What is Required to Become a Certified Financial Planner?

source: cfp

We frequently run into new financial puzzles that must be solved quickly for the smooth running of operations. Without fixing these loopholes a person cannot generate returns to their full potential. Here, individuals feel the requirement of a Certified Financial Planner (CFP). 

Currently, Indian companies are also highly dependent on these licensed professionals with almost 17.6% growth in CFP job roles in 2021. Additionally, many students from a finance background now aspire to become financial advisors. Therefore, we suggest you keep reading to know everything about CFP professionals.

Certified financial planners assist people and businesses of various kinds to make financially sound decisions. These experts have proven expertise in areas of estate financial planning, estimating insurance needs, devising new investment options, and overall wealth management. 

Typically we witness a certified financial planner playing a crucial role in service-based industrial sectors. Their primary job is to understand a clientele’s financial goals and suggest strategies on how they can accomplish those ambitions with optimal utilisation of resources.

In India, there are three standard routes for approaching a highly rewarding career as CFP professional. Depending on your situation, you can choose one path and proceed accordingly.

• Path 1: Following a Self-Paced Learning Module

We recommend this plan for anyone who feels comfortable learning at their own pace. First, you must reach out to the official portal of the Financial Planning Standards Board and create an account. 

Now, after transferring the registration charges, you have access to the study materials, which are presented in a variety of modes. Here, you will find both textbook and PPT materials. Upon completing them, you need to appear for quizzes and practice tests to hone your skills. 

With the necessary online resources, this method of preparation is great for those who intend not to invest the extra amount in an instruction-led module. 

• Path 2: Completing an Industrial Expert-Led Course

Enrolling in these courses is an excellent decision as the experts have the right knowledge to prepare you for exams within 8-12 weeks. Moreover, you do not necessarily need to relocate to a new city as you may attend these classes online. 

However, before approaching a tutor, you first have to procure the study materials by creating an account on the FPSB portal. After you have completed this, you can successfully contact an instructor to resume the course.

• Path 3: Applying to the FPSB Authorities for Approval of Prior Experience

Many finance background students with internship certifications and even outright money managers may apply for certain exemptions to the CFP course requirements. On receiving the applications, the FPSB scrutinises their profile and can decide to reduce the number of eligibility benchmarks recognising their practical expertise. 

Applying for these exemptions is worthwhile as you get to qualify for the FPSB standards with no added certification fee. If you still have queries related to what is required to become a certified financial planner in India, we have elaborated on the particulars below.

The CFP certification exam is held thrice each year. Students after passing their university education can appear for this test either in March, July, or November. All they have to ensure is that their field of specialisation includes the necessary subjects mentioned by the CFP Board.

No admission tests are mandated by colleges that provide CFP certification in India. After the completion of the course, you must appear for two different test sections divided into a 3-hour window each. You get a 40-minute break in between two sections. 

As we discussed above, you do not need to worry much regarding the exam syllabus as everything is controlled uniformly. You get to know the course content, scoring rules, and passing criteria by visiting the FPSB website. Just to speak of it, the main topics revolve around investment and tax planning, risk management, estate planning, insurance, and other related sectors.

A certified financial planner is helpful for individuals who are at present struggling in:

• Resource utilisation and money management
• Steering new investment channels
• Development of sound estate planning

A licensed financial advisor offers more dependability compared to any unregistered budget planner providing similar services without following industry standards.

While providing an approximate salary of a certified CFP professional in India, various things need to be considered. The biggest factor that determines your cost of hiring a certified financial consultant is the selected professional’s industry-relevant experience. Next, their skills and overall efficiency come into play. To judge each of these factors, you must go through a financial advisor’s portfolio and compare their average salaries across online platforms. Eventually, we find licensed financial consultants charging close to ₹4.98 Lakhs on average every year when they are working with Indian clientele. 

CFP personnel are often confused with CFA professionals who predominately draw financial strategies for large companies and do not get involved in the investment portfolio management of an individual client. The demand for certified financial planner is increasing steadily as Indians are gaining consciousness regarding the importance of investments. If you intend to hire a financial planner for yourself, know about them thoroughly before making a decision.