Topic of Discussion: Raise the target to 50,000 CFPCMin next few years
Source:
Compiled by KNIPL on the basis of Presentations made in Financial Planning Congress, June 2007
Abstract:
Savings in India are about US $ 340 billion which need to be invested in the financial markets in an efficient way, so that the targeted growth rate can be achieved. Financial planners help in effectively regulating these savings towards the financial markets. Savings need to be managed effectively, in which the FPSB plays a crucial role. The board is well placed to take on the additional role of being the self-regulatory organization (SRO) for investment advisors in the country. Financial literacy is more important than economic literacy.
In India:
• 70% people don’t have insurance at all
• 65% people don’t know about retirement planning
• 40% people don’t have banking relationship
People in India take insurance either as a tax-planning device or as an investment option but not as insurance. In such conditions, US $80 billion lies ideal, not productively contributing anything to the economy.
The preamble of the SEBI Act, 1992 provides that it is the duty of SEBI not only to protect the investors and develop and regulate stock market but bring and keep more investors to the stock market. FPSB helps the SEBI in achieving this objective by creating CFPCM who provide legitimate advice to those who invest. Mr.M.Damodaran asked FPSB to raise its target from 10000 to 50000 certified financial planners in next few years.
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