Certified Financial Planner in India – a quick guide

Here is a small primer on the certified financial planner in India tag or  CFP^CM tag as it is commonly referred to and why it is important and how you can find one in your city.

The need of financial planning is a very vast one and many investors still do not know the difference between investment advisors, insurance agents, relationship managers and financial planners. Obviously, not all of them can meet your needs of comprehensive financial planning.

I personally think that when investors ask for a financial planner, they ought to ask for a certified one. But do investors know what that means, what to ask for and why and how to check for the certification ? You can quickly check a very nice infographic on how to choose your financial planner.

The Certified Financial Planner in India tag

Well, first things first, around 75% of my clients have never asked whether I am certified or not. The few that have, have no clue what and where this certification is from and what it means. The same is the observation of my peer financial planners as well.

So the question I ask is, if that is the case, do I need to be certified to be thriving in this business ? The answer is actually no. You do not need to be certified to do good business as there are very few people asking for it. So why be certified in the first place ?

That is where the importance of the CERTIFIED FINANCIAL PLANNER^CM tag comes in.

This certification is a mark of excellence granted to individuals who meet stringent standards of education, examination, experience and ethics. It is the most prestigious and internationally accepted Financial Planning qualification recognized and respected by the global financial community. A Certified Financial Planner in India or elsewhere are the products of a rigorous education curriculum that ensures that the end result can do justice to investors.

In India, FPSB India (Financial Planning Standards Board India) is the principal licensing body that awards Certified Financial Planner in India tag or certification. No other body is authorized to award this certification. There is also no other certification that can meet the purpose that certified financial planners cater to – that of making a holistic and comprehensive financial plan for an investor.

Another thing to note is that FPSB India authorizes financial planners to use the certification tag for only a year. The renewal is based on continuous education where the financial planner is expected to keep upto speed in the financial planning domain by undertaking activities like submission of articles, speaking assignments, attending seminars and events, undertaking quizzes, attaining certifications & qualifications and many more. On the job learning and keeping up with current personal finance land scape is something that  FPSB India expects from certified financial planners in India.

There are many financial planners in India who were certified once upon a time but have not renewed their certification with FPSB India, so they cannot use the CFP^CM tag anymore. I think that does not make them any less competent. They could be as good as any certified financial planner.

But yes, you are in the best hands if you go with a planner who is currently a CFP^CM.

If you compare this for a moment with what insurance agents, relationship managers and investment advisors go through you will realize that certified financial planner in India have the most rigorous curriculum right throughout their career. This is what makes them different and the best in the field to do financial planning.

Search for a Certified Financial Planner in India in your city

Use the below steps to check whether your financial planner holds the CFP^CM certification.

1. Go to The FPSB India website – http://www.fpsbindia.org/

2. Click on the “CFP Certificant” link on the main navigation bar.

3. You can simply search for a certified planner in India by three categories presented to you.

Search by Name/Company

Search by City/State

Search by Nature of Employment

4. It is always wise to make sure that you search for your financial planners name by using at least two categories of search before you decide to drop the poor chap. If you use the city based search, you can find all the planners who are certified in that city.

This is how the snapshot will look like for a typical search –

You can also ask for a Certification ID card that financial planners should carry for a quick proof of the fact that they are certified. It will bear their registration number, their name and validity till when they can use the CFP^CM tag.

So next time you go searching for a financial planner, make sure you check whether he is certified or not. It is like going to a doctor or a quack. You really need to differentiate between who will open your bowels, don’t you ?

Lastly do read on the Wiki definition of a certified financial planner and see what it has to say. Has anyone done a city search before signing up their planner ?