Financial Planner/Consultant/Adviser etc etc

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Recently, I got a phone call from a financial planner who got my contact through one of my friend. His voice was familiar but I did not bother to verify it as I was still quite pissed off that my friend just passed my contact like that. Whats worse was that he claimed that my friend will inform me beforehand which he did not.

If I am not wrong, this financial planner is just a part-timer. But whatever reason my sentiments tell me that, is not important at all. This just bring me some thoughts about the financial planning industry.

Very often you see job advertisements on the above mentioned positions requiring education level that of 'O' Level only. While I agree that the required knowledge are not that intensive, it is still, in my opinion, essential that a related diploma/degree is necessary. This, not only enable to consultant to have basic foundation to understand a product thoroughly, but also to be able to see the big picture and differentiate and choose products carefully for his/her client.

I understand that company do send its employees for courses to familiar themselves with the products before launching it. But on average, how many of them understand every single bit of it? I stressed the importance of understanding a product is more critical for a financial planner than an investor because he/she is paid to advise on money matters that is not properly executed, will become a liability instead. Just look at how many personal/private bankers/relationship managers mis-represented the structured product linked to the collapsed of Lehman brothers.

How can someone who just went into the financial industry for a mere few months able to advise on big money matters? Would you trust to leave your money to him when you know that though he might know his products well, how capable is he is to able to recommend you a product that is suitable to your risk profile? Not me though.

 
This Post has 2 Comments Add your own!
Anonymous - July 8, 2009 at 2:35 AM

I have difficulty in understanding the last two paragraphs, the meaning seems to be off.

Collin - July 8, 2009 at 11:17 AM

Maybe we are on different wavelength on this matter. Anyway its just my humble view and opinion.

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