Rising Demand, Limitless Opportunities: CFP Certification in India and Abroad
Krishan Mishra, CEO of the Financial Planning Standards Board (FPSB) India, shares his insight on what skills and qualifications are needed to become a CFP professional. He also shares the demand for CFP-certified professionals nationally and internationally and what job roles are available in the market...
Who is a CERTIFIED FINANCIAL PLANNER professional?
A CERTIFIED FINANCIAL PLANNER® professionals, known as a CFP professional, is a highly respected and globally recognized title given to experts in financial planning. These professionals have shown their skill, professionalism, and dedication to ethical standards in the field of financial planning. To earn this title, CFP professionals must go through a tough education and testing process set by the Financial Planning Standards Board Ltd. (FPSB), which is the worldwide authority on this certification. In India, FPSB India is responsible for offering the CFP certification, and they maintain high standards for competency and ethics.
What is the certification process for CFP professionals and what are the education and experience requirements?
To become a CFP professional, you need to meet certain requirements. First, you should have passed your 10+2 from a recognized board. If you want to apply through a challenge status, you should have cleared exams like MBA, CA, Intermediate level, CFA, ICWA, CAIIB, CS, and others. Besides, you must complete a comprehensive financial planning education program approved by FPSB India, covering various financial planning topics. After that, you must pass a tough CFP Certification Examination that tests your knowledge and practical skills in financial planning.
To qualify further, you need one year of supervised or three years of unsupervised professional experience in financial planning or a related field. If you're applying through the challenge status, you must have a minimum of three years of experience, and this experience should be within the last five years. It's crucial to maintain high ethical standards by following FPSB's Code of Ethics and Standards of Conduct, including a commitment to act in the best interests of your clients. Once you meet these requirements and apply for certification, you'll earn the respected CFP title, showing your dedication to excellence and ethical practices in the field of financial planning.
What is the role of CFP professional in corporate financial management?
CFP professionals play a vital role in corporate financial management. They offer financial expertise and guidance to organizations in various aspects, including designing executive compensation packages, retirement plans, and risk management. CFP professionals help ensure that financial strategies align with the organization's goals and comply with regulatory requirements. They also provide objective advice, promoting financial wellness among staff, and contributing to enhanced financial management within corporations.
What is the advantage of hiring a CFP professional in terms of financial guidance for corporates or managing personal finance individually?
Hiring a CERTIFIED FINANCIAL PLANNER professional offers numerous advantages for both individuals and organizations. Certified Financial Planner (CFP) professionals help individuals and families be providing comprehensive financial advice, covering areas such as budgeting, investing, retirement planning, and insurance. They consider various aspects of a person's financial life and guide them in making informed decisions to secure their financial future. They offer objective advice, ensuring recommendations align with the client's best interests. In the corporate context, CFP professionals assist in designing executive compensation packages, retirement plans, and play a vital role in managing risk and compliance. Their presence brings expertise, ethics, and tailored financial strategies, ultimately leading to improved financial well-being for individuals and enhanced financial management for organizations.
Diverse career opportunities available to individuals who have achieved CFP certification in India and abroad?
After achieving CFP certification, individuals have access to diverse career opportunities both in India and abroad. These opportunities span various sectors,
Including: -
Chief executive officers
Chief Investment Officer
Portfolio Managers
Private Banker
Estate Planner
Wealth Manager
Investment Advisor
Financial Manager
Paraplanner
Business Analyst
Bank Manager
Asset Management Analyst
Fund Accountant
Research Analyst
Product Specialist
Chief Financial Planning Officer
Entrepreneur
Regulatory and Compliance Roles
Teaching and Academia
Content writers- personal finance
CFP certification equips professionals with the skills and knowledge needed to tackle challenges in these fields, making it a promising and versatile credential.
How can aspiring professionals interested in pursuing a career as a CFP professional get started on their journey?
Aspiring professionals interested in becoming CFP professionals can start their journey by meeting the educational requirements, passing the CFP Certification Examination, gaining practical experience, and upholding ethical standards. They should enrol in a comprehensive financial planning education program approved by FPSB India and pursue the necessary qualifications and experience. It's important to follow the rules of good behaviour and always put your clients' best interests first during the whole journey. For more information, please visit https://india.fpsb.org/.
Mention the demand for Financial Planner in India and Abroad
The demand for financial planners, especially those with CFP certification, is on the rise in India and abroad. In India, the financial planning profession is gaining recognition, and the increasing awareness of the importance of financial planning is driving the demand for CFP professionals. In the global context, CFP certification is recognized and sought after, making CFP professionals valuable assets for organizations and individuals worldwide. As of December 2022, India has 2,517 CFP professionals, and globally, there are over 213,000 CFP professionals who are part of this network. The growth potential in this field is significant, and the number of CFP professionals is expected to increase, indicating a strong demand for their expertise. Especially in India the demand for professionals is much higher than the current supply and opportunities exist in terms of employability as well as entrepreneurship.
Read more:
Abhay an alumnus of IIMC and Delhi University, has over a decade long experience of reporting on various beats of journalism. During his free time he prefers listening to music or play indoor and outdoor games.