FPSB India to end global affiliation by March 2019
FPSB India, the Indian affiliate of US-based FPSB, has served a notice of termination on the latter, stating that the affiliation and licence arrangement between the two would end on March 31, 2019.
In July, FPSB had decided not to renew its licensing agreement with FPSB India due to expire on March 31, 2020. FPSB had found evidence of financial impropriety at FPSB India and was not happy with the way the certified financial planner (CFP) certification was promoted over the years, sources had said earlier. In a letter addressed to the chairman and chief executive of FPSB, the Indian affiliate stated that the US entity had directly approached FPSB India stakeholders and attempted to offer redress on various matters without FPSB India’s advice.
FPSB India also said it would continue to comply with its roles and responsibilities under the said affiliation agreement till March 31 next year. FPSB, meanwhile, has tried to assuage concerns of hundreds of CFPs in India.
“We understand that this notice may have caught you by surprise, and that you may have concerns about your status as a CFP professional and your ability to maintain and renew your CFP certification… FPSB will honor the certification status of all those who are currently certified and in good standing, and whose fees paid to FPSB India are transitioned over to FPSB so that we can continue to service your certification needs,” Chief Executive Officer Noel Maye said in a mail to CFP professionals in India.
FPSB enters into licensing and affiliation agreements with non-profit organisations, or their equivalent around the world, authorising them to administer the CFP certification programme on behalf of FPSB.
At present, FPSB has member organisations in 26 territories with more than 175,000 CFPs. These include India, Australia, Brazil, Canada, China, Colombia, Singapore, South Africa and Thailand.
FPSB India is promoted by 44 financial services organisations and is the licensing authority for CFP marks. India had 2,036 CFP holders at the end of calendar year 2017, compared with 17,523 in China, 4,766 in South Africa and 3,409 in Brazil.
In an earlier letter sent to CFP aspirants in India, Maye had said FPSB would evaluate options to develop a business plan and success metrics for the financial planning profession and CFP certification in India.