Who is a Financial Planner?
A Financial Planner takes a holistic view of the financial life of people and helps them in reaching the goals they have envisaged. This requires a great deal of empathy, an understanding of individuals' ambitions in life, their financial position and an expertise in creating wealth for individuals, by judicious investment. A fast growing population of wealthy professionals, a growing industrial and services sector and the emergence of a number of choices for investments have created significant opportunities for professionally competent financial planners.
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What does a Financial Planner do?
A Financial Planner determines his client's short, medium and long-term aspirations, then develops and applies the plan that has been agreed upon. Together the Financial Planner and the client will review the plan at least once a year and revise it if the need arises.
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Is Financial Planning a growing field?
As the pace of economic reforms is being sustained in the country, enormous business opportunities are being created for banks, mutual funds, insurance companies and other financial service providers. Considering the fact that people's incomes are on the rise, they are seeking guidance to invest their surplus money in the right avenues to reap the optimum benefits.
As a result financial markets and investment opportunities have opened up in India. Hence, people are rapidly recognising the need for professional and well-regulated advisory services. Consequently, SEBI, IRDA, AMFI and other bodies have been certifying professionals to ensure investor protection. The future, therefore, promises well for this industry.
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How is the Certified Financial PlannerCM professional education program going to help me?
The Certified Financial Planner (CFPCM) Certification is the highest level of professional endorsement, offered by the FPSB India. Worldwide, in order to provide financial advisory services, a CFPCM certification is a must, therefore it carries a superior recognition.
The CFPCM course is designed to provide you with a sound understanding of the process of Financial Planning, together with a fundamental skills and knowledge required in professional practice. The course materials are written by leading industry practitioners and are reviewed each semester to ensure that the curriculum is up-to-date.
Not only does it give you a fine career option, but it also helps you plan your own financials better. Thus, it is a WIN-WIN situation in either case whether you pursue it as a career or not.
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Who employs Financial Planners?
A Certified Financial Planner having been through a rigorous education and experience process is geared to boost client's confidence and satisfaction. Financial Planners often choose to establish their own financial planning practice either by themselves or together with other planners. Others work for:
- Banks
- Financial planning organizations
- Life insurance companies
- Accounting or law firms
- Stocks and securities brokers
- Fund managers
- Credit counseling organizations
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What could I expect to earn and how are Planners paid?
Financial Planners are among the highest paid professionals abroad. Financial Planners earn income in a variety of ways:
- Fees charged to the client based on an hourly rate, a flat rate per plan, a percentage of the value of the client's assets and / or income or a combination of these methods.
- Commissions from investment or insurance companies for selling their financial products.
- A combination of fees and commissions can also be a source of revenue.
- Salary for those employed by financial organizations or other institutions.
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What is Financial Planners Standards Board (FPSB), India?
FPSB India (www.fpsbindia.org) is a Professional Membership & Certification organization-part of leading Global Confederation established by prominent financial service corporations with an objective to professionalize the concept of Financial Planning in India. FPSB India offers the highest Financial Planning credential called the Certified Financial Planner (CFPCM).
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How do I register for the CFPCM Certification Program?
One needs to first register as a student of FPSB India. He then needs to get registered with a FPSB India's authorized Education Provider. Financial Planning Academy is an authorized Education Provider with FPSB India.
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How long does it take to become a CFPCM Professional?
Within one year from the date of registering as a student, a person can become a CFPCM Professional.
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What are the minimum passing marks?
A candidate who scores 50% or more will pass the examination and anyone who scores below 50% (exclusive) will fail the examination. The exam is conducted online and consists negative marking. Marks are not declared to the students but grades are given based on the performance.
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Why is work experience a requirement for getting the CFPCM Certification?
Three years of relevant work experience is mandatory under the international CFPCM Certification system. The main purpose of FPSB is to create high-quality Financial Planners so that they can provide the best advise to their clients. In order to deliver value, one needs to complement theoretical knowledge with practical knowledge. This is what we provide here at FPA. The work experience can be gathered before, during or after the course. If the three-years of work experience is gathered before or during the course, the Student will be conferred the CFPCM Certification immediately on passing the Certification Examination, i.e., the exam for Module VI - Advanced Financial Plan Construction.
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What is the scope of duty of a CFPCM Professional?
A CFPCM professional is one who is trained and is competent to recommend the full range of financial product to match the needs of his/her clients. He would also be able to prepare, in accordance with international standards, comprehensive financial plans for individuals.
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Who or what is a Charter Member?
Charter Members are the founding members of the FPSB India. Since inception of FPSB India, these members have given their support for the development of the Financial Planning industry. They form the Executive Committee of the Financial Planning Standards Board India.
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What are the requirements for the certification?
The requirements are laid down as 4 E's. Education, Examination, Experience, Ethics.
A person has to be atleast a 12th passed at the time of registration. A CFPCM aspirant has to complete the curriculum of six modules for CFPCM, in addition of having at least three years of relevant work experience. In addition, he must abide by the code of ethics and rules of professional conduct.
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How do I get certified as a CFPCM Professional?
The CFPCM Certification is one of the most prestigious qualifications within the Financial Planning industry and can be obtained in India through FPSB India. To be eligible for CFPCM Certification, you must complete the CFPCM professional education program through an Education Provider recognized by FPSB India.
In order to earn the CFPCM mark, you would have to:
- Register with educational provider (FPA)
- Registered as Student with FPSB India
- Complete six Modules of education
- Have at least 3 years of relevant working experience
A candidate has to successfully complete the prescribed academic curriculum so as to acquire skill sets of International standards in order to provide scientific solutions for meeting the financial goals of the clients.
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Will the CFPCM completed in India be recognized worldwide?
The 'Certified Financial Planner' is the highest professional certification mark in the financial planning profession. It is an international certification and well recognized in most developed countries around the world including countries like U.S.A, Canada, Australia, United Kingdom, Germany, and France etc. In order to provide financial advisory services, a CFPCM certification is a must in these countries. However, to practice, one will have to go through country specific supplementary examination for country specific recognition.
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What is the books/ study material required for the exam?
As CFPCM is a vast course requiring knowlege covering almost all the aspects of Finance industry, there is no specific book covering all the areas. However, FPA provides a complete study material containing a chapter wise list of reference material. This course material is adequate to clear all the examinations of the CFPCM Program.
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What are the differences between CFPCM and CFA?
Holders of the CFA designation are securities analysts, money managers and investment advisors who focus predominantly on the analysis of investments and securities of particular companies or industry groups. The 'big picture' approach is what sets the Financial Planner apart. The CFPCM certification is a broad based and comprehensive education programme for Financial Advisors. The Financial Planner uses the financial planning process to help a client determine not only whether he/she can meet their life goals but also the means to achieve them. The big picture view addresses a host of inter- related issues such as budgeting, tax planning, investments and risk management, or by focusing on a limited number of financial concerns within the context of the client's overall situation.
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What is the format of the examination?
The examinations will consist of multiple choice type questions. The examination for each module will be of 2 hours duration. Only the examination for Module 5 will be for 4 hours.
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What is the difference between CA, CS, ICWA and CFPCM certification?
CA's, ICWA's specialize in handling the accounts, bookkeeping and audit of firms and corporate's while the CS's deal with the secretarial matters relating to a corporate. A CFPCM certificant deals with the financial planning of an individual. Nevertheless, a Financial Planner is like a family physician who works closely with his clients and his sole concern is creation of wealth for the client through proper tax planning and adequate protection of the client's interest so that his client's life goals are achieved.
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Do I have it in me to become a successful Financial Planner?
The best Financial Planners have two vital skills - inter personal skills and analytical skills. If you have good counseling skills and are driven by a genuine desire to help other people, then Financial Planning offers a good career. You need to fulfill a mandatory requirement of three years' work experience that tests your counseling skills to become a CFPCM practitioner. Financial Planners also take a 'big picture' approach to their clients' finances.
Though a candidate with any background can strive for the CFPCM designation, it has been noticed that candidates with a background in the following areas stand a better chance at being successful Financial Planners:
- Counseling
- Accountancy
- Law
- Insurance
- Investments
- Finance
- Taxation
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