IBCPF Instituto Brasileiro Certificação de Profissionais
Financeiros
Detailed Program for the CFP Certification
Certified Financial Planner
Index
CFP Certification
Page 2
Module I – Investments and Risk Management
Module II – Complementary Social Security and Insurance
Module III- Succession and Tax Planning
Module IV- Financial Planning and Ethics
Page 3
Page 11
Page 15
Page 17
CFP Certification
The Certified Financial Planner – CFP qualification is an international certification of
distinction, of a non-mandatory nature, which prepares the professional to exercise the
activity as a personal financial consultant and planner. In Brazil, the Brazilian Institute
for Certification of Financial Professionals – IBCPF is the certifying agency affiliated to
the Financial Planning Standards Board - FPSB - the responsible entity for the
worldwide promotion of the CFP name. The program for the CFP Certification
Examination has been adapted by the IBCPF to Brazilian standards and legislation to
test the professional’s knowledge over an extensive range of products and services
available in the Brazilian and international market.
The present program is made up of four major themes: (I) Investments and Risk
Management; (II) Complementary Social Security and Insurance; (III) Succession and
Tax Planning; (IV) Financial Planning and Ethics. The breakdown of these themes into
their respective topics, items and sub-items in this document detail the subjects which
are considered essential for the Individual and Family Financial Planning professional
to perform his/her activities. Each question of the certification examination is connected
to one of the following topics and the percentages shown against each module indicates
the relative weighting of the approximate number of questions of this particular module
in the examination.
IBCPF certification in Brazil accompanies world standards as defined by the FPSB.
These standards are developed with a view to guaranteeing access to the services of a
CFP professional, a competent and ethical personal financial planner who has a proven
practical experience in providing personal financial planning services.
Detailed Program for the Certified Financial Planner CFP
Certification Examination.
Module I – Investments and Risk Management (40% Weighting)
Objectives: To qualify professional performance principally through the application of
the modern techniques and concepts of asset allocation. The objective is to train
professionals to understand the process of financial intermediation and evaluate the
principal economic indicators with repercussions on the financial market. Sequentially,
the structure and functioning of the Brazilian and international financial system and
their principal products. Finally, to provide models and evaluation techniques applied to
the products negotiated in the fixed and variable income markets. The module also
provides an introduction to the fundamentals of risk for each one of the markets,
offering a basis for interpretation of the volatility of the securities.
I-
Macro-economy – Currency and Banks
1
Concepts and Functions of Currency
1.1 – Means of payment and monetary aggregates.
1.2 – Relevant concepts of supply and demand of currency in the economy.
1.3 – Banks’ capacity for creating currency.
1.4 - Currency and financial development. Actions of the Central Banks,
which alter the supply and demand of currency and their impacts on the
development of a country.
2 Financial Intermediation
2.1 – The role of the capital markets in the Brazilian economy.
2.2 – Characteristics and implications of efficient and inefficient capital
markets
2.3 – Formation of savings and the capital markets.
2.4 – The role of government in the development of the capital markets.
3 – Economic Environment and Indicators
3.1 – Inflation/deflation and the financial market. Inflation indicators: IGP,
INPC, IPCA, IGP-M
3.2 - Formation of interest in the economy. Interest rates and the Brazilian
financial market: TJLP, TBF, TR. The Selic rate and COPOM. The CDI
rate and the interfinancial market.
3.3 - Formation of the banking spread.
3.4 - Fundamental economic variables: level of income, employment,
salaries and GDP.
3.5 - Economic policies: monetary, fiscal and forex.
3.5.1 – Monetary policy: inflation targets; monetary policy
instruments; open market, rediscount and compulsory
deposits - concepts and impacts on the market; COPOM’s
attributes and impact of the decisions; relation of interest
and economic activity.
3.5.2
Fiscal policy: necessity of financing the public sector and
implications for public debt.
3.5.3 Forex policy: public debt indexed to exchange rate;
foreign exchange rate coupon; international reserves;
foreign exchange rate regimes; relations of parity between
currencies and concepts.
3.6 – External Accounts: Trade Balance, Current Transactions, and Capital
Account. Concepts.
4 – Financial System
4.1 – Domestic Financial System
4.1.1. Member financial institutions: Multiple Banks,
Investment Banks, Securities Dealers and Brokers,
Foreign Exchange and Futures Dealers and Brokers
principal functions and attributes; portfolios.
4.1.2 – Attributes of regulatory organs and agencies:
CMN (National Monetary Council), BACEN (Central
Bank of Brazil), CVM (Brazilian Securities and Exchange
Commission).
4.1.3 – Security of the system. Pertinent legislation on
risk control of the financial institutions.
4.1.4 – Money laundering: legislation and correlated
regulation; concept and typification; who is subject to the
law and the regulation; identification of clients and
maintenance of the registers; communication of atypical
and suspect operations; policies and prevention
procedures; application of the “know your client”
principle.
4.1.5.- Brazilian payments system (SPB) - Function and
instrumentalization.
4.1.6. Functioning and structure of CETIP. Risks
protection system. Securities registered and settled by the
system
4.1.7.- Functioning and structure of the SELIC. Securities
registered and settled through the system.
4.1.8. – Registration of foreign capital and regulation of
foreign investments with the Central Bank in the Brazilian
financial and capital markets.
4.1.9. – Compliance: image risk (reputation) and legal risk
(non-compliance with the legislation and regulations);
implications for failure to adhere to the principles and
rules of legal and ethical compliance; internal controls;
segregation of activities in the financial institutions.
4.1.10 – Self-regulatory organs: attributes. Conducting of
the processes for Self-Regulation of the Institutions and
the Markets.
II – Investment Products- Characteristics and Regulation
1- Fixed Income Instruments
1.1 – Regulation of the fixed income securities market in Brazil
1.2 - FGC – Credit Guarantee Fund
1.3 - Structure of interest rates.
1.3.1 – Spot structure of interest rates
1.3.2 – Forward market structure of interest rates.
1.3.3 - Structure of interest rates in Brazil.
Comparisons with the US market. Construction
of interest rate curves in Brazil: prefixed, US
dollar, CDI.. Annual over rate.
1.4 – Pricing of securities
1.4.1 Market price. Premium and discount. Required
return on investment.
1.5 – Concepts of coupon rate, yield to maturity and current yield.
1.6 – Investment terms and relation with prices of the securities.
1.7 – Duration of securities. Types of duration: modified, effective and
Macaulay. Convexity.
1.8 - Corporate bonds x government securities. Price formation.
1.9 – Government securities market. Negotiation structure.
1.10 Principal public and private securities negotiated in the Brazilian
financial system: issuers, characteristics, risks, legal and negotiation
aspects, forms of contracts, profile of the investors.
1.10.1 – Bank Certificate of Deposit Bank/ Deposit
Receipt (CDB/RDB)
1.10.2 - Interbank Deposit Certificate (CDI).
1.10.3 - Discount of trade bills (duplicatas) and
promissory notes. Factoring operations. Vendor
operations
1.10.4 – Promissory Notes
1.10.5 – Debentures
1.10.6 – Securitzation of Receivables.
1.10.7 – Mortgage bills and real estate bills.
1.10.8 – Savings account
1.10.9 – Real estate receivables certificates
1.10.10 - Credit and credit rights securities. Bank credit
certificate (CCB). Rural producer certificate
(CPR).
1.10.11 - Government securities
1.10.11.1 – National Treasury Bills
1.10.11.2 – Financial Treasury Bills
1.10.11.3 – National Treasury Notes
1.10.11.4 – Treasury direct. Structure
and form of negotiation
1.11 – Measures of liquidity of the securities
1.12 - Types of risk for investments in fixed income securities.
1.12.1 - Credit
1.12.2 – Operational
1.12.3 – Market (volatility)
1.12.4 – Liquidity
1.12.5 - Country
2- Variable Income Instruments
2.1 - Regulation of the equity market
2.2 – Corporate Law. Shareholders’ rights; remuneration of the shares –
dividends, interest on shareholders’ capital and stock dividends:
concepts, definitions and the legislation; duties and responsibilities of
listed companies’ management.
2.3 – Corporate Governance. General concepts of good Corporate
Governance practice and self-regulation of the Market: primers
published by the CVM, Brazilian Institute of Corporate
Governance and Bovespa (São Paulo Stock Exchange).
2.3.1 – Bovespa’s Level 1, Level 2 and
Novo Mercado corporate governance: criteria for
adhesion/listing and impact on shareholders’
rights.
2.4- Basic aspects of opening of capital. Listing on the stock
exchange or organized over the counter market. Registration as a listed company at the
CVM and Bovespa.
2.5 – Primary and secondary market. Concepts and economic
functions.
2.6 – Process of public share subscription.
2.7 – Shares: types, classes and kind.
2.8 – Trading in equities
2.8.1 – Cash market in equities
2.8.2 – Forward equity market
2.8.3 – Options market
2.9 – Stock exchanges and over the counter market. Concepts
2.9.1 –Types of trading orders
2.10 – Stock exchange indices: Bovespa stock index, IBX, other
stock indices in Brazil.
2.11 - Return on Shares.
2.12 – Dividends and interest on shareholders’ capital: concepts
and impacts on prices and quantities of the investor’s shares.
2.13 – Market capitalization. Capital gains.
2.14 – Subscription rights
2.15 – Stock dividends, split, reverse splits: concepts and impacts
on prices and quantities of the investor’s shares.
2.16 – Measures of liquidity of the shares
2.17 – Indicators for analyzing shares
2.17.1 – Earnings per share – EPS
2.17.2 – Price/Earnings – P/E
2.18 – Pricing of the shares. Relevant aspects: Multiples (P/E and
EV/EBITDA). Distinction between Technical Analysis (Chartist) and Fundamental
Analysis
2.18.1 – Par value
2.18.2 – Book value
2.18.3 - Settlement value
2.18.4 – Market value
2.19 – Concept of Discounted Cash Flow Concept
2.19.1 – Discounted dividend flow
2.19.2 – Free Cash Flow to Equity
2.20 -Types of risk involved in variable income investments
2.20.1 – Market (volatility)
2.20.2 - Liquidity
3
– Derivative Instruments
3.1 – General concepts
3.1.1 – Forms for using derivatives.
3.1.2 – Hedge or leverage.
3.1.2.1 - Hedge operation. Hedge
decision.
3.1.2.2 – Asset lending operations.
3.1.2.3 – Hedge instruments.
3.1.2.4 – Hedge with futures and
hedge with options, strategies.
3.1.2.5 – Hedge on the commodities
exchange.
3.1.2.9 – Forex hedge.
3.1.2.7 – Leverage with futures
contracts.
3.1.2.8 –Leverage with options.
3.1.2.9- Leverage with overseas
securities via borrowing.
3.1.2.10 – Alavancagem sintética
3.2 Financial futures and commodities contracts,
3.2.1 – General and operational
characteristics,
3.2.2 – Formation of future price. Future
price and expected spot price.
3.2.3 –Principal futures contracts. Strategies
with futures.
3.3 – Options
3.3.1 – General and operational
characteristics.
3.3.2 – Pricing of options: binomial, Black
& Scholes, volatility. Purchase and sale of volatility.
3.3.3 – Principal operations with options.
Strategies with options: purchase and sale of call and put options,
cap, collar, box.
3.4 – Forward contract, purchase and sale of currency without
physical delivery.
3.4.1 - General and operational
characteristics.
3.4.2 – Pricing and negotiation.
3.5 – Swaps
3.5.1 – How swaps work. Regulation of
currency and interest rate swaps.
3.5.2 - Swaps contracts. Settlement and
guarantee system.
3.5.3 – Valuation of swaps.
3.6-
4
Risks with derivatives
3.6.1 – Interest rate risk
3.6.2 – Base risk
3.6.3 – Financing risk
3.6.4 – Credit risk
3.6.5 – Volatility
– Brazilian Mercantile & Futures Exchange (BM&F)
4.1 – How the market works. Principal contracts negotiated:
Ibovespa, interest rate, forex rate, and external debt securities.
Mini contracts.
4.2 – CBLC’s structure. Collateral systems. (margin calls and
daily adjustments).
4.3 – Regulation of operations on the BM&F.
III Portfolio Management
1- Investments under Conditions of Uncertainty
1.1 - The investment opportunity curve. The indifference curves
for the investor. The optimum investment decision:
maximization of investor satisfaction.
1.2 - Risk and uncertainty. The utility function for the investor.
Risk aversion. Analysis of the utility function. How to track
the utility function of an investor.
2- Portfolio Theory and Diversification
2.1 - General concepts
2.2 – Expected return from a portfolio.
2.3 – Risk and covariance. Risk diversification. Markowitz R2
model.
2.4 – Diversifiable risk and systematic risk.
2.5 – Risk premium and risk free rate.
2.6 – The efficient frontier. Portfolios containing securities with
risk, with risk-free fixed income securities and securities with
leveraged risk.
2.7 – Choice of optimum portfolio. Best relation between return
in excess and risk.
3- Asset Pricing Model – CAPM
3.1 – General concepts.
3.2 – Line characteristic.
3.3 – Capital markets line – CML.
3.4 - Security market line – SML.
3.5 – Arbitrage Pricing Theory – APT.
4 – Asset Allocation
4.1 - Concept. Definition of asset classes and correlation.
4.2 – Criteria for allocation of assets.
Rebalancing
4.4 – Asset Allocation x Investor Profile and time horizon.
5 – Fixed Income Securities Portfolios
5.1 – Benchmark. Performance analysis.
5.2 – Calculation of duration of securities and portfolios
5.3 – Management of duration of the assets and the portfolio. Convexity of
fixed income securities. Modified, effective and Macaulay duration.
5.4 – Immunization of the portfolio. Construction of volatility curves.
5.5 – Protection of fixed income securities portfolios using the DI futures
market (interfinancial deposits).
5.6 – Management strategies (asset and liability portfolios) and types of
portfolios. (directional and non-directional).
6 – Equity Portfolios
6.1 – How to evaluate the performance of variable income portfolios.
6.2 - Profitability indicators. Internal rate of return method and quotas
method.
6.3 - Benchmarks (Ibovespa, IBX, others).
6.4 – Strategies for formation of investment portfolios with asset and
liability management.
6.4.1 – Selection of the assets. Efficient diversification.
6.4.2 - Purchasing opportunity
6.4.3 – Leverage and portfolio protection.
6.5 – Evaluation of equity portfolio managers.
7 – Measures and Models of Risk Management
7.1 – Sharpe index of risk and return
7.2 – Treynor Index. Modigliani Index
7.3 – Value at risk - VAR, return variance (standard deviation).
7.4 – Stress test.
IV – Asset Administration and Management. Third Party Funds
1 – Investment Funds
1.1. General Aspects
1.1.1 – Investment Funds and Investment Funds in Quotas.
Types of funds: open-end, closed end, with grace period without
grace period and exclusive.
1.1.2 – Condominium.
1.1.3 – Quota.
1.1.3.1 – Classes of Quota Holders
Equity
1.1.4- Ownership of Investment Fund Assets – excluding Real
Estate funds.
1.1.5
1.1.6
1.1.7
1.1.8
– Segregation between management of proprietary and
third party resources (Chinese Wall).
– Compliance applicable to asset management companies.
– Rights and duties of condominium members.
–Segregation of functions and responsibilities.
1.1.8.1 – Administrators
1.1.8.2 - Managers
1.1.8.3 – Dealers
1.1.8.4 – Depositories
1.1.8.5 – Independent Auditor
– Purpose of the Fund and Investment Policy. Definition
and purpose.
1.1.10 – Investment Fund versus individual assets.
1.1.11 – Disclosure of information for sale
1.1.11.1
– Prospectus, Regulation and Term of
Adhesion
1.1.12 – Rendering of accounts to quota holders: disclosure of the
quota value and profitability, periodicity of publication of
the balance sheets and account statements, General
Meetings and rules of composition and diversification of
the funds portfolios.
1.1.13 – Factors which affect the quota value.
1.1.13.1
– Composition of the portfolio and inherent
risks.
1.1.13.2
– Methodology adopted for accounting for
assets (Marking to Market)
1.1.13.2.1 – Effect of not Marking to Market
on holding assets to maturity.
1.1.13.3
– Management fees, success fee and other
expenses.
1.1.14 – Investment and redemption dynamic
1.1.14.1- Conversion of monetary resources into quotas
and quotas into monetary resources (opening versus closing quota,
maximum terms, movement of large volumes/quota holders.
1.1.15 – Investment for Account and Order. Operational
characteristics, responsibilities, direct vote in Meetings.
1.2 – Principal management strategies.
1.2.1 - Index Funds (liabilities)
1.2.1.1 – Fixed Income: DI; Forex and IGP-M
1.2.1.2 -Variable Income: IBOVESPA and IBX.
1.2.1.3 – Multi-Index: Composite Benchmark
1.2.1.4 – Strategies for maintaining adherence to the
reference index and its limitations.
1.2.2
– Active Funds:
1.2.2.1 – Fixed Income: strategies for exposure to market
risks (prefixed interest rates/coupon), credit and
liquidity.
1.2.2.2 -Variable Income
1.2.2.3 -Leverage and strategies for exposure to market,
credit and liquidity risks.
1.3 –Principal Investment Fund Models
1.3.1 – Classification of the Funds in terms of asset
composition.
1.3.1.1
– Short Term Fund
1.3.1.2
- Benchmarked Fund
1.3.1.3
- Fixed Income Fund
1.3.1.4
- Equities Fund
1.3.1.5
- Forex Fund
1.3.1.6
- Foreign Debt Fund
1.3.1.7
- Multimarket Fund
1.1.9
1.3.2 – Classification of the Funds in terms of average portfolio
tenor.
1.3.2.1
-Short and long-term funds
1.3.3 – Other Funds: definition and principal characteristics
1.3.3.1 – FIDCs Investment Receivable Funds
1.3.3.2 – Real Estate Funds
1.4 – ANBIDs Self-Regulatory Code for Investment Funds.
1.4.1 – General principles
1.4.2 - Prospectus and ANBID Seal
1.4.3 – Performance disclosure. Guidelines for publicity and
disclosure of investment funds technical material.
Disclosure and comparison of profitability.
1.4.4 –Marking to Market.
1.4.5 -Distribution of Funds
1.4.6 –ANBID categories. Classification and parameters.
1.5 – Management Fees.
1.5.1 – Definition and purpose
1.5.2 – Types and forms of collection:
1.5.2.1 – Success fee (Water line Concept)
1.5.3 - Alteration rules
1.5.4 –Other expenses.
2- Managed Portfolio
2.1 – Concept and principal characteristics (contract, flexibility
of portfolio composition, investors and taxation).
3-Investment clubs
3.1 -Concept and principal characteristics (constitution,
bylaws, Bovespa registration, rules for portfolio
composition, investors and taxation)
3.2 – Regulation. Rules for investment and redemption.
3.3 - Advantages for the investors.
V – Taxation
1- Taxation aspects of the principal financial market securities and investment
funds: taxable event, calculation base, tax rates, entity responsible for collection,
legal tenors, offsetting of losses, exemption limits.
1.1 – Taxation on financial investments in fixed income securities, IT and
IOF.
1.2 - Taxation on operations conducted on stock exchanges, commodities
and futures exchanges and similar. Income tax on cash operations, day
trades and swaps.
1.3 – Taxation of investments in fixed and variable income funds and in
Investment Clubs. Income tax.
1.4 – Taxation on investments in short and long-term funds. Six-monthly
collection of income tax through the “come cotas” system – tax rates and
characteristics.
1.5 –Taxation on Swap and forward currency contracts.
2- Taxation of other operations in the financial market: Real Estate Funds,
Mortgage Bills and Real Estate Receivable Certificates.
3- Taxation aspects on investments realized by Brazilian overseas. Brazilians
Internal Revenue Service income tax and norms. Declaration and information to
the Central Bank and the Internal Revenue Service.
VI – Overseas Investments
1 – Forex Rates
1.1 – Relations of parity between currencies. Conversion of currencies
1.2 – International transfer of Reais. Regulations.
1.3 – Management of Currency Risks and hedging
2 International Diversification. Active and passive management – risks and
advantages of international diversification. Diversification strategies and selection
of countries, sectors, management styles and countries. Determining factors and
correlations.
3 – Equities
3.1- Markets and their instruments.
3.2 – Concepts and negotiation and pricing techniques.
3.3- Equities of foreign companies in the USA. American depositary
receipts: Level 1,2,3 ADRs and 144-A
4 – Investments in fixed income securities (Bonds, Notes, Bills)
4.1 – Markets and their instruments. Characteristics of principal securities of
government, companies and agencies
4.1.1 – Sectors and ratings. Investment grade x high-yield.
Impact on prices. Risks.
4.2 –Concepts and negotiation and pricing techniques.
4.3 – Issues of companies and the Brazilian Government in the international
market: Global bonds, Eurobonds, securities in US$ and Euros, call and
put clauses.
4.4 – Other Products: fixed rate notes, floating rate notes, convertible bonds,
zero-coupon bonds, certificates of deposit.
5 – Futures, Options and other derivative instruments
6 – Alternative Investments overseas
6.1 –Commodities. Principal contracts negotiated in London, New York and
Chicago. Operational characteristics.
6.2 – Hedge Funds, Mutual Funds, Funds of Funds, Exchange-traded Funds
(EFTs) Closed-end Investment Companies and Private Equity
6.2.1 - Concepts and characteristics
6.2.2 – Risk and performance evaluation.
Detailed Program for the Certified Financial Planner CFP
Certification Examination.
Module II – Complementary Social Security and Insurance (15%
Weighting)
Complementary Social Security
Objectives: To provide input for the insertion of Complementary or Private Social
Security in the context of individual and family Financial Planning, preparing strategies
which take into account technical and taxation aspects of the products and the security
market in addition to factors that affect individuals in the active and inactive
(retirement) periods of their lives.
1- Social Security or Official
1.1 – Repartition System
1.2 – Demographics
1.3 – Level of benefits
1.4 –Types of benefits
1.5 – Social Security Reform. Current rules, limits and restrictions.
1.6 – Public sector social security and INSS (Private sector social security)
1.7 – Composition of expenses (active workers x beneficiaries)
1.8 –Social security factor and its impact on benefits
2- Social Security x Private Pension Plans
2.1 – Level of the benefit of the INSS and Complementary Pension Plan
2.2 – Impact of Social Security reform on future generations
3-
Complementary Pension Plan
3.1 – Background to private pension plans
3.2- Financial vehicles and available products
3.3- Technical characteristics that influence the product. Management
fees, carrying costs, portability, transfer between plans and
redemptions.
3.4- Principal products and vehicles (VGBL, PAGP, PRGP, Instituted
Funds, FAPI).
3.5- Comparison between an EAPC (Open Complementary Pension Plan
Entity) and EFPC (Closed Complementary Pension Plan Entity).
Operational characteristics.
3.6- Concept of DB and DC. Comparisons and risks to the clients
3.7- Comparison between PGBL x VGBL x Traditional Open Pension
Plan.
3.8- Notions of Corporate Plans. Operational characteristics.
3.9- Legislation (taxation and products)
3.10- Comparison between Progressive Tax Regime and Regressive Tax
Regime.
3.11- Notions of investments of resources/reserves of the Pension Plans.
3.12- Social security market agents and regulators (SUSEP, SPC, CVM,
SRF and CMN)
4 Investor Profile x Product Options
4.1 – Selection of different product options for retirement or investment
4.2 – Impact of interest over long periods in the formation of savings.
4.3 - Comparison with Investment Funds
4.4 – Investor’s current composition of income and savings and his/her
planned requirements for retirement .
5 Meeting the Demand
5.1 – Concept of Wealth Management considering Complementary Pension
Plans as part of the financial planning process.
5.2- How to work and analyze the variables that influence the simulation
of future benefits.
5.3- Selection of the most appropriate product.
5.4-
Definition (design of) of the most appropriate plan considering
starting age, retirement age, contribution value, benefit value, tax
regime, among other characteristics.
6 Final Evaluations
6.1 – Criteria for considering the choice of pension fund management
company
Analysis and Selection of Insurance
Objectives: To study basic concepts of insurance from the point of view of the
seller of insurance and not the manager. The importance of insurance for the wellbeing and security of personal net worth is emphasized together with how insurance
fits into personal financial planning. To provide an understanding of insurance
coverage, its legal aspects and basic fundamentals and exposure to risk, looking
principally at property and personal insurance: household, auto, life, personal
accident and health.
1
-Principle of Insurance
1.1 - Basic concepts of insurance
1.2 – Purposes and characteristics: welfare, uncertainty and mutualism
1.3 - Classification of insurance: social and private
2 – National Insurance System and Markets
2.1 – National Council of Private Insurance and Superintendency of
Insurance
2.2 – Brazilian Reinsurance Institute – IRB
2.3 – Insurance Companies and Insurance Brokers
2.4 – Insurance Markets: comparisons between domestic and international
market. Liquidity of the markets and characteristics of the products.
2.5 - Insurance overseas. Legal aspects in Brazil for the purchasers (term
life and universal life insurance).
3 – Legal Aspects of Insurance
3.1 – Legislation applicable to insurance activities
3.2 – Juridical nature: bilateral or imposing reciprocal obligations,
remunerated, random, consensual, nominated formal, committed and in
good faith.
3.3 - Basic components of an insurance contract: proposal, policy
endorsement, amendments, and registration.
3.4 - Legal obligations of the insurer and the insured party.
3.5 - Defeasance and nullification of the Contract. Statute of limitation..
Subrogation.
3.6 - Indemnification. Rescission.
4
-Basic Fundamentals of Insurance
4.1 – Economic and social risks and consequences of claims.
4.2- Risks: personal, material, financial, subjective, objective
4.3- Insurance premium and types: pure, commercial or tariff premium,
gross, additional etc. Amount insured.
4.44.54.6-
Types of coverage.
Claims/Losses. Moral and property damages, personal injury.
Insurance obligations and self-insurance.
5 Identification of Exposure to Risk. Transfer of Risk. Residential Insurance
5.1- Residential Insurance: fire, lightening strikes, explosion, burglary or
larceny, whirlwind, hurricane, cyclone, tornado, hailstorm, low
voltage equipment, electrical damage, impact aircraft and land-based
vehicles, rental losses or expenses, provisional accommodation
expenses, moving expenses, riots and strikes, flooding, structural
collapse, civil liability etc.
6- Identification of Exposure to Risk, Transfer of Risk. Auto Insurance
6.1- Auto Insurance and Optional Civil Responsibility: basic coverage:
collision, rollover or accidental skidding, accidental fall of a vehicles
from precipices and bridges, accidental fall at third party property,
fire, burglary, theft of vehicle (total or partial), accidents during
transportation, inundation, flooding, hailstorm, whirlwind, lightening
strike etc.
6.2- Additional coverage: accessories, expansion of the insured value,
equipment, 24 hour assistance, etc. Occurrence and settlement of
claims. Tariff classification, fees and bonus.
6.3- Optional Civil Responsibility. Civil Code. Purpose of the insurance,
Risk coverage. Amount insured and guarantee. Limit of
responsibility. Fees and bonus. Occurrence and settlement of claims.
6.4- Personal Accidents Passengers. Death, permanent invalidity,
medical-hospital expenses.
7
Identification of Exposure to Risk. Transfer of Risk. Personal Insurance.
Personal Accidents
7.1- Personal Insurance: personal accidents.
7.2- Insured person, insurer, risk, premium, fees, indemnification,
beneficiary.
7.3- Guarantees of insurance: death, permanent disability, medicalhospital expenses, and daily payments during temporary incapacity.
8 Identification of Exposure to Risk. Transfer of Risk. Personal Insurance: Life
Insurance
8.1- Life insurance: legal provisions. Insurance models.
8.2- Entire life insurance. Temporary insurance. Insurance in the event of
survival. Fixed term insurance.
8.3- Combined insurance. Combined entire life with others. Combined
temporary with others.
8.4- Life insurance, the insured individual surviving to the expiry date of
the contract.
8.5- Fixed term. Ordinary life insurance. Extensions to ordinary life
insurance. Pure and mixed endowment insurance. Child endowment
insurance. Child education insurance. Home mortgage insurance.
8.6- Classification: savings and insurance income plan. Joint insurance:
couples, company and project partners etc.
8.78.8-
General policy conditions. Grace period, incontestability, surrender
value, valor saldado, extended insurance, loan, rehabilitation.
Redeemable life insurance.
9 Identification of Exposure to Risk. Transfer of Risk. Health Insurance
9.1Definitions. Self management or auto-program. Administration plan.
Group Medicine Insurance. Medical cooperative.
9.2Basic Guarantees of the Insured Person. Hospital and medical
expenses in the event of hospitalization, minor surgery and
outpatient treatment. Removals.
9.3Accessory guarantees: medical consultations, complementary
examinations, physiotherapic treatment, dental treatment, waiving of
payment in case of death of the insured person.
9.4- Special guarantees: extraordinary expenses and those of
accompanying the insured person, private nursing, hospitalization for
convalescence , senility and rest home, etc.
9.5- Responsibility for premium calculations. Brazilian Medical
Association. Grace Periods. Reevaluation of the premiums.
Accredited services. Reimbursement plans. Waiving of grace period.
10 - Identification of Exposure to Risk. Transfer of Risk. Credit Insurance
10.1- Coverage: internal credit, rental surety, loyalty, guarantee,
obligations.
10.2- Consortium insurance. Mortgage loan insurance. Leasing insurance,
etc.
10.3- Other credit insurance.
11- Identification of Exposure to Risk. Transfer of Risk. Business Insurance.
11.1 The various types of business insurance
11.2 Objective, object and concept of loss of profits insurance.
11.3 Insurance of engineering risks. Coverage: civil works under
construction, machinery and electronic equipment, loss of profits,
operational risks.
11.4 Insurance of domestic transportation services, importation and
exportation.
12- Identification of Exposure to Risk. Transfer of Risk. Civil Liability
12.1 Basic characteristics. Legislation.
12.2 Action, negligence, the relation of fortuity and damages, guarantees
and coverage.
12.3 Civil liability models.
13- Reinsurance
13.1 Reinsurance. Quota share
13.2 Reinsurance of civil liability excess. Reinsurance of damages excess.
13.3 Alternative Risk Transfer. Umbrella Coverage.
14- Tax Aspects of Insurance
14.1 Taxation of insurance contracts: IOF and IT
Detailed Program for the Certified Financial Planner CFP
Certification Examination
Module III- Succession and Tax Planning (20% Weighting )
Succession Planning
Objectives: To prepare the professional for decisions that must be taken for
instructing successors in readiness to take over the family and business assets. It is
common for a business to be handed down through various generations, the success of
this process being directly related to the extent to which the individuals involved are
prepared for the consolidation and expansion of the assets inherited. The Certified
Financial Planner should further understand the contemporary challenges arising from
major changes in the domestic and international scenario, identifying the opportunities
and strategies of different family and succession structures. Various other components
of succession planning are examined, notably fiscal aspects, family law and
negotiations, and succession planning covering personal and real property.
1- Family Company
1.1- Definitions, problems and potential conflicts.
1.2- Success in the family company.
1.3- Education of the company directors. Power and policy in family
organizations
1.4- Conflict in migration of a family structure to a professional one.
2- Board of Directors
2.1Functions of the Board of Directors. Constitution and
Responsibilities.
2.2New strategies for corporate management.
2.3Management styles.
3- Negotiations involving Family Companies
3.1Mergers and acquisitions.
3.2Joint ventures
3.3Family holding companies.
4- Succession Law
4.1- Fundamentals of the civil code. Successions law.
4.2- Succession in general. Legitimate succession and executorship.
Freedom to make a will. Succession pacts.
4.3- Transmission of inheritance. Taxes. Inheritance overseas.
4.4- Estate. Valuation of goods and taxes. Removal of the executor.
4.5- Distribution of estate: concept, type and lifetime distribution of
estate. Taxation.
4.6- Disinheritance: concepts, cases and executing disinheritance.
4.7- Acquisition capacity via a will. Capacity and incapacity.
4.8- Succession of the investments in private pension funds, of either an
open or closed nature, FAPI, PGBL, PGBG type and similar.
4.9-
Life insurance as an instrument for personal financial planning.
Tax Planning
Objectives: To prepare the professional to understand and evaluate the impact of
charges and taxes on the various activities exercised by people and their repercussions
on their financial positions. The examination of the coverage of taxation on citizens is
far-reaching ranging from the consumption of essential goods (food, place of abode,
basic services, etc.), even affecting decisions on savings and investments. A basic
concern of this segment is to ensure that the professional understands the tax structure
from the point of view of tax planning as part of his/her overall financial planning.
1- Basis for the Legal Sustainability of Taxes
1.1- Constitutional provisions.
1.2- Taxation provisions.
1.3- Concepts and characteristics of: a taxable event, creditor, debtor, tax
rates, statute of limitations, loss of procedural rights.
1.4- Principles of fundamentals of annuity, contributory capacity, of nontaxed persons, tax exempt persons, double taxation, accumulative
effect of taxes, unconstitutionality.
1.5- Comparison of the domestic tax burden with other countries.
1.6- Forms of compensation for work with and without a labor contract
and the differences in tax treatment. Advantages and disadvantages
from the point of view of the contracting party and the contracted
party.
1.7- Forms of sharing and distribution of results of a corporate entity with
a view to reducing taxable impacts.
2- Taxes and Federal Contributions
2.1- Corporate income tax – IRPJ, Personal income tax – IRPF and Social
Contribution on Net Income – CSLL: basic aspects.
2.2- Income tax withheld at source – IRRF and annual personal tax
declaration, simplified and complete models. Characteristics of the
declarations and Internal Revenue Service legislation.
2.3- Notions of import tax.
2.4- Notions of excise tax – IPI.
2.5- Tax on credit, forex and insurance operations – IOF
2.6- Social contribution on turnover – COFINS.
2.7- Contribution to PIS/PASEP.
2.8- Provisional contribution on banking and financial transactions –
CPMF.
3- Tax burden in Brazil on salaries and other income
3.1- General considerations.
3.2- The tax burden and conditioning factors: tax collection.
3.3- Tax burden on salaried workers, those employed in professional
occupations and self-employed
3.4- Tax burden on consumption, income and total.
3.5-
Personal income tax declaration. Rebates, deductions, tax exempt
income and income not subject to tax and income subject to
exclusive/definitive taxation. Tax treatment of income received from
private individuals and from overseas.
4- Brazilian Investments Overseas
4.1- Tax treatment of overseas investments by Brazilians according to the
legislation.
4.2- Use of an offshore company to improve tax efficiency. Tax havens
and bank accounts and investments. The Brazilian legislation.
4.3- Possibility of constituting a company overseas and investing in Brazil
through its intermediary.
Detailed Program for the Certified Financial Planner CFP
Certification Examination
Module IV- Financial Planning and Ethics (25% Weighting)
Financial Planning
Objectives: To show how to plan personal finances in its broadest dimension,
incorporating the challenges of the new economic and cultural reality. On a more
specific level, this section is designed to show how to prepare and evaluate a detailed
breakdown of the control and organization of personal finances, permitting a greater
understanding of the workings of the financial market and identifying the advantages
and disadvantages of each one of its operations, and establishing planning strategies.
The other objective is to disseminate the concern of professionals not only with
techniques but also with ideas and concepts with respect to relevant issues for personal
budgets, such as financial investments, preparation and control of financial flows,
creation of reserves for unforeseen events, complementary pension plans, investments
that guarantee future income, among others.
1- The Process of Financial Planning
1.1- Basic principles of personal financial planning
1.2- Basic notions on Behavioral Finance. How people understand risk.
1.3- Behavioral and cultural factors of the client. Socio-economic
environment. Desires x necessities.
1.4- Identification of key aspects in the preparation of financial planning
for the client.
1.5- Formation of savings and control of expenditures.
1.6- Responsibility of the client and the professional in the preparation of
personal financial planning. Involvement of the financial planner in
execution and monitoring.
2- Evaluation of the Client Profile
2.1- Development and application of questionnaires and interviews for
raising information on the client’s assets.
2.2- Understanding the client’s objectives, necessities, restrictions and
priorities. Values and attitudes of the people in relation to age group.
(Life Cycle). Attitudes of persons in relation to risk/return.
2.3- Personal financial planning stages adjusted to the client profile.
2.4- Time horizon for financial planning.
3- Client Evaluation
3.1Current economic-financial situation (Assets and Liabilities).
Exposure to risk.
3.2Special necessities: dependents, civil status, health, matrimonial
situation, etc.
3.3How is risk being managed: life, disability, health, assets insurance
etc.
3.43.53.63.7-
Current investments and long-term strategies. Definition of
objectives.
Evaluation of recent income tax declarations. Success and fiscal
strategies, current and future. Fiscal liabilities.
Retirement plans. Savings capacity and fiscal benefits.
Rights and social benefits as employee or employer.
4- Decision Process
4.1Decision process under conditions of uncertainty. Guarantee,
security and liquidity.
4.2Analysis of decision process. Choice between alternatives.
4.3Diagram of a decision flow.
4.4How to use subjective probabilities. Degree of tolerance to risk.
5- Relationship with the Market and Institutions
5.1Rights and responsibilities of the clients. Consumer protection code
and its implications for the financial institutions’ clients.
5.2Analysis and selection of providers of financial solutions.
5.3Financial compensation between providers and planner.
6- Personal Financial Planning Strategies
6.1The importance of insurance and healthcare plans. Selection of the
best alternative and dimension.
6.2The importance of establishing a fiscal plan for private individuals.
6.3Overseas investments as a planning strategy.
6.4The preservation of personal assets.
6.5How to prepare for retirement. The choice and dimensioning of
pension plan.
6.6Domestic budget.
6.7Alternatives to the purchase of an own home.
6.8Risks and advantages of an own business.
6.9Purchase of assets: investment or consumption.
6.10- Evaluation of the best way of purchasing: leasing, financing or
consortium (if the case).
7- Development of Financial Planning
7.1Financial Position
7.1.1- Current statement
7.1.2- Forecasted statement
7.1.3- Projections with recommendations
7.2Cash flow
7.2.1- Projection
7.2.2- Recommendations
7.2.3-Projection with recommendations
7.3Effects of Inheritance Tax
7.3.1- Projections
7.3.2- Recommendations
7.4Requirements for retirement
7.4.1- Projections
7.4.2- Recommendations
7.5-
7.6-
7.7-
7.8-
7.9-
7.10-
Capital requirements in the event of death
7.5.1- Projections
7.5.2- Recommendations
Capital requirements – disability
7.6.1- Projections
7.6.2- Recommendations
Income tax
7.7.1- Projections
7.7.2- Recommendations
Allocation of assets
7.8.1- Balance
7.8.2- Strategic recommendations
Investments
7.9.1- Scenarios: client vs. planner
7.9.2- Development of an Investment Policy
7.9.3- Recommendations
Risks
7.10.1- Evaluation
7.10.2- Recommendations
Ethics
Objectives: To highlight the important transformations in capitalist relations in the
market and to seek actions and moral behavior on the part of the financial planning
professionals in the current economic environment and the reflection on more profound
and complex approaches applied to work relations in the competitive market. In
addition to the perfect understanding of the Code of Ethics and Professional
Responsibility of IBCPF, applicable to all CFP professionals, the objective of this
module is the knowledge and learning of how to react to extreme situations of fraud,
litigation, conflict, money laundering, among other specific cases.
1- Understanding the Philosophy
1.1- The ethical existence. Components of the ethical field. Factual
and value judgment. Moral sense and moral conscience.
2- Regulatory Economic Systems
2.1International competitiveness and the regulation of the markets.
2.2Market freedom. Corporations. Market leaders.
2.3Basel principles.
2.4Regulatory organs (BIS,CB, CVM, SUSEP, SPC, CADE).
3- The Organizations
3.1- Relations that structure the organizations. Social relations.
3.2- Dimensions of the organizations. Interdependence
3.3- The power of the organizations. Political and moral authority.
Political process and dispute of interests.
3.4- Contemporary political ideologies. The principle economic
ideologies.
3.5- Ethics in corporations (stakeholders, shareholders, community).
Principles of corporate governance.
4- Ethics and Practice
4.1Ethics, morals and morality. The temptations and opportunities.
Values of honesty, reputation and respect for the truth, to the
rules and the client.
4.2Moral of opportunism and moral of integrity.
4.3Ethics in business. The utility of ethics. How should we move
forward?
4.4The morals of political and economic ideologies.
4.5Code of Ethics in other areas and in the Financial Market.
5- The Ethics in the CFP License (Certified Financial Planner)
5.1- Requirements for CFP certification.
5.2- Code of Ethics and Responsibilities of a CFPTM Professional
prepared by IBCPF. The Financial Planning Standards Board –
FPSB – and the international code of ethics.
5.3- Ethical considerations in exercising the role of personal financial
planner