Financial planning in today’s day and age is one of the most crucial skills required, be it in life or business. For the Financial Planning Standards Board India (FPSB) which is a subsidiary of the global professional body, the Financial Planning Standards Board in the US primary focus is to set standards for financial planning and provide the Certified Financial Planner certification, Krishan Mishra, CEO, Financial Planning Standards Board (FPSB) India told FE education. “The certification process is rigorous and consists of various levels and modules. It covers topics such as investment planning, retirement planning, tax management, estate planning and insurance. After completing these modules and passing the exams, candidates must submit a Financial Planning assessment and take a final case study-based examination,” he added.
The Financial Planning Standards Board (FPSB) is a standard-setting body based in the US, which claims to represent FPSB India as part of this global organisation. FPSB India claims that the certification programme is recognised globally and pursued by students in 27 different territories around the world.
The organisation claims that this certification programme is different from the rest of the accounting courses as it allows individuals to provide comprehensive financial advice. “Accounting primarily focuses on an organisation’s current financial position, while financial planning is a pervasive function that remains essential throughout an individual’s and organisation’s life. Financial planning is required by everyone, from individuals to large organisations,” Mishra said.
Furthermore, the organisation claims that more than 2.13 lakh individuals have obtained the Certified Financial Planner (CFP) certification globally. In India, it claims that the number of CFP professionals stands at 2,517. These numbers are continuously growing with more and more students pursuing this certification each year. “The passing rate for the CFP program varies from session to session. On average, it hovers around 55%. This means that approximately 700 to 800 students may pass the CFP exams each year. However, it’s important to note that while they may pass the exams, they cannot be certified until they complete their graduation and fulfil the required work experience,” he said.
FPSB India further claims that the coursework emphasises practical and application-based learning. “Once they complete all requirements, they need to fulfil an ethics module and gain supervised experience, either one or three years, before applying for certification. After achieving certification, they can use CFP marks and this certification is recognised worldwide,” Mishra informed.
Further, the organisation claims that the CFP certification programme typically takes between 18 months to two years to complete. It claims that there are two pathways for students. The regular route is for those who start after completion of high school that is grade 12th high school) and complete their graduation. The second route is for individuals who already hold certain relevant qualifications, such as an MBA in Finance or other professional accounting certifications. “For the second route, candidates must need a minimum of three years of work experience in the field of finance and financial services. This pathway can be faster, as it would take around six to seven months to complete the certification,” he added.
Elaborating the criteria for enrolling in the programme, FPSB claims that interested candidates from any educational background, whether it’s science, humanities, commerce or any other stream can enrol in the programme. As for the enrollment of students, the institute claims that the minimum requirement is to complete high school. “But it’s important to note that you cannot apply for this certification until you complete your graduation. Globally, this certification is equivalent to a post-graduate qualification, so candidates can only apply after completing their graduation,” he said.
As for the CFP certificate, the organisation claims that after completing the required modules and exams, candidates need to submit a Financial Planning Assessment, followed by a case study-based final examination. “Once candidates complete things, they must complete an ethics module session and gain supervised experience, either one or three years, under the guidance of a Certified Financial Planner professional. After meeting all these requirements, they can apply for certification and use the CFP marks, which are recognised globally,” Mishra explained.
Further, the FPSB claimed to have collaborated with 16 education providers to enhance the training and job placement of students. For institutes the CFP programme offers a wide range of career benefits and job opportunities and professionals can find employment in various sectors, including banks, insurance companies, mutual fund companies, securities firms, treasury departments of organisations, family offices, private banking, wealth management, portfolio management, among others. “The demand for CFP professionals is high, and they have the option to work for established organisations or set up their practices. While competition exists, there are more job opportunities than there are certified professionals, making it a promising field for those who pursue this certification,” he added.