How Do I Become a Personal Financial Planner?

Its main responsibility is to provide individuals with comprehensive professional financial advice to ensure people's financial independence and financial security. Customers only need to tell financial planners about their property scale, quality of life requirements, expected return goals, and risk tolerance, etc., and the other party can formulate a financial plan that meets personal characteristics. By continuously adjusting deposits, stocks, bonds, The investment portfolio of various financial products such as funds, insurance, movable property, real estate, etc., design reasonable tax planning to meet the long-term life goals and financial goals of customers.

Personal financial planner

Personal financial planning refers to the establishment of a reasonable individual based on their financial situation

1. Have not less than 108 hours of training in CIFM required courses;

2. Pass the PFP exam;

3. At least 1 year of financial management related work experience;

4. Strict compliance with professional ethics;

5. Continuous learning;

6, can provide customers with quality services;

7. While enjoying CIFM authorization, fulfill the obligations of CIFM Association.

First, each individual financial planner cannot promise investors what percentage of annual returns. Because financial planners are not gods, it is impossible to accurately calculate changes in the market. When speaking to customers about returns, also be clear about risks.

Second, every personal financial planner cannot give customers so-called discounts. The reason is very simple, because customers do not buy discounts, they buy personal financial planning, professional planning. If a financial planner is a professional, why should you discount? If the financial planner did this, he would lose the spirit of engaging in this profession.

Third, if the financial planner gets commissions in some schemes, he should tell investors how much the income is. For example, if you sell an insurance, the commission that can be earned in this insurance should be clearly stated. In the package design, the commission earned by Plan A must also be clarified. If the investor is unwilling, it cannot be sold.

Fourth, financial planners must not impose personal preferences on customers. For example, some financial planners prefer real estate, investing in two or three real estate companies privately, and then recommend customers to invest in real estate, but did not tell the client that relatives of the financial planner in this real estate have investments in it. Preference affects the personal decisions of investors, which is not allowed.

Fifth, when financial planners design certain supporting schemes for our investors, they must explain clearly how these supporting investment tools help customers. For example, buying government bonds is not a pure investment, nor is it a pure deposit. It is the confluence of the two. We must make it clear and let customers think about it.

Sixth, a good personal financial planner should have this sense of responsibility and tell our investors where the risks are. Introduce each supporting investment plan to the client. You can't just say how good this plan is and how much money you make, but you must tell him the risks and show him the risk report.

Seventh, a professional financial planner must meet two requirements. One is a professional education, and the other is a CFP course training and a CFP professional pass.

Eighth, personal financial planners should make clear how much they charge their customers. Including how much the future charges will be, all the charges should be made clear before the transaction has not been concluded today.

Ninth, before each transaction, let the client make it clear that the previous rate of return does not represent or equal the future return. This article is usually marked with large fonts and red colors on legal documents.

Tenth, when designing personal financing packages for customers, be sure to do a good customer survey.

Financial planners are professionals who provide intermediary services. The main target of personal financial services is customers who need financial management. The wealthy need financial management. The working class and ordinary people need financial management more. How to revitalize the limited funds at hand, improve living conditions and quality of life, and prepare for life goals such as retirement are their real needs. If it is easy for rich people to come to spend money, spend money quickly, and earn or lose money, it does not matter to those working class and ordinary people. Money is much more important. It is "hard money" or even "coffin capital". , Personal financial planning must not be sloppy. Entrusted by people, when loyalty matters, since the birth of the financial planner profession, integrity should be the criterion that it must adhere to.

Throughout the ages, there have been numerous examples of successful careers due to honesty and trustworthiness. For example, the "Jin merchants" who enjoyed the reputation of "lighting money and upholding justice, and businessmen have no market vigor". The development of the "Jinbang Group" in the north, where trafficking activities in the Ming Dynasty spread throughout the country, and the Qing Dynasty, became a business giant that played an important role in the business and competition in the country. The secret of their successful business lies in always adhering to the operating principles of "Everyone is easy to believe, and the letter is fair, with roots everywhere, without any disadvantages." A model of credit.

However, the problem of lack of social credit in China today is more serious. In this environment, the emerging financial planner industry inevitably has integrity issues. On the one hand, due to the influence of traditional Chinese culture, people have formed conservative, closed-minded, and undisclosed financial ideas, and they lack sufficient trust in the hard-earned money earned by others to plan and manage their hard-earned life; On the one hand, untrustworthy behaviors frequently appear in personal financial planning: for example, financial planners of banks avoid risks and exaggerate yields in order to complete the sales task of financial wealth management products; financial planners of insurance companies mislead customers in order to obtain more commissions Exaggerate insurance benefits and induce customers to take out more insurance and repeat insurance; securities companies even have some financial planners embezzle and misappropriate customer funds. Financial planners are not honest, and personal financial planning is certainly not honest. The appearance of these dishonesty behaviors has even worsened people's mistrust of personal financial planning and the entire financial planner industry.

The reasons for the above-mentioned dishonesty are mainly the following:

1. Lack of a good social integrity environment . The integrity of the financial planner industry is a part of the overall social credit system, and aside from the integrity of the entire society, it is unrealistic to talk about the integrity of a single industry. The main reasons for the serious lack of integrity in our society are:

(I) Institutional reasons. China's market economy system has not yet been fully formed, and the operating mechanism and order of the market economy are still being improved, which will directly lead to the lack of social integrity.

First manifested in serious information asymmetry. Due to the lack of effective mechanisms to ensure the fairness, openness and effective transmission of information in the market, the information asymmetry between the entities in the market is asymmetric, which facilitates the occurrence of dishonesty and fraud; secondly, there is a serious supply in the credit intermediary market. Inadequate, credit intermediary services are very backward, and China lacks institutions or enterprises capable of providing high-quality credit services. Third, the market credit supervision mechanism is incomplete. Market entities have no way to obtain the information of those who do not speak credit in a timely manner, so that those who do not speak credit can continue to defraud credit and continue to obtain high profits.

(2) Institutional reasons. Chinese traditional culture is an ethical culture. In traditional society, people rely on the moral trust of both parties to restrict their behavior in economic exchanges. In modern society, the essence of a market economy is a contract economy. Under the conditions of a market economy, credit is mainly manifested as a kind of contract credit, which is based on the legal system and requires the protection of laws and systems. Most developed countries have relatively sound national credit management systems, including national credit legislation and law enforcement, government supervision and management of credit enterprises, and government research and development of credit education and credit management for the entire society. At present, China has serious shortcomings in these aspects. Although China's "General Principles of Civil Law", "Contract Law" and "Anti-Unfair Competition Law" and other laws have honest and trustworthy legal principles, they are still not enough to form strong legal norms and constraints on various untrustworthy behaviors of society The legislation on credit is very lagging. The problems of non-compliance with law and strict enforcement of law are also quite serious. There is even a lack of strict punishment mechanisms for breach of trust in society. The imperfect judicial system and ineffective punishment for acts of mistrust, such as "lawsuits won, but money cannot be recovered" are common. At the same time, China's credit reporting system is very imperfect, and a series of credit systems such as corporate and individual credit registration, credit evaluation, credit guarantee, credit transfer, and credit supervision have not been established, making the credit status of enterprises and individuals unfair and reasonable. Difficulties in assessing, identifying and preventing dishonesty.

2. Financial planners lack independence. As the career of financial planners in China has just begun, an independent industry has not yet formed. Existing financial planners are affiliated with financial institutions such as banks, insurance, and securities. Therefore, when they formulate personal financial plans, they often start from Starting from the industry and self-interest regardless of the actual needs of customers, it is difficult to adhere to the principle of integrity. This kind of financial planning is not a real financial planning. Its essence is a combination marketing plan of single or multiple financial products, which enables customers to form a misunderstanding that financial planning is the purchase of financial products. This is in line with the purpose of the financial planner industry. Contrary.

3 Financial planners' professional systems and professional ethics standards are not perfect enough to implement effective industry supervision. The quality of some employees is not high, and it is also closely related to the lack of professional ethics education. The industry of financial planners in China is just emerging. Except for the National Professional Standards for Financial Planners issued by the Ministry of Labor and Social Security, there are no written regulations on the profession of financial planners, and the industry of financial planners needs to be further regulated.

In the current situation, to implement the principle of integrity in personal financial planning, the following issues must be resolved:

1. Establish a good social integrity environment . We must start with the social environment, rebuild social credit, and ensure a good socialist market economic order. The Third Plenary Session of the 16th Central Committee of the Communist Party of China explicitly put forward the need to form a social credit system supported by morals, based on property rights, and guaranteed by law, establish an effective supervision mechanism, and combine the strengthening of industry self-discipline with the improvement of social supervision. To achieve this goal, we must proceed from the following aspects:

(1) Strengthen the education of citizens' honesty and morality, enhance everyone's awareness of integrity, and form a social trend of mutual help, honesty and trustworthiness, equality, friendliness, and positiveness in the whole society. Righteousness. "

(2) Improve and perfect the market mechanism and market system. The role of the market mechanism is the foundation and prerequisite for credit construction. It is necessary to eliminate unnecessary institutional obstacles and policy restrictions, establish a unified and open market system, and create an equal environment for all types of market players.

(3) Establish a credit legal protection system, establish a credit disclosure mechanism, a credit product supply and demand mechanism, and a breach of credit punishment mechanism. The modern market economy is a credit economy and a legal economy. Without the regulation and protection of the law, the economy and credit will be difficult to operate normally. The relevant provisions of laws such as the Commercial Bank Law, the Anti-Unfair Competition Law, and the Procedural Law should be amended to increase the scope, methods, procedures, or legal guarantees of credit information, and the Criminal Law should also be revised. And other penalties laws that include criminal, administrative, and civil liability provisions for those who break the trust. At the same time, to strengthen new legislative work on the credit system, we can learn from the experience of the United States and Europe, and formulate laws similar to the Data Protection Act and the Fair Credit Reporting Act, and introduce laws and regulations on defining the scope of data confidentiality as soon as possible. The society, especially credit intermediaries, opens credit information that should be made public. At the same time, it effectively protects the government's state secrets, business secrets, and the privacy of individual citizens.

(4) Strengthen judicial work, increase judicial independence, strengthen law enforcement, and implement legal responsibilities. The compulsory function of law can only be manifested through the role of justice. The judicial department should increase its crackdown on criminal crimes such as fraud.

(5) Improve China's credit reporting system and social credit rating system, and improve China's personal credit system. Only through credit investigation can the credit status of enterprises and individuals be objectively and fairly evaluated, and the untrustworthy persons have nowhere to hide, thereby curbing the occurrence of untrustworthy accounts.

2. A series of systems to further improve China's career as a financial planner, including a strict market access system, detailed and specific practice rules and discipline rules, and a severe violation punishment system. In developed countries with a well-established national credit system, as a mature profession, personal financial planners have strict market access systems and qualification requirements. They have established a smooth exit mechanism. The most important of their appointment regulations is the financial planner. The ethical requirements of planners are not eligible for CFP if they do not meet the ethical standards required by the CFP (Certified Financial Planner) Association; ~ I1 If they violate ethical standards at work, they will be disqualified from CFP. Establish a penal system for violations of regulations, and severe penalties should be imposed on various dishonesty behaviors in financial planning, especially serious acts of embezzlement and misappropriation of customer funds, in addition to revoking their practice qualifications, and pursue corresponding legal responsibilities. It is necessary to establish a sound financial planner practice system and further standardize the financial planner's career so that it can get rid of dependence on financial institutions and become an independent industry, so that it can serve customers objectively and fairly.

3 By strengthening the professional ethics education of financial planners, we will further improve the quality of financial planners and strengthen self-discipline. The trust of clients in financial planners comes from the conduct and professional ethics of financial planners. Therefore, as a qualified financial planner, in addition to rich financial, investment, economic and legal knowledge and rich practical experience, it should also have Good ethics . Among the professional ethics guidelines for financial planners, integrity is the most basic criterion. Only by abiding by the principle of integrity can a financial planner truly be objective, fair, fair, and reasonable; and only by abiding by the principle of integrity, can a financial planner truly proceed from the interests of customers. Tailored practical and scientific investment and financial planning for customers. Starting from the interests of customers, in a popular phrase, "it is worthy of the hard-earned money of ordinary people."

In short, under the conditions of a modern market economy, through the continuous improvement of the socialist market economy system, we will accelerate the establishment of a social credit system supported by morals, based on property rights, and guaranteed by law. At the same time, we will further improve the rules and regulations of the financial planner profession and strengthen The self-discipline of the industry and the improvement of the quality of employees, personal financial planners will be trusted by our customers and will have broader development prospects.