Use of Licensed Financial Planner Designation in Malaysia
Private Pension Administrator (PPA) Website Update
June 23, 2014AFA 3rd Annual Conference
September 24, 2014Dear Members,
This is a reminder on the use of the Financial Planner designation in Malaysia.
Financial planning is a licensed activity in Malaysia and only members who possess the Capital Markets and Services License (CMSL) or Capital Markets and Services Representative License (CMSRL) issued by the Securities Commission are allowed to hold themselves out as Financial Planners and use the term in their business cards.
The correct designation to be printed on business cards for CMSL or CMSRL holders should be “Licensed Financial Planner” regardless of whether the member possesses the CFPCERT TM mark or the IFP mark.
Certified members who are not CMSL or CMSRL holders should only use the CFPCERT TM mark or the IFP initials and not the “CERTIFIED FINANCIAL PLANNER®” designation or “ISLAMIC FINANCIAL PLANNER” in their business cards.
For CFP professionals, please refer to Clause 3.1 of the Mark Use Guide on FPAM’s website. Click here to view the guidelines to use the CFP marks.
Thank you for your attention,
FPAM Membership Department
1 Comment
Section 58 of the Act specifies that:
(1) No person shall whether as a principal or agent, carry on a business in any regulated activity (in financial planning) or hold himself out as carrying on such business unless he is the holder of a Capital Markets Services Licence or is a registered person. Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding ten million ringgit or to imprisonment for a term not exceeding ten years or to both.
Capital Markets Services Representative’s Licence Section 59 of the same Act specifies that: (1) No person shall act as a representative in respect of any regulated activity (in financial planning) or hold himself out as doing so unless he is the holder of a Capital Markets Services Representative’s Licence for that regulated activity or is a registered person with respect to that regulated activity. (2) Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceeding five million ringgit or to imprisonment for a term not exceeding five years or to both. Financial Services Act 2013 Now we look at what Financial Services Act 2013 says. It says that:
Financial advisory business means:
a) Analysing the financial needs of a person relating to an insurance product
b) Recommending an appropriate insurance product to a person
c) Sourcing an insurance product from a licensed insurer for a person
d) Arranging of a contract in respect of an insurance product for a person
In Financial Services Act 2013, Section 28 specifies that:
(1)No person shall hold himself out to be
a) An authorised person unless he is authorised; or
b) A registered person unless his is registered under the Act.
(2) Any person who contravenes paragraph 1(a) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding 10 years or to a fine of not exceeding RM50 million or both.
(3) Any person who contravenes paragraph 1(b) commits an offence and shall, on conviction, be liable to imprisonment for a term not exceeding eight years or to a fine of not exceeding RM25 million or both.
Read more: http://www.theborneopost.com/2014/03/22/law-requires-financial-advisers-to-be-licensed/#ixzz371Zcy7Nk