A simple guide on how to become a financial planner in Singapore

In Singapore, financial planners are licensed and regulated by the Monetary Authority of Singapore (MAS) under the Financial Planners Act (FAA). If you were to carry out any financial plannery services, the minimum requirements are set out by MAS.

So, let us clear up some confusion. Appointed representatives (AR) are agents that carry out regulated activities on behalf of the company, while financial planner refers to the entity—an insurance company or financial plannery firm that is licensed to provide services such as advising on investment and insurance products, issuance of research reports covering investment products, marketing of any collective investment schemes, as well as arranging life policies for others. ARs are appointed by a financial planner to carry out regulated activities on behalf of them, while financial planners are already certified to do the regulated activities.

Of course, you cannot just walk into a financial plannery firm and demand a job without having the necessary qualifications. In 2002, MAS introduced a licensing framework known as the Capital Markets and Financial Advisory Services Examination (CMFAS Exam).

Advisers who wish to be employed by the financial plannery firms to carry out financial plannery services are required to pass the requisite CMFAS modules and meet a set of basic criteria. These criteria include:

• You have to be at least 21 years old.
• Have GCE ‘A’ Level certificate with three H2 passes and two H1 passes; Or an International Baccalaureate (IB) diploma; Or a polytechnic diploma; or equivalent academic qualifications.
• Must pass the modules 5 to 9A from the Capital Markets and Financial Advisory Services (CMFAS) exam.

– Rules and Regulations for Financial Advisory Services (M5),

– Securities Products and Analysis (M6)

– Collective Investment Schemes (M8)

– Life Insurance and Investment-Linked Policies (M9)

– Life Insurance and Investment-Linked Policies II (M9A)

Once you have met the requirements above, candidates must lodge a notification with the Monetary Authority of Singapore (MAS) before they can carry out regulated activities under a financial plannery firm. Once that is done, voilà, you are now a certified financial adviser! However, that is not all. If you wish to be the best of the best, you can upgrade your skillset through taking exams.

Professional certifications like CFP (Certified Financial Planner) and CHFC (Chartered Financial Consultant) are optional but are highly pursued by many financial planners. This is because you will be equipped with relevant technical skills to address the wide spectrum of areas within financial planning. It also holds practitioners to a high standard of conduct and ethics while carrying out their business. The CFP certification, in particular, is a globally recognised certification that is held in high esteem throughout the industry and amongst knowledgeable clients. Therefore, it is probably in your best interest to pursue it if you wish to cover a wide range of products and clients.

As you can tell, the process of joining the financial services industry in Singapore is fairly simple as there are only 3 licensing exams that you need to pass. And if you are reading this article, chances are that you might be interested in becoming a financial planner yourself. Lucky for you because we need people like you. Can’t wait to start making a significant impact on the lives of others and meet people from all walks of life? Come and embark this journey with us!