2023-12-16
"Thoroughly examining FPSB CEO Krishan Mishra's impact on Certified Financial Planning (CFP)"
Certified Financial Planner
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Mr. Krishan Mishra was appointed as chief executive officer on 1 August 2023 of FPSB India. In his new job, Mr. Mishra will be in charge of planning and running things at FPSB India. He's also excited about making financial planning better in India, and he thinks the CFP® mark is a great way to show as a symbol of excellence in financial planning.
Mr. Mishra knows a lot about different things and brings a wealth of knowledge because he has worked for more than 20 years in finance, education, and technology. He's done all sorts of jobs like handling operations, making business and strategy plans, doing marketing, and selling things to companies.
Before this new job, Mr. Mishra was the big boss for international business at Becker Professional Education. He also led the way for the Association of Chartered Certified Accountants in North and East India. Plus, he worked at HCL Infosystems Ltd., where he was in charge of the eastern region and the business through different channels. Before all of that, he spent more than 10 years working in the financial services industry.
Krishan, with a wealth of experience in finance and education, excels at crafting intelligent plans. His goal is like a badge of honor to foster the growth of the CFP® community in India and enhance the field of financial planning.
The CFP® certification stands as a prestigious acknowledgment of excellence in financial planning globally. Krishan is enthusiastic about collaborating with key figures to elevate the professionalism and success of financial planning. Through the use of these distinctive marks, he aims to propel the financial planning profession to new heights. Krishan gained his expertise in business and trade at the Indian Institute of Foreign Trade in Delhi and the Entrepreneurship Development Institute of India in Ahmedabad. Additionally, he holds the title of Fellow of Chartered Management from the Chartered Management Institute in the UK. In 2019, he received recognition as one of the Top 100 Leaders in Education for his significant contributions in the field at the Global Forum for Education and Learning.
FPSB CEO Mr. Dante De Gori, CFP® said “I am very pleased Krishan Mishra will step into the role as CEO of FPSB India.”
FPSB India CEO Mr. Krishan Mishra said “I’m honored to take the helm of FPSB India as its CEO to continue to strengthen the CFP® professional community in India. With five years of consecutive growth in the number of CFP® professionals, the value of CFP® certification remains strong in our country, and I’m committed to supporting practitioners who commit to rigorous standards of competency, ethics and practice to benefit the financial planning profession and members of the public.”
About FPSB Ltd and FPSB India.
The Financial Planning Standards Board (FPSB) is a global non-profit organization dedicated to establishing and enforcing standards for the financial planning profession through its member organizations. Globally, FPSB oversees the certification of Certified Financial Planner (CFP®) professionals, working to advance financial planning as a distinct and professional standards and discipline. Member organizations worldwide, including FPSB India, are authorized to manage and implement the CFP® certification process in their respective countries, granting them the authority to license and regulate CFP® professionals within their jurisdictions. With internationally recognized marks like CFP® (CERTIFIED FINANCIAL PLANNER), FPSB demonstrates its dedication to excellence. Operating in 27 territories worldwide, including India, FPSB and its global network administer CFP® certification and other programs. As of the close of 2022, there were 213,002 CFP® professionals worldwide.
FPSB Institute India Pvt. Ltd. is the Indian branch of FPSB Ltd., is the Indian affiliate responsible for promoting and regulating the CFP® certification in the country worldwide organization that establishes standards for the financial planning profession. It sets and enforces standards for CFP® professionals in India, ensuring they meet required educational, experiential, and ethical benchmarks. The CFP® certification is globally recognized as a mark of excellence in financial planning, symbolizing the competence, professionalism, and ethical commitment of professionals in the field. For more, visit fpsb.org
Certified Financial Planner (CFP®)
A Certified Financial Planner (CFP®) is an esteemed designation granted by the Certified Financial Planner Board of Standards, Inc. (CFP® Board) in the United States, setting a global standard for financial planning excellence. To attain CFP® status, individuals must meet specific education, experience, and ethical requirements, including completing specialized coursework, holding a bachelor's degree, gaining relevant work experience, and adhering to a strict code of ethics. Certified Financial Planners are highly skilled professionals providing comprehensive financial advice and planning services to individuals and families, helping them set goals, devise strategies, and navigate complex financial situations. It's crucial to note that certification requirements and designations may vary across countries, and the CFP® designation specifically applies to the certification granted by the CFP® Board in the United States, with other countries having similar certifications under different names and criteria.
Krishan Mishra CEO of FPSB India recent gave interview to Mint.
Have a look what Mr. Krishan Mishra has to say.
India currently has a significant shortage of certified financial planners (CFPs) compared to the demand. At the Financial Planning Standards Board (FPSB) India, our emphasis is on enhancing skills and employability to enable competent financial professionals to enter the workforce. Despite the modest cost of the CFP certification course at $1.5 lakh, entry-level professionals can earn annual salaries of Rs. 5-6 lakh, while those with 3-4 years of experience can command salaries ranging from Rs. 10-15 lakh, says chief executive officer Krishan Mishra in an interview with Mint.
“What is the latest data on CFPs after the FPS introduced the new CFP examination program in June 2020?” asked by the Mint interviewer.
“The number of CFPs in India was 2,517 in 2022, compared to 2,338 in 2021. Globally, there were 203,312 CFPs in 2021 and 213,002 in 2022,” said Mr. Krishan Mishra CEO of FPSB India.
“What is the duration and cost of the CFP certification course?” asked by the Mint interviewer.
“The new curriculum for the CFP certification is quite practical and application-based. It consists of three specialist certifications investment planning, retirement and tax planning and estate planning-followed by the final, integrated financial planning examination. The final exam will have questions based on a case study that involves concepts that you have learned in the initial three levels. Although they are multiple choice questions, it is better to consider them as multiple task question. You have to solve those to find the answers. Anyone who is at least 18 years of and has completed higher secondary or class 12 may appear for these exams. But you can get the CFP certification only after your graduation. Students can clear all modules while doing graduation to land jobs right after they graduate. The ideal duration to complete all modules is 12-18 months. Applicants who have already spent a good time in the financial services industry can directly appear for the final exam. We call it the challenge pathway and launched it just a couple of months ago to expedite the process for experienced professionals. Note that inexperienced candidates will have to clear all modules, get their bachelor’s degree followed by minimum one year of supervised or three years of unsupervised experience.
Then only they will be able to apply for the certification. When I say supervised, it means that they should have worked under a CFP professional for a period of one year in the field of financial planning which will give them a practical understanding of all the modules. The overall cost for the programme comes to almost Rs. I lakh plus goods and service tax, or GST. It involves the registration, exam and certification fees. There will be an additional cost of Rs. 30,000-50,000 if applicants reach out to FPSB-authorized education providers for the preparation. In case somebody doesn't want to go to an education provider, they will have to clear a test to qualify for the course. Otherwise, everybody needs to go to the education provider. Here, it is important to mention that the average pass rate for CFP examination varies in the range of 52-55% year after year,” said Mr. Krishan Mishra CEO of FPSB India.
“What value does CFP certification hold, given that CFP professionals cannot charge for creating financial plans or impart any financial advice? Financial advisory is solely the prerogative of registered investment advisers (RIAs).” asked by the Mint interviewer.
“While it is recommended that CFP professionals take up the RIA licence if they want to get into full-fledged investment advisory, a large set of CFPs do not take it up and still manage to have a bright career out of it. A mutual fund distributor (MFD) and an insurance agent having a CFP certification make for a great combination. They become a more trusted resource for their clients or for the organization where they work. That is the reason why a lot of people have started applying for the CFP certification from these backgrounds. In fact, now we see a lot of chartered accountants coming to us to pursue the CFP certification,” said Mr. Krishan Mishra CEO of FPSB India.
“What jobs are available for CFPs and what are their salary prospects?” asked by the Mint interviewer.
“In India, employment is available. But, ability is a concern. At FPSB, our focus is mainly on creating that ability in individuals so that they can go ahead and pick up the jobs. If you check online job platforms, you will find 7,000-8,000 vacancies for CFPs. So the demand for these professionals is higher than supply. In fact, we aggregate and post job opportunities on our website also on the career' page. You will be happy to hear that there has been a significant change in the salaries being offered to CFPs. The average salary for a fresher should be around Rs. 5-6 lakh. However, somebody with even 3-4 years’ experience can expect an average salary of Rs. 10-15 lakh very easily. The opportunities are pretty good for these professionals in the future,” said Mr. Krishan Mishra CEO of FPSB India.
“Are Indian investors ready to pay for financial advice? Do they seek financial planners or advisers?” asked by the Mint interviewer.
Financial planning is still a push-concept majorly. But the change is visible. People have started asking for a financial plan before they start investing. Obviously, people never wanted to pay for it. They would trust unqualified relatives or friends over a qualified financial professional. Some of them have even faced the consequences of getting such informal advice. They are now ready to pay for financial advice from professionals. We tell people that financial goals keep changing and that a CFP professional can review and align your goals accordingly.
In fact, we recently did a consumer survey and the findings revealed that people who just acted on their own or took the advice of somebody other than a professional later found themselves in a very difficult situation. However, 90% of the people who took professional advice feel that they have taken the right step. They feel more secure and confident about navigating their lives. Further, more than 9 out of 10 clients of CFP professionals say the benefits of financial planning outweigh the costs. So that's something which has been really positive,” said Mr. Krishan Mishra CEO of FPSB India.
“What is FPSB India doing on the financial literacy front?” asked by the Mint interviewer.
“CFP certification is an important area for us, but more importantly, our job is to educate people about their financial well-being. We do a lot of activities around financial literacy. We are in constant touch with various organizations and educational institutions, giving them information about financial planning by conducting offline and online events. In fact, on 4 October-the World Financial Planning Day, our activities around financial planning had covered approximately the entire length, breadth and width of the country. We regularly conduct capacity building programmes for teachers in some schools and colleges so that they are able to understand the importance of personal finance and the financial well-being of individuals and their families. We also launched postgraduate course in financial planning in collaboration with Loyola Institute of Business Administration (LIBA), Chennai; K.J Somaiya Institute of Management, Mumbai; and Army Institute of Management & Technology (AIMT), Greater Noida. The classes will commence with the 2024 academic cycle. This course will give students the advantage of being postgraduates in management, while having incremental CFP certification, thus enhancing their employability quotient with potential employers,” said Mr. Krishan Mishra CEO of FPSB India.
“What is the right age to introduce money concepts to children?” asked by the Mint interviewer.
“It is around the ages of 11-12 years when the child will be studying in class VI. While we cannot teach them about the stock market, mutual funds or the country's gross domestic product (GDP), they should understand how money works. For example, parents can take the child along with them when they buy vegetables or groceries. In fact, I have heard that schools take the kids out to the vegetable market sometimes. They give them some money to make purchases. You can actually teach students by forming groups. So, for example, if students have to form a cricket team, they will need money to operationalize that cricket team. Such sports or art-related events are very practical and interesting ways of explaining money concepts to them. Remember, if we don't teach how money will work for them, money will make them work for itself. We don't want the next generation to fall into this trap,” said Mr. Krishan Mishra CEO of FPSB India.
“What does the national education policy say about financial literacy for young India?” asked by the Mint interviewer.
“India's new national education policy has mentioned that financial literacy should be started at a young age, in the school itself. Some school boards have already started introducing financial planning as part of the curriculum such as in business studies courses or introducing it as vocational courses. These are early steps and there is a long way to go on that. The UGC, or University Grants Commission, had stated in August that personal finance is a life skill and it needs to be taught across all schools, colleges and universities depending on the age group and what they can grasp. It is not that only a commerce graduate can get into the financial planning profession. Even an engineering or medical graduate can do so,” said Mr. Krishan Mishra CEO of FPSB India.
“What growth do you expect in the number of CFP professionals in India?” asked by the Mint interviewer.
"Currently, about 1,500-2,000 people are pursuing the CFP certification. But we are witnessing a good growth there. I expect it to be in the double digits by the next year. Thanks to a lot of effort from the team, we have been able to grow CFP certification's awareness level by 43% in India, which is pretty decent and is the highest if compared with any other FPSB-affiliate organization anywhere in the world. This is phenomenal. The efforts are in the right direction, so numbers will change. We expect to have 10,000 CFP professionals in the next five years, that is, by 2028,” said Mr. Krishan Mishra CEO of FPSB India.