Financial planner

Professional who prepares financial plans for people

A financial planner or personal financial planner is a qualified financial advisor. Practicing in full service personal finance, they advise clients on investments, insurance, tax, retirement and estate planning. As a general rule, a financial planner’s work can:
integrate into the range of professional services (eg: lawyer, accountant); or
integrate into the offer of a range of financial products and services (eg: financial advisor, insurance agent); or
not be integrated into other products or services, providing stand alone financial planning.

In Australia, financial advisors must be authorised under an Australian Financial Services licence holder to provide financial product advice. The licence holder must obtain a licence from the Australian Securities and Investments Commission (ASIC). The ASIC website states that "Holding an AFS licence does not provide a guarantee of the probity or quality of the licensee's services." There has been recent reforms to the licensing of financial advisors in Australia as a result of several scandals involving things such as inadequate or improper advice and fees charged to clients for no service. From 1 January 2019, new education and training standards apply to financial advisers these standards include undertaking approved post graduate study, passing a national accredited examination and undertaking continuing professional education. New entrants to the industry have additional requirements.

In Belgium, advice in this area is regulated by the law of 25 April 25, 2014 relating to the status and control of independent financial planners and to the provision of planning consultations by regulated companies. Notaries, lawyers, accountants and auditors are however not targeted. The law uses the term "financial planning", which creates an amalgamation between two disciplines.

The Securities Commission Malaysia introduced legislation through amendments made to the Securities Industry Act in 2003 to regulate financial planning and the use of the title or related title of 'financial planner' or to conduct activities related to financial planning. In 2005, amendments to the Malaysian Insurance Act require those who carry out financial advisory business (including financial planning activities related to insurance) and/or use the title of financial adviser under their firm (which, like in Singapore, must be a corporate structure) to obtain a license from Bank Negara Malaysia (BNM). Some persons who offer financial advisory services, e. g., licensed life insurance agents, are exempted from licensing as a practising requirement.

In Singapore, financial services are highly regulated by The Monetary Authority of Singapore (MAS), the regulator and supervisor of financial institutions in Singapore. Rules are set by MAS for financial institutions and are implemented through legislation, regulations, directions and notices. Currently, the majority of the financial planners (financial consultants) are commission based, which may cause a conflict of interest related to the products recommended. In 2015, a balanced scorecard framework was implemented to better align the interests of the FA industry and consumers. This ensures FA representatives and supervisors meet key performance indicators that are not related to sales, such as providing suitable product recommendations and making proper disclosure of material information to customers (Non Sales KPI). Failure to achieve good grades for the Non Sales KPI will directly affect their commission (variable income).

The Financial Markets Authority (FMA) (formerly the Securities Commission) provides Authorisation to individuals who provide Personalised Financial Advice, Investment Planning Services and/or Discretionary Investment Management Services. Individuals who receive authorisation are referred to as an Authorised Financial Adviser (AFA). In order to receive authorisation, individuals must complete the National Certificate in Financial Services (Financial Advice) (Level 5).