Presented at: The Program Directors Conference

1
2004 Job Analysis Results
Presented at The Program Directors Conference
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CFP Certification Examination
Designed to assess the ability to apply
financial planning situations in an integrated
format, thereby protecting the public by
assuring that individuals are at the appropriate
level of competency required for practice
3
Job Analysis
A job analysis is designed to obtain descriptive
information about the tasks performed in a job
and the knowledge needed to adequately perform
those tasks.
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Conduct of the Job Analysis

• Survey development
• Survey dissemination
• Compilation of survey results
• Test specifications development

5
Survey Development

• Planning meeting Feb. 2004
• Phone interviews Mar./Apr. 2004
• Construct survey May 2004

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Planning Meeting

• Selection of Survey Design
• Committee
• Selection of Test Specification
• Committee
• Meeting dates
• Internet survey delivery
• Development of the survey sampling
• plan

7
Phone Interviews

• Jim Barnash
• Percy Bolton
• Joel Bruckenstein
• Cindy Conger
• Guy Cumbie
• Glenn Pape
• Maureen Tsu
• Lewis Walker
• Tom Warschauer

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Survey Design Committee

• David Ashby
• Glen Buco
• Duane Cabrera
• Judith Engle
• Sheryl Garrett
• Alex Kimura
• Kathy Longo

• Afolabi Odejimi
• Susan OGrady
• Todd Reed
• Richard Rysiewski
• Harry Scheyer
• Ellen Siegel
• Grace Worley

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Activities of the Task Force

• Reviewing and revising
• The major domains
• Tasks and topics that are
• necessary for competency
• Survey rating scales
• Background information
• questions
• The survey online

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Survey Pilot Test

• The Survey Design Committee and
• and CFP Board nominated 9 CFP
• practitioners to review the survey
• and offer suggestions.
• Participants were asked to review
• for clarity of wording, ease of use,
• and comprehensiveness of content
• coverage.

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Final Version of the Survey

• Consisted of 5 sections
• Background and general info
• Tasks
• Knowledge
• Recommendations for test content
• Comments

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Dissemination of the Survey

• Thomson Prometric staff produced an
  Internet-based survey that CFP Board disseminated
  by e-mail on July 7, 2004 to approximately 38,400
  CFP practitioners.
• Survey participation was anonymous
• Entrance to the survey instrument was password
  protected with a password devised by each
  participant

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Survey Results

• A total of 3,859 CFP practitioners
• participated in the survey
• All of the tasks and topics were rated
• as important
• Respondents indicated that the
• content was well covered
• The validated list of tasks and topics
• provides a solid foundation for
• developing test specifications
• About 10 of respondents provided
• comments in section 5.

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Test Specification Committee

• Ron Allen
• David Ashby
• Glen Buco
• Jim Dobbs
• Randy Gardner
• Brian Korb
• Roger Kruse

• Noland Langford
• Alfred Lee
• Madelyn Mallory
• Afolabi Odejimi
• Susan OGrady
• David Shen
• Pam Shortal

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Committees Focus

• Identify the tasks and topics that are
• important for inclusion on the CFP
• Certification Examination
• Establish the percentage test
• weighting for the 7 content areas
• Link task and topic domains to verify
• that knowledge tested on the CFP
• Certification Examination is related to
• the performance of important tasks
• for CFP practitioners

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Interpretation of Mean Ratings
A criterion cut point for inclusion as a topic
needs to be established. Means Pass At or
above 2.50 Borderline 2.40 to 2.49 Fail Less
than 2.40
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Content Coverage
Content Area Survey
Committee General Principles
15.32 15 Insurance 12.54 11 Employee
Benefits 9.94 8 Investments
17.91 19 Income Tax 13.53 14 Retirement
17.02 19 Estate 13.96 14
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Board of Examiner Review

• Final Job Analysis report delivered to
• CFP Board in February 2005
• BoE members reviewed results, test
• spec. committee recommendations,
• and 1999 topic list and made
• recommendations for sub-topics
• relating to their area of expertise
• CFP Board staff researched current
• textbooks in all topic areas for
• consensus and organization among
• subtopic areas

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The New Topic List

• November 2006 target date
• 89 Topics from 101
• Addition of an addendum
• No others

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New Topic List Weightings

• Content Area Committee Final
• General Principles 15 11
• Insurance 11 14
• Employee Benefits 8 8
• Investments 19 19
• Income Tax 14 14
• Retirement 19 19
• Estate 14 15

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General Principles

• Characteristics of business entities
• moved to income tax
• Characteristics of property titling
• moved to estate
• Quantitative analysis (monte carlo)
• moved to investments
• Identity theft protection added

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Insurance

• Added business uses of insurance
• from Employee Benefits section
• Added income taxation of life
• insurance topic
• Added annuities from Investments
• section
• Added Medicare from Retirement
• section

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Employee Benefits

• Group life, health, disability and
• other employee benefits broken into
• separate topics
• Business uses of life insurance
• moved to Insurance section
• Clarified stock plans

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Investments

• Expanded and clarified types of
• investments topic and added
• taxation
• Added distribution of returns as a
• subtopic with related subtopics
• Expanded fundamental and
• technical analysis subtopics
• Moved annuities to Insurance
• Essentially moved investment
• strategies in tax-advantaged
• accounts to Retirement section.

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Income Tax

• Merged Characteristics and
• consequences of business entities
• with taxation characteristics of
• entities
• Involuntary conversions added as
• subtopic
• Depletion added to Depreciation/
• cost-recovery concepts
• Least changed area

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Retirement

• Medicare moved to Insurance section
• Types of retirement plans expanded
• Qualified plan rules and options
• revised
• NUA and appropriate assets for tax-
• advantaged accounts added from
• Investment section

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Estate

• Characteristics and consequences of
• property titling added from General
• Principles
• Types of trusts identified and
• expanded
• Added donor advised funds under
• charitable transfers
• Expanded intra-family transfer
• techniques

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What next??

• Re-coding the item bank
• Communication to all registered
• programs, review courses, and
• candidates for certification
• Pass-Score Committee