Certifications You Should Earn to Become a Financial Planner in Malaysia

If you are wondering how to be a Financial Planner or a Financial Adviser’s Representative in Malaysia, you have came to the right place.

I have written a guide on how to become an Independent Financial Advisor in Malaysia. 

In this article, I will go in depth on the different types of qualification you can obtain to be an IFA.

This is a requirement by our regulators, Bank Negara Malaysia and Securities Commission Malaysia to ensure that you are able to offer quality services that are relevant to your clients.

To become a financial planner in Malaysia, you need to pass the financial planner exam requirements of either one of the following qualification:

• Registered Financial Planner (RFP);
• Certified Financial Planner (CFP);
• Chartered Financial Consultant (ChFC);
• Shariah RFP; and/or
• Islamic Financial Planner (IFP)

In this article, I have listed all the financial planner certification programs that you can take in Malaysia. Continue reading to find out what qualification you should choose.

RFP – Registered Financial Planner

The Registered Financial Professional (RFP) course is provided and maintained by the Malaysian Financial Planning Council (MFPC). It was launched in November 2002, by the former governor of Bank Negara Malaysia, Datuk Sri Zeti Akhtar Aziz.

The RFP designation is recognised by Bank Negara Malaysia and Securities Commission Malaysia to apply to be a Financial Adviser’s Representative and Financial Planner respectively.  [source]

RFP – Entry Requirement

With effect from 1 January 2020, a Degree or its equivalent (with a full pass) is required to register for the RFP Course. 

Modes of Study

Candidates can choose either to attend lectures or self-study for the RFP Course. Should you choose to attend lectures, there will be a 42-hours class session to cover the main topics in accordance to the module syllabus.

Note: Self-study is only available for Module 1 to Module 6. Candidates must register attend lectures for Module 7.

Syllabus

Module 1 – Fundamentals of Financial Planning
Module 2 – Risk Management & Insurance Planning
Module 3 – Investment Planning
Module 4 – Zakat & Tax Planning
Module 5 – Estate Planning
Module 6 – Retirement Planning
Module 7 – Applications in Financial Planning

Exam Details

For modules 1 to 6, candidates are required to answer 75 multiple-choice questions.

In Module 7, candidates are required to:

1. answer 4 subjective questions and
2. submit a project paper on a comprehensive financial plan for a real family in accordance to the project paper guidelines.

Passing Mark

For modules 1-4, candidates are required to score 50% or above to pass / 80% or above for a distinction.

For modules 5-6, candidates are required to score 60% or above to pass / 80% or above for a distinction

For module 7, candidates are required to score at least 50% for the subjective questions and 60% on the project paper to pass. To obtain a distinction, candidates are required to score 80% on both the subjective questions and project paper.

Modular Exemptions and Fast-Track

If you have prior learning experience with other qualifications relevant to the financial planning industry, you may apply for modular exemptions to fast track your process of becoming a financial planner.

This is the LIST to see the full list of modular exemptions provided by MFPC.

You may also apply for the RFP Capstone programme if you have at least 3 years of full time working experience in a financial related industry.

The RFP Capstone programme is a 6-days intensive programme which provides experienced candidates a fast-track path to obtain the RFP qualification.

For more information about RFP Capstone programme, you may click on this link HERE.

CFP – Certified Financial Planner

Unlike RFP, which is a locally developed programme, the Certified Financial Planner or CFP is a qualification which is recognised internationally.

In Malaysia, the CFP qualifcation is managed by the Financial Planning Association Malaysia (FPAM), a non-profit organization with a vision to establish financial planning as a recognized profression by promoting excellence in the sector for the benefit of all Malaysians.

CFP – Entry Requirement

The minimum requirement to register with CFP is at least a holder of a Bachelor’s degree in order to sit for the entire certification course.

Modes of Study

CFP candidates must enrolled with one of FPAM’s approved Education Providers.

Syllabus

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

Exam Details

For modules 1 to 3, candidates are required to answer 75 multiple-choice questions.

In Module 4, candidates are required to:

1. answer 60 multiple-choice questions and
2. prepare a Financial Plan based on the case study and to be completed in 3 hours.

Passing Mark

Candidates are graded as either “Pass” or “Fail”. No marks are revealed to the candidates. Each of the four modules are graded independently and the result of one module does not affect the other modules.

Modular Exemptions and Fast-Track

Just like RFP, if you have prior learning experience with other qualifications relevant to the financial planning industry, you may apply for modular exemptions to fast track your process of becoming a financial planner.

The table below is the list of modular exemptions should you have the following qualification: