The Hindu Business Line : `Establish minimum certification standards for planners'

Financial planning implies different things to different people. It is being conducted in this country under the disguise of various activities, including sale of products like insurance and mutual funds. Added to these are stock selling, private banking, wealth management etc.

What is needed is education as to the true process of planning and the benefits it can give to all stakeholders. I am referring to investors, intermediaries, product manufactures, regulators and the government.

The `movement' is moving ahead steadily. One can now observe certain awareness amongst the regulators with regard to the establishment of a suitable professional mechanism for product distribution through planning. Probably, we need a thrust on the retail side.

Can legal measures change things for the better?

Certainly. Recognising financial planning as a complete profession - like that of chartered accountants, doctors or lawyers - will go a long way in giving due respect and incentive for financial intermediaries. That will enable them to upgrade themselves from salesmen to financial planners. And this will eventually benefit the general public.

Further, establishing minimum certification standards for planners, distinguishing between advising and selling and creating a good redressal mechanism for investor grievances will help our cause.

What are FPSB India's latest initiatives?

Our membership numbers are growing, with more and more enrolments on the corporate side. Some financial services organisations (such as ICICI Prudential and Tata AIG) are sponsoring their employees and agents for the Certified Financial Planner (CFP) Program. We are also expanding our reach by enrolling new education providers and encouraging the existing ones to open new branches.

Already three batches of CFP-certified persons are spread across India. Let me tell you about a new program that we have launched. We call it `Challenge Status for CFP Certification' wherein professionals and post-graduates who have prescribed qualifications and experience can achieve the CFP certification in a very short time. The process involves training for five or six days and an examination. This will help busy professionals to acquire the qualification they need.

FPSB India is also attempting to conduct investor education programs across the country along with the Ministry of Company Affairs through the Investor Education & Protection Fund trust.

Pension reforms are here. Are financial planners ready to tap the opportunity?

Remember, Project OASIS called for retirement planners who would offer advice after considering the overall financial background of the individuals. Financial planners look at personal finances holistically and offer advice to individual clients.

Financially sound retirement is one of most important goals in today's world. And financial planners are educated on retirement planning in a very elaborate manner.

With pension reforms emerging in India and new pension products launched, CFPs would be among the select professionals who would understand the market, the products and clients' needs.

Added to this are other aspects affecting retirement planning - the investment scenario, risk management and tax structures. This should help financial planners to tap the opportunity and showcase their knowledge.

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