by Thanakrit Lersmethasakul
or personal financial planner is a practicing
professional who prepares financial plans for people covering various aspects of
personal finance which includes:
Risk Management and Insurance Planning
Investment and Planning Issues
Cash Flow and Liability Management
Education Planning for kids and the family members
Personal financial planning is broadly defined as …
“A process of determining an individual's financial
goals, purposes in life and life's priorities, and
after considering his resources, risk profile and
current lifestyle, to detail a balanced and realistic
plan to meet those goals”.
To create the greatest probability that all
(anything requiring both money and planning to achieve) are
accomplished by the
To have a
sensible plan that is
proactive enough to accommodate any major unexpected financial
event that could negatively affect the plan.
way (whether to "buy or lease" whether to "refinance or pay-off"
intelligent financial choices
The Four E's
CFP® Certification: The Standard of Excellence
CFP Board’s coursework:
General principles of financial planning
Income tax planning
Professional conduct and fiduciary responsibility
Financial plan development (capstone)
Potential barriers to growth for consideration
1. Supply of suitably qualified professionals
A large number of respondents identified the lack of supply of local
experienced financial planning professionals as a potential significant barrier to future
2. Professional standards
The complexity of the Hong Kong regulatory framework, which made the
establishment of a series of uniform professional standards across the financial planning
Industry Skill Review
- Strong in business development skills.
- Need to develop additional technical skills.
- Need to develop a stronger technical skill base.
- Need to develop the skills to distinguish what is
the most appropriate product(s) for their clients’
Service Offering Outlook for the Future
In many international markets, as the financial planning industry matures and
consumers developed a more comprehensive understanding about the importance of
the industry remuneration
methods changed from a commission based
income to a fee based one.
seeking professional financial advice,
In general, Hong Kong consumers typically did not like paying up front fees. The
lack of regulatory pressure on the issue of fee disclosure was also considered significant.