Become a Certified Financial Planner (CFP)

May 26, 2010- Certified Financial Planner (CFP) is the one who is qualified to help people in financial planning of their wealth in order to realize their goals of life. It can be a very satisfying career option for those who take interest in financial planning. Know how to become a certified financial planner in India and what are the opportunities, challenges and constraints of becoming a certified financial planner? This will certainly help you in making a decision about whether you want to become a CFP? If yes, then this article will also help you in guiding about how to become a certified financial planner?

Who is a Certified Financial Planner (CFP)?

A financial planner is the professional who helps clients in achieving their life goals (building home, saving for children's education, a decent post-retirement income- or any other long term goal) through planning their investments, taxes, insurance, retirement, estate and expenses as well. A certified financial planner is the one who has a financial planner certification from a recognized institute such as Financial Planning Standards Board India (FPSBI) or Certified Financial Planner Board of Standards, Inc. (CFP Board) in the United States among others.

Skills Required to Become a Certified Financial Planner (CFP)

Anyone who is interested in financial issues, more appropriately said- in financial planning- can become a CFP. However, one must have other skills too for becoming a certified financial planner. These include

• Desire and capacity to gather knowledge- practical knowledge about finances and not just theoretical knowledge.
• Passion about financial planning.
• Sound understanding of personal finance.
• Good communication skill (in fact, people skills or ability to make understand and convince people)
• Analytical skills.
• Enthusiasm and patience because career of a certified financial planner might take some time to take off.

How to Become a Certified Financial Planner (CFP)

Start early- say when you are in standard VI or VII (you anyways know till now where your interests lie). Know about the basics of how a bank works, learn to distinguish between the needs and wants and all other practical aspects needed to save money. Then enroll for the certified financial planner certification conferred by FPSBI. There are two ways for getting financial planner certification from FPSBI.

Regular Pathway- For this, you must be SSC/ Matriculation/ 10 th pass at the time of enrollment for CPF and will have to complete the Education criterion. The education criteria is passing four examinations either through self study or through training support from any one of the Education Providers approved by FPSB India. See the list of Education Providers at the end of this article. The four exams that you must pass are-

• Risk Analysis & Insurance Planning (Exam 1)
• Retirement Planning & Employee Benefits (Exam 2)
• Investment Planning (Exam 3)
• Tax Planning & Estate Planning (Exam 4)

All these four exams are facilitated by National Stock Exchange (NSE) and conducted online on NCFM platform on NSE’s examination centers and other NSE networked sites throughout India. There is one more requirement for certified financial planner certification- at the time of CFPCM Certification, you have to be minimum HSC/ 12th pass

Challenge Status Pathway- For this, you must be a CA / Intermediate level, CFA (US), ICWA, CAIIB, CS, LLB, PhD, M.Phil, PG or must have Licentiate/Associate/ Fellowship of Life Insurance, Actuary, FFSI & FLMI from LOMA, or must have passed Civil Service Examinations conducted by UPSC. You need to appear only for the final module exam conducted online by NSE. The CPF qualification is equal to a Master's degree. You are liable to pay registration fee, exam fee and certification fee for the same.

Decide Whether to Become a Certified Financial Planner (CFP)

There are certain advantages as well as challenges in becoming a certified financial planner.

• Certified financial planner (CFP) is an internationally acceptable qualification.
• The career of a certified financial planner is a sunrise profession.
• First five to seven years of the career of a CFP has to be invested for laying a very strong foundation, developing and maintaining relationship with clients and learning the practical tips and tricks of financial planning.
• You may have to experience some harsh treatments from clients when things are not so good.

However, with growing wealth and a plethora of investment products, the need of expert financial planning is growing in India. The scope for certified financial planner is immense keeping in view the growing prominence of advice gaining in the Indian markets and the tightening grip of the regulators. More and more certified financial planners are required in financial services companies, banks, distribution houses, insurance companies, equity broking and financial planning firms. Apart from these, CFPs have a scope to work with para-planners (who make financial plans for CFPs dealing directly with customers) or for providing financial literacy content.

List of Authorized Education Providers for CFP

BLB Institute of Financial Markets
Vanita Mandali Building
2 Azad Bhawan Road,
Opp. Police Head Quarter,
ITO, New Delhi-110002
+91-9971593389
+91-11-23379718-19

ASSETS Education Training Research
606 Madhuban,55 Nehru Place, New Delhi-110019
Phone No. 011-30888000,
Email ID: info@assetsedu.in
New-Delhi

International College for Financial Planning(ICFP)
3rd Floor, Gulab Bhawan, Near Times of India, 6, Bahadur Shah Jafar Marg,
New Delhi-110002
Tel No: 011-60002200Ext 112 , 9810674713,9910588001
Email: rajiv@icfpindia.org
New Delhi

For Contact Details of other Education providers, refer the following address:

Membership Development Division
Financial Planning Standards Board, India
312, Turf Estate, Off. Dr. E. Moses Road, Mahalaxmi
Mumbai - 400 011
Tel - 91-22-66663268;
Fax - 91-22-66663269
Email: info@fpsbindia.org

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