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FinanciaPanning-The NextBig Thing

Your questions oncareers inFinancia Panninganswered

CFPCM, CERTIFIED FInanCIal PlannERCM d re certifictio mrks owed outside the U.S. by Fici Pig Stdrds Bord ltd.

Fici Pig Stdrds Bord Idi is the mrks icesig uthority for the CFP mrks i Idi, through greemet with FPSB.


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Why consider

Financia Panningas a career ?

Why consider

Financia Panningas a career ?

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Where we areThe Indian economy has undergone significant changes over the years, particuary in the ast

decade, and continues to evove today. But with increased financia power, there has been an

ever-increasing need for financia iteracy among the popuace.

India, in recent times has eapfrogged to become the words second argest growing

economy. Indias economic growth has averaged over 8% in the ast five years. Even during

the current goba economic metdown, when goba GDP is expected to contract by 0.5 to

1.00% for the first time since Word War II, India is expected to cock an impressive 6.5%

GDP growth, next ony to China.

It is said that economic growth comes from changes in abor, capita and productivity. India

has a growing working popuation. Around 69% of the popuation is ess than 35 years of age

and with 3.5 crore tax-payers and around 5 crore PAN card hoders there is evidence enough

to support that Indian economy wi increase the savings rate in the years to come. India is

going to add a cose to 80 miion peope to its working popuation in the next 6 years.

The savings rate is set to go up to over 30-35% from the present eve of 26-28%. A 30%

savings rate appied to Indias $ 1-triion GDP impies that there wi be a fow of annua

savings of $300 biion (Rs 1.5 triion), of which a certain portion wi fow into the financiasector.

Indias emergence as the goba economic power is heping Indians to obtain attractive

income eves. Indians, known for their heathy savings habits, have one of the highest

disposabe incomes in the word. India has experienced the second highest growth rate of

over 19%, next ony to South Korea, in the HNWI in the word. The country aready boasts of

over 1,000,000 miionaires (in $ terms) and the numbers are expected to grow at 20% per

annum in the coming years.

Thus there is an urgent need to channe these savings to hep individuas meet their ife goas.

With a burgeoning midde cass and their increasing financia power, a need is increasingy

being fet for financia iteracy among the popuation.

On the other hand, one of the most gobay pervasive bad news story in the ast year must

surey be the recent unprecedented recession that has enveoped the whoe word. Nations

burgeoning midde cass is beginning to fee the effects of infationary pressure across the

board, which is not confined to just fue or food.

As the peope strugge to come to grips with these economicay difficut times, the time for

Financia Panners has arrived.

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What is Financia Panning?Comprehensive Financia Panning requires more than good financia products or impressive

ooking reports. It requires the inputs of a professiona who has mastered the principes of

the 4Es - Education, Examination, Experience & Ethics - Cornerstones forming the mandatory

requirements of the CFPCM certification process.

In the past many peope seected their Financia Panners based on reationships - the

panners were either good friends or reatives. However, consumers of today are more

discerning - they are starting to ask hard questions. Whie it may

be harder for the advisors to se, consumer financia educationis good for the industry as it wi ift professiona standards.

Today, if a company has to hire a Financia Panner, it woud

make sense for it to go through the same rigorous check as it

woud when hiring a Chief Financia Officer for the company.

The Financia Panning industry is one of the most evoving

industries today, offering exceent career opportunities for a, from fresh graduates,

professionas from financia sector, existing agents/brokers who want to augment their skis

and knowedge and thereby increase severa-fod their professiona and earning potentia.

The individua investors are increasingy acting as institutiona investors and have come to

expect sophisticated services such as portfoio risk management, dynamic asset aocation

and objective investment advice. In response, weath managers need to provide more

advance and hoistic services in order to grow their practices.

But first, weath management firms need to address the most critica issue ack of quaified

Weath Managers/Financia Panners.

It is not about reachingthe finishing ine. It is aboutexporing new startingpoints.

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What does a Financia Panner do?Financia Panners determine a cients short, medium and ong-term aspirations then work

on an agreed Financia Pan to meet individua needs. They have strong peope skis and are

good isteners.

The Financia Panner and cients review the pan reguary to keep it on track and update it as

appropriate. As a CERTIFIED FINANCIAl PlANNERCM professiona, who is a member of FPSB

India, you wi pursue the 6 steps of the Financia Panning process. These are:

1. Gathering your cients financia data incuding detais on income, debt eves, financia

commitments and so on.

2. Identifying your cients goas. These may incude buying a house, funding education,

trave, etc.

3. Identifying any financia issues.

4. Preparing a Financia Pan that identifies recommended investments and pays heed to the

cients attitude to risk.

5. Impementing the financia pan.

6. Reviewing and revising the pan to ensure it stays up-to-date and reevant to theeconomic cimate and the cients changing ifestye.

Why shoud you become a FinanciaPanner?Strugging to dea with a sew of new products and services every

day and seeking their moneys worth from the fee they are charged

today, cients are demanding greater personaization of services and

ooking for trusted and knowedgeabe advisors, who can expain

their investment decision in detai and support their recommendation

with incisive fact-based anaysis.

Indian financia services sector is one of the fastest growing sectors

and has a presence of a big and sma Indian and mutinationa

companies vying for the cients hard earned money. These companies are expanding

exponentiay and have huge appetite for quaified manpower.

This is where you have an opportunity to chip-in as a comprehensive Financia Panner.A Financia Panner-who can give quaified and tested advice on a aspects of Financia

Panning to the cient.

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You really can make a difference

They dont teach us much at schoo about managing our money and buiding our futures, so

we a need some degree of Financia Panning advice.

As a Financia Panner, you are heping peope empower themseves. They wi achieve a

they can in ife, become financiay better off and pan a secure future for themseves and

their famiies.

You wi never get bored as Financia Panning coud be very exciting and chaenging. A your

cients and their ives are so different.

Saaries for Financia Panners are at par with the best in the industry, so whie you are

heping other peope becoming better off, you wi be improving your own ife as we.

Being a Financia Panner is a about heping others improve their own ives.

How do you become a Financia Panner?Financia Panning is the need of the hour. Financia Panning which takes a hoistic approach

to an individuas financia ife incuding panning for his investments, taxes, insurance,retirement, and estate and most importanty expenses. A CERTIFIED FINANCIAl PlANNERCM

professiona takes comprehensive approach to preparing a financia pan covering a the

above mentioned financia aspects. CFPCM certification is the highest professiona certificaiton

that can be given to a Financia Panner.

CFPCM practitioners have demonstrated extensive industry experience, have undergone

rigorous study and must maintain high standards of continuing professiona deveopment.

CFPCM certification is a prestigious internationa certification program which is areadybeing run in 23 countries and with more countries attaining economic prosperity due to

gobaization, the numbers are growing.

The Wall Street Journal has described the CFP

certication as a GOLD Standard. The Financial PlanningProfession has been rated as No 1 Job in USA (Jobs America

almanac) and it is expected that by 2014 in India we wouldneed more CFPCM professionals than we can roll out, vizdemand will outstrip supply. Currently also there is 80%shortage of Wealth Managers in the country.

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Who offers the CFPCM Certification Program?Certification is being offered by Financia Panning Standards Board India., an affiiate of the

US based FPSB ltd. the internationa Standards setting body for CFP certificaiton, and owner

of the CFP marks outside the US.

FPSB India is a standards setting body & has been proactivey guiding the deveopment and

promotion of standards for the Financia Panning professionas and a other stakehoders ,viz

the Government, the Reguators, Industry Associations, Corporate, Media and the genera

pubic, namey the financia consumers.

FPSB India provides a pathway for aspiring Financia Panners to deveop the necessary skis

and knowedge to be successfu. It has positioned the CFPCM certification as the highest

quaity mark in financia advisory business.

It protects the CFP mark and sets it on par with internationa standards. It maintains ethica

standards, through the adherence to the Code of Ethics and Rues of Professiona Conduct.

lasty it educates the pubic on the benefits of Financia Panning.

FPSB India is a earning and knowedge driven organization, which uses measuring and

monitoring toos to continuay improve effectiveness and constanty endeavors to meet the

changing needs of a the stakehoders.

With a view to tap the huge potentia for weath creation in our country, severa eading

financia companies got together to form the Association of Financia Panners (AFP) to

bring the CFPCM certification to India. later on the Financia Panning Standards Board India

was estabished as a not for profit organization, to promote the gobay recognized CFP

Certification through an affiiation with FPSB ltd.

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2008 CFPCM Professiona Count (By territory)

Territory 2008 CFP Professiona Count

United States 58,830

Canada 17,230

Japan 15,802

Austraia 5,430

China 3,414

Hong Kong 3,389

South Africa 3,196

Maaysia 2,508

Repubic of Korea 2,086

France 1,394

Germany 1,092

United Kingdom 900

Singapore 671

Chinese Taipei 580

India 608

New Zeaand 400

Indonesia 327

Brazi 294

Switzerand 276

Austria 182


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The promoters of FPSB India are known as Charter Members and

they number 50 presenty. They are Indias eading financia services

companies, both pubic and private, Indian and mutinationa across aasset casses such as Insurers, Mutua Funds, Banks, etc.

Who are FPSB Indias student members?The size and stature of FPSB India refects the rapid growth of the Financia Panning

sector. FPSB Indias membership consists of individuas who practice within or support the

Financia Panning profession. Most of the FPSB Indias members are speciaists in various

discipines such as insurance, mutua fund, taxation and stock broking who have then gained

quaifications as Financia Panners, and are reorienting their businesses to meet the growing

need for professiona Financia Panning.

Practitioner members of FPSB India must:

Meet the FPSB Indias strict assessment criteria Meet educationa and experience standards.

Adhere to FPSB Indias Code of Ethics and Rues of Professiona Conduct.

Financia Panning Standards Board Indias mission is to foster professiona standards in

persona Financia Panning so that the pubic vaues, has access to and benefits from

competent and ethica Financia Panning. In order to serve an increasingy diverse pubic, it is

critica that our efforts address the changing demography of this country.

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Where woud you work as a Financia Panner?As a CERTIFIED FINANCIAl PlANNERCM professiona, you may choose to estabish your own

icensed Financia Panning practice. Aternativey you may aso work at a:

- Bank

- life Insurance Company

- Accounting or law Firm

- Stock Broker

- Funds Manager

- Weath Management Company

What coud you expect to earn?As a Financia Panner, you can earn income in a number of ways:

- Fee charged on an houry rate, a fat rate per pan, a percentage of vaue of the cients

assets and/or income, or a combination of these methods.

- Commissions for the products sod as the Financia Pan is impemented.

- A combination of fees and commissions.

- Saary for those empoyed by financia organizations or other institutions.

Saaries of a CFPCM professiona at the entry eve ranges between Rs 2-4 acs, at the middeeve between Rs 6-10 acs and at senior eves above Rs 10 acs.

The growth

in student

enroments

and practitioner

membership of

FPSB INDIA ceary

indicates an

increasing demand

for we trained

and quaified

professionas.


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How do you become a CFPCM Practitioner?FPSB India has authorized Education Providers (EPs) to deiver the CFPCM certification

Education Program to the students. Aternativey, you can aso adopt Sef Study mode

whereby you can choose any courseware or study materia avaiabe in the market and study

by your sef. The CFPCM certification Education Program is deivered by authorized Education

Providers through distance earning, e-earning mode, part time and fu time Education

Programs.

There are 2 pathways through which an you can register for the CFPCM certification, namey:

1) Reguar Pathway through either Education Providers or Sef Study- where in you need

to appear for a the 5 exams separatey.

2) Chaenge Status Pathway - wherein you need to appear for ony the fina modue 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 competed your HSC and

above. You then need to appy for education either through one of the authorized Education

Providers or directy under the sef-study mode. The training is based on the 6 modues of the

CFPCM certification program for which you need to write the 5 examinations.

The course curricuum made up of 6 modues is as foows:

1. Introduction to Financia Panning

2. Risk Anaysis and Insurance Panning

3. Retirement Panning & Empoyee Benefits

4. Investment Panning

5. Tax and Estate Panning

6. Advanced Financia Panning

A the 5 examinations are conducted onine by Nationa Stock Exchange (NSE). After cearing

every exam, you wi be awarded with an AFP - Associate Financia Panner Certification.

After passing the fifth examination you wi be eigibe for the CFPCM certification provided you

meet the experience criteria. You then need to foow the Code of Ethics that is prescribed by

FPSB India.

Successfu competion of the certification attests to your mastery of the skis and knowedge

needed to advance in the Financia Panning fied and opens up doors to a most rewarding

and satisfying career, with an opportunity to grow financiay and in recognition by society.

With this quaification you can discover your Mission, Passion and Purpose.

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* You may accompish the Education component of the CFPCM certification Program by exercising the SefStudy option or may undergo training from FPSB Indias approved Education Providers and pass FPSB IndiasModues Certification (Exam 1-4) conducted by NSEs Certification in Financia Markets (NCFM) compusoriybefore registering for the fina CFPCM Certification Examination. FPSB India and NSE jointy issue AssociateFinancia Panner (AFP) to successfu candidates as a certificate of Education Component.

** CA, CFA (USA), ICWA, CAIIB, llB, PhD./M.Phi/ Post Graduate in Economics, Econometrics, Statistics,Commerce, Mathematics, Finance, Management, Financia Panning/ Advising, Investment. licentiate/Associate/Feowship of life Insurance from Insurance Institute of India, Actuary from Institute of Actuariesof India, Civi Services Examinations by Union Pubic Service Commission, Company Secretary from Instituteof Company Secretaries of India, Feow Financia Services Institute, Feow life Management Institute. PostGraduate Dipoma in Financia Panning (PGDFA) by Indian Institute of Banking & Finance (IIBF)

# Provisiona Certification sha be subject to payment of the annua requisite fees.

##Subject to fufiing experience criteria & payment of annua Fu Membership Fees. You coud seek eitherProvisiona Certificate or Fina Certificate based on your eigibiity in any financia year.

### Professionas with quaification such as MBA, CA, CFA etc may add 20-25% to expected pay packet

Source:The data given in the above artice has been sourced from the ceebrated book Indias financia markets by Ajay Shah, Susan Thomas &

Michae Gorhan. Various other pubications, both Indian and foreign have aso been referred to whie preparing the same.


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What are the other benefits of pursuing CFPCMcertification?Certification not ony gives a quaification and an expert understanding of Financia Panning

subject but aso gives Internationa recognition. With ess than 1000 CFPCM certificants in

the country, India certainy needs many more of them as Indians are earning more and more

money and they need quaified money managers to take care of their

finances. Once a CFPCM practitioner, you wi be among the top tier of

Financia Panners in the country.

What is the opportunity for CFPCMPractioners in the country?CFPCM Certification program has an edge over other finance-reated

programs today because of the sheer gap between the demand &

suppy of the quaified professionas in this fied. India has roughy

5 crore + famiies with investibe surpus and assuming that oneCertified Financia Panner can hande 100 cients, we require at east

500000 CFPCM certificants. This presents a fantastic opportunity for a those who are striving

to make a mark in the financia 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 200000CERTIFIED FINANCIAl PlANNERCM FPSB India Financia Panning 608 500000

certificaiton

Cost & Work Accountant ICWA Costing 45000 200000

Chartered Financia Anayst AIMR Portfoio Management 65000 50000

& Investment Anaysis

CPA AICPA Accountancy & Taxation 38000 150000

The individua after getting the CFPCM certification wi be a highy trained, technicay

competent professiona having gained reevant practica experience. He woud be abe towrite, to internationa standards, comprehensive Financia Pans for the individuas. The

syabus of the course is goba in nature.

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What does it take to be a Successfu CFPCMProfessiona?

Aspects of Financia Panner Success Scae of 1-10

1) Peope/communication skis 9

2) Having the CFPCM certification 8.5

3) Referra from cients 8

4) Keeping up with continuing education 9

5) Education background 8

6) Quaification 9.5

Why adopting CFPCM certification is a must for theIndian Financia Services CompaniesAccording to experts at Wharton Schoo of Business and a survey of advisors and cients,

trust is the foundation of the advisor-cient reationship. Athough that might sound

eementary it is evidenty overooked by many advisors.

Charotte Beyer, CEO of the Institute for Private Investors(IPI) in New York, an educationa

and networking group for utra high net worth individua investors, concedes that at one time

weath management was a business shrouded in mystery and very, very high profit margins.

Since the mode has changed via a transition from product to service, many financia advisors

have had to master the art of a new saes tactic. Ca it the saes-free sae this approach is

now an essentia part of every successfu advisors repertoire

The distinction is noteworthy because there is much ess of an emphasis on pitching stocks and

mutua funds and more on persona counseing and education, say Wharton marketing experts.

A Goba Private Banking/Weath Management survey by PriceWaterhouseCoopers suggeststhat weath managers have not taken adequate steps to retain cients. Athough many of the

weath managers have indicated that they carried out segmentation to anayze their cients,

the criteria on which segmentation has been performed are reativey unsophisticated.

In the ast few years the criterion used by cients are quaity of service, good reporting and

advice. Today the financia services companies can retain cients ony by providing frequent,

reevant and personaized information to their cients. Today a company that can provide

360-degree cient reporting on a quartery basis as we as provide aerts wi be in the best

position to retain cients and gain additiona share of waet.

If these companies take a ook at where they are right now and where they want to be. The

choice is obvious - CFPCM certification of course.

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Want to know more?Join FPSB India as a student member

Financia Panning Standards Board India is the eading professiona body for the Financia

Panning profession, and represents approximatey 14000 individuas and 50 top financia

services companies. Whether you are starting out, or are considering a career change,

FPSB India provides you with resources, information, support and professiona deveopment

throughout your career.

Joining FPSB India as a student member shows to the empoyers that you are keen and

committed to a great career in Financia Panning.

Being a a registered student aso opens up the doors to vauabe resources that wi buid up

your knowedge and experience, and provides direct exposure to the rea word of Financia

Panning.

A registered student receives:

Access to a range of information and resources

Discounts to various FPSB India events and the annua Financia Panning Congress

Subscription to pubications - such as the E-Newsetter and the Financia PanningJourna

Netwroking opportunities with other students, organizations and Financia Panners

You can earn more about becoming a CERTIFIED FINANCIAl PlANNERCM professiona, future

career opportunities and FPSB India by ogging on to the FPSB India

website: www.fpsbindia.org

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

Aternativey tak to a career advisor or a practicing CERTIFIED FINANCIAl PlANNERCM

professiona. Become a part of this dynamic industry and enter an exciting and rewarding

career !

Exceence feeds on itsef (as does mediocrity); we are never standing sti, butaways either spiraing up or spiraing down. As your confidence in the quaityof your work grows, we fee a deep conviction when we sit with a prospective

cient, that we may just be abe to ater the whoe course of his famiys history.It is the intensity of this beief in yoursef and in your power to do we, whichattracts and binds quaity cients to you.

-Nick Murray on the Financia Panning Professionas15


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Mumbai Office:

702, 7th Foor, leea Business Park, Andheri-Kura Road, Andheri (East), Mumbai - 400 059, India.

Phone : +91 22 6171 2424 Fax : +91 22 6171 2444

Emai: [email protected] Website: www.fpsbindia.org

Dehi Office:

916,Indra Prakash Buiding, 21, Barakhamba Road, Canaught Pace, New Dehi 110 001.

Te.: +91 11 6546 7168, +91 11 2375 7689.

CFPCM, CERTIFIED FInanCIal PlannERCM d re certifictio mrks owed outside the U.S. by Fici Pig Stdrds Bord ltd.

Fici Pig Stdrds Bord Idi is the mrks icesig uthority for the CFP mrks i Idi, through greemet with FPSB.

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