The career of a Financial Planner boasts flexibility in every way possible, from your salary to your working hours. To many, it’s a very appealing offer—to be able to control how much you earn based on how hard you work, and to determine your own hours rather than sticking strictly to every office’s nine to five. However, there is so much more to being a Financial Planner than just the benefits that are emphasised by every company out there.
The roadmap to becoming a Financial Planner is one that is long and winding, but it is undoubtedly worth every ounce of effort. Once you’ve surpassed all of the hurdles and barriers that are at the beginning and you’re ready to kickstart your journey, it’ll be one that you won’t go back on.
Here, we will walk you through the entirety of the process of becoming a Financial Planner, from all of the traits that you’ll need as a professional employee, to the actual certifications and processes that you’ll need to undertake and pass to qualify. If this is the road you’ve chosen, here’s everything you need to know about becoming a Financial Planner.
Are you made to be a Financial Planner?
Of course, not every single individual out there is well suited for the career of a Financial Planner, the same way not everyone can be a doctor or an artist. Before you even decide to venture on this pathway, you should first take a step back and ask yourself if you have what it takes to succeed in this field.
While knowledge and traits can be cultivated over time, it does help if you’ve already got the basics in place, because not only will it guarantee a higher success rate for you in the field, but you’ll be less likely to drop out midway from giving up too. Nonetheless, if you’re sure that you’re able to grow and obtain these skills and attributes over time, you’re set for the career as much as anyone else is. As an aspiring Financial Planner, you should:
1. Have the hunger and drive to want to do well, succeed, as well as make an impact on the lives that you will cross.
2. Be humble and know that no matter what point of your career you’re at, that you’ll always still need to actively listen, learn, and grow. You must be willing to hear others out for their feedback so that you can be better.
3. Have a collaborative spirit in working with your team. It’s all about succeeding together, as by playing a role in helping others succeed, you will, in turn, bolster and boost your success as well.
How do I become a Financial Planner?
To become a Financial Planner, you’ll need to obtain proper licensing that is regulated by the Monetary Authority of Singapore (MAS) through the Financial Advisors Act (FAA). You will need to pass the Capital Markets and Financial Advisory Services Examination, otherwise known as the CMFAS Exam for short, on top of meeting a set of basic criteria that has been set.
The minimum entry requirements are as follows:
1. Be at least 21 years old; and
2. Satisfy the minimum academic qualification requirements of either;
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a GCE ‘A’ Level certificate with three “Higher 2” passes and two “Higher 1” passes;
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an International Baccalaureate (IB) diploma
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a polytechnic diploma; or other equivalent academic qualifications.
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If you’ve met all of the criteria set, then as an aspiring Financial Planner, you must pass the following modules from the CMFAS Exam, namely:
1. Rules and Regulations for Financial Advisory Services (M5);
2. Collective Investment Schemes (M8);
3. Life Insurance and Investment-Linked Policies (M9); and
4. Life Insurance and Investment-Linked Policies II (M9A).
5. Health Insurance (HI)
6. M8A
The examinations are mainly self-study, however, there are options wherein you can register with private schools that offer the relevant preparation courses. Once you have completed the requisite papers, only then can you log a notification with the MAS and begin your work as a Financial Planner.
For more detailed information on the modules, you can visit the Singapore College of Insurance’s website.
What are the titles and qualifications of a Financial Planner?
Within the field, you’ll often hear of titles such as Million Dollar Round Table (MDRT), Court of the Table (COT), and Top of the Table (TOT), all of which are awards that reflect a Financial Planner’s production figures, showcasing the volume of products that have been sold to their clientele.
MDRT are achieved by those who have met the stipulated requirements, with COT following in on threefold of the requirements, and TOT in sixfold. In a gist, attaining these titles reflects your performance as a Financial Planner, highlighting your sales record, and the satisfaction of your clientele as a whole. The higher the tier, the more qualified you are within the industry.
On the other hand, there are other certifications such as the Certified Financial Planner (CFP), Chartered Financial Consultant (ChFC), Associate Financial Consultant (AFC), Chartered Financial Analyst (CFA) or Chartered Life Underwriter (CLU). All of these certifications are internationally recognised, and signify one’s knowledge and expertise in finance, insurance, and investment. They are not required, however, it will represent the completion of comprehensive courses consisting of financial education, examinations, and practical experience.
While it looks daunting from the outside, once you’ve got the ball rolling in the process and you study and work hard, you’ll be all good to go. It all comes down to the tenacity and persistence that you have to succeed in the field, and of course, the company and team that you surround yourself with, as they too, play a major role in how your career pans out. With a team that’s always ready to guide you and help you, especially in the initial stages of your career, you’ll gain the upper hand and leverage that others don’t have the luxury of.
Here at JLO, we’re dedicated to building the best team of Financial Planners that are successful in every aspect. From client management to salesmanship, and even having a close-knit and supportive team, it’s everything you’ll ever need to begin your journey as a Financial Planner. Take the first step towards a fruitful career and life, and join us now.
*This article is for informational purposes only. It should not be relied upon as legal or financial advice.