Wealth Insights: How To Become A Independent Financial Adviser In Malaysia?

One must pass a series of rigid examinations conducted by either one of the following:

1) Certificated Financial Planner (CFP) issued by Financial Planning Association of Malaysia (FPAM), which is recognized globally.

2) Registered Financial Planner (RFP) issued by Malaysian Financial Planning Council (MFPC), which is recognized locally only.

What is the difference between ACCA and MIA? ACCA is a worldwide recognized Accounting Professional qualification, whereby MIA is a locally recognized Accounting Professional qualification.

To enroll in CFP courses, the particular person must fulfill the following requirement:

- Possesses a minimum of Bachelor Degree in any faculty of studies.

To enroll in RFP courses, the particular person must fulfill the following requirements:

- At least possesses a Diploma qualification (RFP).

After passing above examinations, the particular person must fulfill all of the requirements:

- Must be a malaysia Citizen.

- Have 3 years financial services experiences.

- At least 21-year-old

- Must be full time practitioner

- Attained a minimum 20 CE and 20 CPD hours on personal development training programs in yearly basis.

Besides that, the person has to obtain the title of CMSRL from Securities Commission Malaysia as Financial Planner and FAR license from Bank Negara Malaysia as Financial Adviser before practicing his/her role as an Independent Financial Adviser.

Those who act as or represent themselves as being "Financial Planners" without an investment adviser’s licence would be in contravention of the licensing requirements under the SIA and would be liable, on conviction, to a fine not exceeding RM1 million or to imprisonment for a term not exceeding 10 years, or to both.

Meanwhile, the term “Financial Adviser” is a restricted word under Section 139 of the FSA. no one shall in name, description or title uses such a word, unless he or she is approved under the (FSA) Act to carry on a financial advisory business. Anyone who contravenes the Act shall on conviction, be liable to imprisonment of up to eight years or fined not exceeding RM25 million, or both.

What is the different between Licensed Financial Adviser / Licensed Financial Planner with Unit Trust Consultant and Insurance Agent?

	Financial Planner & Financial Adviser	Insurance Agent	Unit Trust Consultant	Private Retirement Scheme Consultant
Represent	Customer	Insurance Company	Unit Trust Company	PRS Company
Approved / Registered by	Bank Negara (BNM) = Financial Adviser Securities Commission Malaysia (SC) = Financial Planner (CMSRL licensee)	PIAM (General Insurance) LIAM (Life Insurance)	FiMM	FiMM
Function	Offer professional financial planning advisory services to suit client’s personal finance need(s) from - wealth creation - wealth accumulation - wealth preservation & - wealth distribution S/he will research from multiple life & general insurers, multiple unit trust companies, multiple PRS providers, various local and overseas investment facilities, Will writing, and bereavement.	Salesperson for a single Life Insurance products. Salesperson for 2 general insurance products.	Salesperson for a single unit trust products.	Salesperson for a single PRS products.
Minimum Entry Requirement	Bachelor’s Degree, Passed CFP Certification / RFP Certification (240hours of lecture and 14 hours of exam in English language) Minimum 3 years of relevant experiences in financial services industry	Minimum with 3 credits in SPM and passed CPE (2 hours computerized exam in English language, Bahasa Malaysia or Mandarin Language)	Minimum with 3 credits in SPM and passed CUTE (2 hours computerized exam in English language, Bahasa Malaysia or Mandarin Language)	Minimum with 3 credits in SPM and passed CPRE (1.5 hours computerized exam in English language, Bahasa Malaysia or Mandarin Language)
Transparency Of Propose Solution	Impartial views and choices by evaluating the Pros and Cons of solutions or products.	Biased views without choice by just providing pros of product only.	Biased views without choice by just providing pros of product only.	Biased views without choice by just providing pros of product only.
Continued Education	SC (20hours), BNM (20hours), FiMM, FPAM (20hours) / MFPC (20hours)	LIAM (30hours)	FiMM (16hours)	FiMM (16hours)