Financial

Planning-
The Next
Big Thing
Your questions on
careers in
Financial Planning
answered

CFPCM, CERTIFIED Financial PlanNERCM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd.
Financial Planning Standards Board India is the marks licensing authority for the CFP marks in India, through agreement with FPSB.
 Why consider
Financial Planning
as a career ?

2
Where we are
The Indian economy has undergone significant changes over the years, particularly in the last
decade, and continues to evolve today. But with increased financial power, there has been an
ever-increasing need for financial literacy among the populace.

India, in recent times has ‘leapfrogged’ to become the world’s second largest growing
economy. India’s economic growth has averaged over 8% in the last five years. Even during
the current global economic meltdown, when global GDP is expected to contract by 0.5 to
1.00% for the first time since World War II, India is expected to clock an impressive 6.5%
GDP growth, next only to China.
It is said that economic growth comes from changes in labor, capital and productivity. India
has a growing working population. Around 69% of the population is less than 35 years of age
and with 3.5 crore tax-payers and around 5 crore PAN card holders there is evidence enough
to support that Indian economy will increase the savings rate in the years to come. India is
going to add a close to 80 million people to its working population in the next 6 years.
The savings rate is set to go up to over 30-35% from the present level of 26-28%. A 30%
savings rate applied to India’s $ 1-trillion GDP implies that there will be a flow of annual
savings of $300 billion (Rs 1.5 trillion), of which a certain portion will flow into the financial
sector.
India’s emergence as the global economic power is helping Indians to obtain attractive
income levels. Indians, known for their healthy savings habits, have one of the highest
disposable incomes in the world. India has experienced the second highest growth rate of
over 19%, next only to South Korea, in the HNWI in the world. The country already boasts of
over 1,000,000 millionaires (in $ terms) and the numbers are expected to grow at 20% per
annum in the coming years.
Thus there is an urgent need to channel these savings to help individuals meet their life goals.
With a burgeoning middle class and their increasing financial power, a need is increasingly
being felt for financial literacy among the population.
On the other hand, one of the most globally pervasive bad news story in the last year must
surely be the recent unprecedented recession that has enveloped the whole world. Nation’s
burgeoning middle class is beginning to feel the effects of inflationary pressure across the
board, which is not confined to just fuel or food.
As the people struggle to come to grips with these economically difficult times, the time for
Financial Planners has arrived.

3
 What is Financial Planning?
Comprehensive Financial Planning requires more than good financial products or impressive
looking reports. It requires the inputs of a professional who has mastered the principles of
the 4Es - Education, Examination, Experience & Ethics - Cornerstones forming the mandatory
requirements of the CFPCM certification process.
In the past many people selected their Financial Planners based on relationships - the
planners were either good friends or relatives. However, consumers of today are more
discerning - they are starting to ask hard questions. While it may
be harder for the advisors to sell, consumer financial education
“It is not about reaching is good for the industry as it will lift professional standards.
the finishing line. It is about Today, if a company has to hire a Financial Planner, it would
exploring new starting make sense for it to go through the same rigorous check as it
would when hiring a Chief Financial Officer for the company.
points.”
The Financial Planning industry is one of the most evolving
industries today, offering excellent career opportunities for all, from fresh graduates,
professionals from financial sector, existing agents/brokers who want to augment their skills
and knowledge and thereby increase several-fold their professional and earning potential.
The individual investors are increasingly acting as institutional investors and have come to
expect sophisticated services such as portfolio risk management, dynamic asset allocation
and objective investment advice. In response, wealth managers need to provide more
advance and holistic services in order to grow their practices.
But first, wealth management firms need to address the most critical issue lack of qualified
Wealth Managers/Financial Planners.

4
What does a Financial Planner do?
Financial Planners determine a client’s short, medium and long-term aspirations then work
on an agreed Financial Plan to meet individual needs. They have strong people skills and are
good listeners.
The Financial Planner and clients review the plan regularly to keep it on track and update it as
appropriate. As a Certified Financial PlannerCM professional, who is a member of FPSB
India, you will pursue the 6 steps of the Financial Planning process. These are:
1. Gathering your client’s financial data including details on income, debt levels, financial
commitments and so on.
2. Identifying your client’s goals. These may include buying a house, funding education,
travel, etc.
3. Identifying any financial issues.
4. Preparing a Financial Plan that identifies recommended investments and pays heed to the
client’s attitude to risk.
5. Implementing the financial plan.
6. Reviewing and revising the plan to ensure it stays up-to-date and relevant to the
economic climate and the client’s changing lifestyle.

Why should you become a Financial

Planner?
Struggling to deal with a slew of new products and services every
day and seeking their money’s worth from the fee they are charged
today, clients are demanding greater personalization of services and
looking for trusted and knowledgeable advisors, who can explain
their investment decision in detail and support their recommendation
with incisive fact-based analysis.
Indian financial services sector is one of the fastest growing sectors
and has a presence of all big and small Indian and multinational
companies vying for the client’s hard earned money. These companies are expanding
exponentially and have huge appetite for qualified manpower.
This is where you have an opportunity to chip-in as a comprehensive Financial Planner.
A ‘Financial Planner’-who can give qualified and tested advice on all aspects of Financial
Planning to the client.

5
 You really can make a difference
They don’t teach us much at school about managing our money and building our futures, so
we all need some degree of Financial Planning advice.
As a Financial Planner, you are helping people empower themselves. They will achieve all
they can in life, become financially better off and plan a secure future for themselves and
their families.
You will never get bored as Financial Planning could be very exciting and challenging. All your
clients and their lives are so different.
Salaries for Financial Planners are at par with the best in the industry, so while you are
helping other people becoming better off, you will be improving your own life as well.
Being a Financial Planner is all about helping others improve their own lives.

How do you become a Financial Planner?

Financial Planning is the need of the hour. Financial Planning which takes a holistic approach
to an individual’s financial life including planning for his investments, taxes, insurance,
retirement, and estate and most importantly expenses. A Certified Financial PlannerCM
professional takes comprehensive approach to preparing a financial plan covering all the
above mentioned financial aspects. CFPCM certification is the highest professional certificaiton
that can be given to a Financial Planner.

The Wall Street Journal has described the CFP

certification as a ‘GOLD’ Standard. The Financial Planning
Profession has been rated as No 1 Job in USA (Jobs America
almanac) and it is expected that by 2014 in India we would
need more CFPCM professionals than we can roll out, viz
demand will outstrip supply. Currently also there is 80%
shortage of Wealth Managers in the country.

CFPCM practitioners have demonstrated extensive industry experience, have undergone

rigorous study and must maintain high standards of continuing professional development.
CFPCM certification is a prestigious international certification program which is already
being run in 23 countries and with more countries attaining economic prosperity due to
globalization, the numbers are growing.

6
Who offers the CFPCM Certification Program?
Certification is being offered by Financial Planning Standards Board India., an affiliate of the
US based FPSB Ltd. the international Standards setting body for CFP certificaiton, and owner
of the CFP marks outside the US.
FPSB India is a standards setting body & has been proactively guiding the development and
promotion of standards for the Financial Planning professionals and all other stakeholders ,viz
the Government, the Regulators, Industry Associations, Corporate, Media and the general
public, namely the financial consumers.
FPSB India provides a pathway for aspiring Financial Planners to develop the necessary skills
and knowledge to be successful. It has positioned the CFPCM certification as the highest
quality mark in financial advisory business.
It protects the ‘CFP’ mark and sets it on par with international standards. It maintains ethical
standards, through the adherence to the Code of Ethics and Rules of Professional Conduct.
Lastly it educates the public on the benefits of Financial Planning.
FPSB India is a learning and knowledge driven organization, which uses measuring and
monitoring tools to continually improve effectiveness and constantly endeavors to meet the
changing needs of all the stakeholders.
With a view to tap the huge potential for wealth creation in our country, several leading
financial companies got together to form the Association of Financial Planners (AFP) to
bring the CFPCM certification to India. Later on the Financial Planning Standards Board India
was established as a ‘not for profit’ organization, to promote the globally recognized CFP
Certification through an affiliation with FPSB Ltd.

7
2008 CFPCM Professional Count (By territory)
Territory 2008 CFP Professional Count

United States 58,830

Canada 17,230

Japan 15,802

Australia 5,430

China 3,414

Hong Kong 3,389

South Africa 3,196

Malaysia 2,508

Republic of Korea 2,086

France 1,394

Germany 1,092

United Kingdom 900

Singapore 671

Chinese Taipei 580

India 608

New Zealand 400

Indonesia 327

Brazil 294

Switzerland 276

Austria 182

8
Who are FPSB India’s student members?
The size and stature of FPSB India reflects the rapid growth of the Financial Planning
sector. FPSB India’s membership consists of individuals who practice within or support the
Financial Planning profession. Most of the FPSB India’s members are specialists in various
disciplines such as insurance, mutual fund, taxation and stock broking who have then gained
qualifications as Financial Planners, and are reorienting their businesses to meet the growing
need for professional Financial Planning.
Practitioner members of FPSB India must:
• Meet the FPSB India’s strict assessment criteria
• Meet educational and experience standards.
• Adhere to FPSB India’s Code of Ethics and Rules of Professional Conduct.
Financial Planning Standards Board India’s mission is to foster professional standards in
personal Financial Planning so that the public values, has access to and benefits from
competent and ethical Financial Planning. In order to serve an increasingly diverse public, it is
critical that our efforts address the changing demography of this country.

The promoters of FPSB India are known as ‘Charter Members’ and

they number 50 presently. They are India’s leading financial services
companies, both public and private, Indian and multinational across all
asset classes such as Insurers, Mutual Funds, Banks, etc.

9
The growth
in student
enrollments
and practitioner
membership of
FPSB INDIA clearly
indicates an
increasing demand
for well trained
and qualified
professionals.

Where would you work as a Financial Planner?

As a Certified Financial PlannerCM professional, you may choose to establish your own
licensed Financial Planning practice. Alternatively you may also work at a:
- Bank
- Life Insurance Company
- Accounting or Law Firm
- Stock Broker
- Funds Manager
- Wealth Management Company

What could you expect to earn?

As a Financial Planner, you can earn income in a number of ways:
- Fee charged on an hourly rate, a flat rate per plan, a percentage of value of the client’s
assets and/or income, or a combination of these methods.
- Commissions for the products sold as the Financial Plan is implemented.
- A combination of fees and commissions.
- Salary for those employed by financial organizations or other institutions.
Salaries of a CFPCM professional at the entry level ranges between Rs 2-4 lacs, at the middle
level between Rs 6-10 lacs and at senior levels above Rs 10 lacs.

10
How do you become a CFPCM Practitioner?
FPSB India has authorized Education Providers (EPs) to deliver the CFPCM certification
Education Program to the students. Alternatively, you can also adopt “Self Study” mode
whereby you can choose any courseware or study material available in the market and study
by your self. The CFPCM certification Education Program is delivered by authorized Education
Providers through distance learning, e-learning mode, part time and full time Education
Programs.
There are 2 pathways through which an you can register for the CFPCM certification, namely:
1) Regular Pathway through either Education Providers or “Self Study”- where in you need
to appear for all the 5 exams separately.
2) Challenge Status Pathway - wherein you need to appear for only the final module exam.
The course is based on the concept of 4 Es, i.e., Education, Examination, Experience & Ethics.
In order to take up the CFPCM certification Program you need to have completed your HSC and
above. You then need to apply for education either through one of the authorized Education
Providers or directly under the self-study mode. The training is based on the 6 modules of the
CFPCM certification program for which you need to write the 5 examinations.
The course curriculum made up of 6 modules is as follows:
1. Introduction to Financial Planning
2. Risk Analysis and Insurance Planning
3. Retirement Planning & Employee Benefits
4. Investment Planning
5. Tax and Estate Planning
6. Advanced Financial Planning
All the 5 examinations are conducted online by National Stock Exchange (NSE). After clearing
every exam, you will be awarded with an AFP - Associate Financial Planner Certification.
After passing the fifth examination you will be eligible for the CFPCM certification provided you
meet the experience criteria. You then need to follow the Code of Ethics that is prescribed by
FPSB India.
Successful completion of the certification attests to your mastery of the skills and knowledge
needed to advance in the Financial Planning field and opens up doors to a most rewarding
and satisfying career, with an opportunity to grow financially and in recognition by society.
With this qualification you can discover your Mission, Passion and Purpose.

11
* You may accomplish the Education component of the CFPCM certification Program by exercising the “Self
Study” option or may undergo training from FPSB India’s approved Education Providers and pass FPSB India’s
Modules Certification (Exam 1-4) conducted by NSE’s Certification in Financial Markets (NCFM) compulsorily
before registering for the final CFPCM Certification Examination. FPSB India and NSE jointly issue Associate
Financial Planner (AFP) to successful candidates as a certificate of Education Component.
** CA, CFA (USA), ICWA, CAIIB, LLB, PhD./M.Phil/ Post Graduate in Economics, Econometrics, Statistics,
Commerce, Mathematics, Finance, Management, Financial Planning/ Advising, Investment. Licentiate/
Associate/Fellowship of Life Insurance from Insurance Institute of India, Actuary from Institute of Actuaries
of India, Civil Services Examinations by Union Public Service Commission, Company Secretary from Institute
of Company Secretaries of India, Fellow Financial Services Institute, Fellow Life Management Institute. Post
Graduate Diploma in Financial Planning (PGDFA) by Indian Institute of Banking & Finance (IIBF)
# Provisional Certification shall be subject to payment of the annual requisite fees.
##Subject to fulfilling experience criteria & payment of annual Full Membership Fees. You could seek either
Provisional Certificate or Final Certificate based on your eligibility in any financial year.
### Professionals with qualification such as MBA, CA, CFA etc may add 20-25% to expected pay packet
Source:
The data given in the above article has been sourced from the celebrated book “India’s financial markets by Ajay Shah, Susan Thomas &
Michael Gorhan. Various other publications, both Indian and foreign have also been referred to while preparing the same.

12
What are the other benefits of pursuing CFPCM
certification?
Certification not only gives a qualification and an expert understanding of Financial Planning
subject but also gives ‘International’ recognition. With less than 1000 CFPCM certificants in
the country, India certainly needs many more of them as Indians are earning more and more
money and they need qualified money managers to take care of their
finances. Once a CFPCM practitioner, you will be among the top tier of
Financial Planners in the country.

What is the opportunity for CFPCM

Practioners in the country?
CFPCM Certification program has an edge over other finance-related
programs today because of the sheer gap between the demand &
supply of the qualified professionals in this field. India has roughly
5 crore + families with investible surplus and assuming that one
Certified Financial Planner can handle 100 clients, we require at least
500000 CFP certificants. This presents a fantastic opportunity for all those who are striving
CM

to make a mark in the financial advisory space.

Course Institute Main Areas Current Numbers
Covered Numbers Required
Chartered Accountant ICAI Accounting, 145841 150000
Taxation & Auditing
Company Secretary ICSI Company Law 35000 200000
Certified Financial PlannerCM FPSB India Financial Planning 608 500000
certificaiton
Cost & Work Accountant ICWA Costing 45000 200000
Chartered Financial Analyst AIMR Portfolio Management 65000 50000
& Investment Analysis
CPA AICPA Accountancy & Taxation 38000 150000
The individual after getting the CFPCM certification will be a highly trained, technically
competent professional having gained relevant practical experience. He would be able to
write, to international standards, comprehensive Financial Plans for the individuals. The
syllabus of the course is global in nature.

13
What does it take to be a Successful CFPCM
Professional?
Aspects of Financial Planner Success Scale of 1-10
1) People/communication skills 9
2) Having the CFPCM certification 8.5
3) Referral from clients 8
4) Keeping up with continuing education 9
5) Education background 8
6) Qualification 9.5

Why adopting CFPCM certification is a must for the

Indian Financial Services Companies
According to experts at Wharton School of Business and a survey of advisors and clients,
trust is the foundation of the advisor-client relationship. Although that might sound
elementary it is evidently overlooked by many advisors.
Charlotte Beyer, CEO of the Institute for Private Investors(IPI) in New York, an educational
and networking group for ultra high net worth individual investors, concedes that at one time
wealth management was a business ‘shrouded in mystery’ and very, very high profit margins.
Since the model has changed via a transition from product to service, many financial advisors
have had to master the art of a new sales tactic. Call it the “sales-free sale” this approach is
now an essential part of every successful advisor’s repertoire
The distinction is noteworthy because there is much less of an emphasis on pitching stocks and
mutual funds and more on personal counseling and education, say Wharton marketing experts.
A Global Private Banking/Wealth Management survey by PriceWaterhouseCoopers suggests
that wealth managers have not taken adequate steps to retain clients. Although many of the
wealth managers have indicated that they carried out segmentation to analyze their clients,
the criteria on which segmentation has been performed are relatively unsophisticated.
In the last few years the criterion used by clients are quality of service, good reporting and
advice. Today the financial services companies can retain clients only by providing frequent,
relevant and personalized information to their clients. Today a company that can provide
360-degree client reporting on a quarterly basis as well as provide alerts will be in the best
position to retain clients and gain additional share of wallet.
If these companies take a look at where they are right now and where they want to be. The
choice is obvious - CFPCM certification of course.

14
Want to know more?
Join FPSB India as a student member
Financial Planning Standards Board India is the leading professional body for the Financial
Planning profession, and represents approximately 14000 individuals and 50 top financial
services companies. Whether you are starting out, or are considering a career change,
FPSB India provides you with resources, information, support and professional development
throughout your career.
Joining FPSB India as a student member shows to the employers that you are keen and
committed to a great career in Financial Planning.
Being a a registered student also opens up the doors to valuable resources that will build up
your knowledge and experience, and provides direct exposure to the real world of Financial
Planning.
A registered student receives:
• Access to a range of information and resources
• Discounts to various FPSB India events and the annual Financial Planning Congress
• Subscription to publications - such as the E-Newsletter and the Financial Planning
Journal
• Netwroking opportunities with other students, organizations and Financial Planners
You can learn more about becoming a Certified Financial PlannerCM professional, future
career opportunities and FPSB India by logging on to the FPSB India
website: www.fpsbindia.org

or calling +91 22 6171 2424, +91 22 6171 2432

Alternatively talk to a career advisor or a practicing Certified Financial PlannerCM

professional. Become a part of this dynamic industry and enter an exciting and rewarding
career !

“Excellence feeds on itself (as does mediocrity); we are never standing still, but
always either spiraling up or spiraling down. As your confidence in the quality
of your work grows, we feel a deep conviction when we sit with a prospective
client, that we may just be able to alter the whole course of his family’s history.
It is the intensity of this belief in yourself and in your power to do well, which
attracts and binds quality clients to you.”
-Nick Murray on the Financial Planning Professionals
15
 Mumbai Office:
702, 7th Floor, Leela Business Park, Andheri-Kurla Road, Andheri (East), Mumbai - 400 059, India.
Phone : +91 22 6171 2424 Fax : +91 22 6171 2444
Email: [email protected] • Website: www.fpsbindia.org
Delhi Office:
916,Indra Prakash Building, 21, Barakhamba Road, Canaught Place, New Delhi 110 001.
Tel.: +91 11 6546 7168, +91 11 2375 7689.

CFPCM, CERTIFIED FINANCIAL PLANNERCM and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd.
Financial Planning Standards Board India is the marks licensing authority for the CFP marks in India, through agreement with FPSB.