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Chris Davis

The Institute of Financial Planners of Hong Kong  (IFPHK) believes one of the best ways to get credibility is to  obtain a professional qualification.   
'The [Certified Financial Planner] CFP certification is regarded as the gold standard of financial planning  and continues to underscore IFPHK's main goal to uphold the highest standards  to benefit the public,' said Angeline Chin,  IFPHK's chief executive.  
She said  CFP certification set holders apart from others  and increased their competitive edge. 
CFP candidates are required to meet the rigorous four 'e' requirements  of education, examination, experience and ethics. 
The CFP education programme consists of six modules: foundation of financial planning, insurance, investments, taxation and tax planning, employee benefits and estate planning, and advanced financial planning. 
The foundation module is a compulsory prerequisite or co-requisite for other modules. 
Each candidate must also possess a bachelor's degree or attain a minimum of five passes in the Hong Kong Certificate of Education Examination or similar qualifications. They must have had three years of full-time (if the candidate holds a recognised undergraduate qualification) or 6,000 hours of part-time relevant work experience. 
Alternatively, six years' experience or 12,000 part-time hours are required by those without an undergraduate degree. 
Before accepting a CFP candidate, the IFPHK performs a background check and each candidate is required to disclose any investigations or legal proceedings related to their professional or business conduct.  
 Certificate holders are required to undergo a renewal process to maintain technical competence and to fulfil ethical obligations. This includes the completion of at least 15 hours of continuing education every year and the disclosure of any public, civil, criminal or disciplinary actions.
'While the CFP title  is not a guarantee of results, it is the only  programme of its kind that requires candidates to take exams to show they have met rigorous professional standards and have agreed to adhere to the principles of integrity, objectivity, competence, fairness, confidentiality, professionalism and diligence when dealing with clients,' Chin said. 
Clients of CFP practitioners who feel they have not been provided with a professional service can file a complaint with the IFPHK which, if necessary, can follow up with disciplinary measures. 
Worldwide, there are more than 118,000 CFP holders, of whom about 3,700 are in Hong Kong. Observers estimate there are more than 60,000 individuals working in different areas of the local financial planning sector.  They require licences issued by regulatory bodies. 
According to IFPHK research carried out earlier this year, members stated one of the most significant challenges was rebuilding the trust between planners and their clients. Members felt that this was an important issue for the industry moving forward as, without the trust and respect of clients, individuals would be reluctant to seek the services of financial planners to help them achieve their goals.
To help the public better understand financial planning services, the IFPHK recently launched a Consumer Action Plan designed to raise the level of knowledge through leaflets, seminars, events and improving the Consumer Corner of the IFPHK website with more  information and materials. 
The institute also launched a Member Action Plan that introduced more seminars with topical content. These include professional development (regulatory and legal), enhanced practice tools  and  guidance notes to help practitioners deliver improved advice. 
In addition, a member-led industry task force was formed to review and provide informed opinions on the various proposals and consultations by regulators and the Hong Kong government.
However, despite the recent financial crisis, Hong Kong's financial planning sector is expected to continue expanding. Demand for services is likely to be driven by the emergence of well-heeled young professionals, two-income families, the greying of Hong Kong's population and encouragement by the government for citizens to make financial arrangements for their retirement. 
Helping to further raise the profile of financial planners, Chin believes taking part in the IFPHK/SCMP Financial Planning Awards is another way of displaying ability, professionalism and commitment to ethics. 'Everyone that takes part in the competition undergoes a rigorous examination, while the winners show [why] they excel in their chosen profession,' she said.
Endorsing Chin's sentiments, Rainbow Pan, chief executive officer at ipac financial planning  Hong Kong, said that she noticed how clients paid more attention to her advice after she won the IFPHK/SCMP competition in 2006. 
Pan said that in Australia, where she worked previously, it was common practice for clients to question financial planners' qualifications and experience. However, in Hong Kong, very often, clients are more interested in results - without considering the ability of their adviser. 
'If one good thing has come out of the financial crisis, it is that people looking for financial planning services are now selecting the people to provide them with advice and services a lot more carefully,' she said.



Gold standard gives CFP holders an edge