How to become a Financial Planner
As a financial adviser you will be part of Malaysia's most dynamic and fastest growing profession.
Working in financial planning offers:
- Job satisfaction
- A way to help Malaysians fulfil their financial lifestyle dreams
- Challenge
- Personal and professional growth
- The chance to generate a good income
- Career opportunities
As a financial adviser your role involves ongoing servicing and working with clients, and at times, life long relationships are established.
You will learn about their hopes and goals and create strategies to help them achieve these by:
- Providing a holistic approach to financial planning
- Having an extensive knowledge of financial markets
- Understanding trends and identifying potential risks
- Taking a global outlook
What is financial planning?
Financial planning is investigating and deciding on the best way to make your money work for you. This is done by working out what you want to achieve, how you might achieve it and understanding any problems you might encounter along the way.
To assist you with this, a professional financial adviser may offer advice on investments, estate planning, retirement planning, taxation and risk management and use a six-step process to help you work out what you may need to do now and in the future to reach your financial goals.
What does a financial adviser do?
Financial advisers determine a client's short, medium and long-term aspirations then work on an agreed financial plan to meet individual needs. They have strong people skills and are good listeners.
The financial adviser and client review the plan regularly to keep it on track and update it as appropriate. As a financial adviser that holds the Capital Market Services Representative (CMSR) License and/or Financial Adviser Representative (FAR) License, you will use the six steps of the financial planning process. These are:
- Gathering your client's financial data, including details on income, debt levels and financial commitments
- Identifying your client's goals. These may include buying a house, funding education or travel
- Identifying any financial issues
- Preparing a financial plan that identifies recommended investments and pays heed to the client's attitude to risk
- Implementing the financial plan
- Reviewing and revising the plan to ensure it stays up-to-date and relevant to the economic climate and the client's changing lifestyle
What are the specific services a financial adviser provides?
A financial adviser can offer general wealth creation advice and assistance across all financial markets, or specialise in areas such as:
- Investment planning
- Risk insurance planning
- Retirement planning
- Tax planning
- Cash flow management
- Education planning
- Estate planning
- Mortgages and financing
- Employee benefits planning
- Business succession
How do I become a financial adviser?
If you are looking for career enhancement or becoming a business owner, financial planning may be the career for you.
As a first step, undertake an entry-level education program recognised by the Securities Commission and Bank Negara for the license either CFP, RFP or ChFC. These are specifically designed to:
- Provide the knowledge, skills and qualifications for you to become a financial planner
- Help practicing financial planners maintain their credentials
- Keep financial planners up to date with the changes affecting the sector
Once you has been accredited the qualification, you must apply the required licenses with Bank Negara and Securities Commission before you can carry out financial planning services.
What kind of education and qualifications do I need to become a financial adviser?
- Chartered Financial Consultant (ChFC) and maintain a valid membership with Malaysian Association of Chartered Financial Consultant (MAChFC); or
- Certified Financial Planner (CFP) and maintain a valid membership with Financial Planning Association of Malaysia (FPAM); or
- Registered Financial Planner (RFP) and maintain a valid membership with Malaysian Financial Planning Council (MFPC).
Is financial planning a growth industry?
Yes! Financial planning is a dynamic profession in which strong careers can be established.
As Malaysia's population ages, people are becoming much more aware that their retirement security and comfort will depend more on them, and their financial planning efforts, than on government welfare benefits.
How is the financial planning sector regulated?
In response to legislation, the Malaysia Securities Commission (SC) sets the investment adviser and financial adviser representative (FAR) license - licensing and educational requirements necessary for companies and individuals to offer financial planning advice and (see www.sc.com.my)
The Bank Negara Malaysia (BNM) sets the financial adviser and financial adviser representative (FAR) license - the licensing and educational requirements necessary for companies and individuals to offer insurance products and financial planning advice.
CMSR and FAR licensees must meet relevant education, experience and ethical requirements. Financial advisers who represent license holders must also meet minimum education requirements prescribed by SC.
What should I do next?
You can learn more about becoming a financial adviser and future career opportunities by contacting David Soo of
Standard Financial Planner on davidsoo@sfplanner.com
Source: A Career in Financial Planning: Your Questions Answered - Financial Planning Association of Australia
