Nilanjan Dey

Mr Noel Maye, CEO, Financial Planning Standards Board.

Kolkata , March 16

THE Financial Planning Standards Board, USA, plans to step up its presence in India, courtesy agenda worked out by its local affiliate. The board currently operates certification programmes for planning organisations in nearly 20 countries.

"The idea is to provide consumers wider access to financial planners, ones who can deliver on two important fronts — integrity and professionalism", Mr Noel Maye, CEO of FPSB, told Business Line.

Excerpts:

Is financial planning really making a progress in India?

It is emerging as a recognised profession around the world, including in some of the developed nations. The Indian experience, although limited at this point, is no different. The concept of planning is gaining a certain standing among consumers in this country as well.

In other words, the market here is taking greater interest in financial planning. That is definitely a good way to start, especially when the overall environment seems to be conducive. Just for the record, the US market has seen it shape up in the last few decades. The number of professionals is increasing worldwide. In India too it has to move ahead from where it is at the moment.

What can drive more people towards financial planning, given the realities of the Indian market?

A few key factors, we expect, will combine to spur consumers towards the planning process. Retirement is quickly becoming a major issue in Indian society. Increasingly, you have to focus on your own retirement and not let the Government take care of the matter. It is materialising into a great personal responsibility. With this as the backdrop, let me point out that the local market is witnessing the arrival of more complex products and services. There is a multitude of savings and investment options. These collectively are providing people with a wide range of choices. The board, incidentally, proposes to do its bit in this area by raising the level of awareness and helping people become financially literate.

Is there scope for legislative changes that will encourage planning?

We are making sure that the regulatory agencies are kept informed. The plan is to stress on the need for disclosure and transparency with regard to important issues — - such as those arising out of incentives and commissions that are paid out. This will hopefully create a class of better-educated customers, ones who, for instance, know the difference between selling and advice. We also want regulators to treat financial planning as a distinct and integrated practice.

Is the Indian market for planning displaying any trends that will assume greater importance in future?

Let me point out that the market is vast and growing. This is reflected in a number of ways. For instance, the number of computer users is increasing rapidly, resulting in greater access to information. This actually creates fresh opportunities for financial planners as a community. People, who are even more conscious of the ground realities today, are not content with simplistic solutions like parking their funds with banks. They want professional guidance. Also, India is trending towards becoming an open market, one that is globally connected. Moreover, there are more wealthy people in this country today. A lot of Indians have international connections these days.

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