Financial planning a sunrise industry, says FPAM chief

KUALA LUMPUR: The financial planning industry, although still small with only 680 licensed financial planners, is growing at a rapid pace to serve about eight million people in Malaysia.

Financial Planning Association of Malaysia (FPAM) chief executive officer Linnet Lee said the financial planning industry was playing an increasingly more important role in linking investors with the financial and capital markets that are also growing more sophisticated.

“It is a sunrise industry. One licensed financial planner can optimally serve about 100 clients.

“So, with only 680 financial planners, we can only serve up to 68,000 clients. In order to serve eight million people, we definitely need more financial planners in the country,” she said in an exclusive interview, here, recently.

“We are reaching out to the public, especially those who are interested to do financial planning, to take up the certification and get licensed.

“The only condition that we ask of them is to tie up with a financial planning firm. It is because they need three years of experience to be certified,” she added.

VKA wealth planner Kevin K. M. Neoh said a financial planner helped people to crystalise their goals by categorising each goal according to priority and then drawing up a game plan on how to achieve those goals.

Financial planning was not exclusive only to high net worth individuals and could help one get out of debts, increase wealth or have stable income, he added.

“We grow up in a culture whereby we seek financial advice from friends and family. The problem is that not all of us are specialised in that area.

“People also mistakenly perceive that unit trust agents out there are financial or wealth planners. One key point is that they are not certified.

“Competent financial planners are those who have gone through stringent certification process and should be the source of information that people look for in order to make smarter decisions,” said Neoh.

According to the Securities Commission Malaysia (SC), only financial planning companies and their representatives who are licensed by the SC are permitted to carry the title “financial planner” and offer financial planning services.

From October 13-15, the SC will be organising its annual flagship event, InvestSmart Fest 2017, that will gather capital market institutions, associations, industry players and agencies to help raise awareness on investment opportunities available in the local capital market.

The public can sign up for a free initial assessment by a licensed financial planner by registering their interest at investsmartsc@seccom.com.my. Amir Hisyam Rasid