A Certified Financial Planner (CFP) is a professional meeting the requirements of the Certified Financial Planner Board of India. It denotes that a person is a competent financial planner. A CFP may act as a commission agent on your investments.
SEBI Registered Investment Advisor (RIA) would be a good alternative to CFP as it enforces a fiduciary code of conduct. This code ensures zero commission and hence zero conflict of interest. At zero commission your wealth grows morem by upto 40%.
A CFP may have a conflict of Interest while recommending investment products, because they are allowed receive commissions from the producers of mutual funds and insurance companies.
To remove this conflict of interest, SEBI came up with the RIA regulation in the year 2013. Under this, no financial planner and advisor is authorized to offer investment and financial planning advice without getting registration with SEBI.
A CFP can only offer the financial planning while RIA will help you deploy your resources towards right investments to meet your financial goals. Financial advice is allowed to be offered only by RIAs as per the SEBI Regulation in 2013.
A SEBI RIA has to follow a fiduciary code of conduct which is stricter than any other certification in India. The Code of Conduct includes the following tenets:
Avoid conflict of interest and get unbiased honest advice by seeking assistance from a SEBI registered investment advisor. Get a free portfolio check and a financial plan started.