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Update

on

Future of Career in Financial Planning in India

And

Education Partners (EP) Meet 2012

Held On

May 4, 2012

At

The Club, D.N. Nagar


Andheri (W)
Mumbai- 400053
Table of Contents

I. Introduction 2
Introduction of the event

II. Objectives 3
Objectives of the event

III. Event Details 4-5


Date, time, venue details, program schedule

IV. Participant Details 6


Details of the guests who attended the event

V. Event Report - Seminar 7-10


Event Flow and salient points of the speakers etc.

VI. Education Partners Meet 11-12

VII. Conclusion 13

VIII. Media Report 14-15


Details of Media who attended the event
Final Media Coverage

~1~
I. Introduction

FPSB India organised a seminar on Future of Career in Financial Planning


in India on May 4, 2012 at Mumbai. This was primarily to establish a
suitable outreach amongst all the stakeholders viz. the EPs, Charter
Members, Regulators, Students and Media etc. and communicate about
the growing career opportunities in the Financial Planning domain.

On regulatory front, an enabling environment is aiding the furtherance of


Financial Planning profession as it is helping meet the life goals of
financial consumers in effective, comprehensive and ethical manner. In
Australia, the recent passage of the Future of Financial Advice (FOFA) Bill
in the lower house of Parliament, has given the necessary impetus for the
development of financial planning industry with a regulatory oversight for
protection of consumers interest. Various proposals like restriction on the
use of term Financial Planner, establishment of minimum fiduciary duty
for financial advisers to act in their clients best interest, elimination of
conflicted remuneration and soft benefits, the necessity of 2 year opt-in
agreement for ensuring the periodic review, and an implicit recognition
of Financial Planning Association (Australia), a member organization
promoting CFP certification, as a professional body acting in consumers
interest have all given the right momentum to the global acceptance of
this profession.

Also invited in the seminar were the Education Partners. There were time
slots allotted prior to and after the Seminar for Education Partners (EPs)
to have closed door meetings on various enrolment and education/exam
issues. The primary purpose of the meet was to enhance the level of
connect with the EPs, understand and resolve their concerns, if any, and
move ahead with a common approach for the achievement of Business
Objectives for the Financial Year 2012-2013.

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II. Objectives

The objectives of the Seminar were:

To establish a suitable outreach amongst all stakeholders viz. EPs,


industry, charter members, regulators, media, students etc.
To communicate about the growing career opportunities in the field
of Financial Planning.
To percolate the need for advisors education across all segments of
financial advisory domain.
To communicate about the role of CFP Certification as the highest
standard of certification in Financial Planning domain.

The objectives of the EP Meet 2012 were:

To take a stock of past performance of EPs vis--vis their past


commitments.
To understand the future Business Plans of EPs.
To evolve strategies to take the student enrollments for CFPCM
certification program forward as per targets in the year 2012-13.
To discuss the revised syllabus of the CFPCM certification program
with EPs.
To work on strategies for increasing the pass percentage of the
students appearing for various modules of CFPCM certification
program
To address the concerns of EPs, if any.
To take corrective actions wherever required.

~3~
III. Event Details

The event details and the program schedule were as below:

Date: Friday, May 4, 2012


Time: 0900 hrs - 1630 hrs
Venue: The Colonial Hall, The Club, DN Nagar, Andheri (West), Mumbai

09:00 hrs - 09:30 hrs


Registration and Breakfast

09:30 hrs 10:45 hrs


(Closed Door meeting with EPs)
Discussion on Curriculum, Enrollments, etc.

10:45 hrs 11:00 hrs


Tea Break

11:00 hrs -12:00 hrs


Inaugural Session
Welcome Address by Mr. Ranjeet S. Mudholkar, CFPCM, Vice Chairman
& CEO, FPSB India
Address by Ms. Maninder Cheema, DGM, Securities and Exchange
Board of India (SEBI)
Address by Mr. D.G. Kale, GM, Reserve Bank of India (RBI)

12:00 hrs 13:00 hrs


Session I
An Address by Mr. Rohit Bhuta, CEO, Religare Macquarie Wealth
Management Ltd.
An Address by Dr. G. Ramachandran, CFPCM, Head Global Research
Group, ICICI Bank Ltd.
An Address by Mr. Arun Thukral, CFPCM, Senior Vice President, Axis
Bank Ltd.
An Address by Mr. Arvind A Rao, CFPCM, Chief Planner, Dreamz Infinite
Financial Planners

13:00 hrs-14:00 hrs


Lunch Break

~4~
14:00 hrs 15:00 hrs
Session II
Special Inputs by Mr. Indranil Ganguly, Assistant Secretary-HRD, Life
Insurance Corporation of India
Special Inputs by Mr. Joydeep Sen, CFPCM, Senior VP-Advisory Desk-
fixed Income, BNP Paribas Wealth Management
An Address by Mr. Dharmendra Satapathy, VP and Head Marketing,
TATA Asset Management Ltd.
An Address by Mr. Jaydeep Kashikar, CFPCM, Director, Brain Point
Investment Centre Pvt. Ltd.
An Address by Mr. Vatsal Ramiya, Chief Manager, SBI Funds
Management Pvt. Ltd.

15:00 hrs - 16:30 hrs


(Closed Door meeting with EPs)
Discussion on Curriculum, Enrollments etc. (continued)

Close of Sessions

~5~
IV. Participant Details

The event was attended by all FPSB India staff along with various
stakeholders including Education Partners (Present and Prospective),
Regulators, Charter Member Representatives and Speakers, Students and
the Media. The snapshot of the Participant List across all categories is as
below:

Participant List-Snapshot
S. No. Participant Category Attended
1 EPs 23
2 FPSB India Staff 20
3 Media Representatives and Support Staff 13
5 Prospective EPs 6
6 Regulators 2
7 Speakers 9
8 Students 79
Total 152

The list of Education Partners who participated in the meet is as below:

Participant Details-Education Partners


S. Number of
Name of the Education Partner
No. Participants
1 Abhinandan Institute of Financial Planning 1
2 Ambition Learning Solutions 2
3 Arihant Institute 1
4 Financial Planning Academy 2
5 Gurukulonline Learning Solutions 2
6 I Nurture Education Solutions Pvt Ltd 1
7 Indian Institute of Financial Planning (IIFP) 1
8 International College of Financial Planning 1
9 ITM Institute of Financial Markets 1
10 L.J. Center for Professional Studies (LJBS) 2
11 MT Educare Ltd 2
12 NJ Gurukul Pvt Ltd 2
13 RNIS College of Financial Planning 1
14 Stratagem Financial School 2
15 Vantage Institute of Financial Markets 2
Total Representatives 23

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V. Event Report Seminar (Open Session)

Seminar on Future of Career in Financial Planning in India

The seminar focused on communicating the message about increasing


career opportunities in the field of Financial Planning in India, the
changing macro and regulatory environment and the role of all
stakeholders in taking the Financial Planning movement forward in
common interest. It also focused on communicating about the role of CFP
Certification as the highest standard of certification in the Financial
Planning domain. The seminar included addresses by regulators and
various stakeholders the key points of which were as below:

Salient Points of the Address by Mr. D.G. Kale, GM, RBI

The State of Financial Services


Industry across the world has been
rapidly changing post 2008.
4I framework- Instrument /
Institution/Infrastructure/Individual
with the first three being controlled
by regulators leading to the well
being of the fourth.
Financial Planning is a
comprehensive approach
comprising of eleven-twelve bodies of knowledge.
The importance of Customer first approach for financial advisors and
Financial Planning is the way forward.

Salient Points of the Address by Ms. Maninder Cheema, DGM, SEBI

Financial Planning is an important


aspect of our future well being as
a society
Financial Planning is a nascent
industry in India and it has been
unregulated so far. The concept
paper released by SEBI in
September 2011 pointed to the
need for regulation of the
industry which will also help to
develop the sector by bringing in best practices, conduct rules and
customer protection.
The concerns of risk profiling, conflicts of interest of advisors and
mis-selling are even being addressed at a global level. Fees are an
important component of financial advice, but growth and
competition should lead to lower fees.

~7~
SEBI commends FPSB India for the work it has done in ensuring a
basic standard of knowledge through its CFPCM certification
program, and the continuous education opportunities to help
financial planners update their knowledge.

Salient Points of the Address by Mr. Rohit Bhuta, CEO, Religare


Macquarie Wealth Management Ltd.

State of Wealth Management


Industry in India is very elementary
and there the education levels
amongst Investors and advisors are
need to be addressed.
There is a need to look at the
Australian case with respect to
Financial Planning and Wealth
Management with a focus on
regulations.
It is required to create Value in Financial Planning
Financial Planning An all encompassing union of approaches and its
future in India.
Religare Macquarie has mandated CFPCM Certification for all its Wealth
Managers.

Salient Points of the Address by Dr. G. Ramachandran, CFPCM,


Head Global Research Group, ICICI Bank Ltd.

With the financial reforms and the


increasing growth, the complexities
of financial products is increasing
and according penetration level is
also increasing amongst investors
With the evolution of financial
systems, consumers now require
holistic solutions across all asset
classes and Financial Planning is all
about relationship with the clients.
ICICI Bank has been recruiting CFPCM Certificants for various
roles/positions.

Salient Points of the Address by Mr. Arun Thukral, CFPCM, Senior


Vice President, Axis Bank Ltd.

Financial Planning Profession is very important in Indian Context.


FPSB India has been playing a major role in enhancing the Financial
Planning profession in India.

~8~
There is an increasing need and
scope for Financial Planners in the
Banking Industry in India.
The experience of Axis Bank on
recruitments of CFPCM Certificants
has been good on all levels.

Salient Points of the Address by Mr. Arvind A Rao, CFPCM, Chief


Planner, Dreamz Infinite Financial Planners

CFPCM certification has helped me


on all levels, including knowledge,
skills, visibility etc. for Setting Up
my own Financial Planning Practice.
Motivations and Challenges for
setting up a Financial Planning
practice
Experience as a Practising Financial
Planner.

Salient Points of Special Inputs by Mr. Indranil Ganguly, Assistant


Secretary-HRD, Life Insurance Corporation of India

LIC of India has been associated


with FPSB India since 2007 and it
values the said association.
Within the organization, LIC is
looking forward to more number
of people clearing the CFPCM
examination in this financial year.

Salient Points of Special Inputs by Mr. Joydeep Sen, CFPCM, Senior


VP-Advisory Desk-Fixed Income, BNP Paribas Wealth Management

BNP Paribas values the CFPCM certification


program and the number of people on the sales
front with CFPCM certification has been rising.
BNP Paribas Wealth Management would give a
preference to CFPCM Certificants in the
recruitment process

~9~
Salient Points of the Address by Mr. Dharmendra Satapathy, VP
and Head Marketing, TATA Asset Management Ltd.

It is important to understand
Investor Mentality and
Behaviour.
Competency and High Value are
two essential qualities of a
Financial Planner.
It is required to understand the
Business Strategy for Financial
Advisory.
It is required to map right
products to consumer needs and CFPCM certification is an important
enabler for achieving the said objectives .

Salient Points of the Address by Mr. Jaydeep Kashikar, CFPCM,


Director, Brain Point Investment Centre Pvt. Ltd.

There is a growing scope of


Financial Planning Profession in
India.
It is required to consider the need
gap analysis i.e. the demand
versus supply equation in
Financial Planning profession
The skills required for the
profession are distinct.
Financial Planning profession has
a promising future in India and CFPCM certification has an important
role to play as gold standard in Financial Planning.

Salient Points of the Address by Mr. Vatsal Ramiya, Chief Manager,


SBI Funds Management Pvt. Ltd.

In reference to the medical


profession, Financial Planning
serves as a valued profession and
it distinguishing sellers from
Financial Doctors.
There is an inadequacy in the
number of Financial Planners vis-
-vis the growing requirements.
The places where Financial
Planners can be recruited include
banks, MNCs and NBFCs etc.
SBI group is amongst the largest recruiters of CFPCM Certificants.

~ 10 ~
VI. Education Partners Interaction (Closed Door)

Post Seminar Interactions and Business Discussions with EPs on Business


Plans, Enrolments, Curriculum, etc.

The primary discussions with EPs were focused on their concerns about
enrolments, pathways and mode of enrolling into CFP Certification
Pathway. The meeting was to continue after the close of Seminar. The
details are covered in the post-seminar closed door meeting at the end of
Seminar details.

The deliberations of the meeting are as follows:

FPSB India in the past had through agreement made agencies which
fulfill certain criteria to offer education and training to the candidates
pursuing CFP Certification Program to serves as authorized Education
Partners. They were obligated to enrol the prospective candidates
under the Program and offer them classroom training as well as
distance learning including online support. These Education Partners
were asked to exercise option to come under the monitoring of FPCIL
with effect from 1st April, 2011 which most of them exercised.

The representative from few Education Partners expressed their


concern on the autonomy of candidates to schedule their exams which
are available on tap throughout the year. They also had reservations
on the frequency of daily exams which they opined, do not evoke the
seriousness to take exams. Their proposal was to again make the
exam available at rests, say bi-monthly. Mr. Ranjeet S. Mudholkar,
Vice Chairman and CEO FPSB India opined that to invoke the
seriousness for exam is also the responsibility of Education Partners.
Our data supports that the ratio of appearance to enrollments for
exams has gone up to 97% (from nearly 85% when the exam
frequency was not daily), signifying that candidates who enrol for the
exam as per their convenience are actually appearing. The same is
also in alignment with the one-year registration window for the exam
whereby the frequency for appearing in exams so as to qualify in the
five mandated exams should be more. It is the power and liberty for
planning for exams which the Board does not wish to divest
candidates of.

Few Education Partners, specifically Indian Institute of Financial


Planning (IIFP) and Ambition Learning Solutions, raised concern over
the prevalence of Self Study mode of completing education. The logic
forwarded was that the Self Study as the mode of pursuing education
for CFP exam competed against Education Partners who have invested
time and capital in establishing the education for the Program. They
also questioned the pass percentage which they claimed was higher

~ 11 ~
for those going through the channel of Education Partners.
Mr. Ranjeet S Mudholkar stated the facts that making the CFP
Certification Program open-architectural was a decision the Board took
in May 2009. The following data of the last two years supports the
traction of the Self Study as the mode of completing CFP Certification
Program.

Registration statistics:

% Enrolments
Enrolment through Total
Year through Self
Self Study mode Enrolments
Study

2010-11 650 4,948 13%


2011-12 916 4,711 19%

The proposal of Education Partners related to rationalization of modes


of enrolments for CFP Certification Program was considered for further
examination on two criteria. First criterion was to consider the profile
of the candidate coming through the Self Study mode. It was
suggested by EPs that only graduates and those holding professional
qualifications should be allowed to come through Self Study mode.
The other criterion for a review of the Self Study mode was, as
suggested by Mr. Mudholkar, was the underwriting by all EPs towards
assurance for number of candidates. Such numbers should not be just
the figure of last financial year but with a certain growth percentage
built into it year after year. EPs were asked to give their numbers in
the financial year 2012-13 by their own mode as well as by
considering annulment of Self Study route.

A presentation was made by Pushkar Chugh, Vice President


Knowledge Management and Membership Development on the salient
features of the revised Syllabus and Topic List which was structured
after assimilating feedback and importance ratings of more than 2,000
subject matter experts, CFP professionals and industry experts
basically in insurance, mutual funds, banking and personal taxation
domains. The revised structure of the examination which is expected
to be in place with effect from 1st February, 2013 was also discussed.

~ 12 ~
VII. Conclusion

The event was successful in terms of percolating the need for advisors
education across all segments of financial advisory domain, including
banking, securities markets etc. as well appreciated by the regulators in
the banking and capital markets and authenticated with commitment from
the Charter Members of FPSB India. Thus, it was a step in the direction of
aiding the establishment of common approach amongst all stakeholders
to take the Financial Planning movement further.

The regulators i.e. Securities and Exchange Board of India (SEBI) and
Reserve Bank of India (RBI) commended the initiatives undertaken by
FPSB India in upgrading the knowledge and skills of present and aspiring
financial planners to be able to address the growing consumer needs in a
need based, holistic and ethical manner.

Various speakers also stated that there is a huge demand and supply gap
in the industry and CFPCM certificants are best equipped to fill that
demand gap, owing to their knowledge, skill sets and compliance to
strong code of ethics in consumers interests.

On the business front with Education Partners, the Meet helped in


capturing the concerns of Education Partners in the area of enrolments.
These were to be assessed on the basis of available data and performance
of candidates under various modes. The EPs were communicated about
the need to spruce up their training skills and education deliverables in
the new era of restructured examination testing the knowledge and
practical skills of candidates on revised Syllabus and Topic List. The
handholding was provided by FPSB India by inviting the faculty of the EPs
in the office of FPSB India on a fortnightly basis, the first such interaction
being on 18th May, 2012. The idea is to train the faculty on the revised
exam structure as well as catering to their other concerns on education
and examination.

~ 13 ~
VIII. Media Report

The list of Media Representatives who attended the event is as below:

S. No. Media House


1 Business Standard
2 Business Standard
3 Financial Express
4 Business India
5 Business India- Photographer
6 PTI
7 NDTV Profit
8 Asian Age
9 Afternoon D&C
10 Indiainfoline
11 Prahar

The event generated a wide and positive media coverage, the details of
which are as below:

Print Media Coverage


S. Publication
No. Date Name City Page Article Title
May 5, Business Investment advisor
1 2012 Standard Mumbai 9 norms will help
Hindu Regulating investment
May 5, Business advisors will benefit
2 2012 Line Mumbai 14 industry: SEBI
May 5, Financial Sebi: Need to regulate
3 2012 Express Mumbai 13 investment advisors
May 5, SEBI Finds in Challenging
4 2012 Asian Age Mumbai 14 to Define Advisers
May 9, Afternoon How to be a Good
5 2012 D&C Mumbai 17 Financial Planner

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Media Coverage (Contd.)

Online Media Coverage


S.
No. Date Publication Name Article Title Article Link
Regulating
investment
advisors will
May 5, benefit industry: http://bit.ly/JaPXNO
1 2012 Economictimes.com SEBI
Regulating
investment
advisors will
May 5, benefit industry: http://bit.ly/KkYTG4
2 2012 DNAIndia.com SEBI
Sebi: Need to
regulate
May 5, investment http://bit.ly/KKbzD0
3 2012 IndianExpress.com advisors
Indians are good
May 5, savers but poor http://bit.ly/JOeU4Z
4 2012 IndiaInfoline.com investors.
Indias 10-Year
Bond Yield Near
May 5, One-Week High on http://bit.ly/IOJMTY
5 2012 Moneylife.com Inflation Woes
Regulating
investment
advisors will
May 5, benefit industry: http://bit.ly/IQhs50
6 2012 Zeenews.com SEBI

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