Licensing, Regulations and Self-regulation
The title of 'financial planner' is largely an unregulated term in many countries. Lack of regulation has allowed financial services personnel in these countries to use the title indiscriminately. Often, financial products intermediaries, such as life insurance and unit trusts agents, use the title to project a professional image to clients even when they are not trained in the professional aspects of financial planning. This has sometimes led to abuse. Clients may be deceived to receive financial planning services that are unprofessional, from unethical providers.
To protect the industry, financial planning professionals and practitioners from across the globe (starting from the United States) have begun to form trade organizations to provide self-regulations and to maintain some orderliness in the industry. Some, such as the Financial Planning Association, FPA, have begun to organize high-level training programs and certify members who successfully completed these programs.
The title of 'financial planner' continues, however, to be used by individuals in the financial industry in most countries, as there are little or no legal barriers to prevent the use of the title. The governments in many countries where the financial planning profession is taking roots are beginning to play an increasingly active role in tasking themselves to ensure the market is orderly. More stringent laws and guidelines are being progressively introduced to keep the profession in check. Additional qualifications have also recently emerged that have extended on the financial planner series of designations, to include specialist skill sets like those in wealth management or private banking.
Read more about this topic: Financial Planner
Famous quotes containing the word regulations:
“If the veil were withdrawn from the sanctuary of domestic life, and man could look upon the fear, the loathing, the detestations which his tyranny and reckless gratification of self has caused to take the place of confiding love, which placed a woman in his power, he would shudder at the hideous wrong of the present regulations of the domestic abode.”
—Lydia Jane Pierson, U.S. womens rights activist and corresponding editor of The Womans Advocate. The Womans Advocate, represented in The Lily, pp. 117-8 (1855-1858 or 1860)