Certified Financial Planners are skilled finance experts who help clients with high net to invest their money into stock markets, mutual funds, and other investment policies. They can also work as tax consultants, asset managers, and relationship managers in banks, AMCs, stock brokerages. CFPs are highly in demand because of their nuanced knowledge in the field of finance.
Though there is a great demand of CFP — certified financial planners in India, according to the FPSB (Financial Planning Standards Board), there are only about 2000 such working professionals in the field.
How to Become a CFP?
Your career will grow exponentially once you become a certified financial planner. There are essentially four steps that will make you a CFP which we call the 4 E’s of CFP. We shall talk about them today.
1. Education — Necessary Qualification Requirement
There are two parts to the educational requirement. First, you have to complete the coursework and sit for the examinations conducted by the FPSB and secondly, you will need a bachelor’s degree from an accredited college or university. Though FPSB allows undergraduates to prepare for the coursework, you must also earn your Bachelor’s degree at least within 5 years of passing your CFP exams.
2. Examination — What to Expect
The purpose of the examinations is to test your knowledge and competency in subjects related to financial planning. The examinations are a thorough test of your comprehensive understanding of financial planning. Since June 2020, the FPSB has changed the syllabus of CFP and now there are six modules on different areas of expertise that a candidate must separately pass. In each of the six modules, an attempt is made so that you understand every aspect of risk management, asset management, financial planning, and more.
3. Experience — Do You Need Experience to Become a CFP?
Just earning a certificate in financial planning isn’t enough. The certification just ensures that you can advise clients on how to manage their money. To become a really good planner, you need to have experience too. The certification alone cannot determine your experience. Thus, apprenticeship is particularly important in this profession. Whether you complete your apprenticeship after earning the certification or before doesn’t matter so much. The standard international requirement is for you to have at least 6000 hours of apprenticeship experience before you can start working as an independent CFP.
4. Ethics — Ethical Requirements
When you aspire to become a certified financial planner, you cannot just look at the career prospects and the financial independence the certification will give you. It is equally important for any aspirant to understand the ethical requirements of the job. With the certification, you must also agree to adhere to the highest ethical standards while practicing financial planning. You must be willing to act as a fiduciary while providing financial advice to clients and always ensuring that you keep their best interests in mind.
What is the Certified Financial Planner Course
To become a CFP, all you need to do is take the examinations conducted by the FPSB. Upon clearing the 6-module tests, you are awarded the certificate. Though the examination is conducted by the centralized board on financial planning, the board has authorized certain educational institutions to help prepare students for the examinations. These colleges offer every kind of help to students by providing them with study materials, conducting mock tests, and sharing videos on relevant topics.
Though you can take the self-study route and prepare for the examinations all by yourself, assisted learning can prove beneficial in the long run. if you aspire to become a CFP, enrol in a program that assists you to get the certification.
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