He or she is a person with certified financial planner (CFP) or registered financial planner (RFP) credentials. A person with a CFP or RFP has a valid membership with a professional financial planners association and is registered with the Securities Commission under Section 59 of the Capital Markets and Services Act 2007 and performing the regulated activities of financial planning as defined in Schedule 2 of the Act.
Schedule 2 of the Act says that “financial planning” is a regulated activity and defined as the activity of analysing the financial circumstances of another person and providing a plan to meet that other person’s financial needs and objectives, including any investment plan in securities, whether or not a fee is charged in relation thereto.
“No person shall act as a representative in respect of any regulated activity or hold himself out as doing so unless he is the holder of a Capital Markets Services Representative’s Licence for that regulated activity or is a registered person with respect to that regulated activity.
“A person who contravenes subsection (1) commits an offence and shall, upon conviction, be liable to a fine not exceeding RM5mil or to imprisonment for a term not exceeding five years or to both.”
Moreover, she reiterated that financial planners could source products for their clients at competitive costs from a wider range of product providers.
The concept of financial planning is quite broad. Some financial advisors work for financial institutions or their affiliated companies. Even people hire their services to manage their finances.
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