How
to Choose a Financial Planner
Choosing a financial planner may be
one of the most important decisions you make for yourself and your loved
ones. Financial planners can provide you and your family with guidance
over your lifetime, or work with you to address specific concerns as needed.
Whether you are struggling to manage your household finances more effectively,
save for your children’s college education, or provide for your retirement,
you may benefit from the services of a financial planner.
Regardless of how you choose to work
together, a planner can play a central role in helping you meet your life
goals and achieve financial well-being. Consequently, take the time to
select a financial planner who is competent and trustworthy, one on whom
you can depend for professional advice and services.
 Generally,
financial planners have broad knowledge in such areas as insurance planning,
investment planning, retirement planning and education planning. They also
can possess a wide variety of designations, such as
Certified Financial
Planner (CFP).
Effective January 5, 2004, all financial
planners in Malaysia are required by the Securities Commission to be licensed,
and must have the recognised qualifications - Certified Financial Planner
(CFP) being one of them.
The key to selecting the right financial
planner is to consider their experience and credentials.
Certified
Financial Planner (CFP)
Mark of Quality
CFP practitioners have taken the
extra step to demonstrate their professionalism by voluntarily submitting
to the rigorous CFP certification process. In addition to significant education
and experience requirements, they must pass a comprehensive exam that tests
their personal financial planning knowledge and skills, continually update
their abilities and abide by CFP Board's Code of Ethics and Professional
Responsibility (Code of Ethics) and Financial Planning Practice Standards
(Practice Standards).
When you work with a CFP practitioner,
you are the focus of the financial planning relationship and your needs
drive the financial planner's recommendations. As a client, you can choose
from a wide variety of planners and planning services.
Tested For
Competency
When selecting a financial planner,
you need to feel confident that the person you choose to help you plan
for your future is competent and ethical. To earn the right to use the
CFP marks, individuals must complete the following competency requirements.
Education
Develop theoretical and practical
financial planning knowledge by completing a comprehensive course of study
at an approved college offering a financial planning curriculum developed
by CFP Board of Standard in collaboration with Financial Planning Association
of Malaysia (FPAM).
Examination
Pass a comprehensive CFP Certification
Examination that tests their ability to apply financial planning knowledge
in an integrated format. Based on regularly updated research of what financial
planners do, CFP Board's exam covers the financial planning process, tax
planning, employee benefits and retirement planning, estate planning, investment
management and insurance.
Experience
Have a minimum of three years of
experience in the financial planning process prior to earning the right
to use the CFP marks. As a result, CFP practitioners possess financial
counseling skills in addition to financial planning knowledge.
Committed
to Ethical Conduct
Ethics
As a final step to certification,
CFP practitioners agree to abide by a strict code of professional conduct,
known as CFP Board's Code of Ethics and Professional Responsibility, that
sets forth their ethical responsibilities to the public, to clients and
to employers.
Through the Code of Ethics, CFP practitioners
agree to act fairly and diligently when providing you with financial planning
advice and services, always putting your interests first. The Code of Ethics
states that CFP practitioners are to act with integrity, offering you professional
services that are objective and based on your needs. They are required
to provide you with information about their sources of compensation and
conflicts of interest in writing, and must keep personal details obtained
while working with you confidential.
Re-Certified Every Two Years
Once certified, CFP practitioners
are required to maintain technical competence and fulfill ethical obligations.
Every two years, they must complete a minimum of 30 hours of continuing
education, staying current with developments in the financial planning
profession to better serve their clients. Two of these hours are spent
studying or discussing CFP Board's Code of Ethics or Practice Standards.
In addition to the biennial continuing
education requirement, all CFP practitioners voluntarily disclose any public,
civil, criminal or disciplinary actions that may have been taken against
them during the past two years as part of the re-certification process.
Questions
to Ask When Choosing a Financial Planner
The questions below can help you
to effectively interview and evaluate financial planners to find the one
that's right for you. You want to select a competent, qualified professional
with whom you feel comfortable - one whose business style suits your particular
financial planning needs.
Experience
Find out how long the financial
planner has been practicing and the number and types of companies with
which he/she has been associated. Ask the planner to describe past work
experience and how it relates to his/her current financial planning practice.
Choose a financial planner who has at least three years' experience providing
financial planning services.
Qualifications
Ask the planner what qualifies him/her
to offer financial planning advice and whether he/she holds a financial
planning designation, such as CFP. Look for a planner who has proven experience
in financial planning topics such as insurance, tax planning, investments,
estate planning, and retirement planning.
Services
The services offered by a financial
planner depend on a number of factors including credentials, licenses,
and areas of expertise. Financial planners must be licensed to sell insurance
or unit trust products. Some planners offer financial planning advice on
a range of topics but do not sell financial products. Others may specialize
in a particular area such as retirement planning or risk management.
Approach
Ask the financial planner about
the types of clients with whom he/she has worked and the financial situations
with which he/she is familiar. Some planners prefer to develop one plan
that takes into account all of your financial goals. Others provide advice
on specific areas, as needed. Make sure the planner's viewpoint on investing
is not too cautious or overly aggressive for you. Find out if the planner
will implement the financial recommendations developed for you or refer
you to other financial professionals or specialists.
A
Matter of Trust
Finding the right professional to
address your financial planning needs isn't always easy. Take your time
when choosing a financial planner. Before making a decision, become familiar
with the planner's business style and understand the level of services
he or she provides. Look for a measure of the planner's commitment to ethical
behavior and adherence to high professional standards. Most importantly,
look for a financial planner who will put you and your needs at the center
of every financial planning engagement. |
