and socially responsible investment in financial advice and charitable giving |
How investment returns are related to investment risk and how that risk is measured |
The risks faced by investors and how an investor’s risk profile is determined |
The importance of asset allocation in the investment process |
How other issues affect investment planning |
Tax planning strategies and tax calculation rules and procedures |
The importance of keeping up-to-date with trends and changes in the legal framework for providing advice |
Consumers’ circumstances and suitable investment products, taking account of any existing arrangements |
Unit 4 – Investment Products
Different asset classes and their key features |
Different product types and their key features |
Suitable investment product solutions to specific consumers’ circumstances |
MODULE 3
Unit 5 – Protection
The purpose and scope of financial protection and how the main types of state benefit and existing protection arrangements have an impact on protection planning |
The main types of life assurance policy, their functions, how they are arranged, and the tax rules and the use of life assurance in mitigating inheritance tax and estate planning |
The use of trusts in life assurance |
The main types of income protection insurance policies, their functions, how they are arranged and the tax rules |
The main types of critical illness insurance policies, their functions, how they are arranged and the tax rules |
The main features and functions of mortgage payment protection insurance (MPPI) and accident, sickness and unemployment (ASU) insurance; |
The main features and functions of personal accident insurance |
The main features and functions of long-term care insurance and the context in which it is used |
The main types of medical insurance and their uses |
The main needs for business insurance protection and how they can be met. |
Consumers’ circumstances and suitable protection products, taking account of any existing arrangements |
Suitable protection products to specific consumer's circumstances |
Unit 6 - Retirement Planning
The main aims and strategies for retirement planning |
The main tax treatment of pensions |
The main state pension benefits to which individuals may be entitled in retirement and the impact they may have on retirement planning; |
The basic principles underlying defined benefit pensions schemes |
The basic principles underlying defined contribution pension schemes and how individuals and their employers can build up retirement benefits by contributing to them |
How pension funds can be invested to provide capital and income in retirement |
The main criteria that can be used in choosing pension contracts and providers |
The main options for crystalising benefits for individuals with defined contribution scheme |
The suitability of registered and other types of investments which can be used to provide retirement benefits |
(In summary form) The main rules governing pensions and divorce |
Consumers’ circumstances and suitable retirement planning products, taking account of any existing arrangements |
Suitable retirement planning product solutions to specific consumers’ circumstances |
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