Financial Planner, FP plays an integral role in the Malaysian capital market especially in light of changing market conditions, increased product sophistication and rising living standards . Financial Planner provides financial plans to enable client to meet their financial goals by proposing strategies on how to:
and their wealth accordingly. This process will be done in a healthy way. Essentially into the right and legitimate tool, so that client’s interest is well taken care of.
Previously, Malaysian tend to seek an advise from product centric professional. As many of us did not know where to look for. Furthermore theirs’ presence is very significant in the market. Example is very relevant to investment activity. After referring to the bank, investor relied a lot on Unit Trust and Private Retirement Scheme Consultant.
The market is fragmented with huge numbers of product centric professional. Some of them also went extra miles by claiming a ‘Financial Planner’ without any certification or license from the SC. Latest numbers of professional in the market is as follows:
- Takaful Consultant 
- Banca – 22,995 personnel
- Non-banca – 71,738 personnel
- Banca – 4,200 personnel
- Non-banca – 14,032 personnel
- Unit Trust Consultant 
- Unit Trust – 60,138 personnel
- Private Retirement Scheme – 27,436 personnel
- Marketing Representative - 2,242 personnel
- Estate Planner – NA
- Financial Adviser Representative, FAR 
- Islamic – 298 personnel
- Conventional – 1,078 personnel
- Licensed Financial Planner, LFP 
- Normal scope – 1,482 personnel
- Expanded scope  – 58 personnel
In 2009, the number of Shariah Financial Planner was only 300 personnel . Malaysia is planning to grow client-centric profession. This was due to Malaysia intended to unlock economic value through private consumption. It can only be achievable by increasing financial literacy among its citizens.
According to act by SC, financial planning has been defined as:
Analysing the financial circumstances of another person and providing a plan to meet that other person’s financial needs and objectives, including any investment plan in securities, whether or not a fee is charged in relation theretoCapital Markets & Services Act 2007, CMSA
In this regard, a Financial Planner is allowed to provide advice to clients pursuant to the assessment and analysis undertaken on his client’s needs including on matters related to the plan which has been drawn up. This may include analysing client needs over areas such as:
- Tax planning
- Retirement planning.
Financial planning is a regulated activity by the SC. In drawing up a financial plan, clients may require advice on various capital market products. When providing such advice, an Financial Planner should be able to objectively consider all types of capital market products such as:
- Unit trust fund,
- Exchange Traded Fund, ETF
- Private retirement schemes
- Real Estate Investment Trust, REITs
- Wholesale fund
- Fixed income
Which are capable of meeting the investment objectives of a client. Such financial plans can include specific recommendations on a particular capital market product, such as identifying or shortlisting specific REITs that are suitable for a client.
Financial Planners must also ensure they have acquired the relevant knowledge and expertise to demonstrate competence when advising, developing appropriate strategies and solutions involving capital market products and services to clients.
However, an Financial Planner cannot make a specific recommendation on shares of a specific public listed company. As providing such advice would require the FP to also be licensed for another capital market regulated activity. Namely investment advice. Where a separate Capital Markets Services Licence would be required.
- Securities Commission, SC
- Economic Transformation Plan, ETP
- Malaysia Takaful Association, MTA
- Federation of Investment Managers Malaysia, FiMM
- Bank Negara Malaysia, BNM