The concept of certified financial planner is being introduced in India by the Association of Financial Planners, which is planning to create a team of 10,000 financial advisors by 2007 to help households and individuals plan their investments to meet long-term needs.

"The institution has recently certified the first batch of 35 financial planners in India and wants to upgrade at least two per cent of financial intermediaries, about 500,000, as advisors through systematic training, skills development and examination by 2007," AFP chairman Rajiv Bajaj said.

This will be the first batch of CFPs--professionals with a good knowledge of financial planning and the various investment options available in the market--to start operations in the country.

"With economic reforms, risks of financial investments have grown and phase of guaranteed returns is over," Bajaj said.

A P Kurien, chairman of AFP's advisory council, said, "There is a clear need for quality financial planning credentials that consumers can trust and certified financial planners will be able to provide proper advice."

People invested their life time earnings with a hope to earn secure income but many were cheated in the previous decade, he added.

Kurien made it clear that the certified financial planner certification was not a substitute for the Amfi certification which is necessary for those wanting to distribute mutual fund and insurance products, but both would be necessary.

AFP chief executive Ranjit Mudholkar said the institution would hold a global financial convention and have 25 chartered members next year.

Vijay Venkat Ram of HSBC said the foreign bank has 45 personnel involved in distribution of financial products and all would be required to attain certified financial planner certification in due course.

This is the first time that an initiative has been taken to professionalise the financial advisory services segment. Apart from the banks and some institutions, advice on financial investments and tax planning has been largely an unorganised activity with the chartered accountants, freelance brokers usually supplying the gap.

In most cases a life insurance agent or a UTI agent would double up as an advisor for investors.

All this will change since with the certified financial planner certification. The AFP in India is backed by organisations such as Bajaj Capital, Deutsche Bank, HSBC, American Express, HDFC Mutual Fund, Franklin Templeton Investments among others.

The organisation is affiliated to the International CFP Council, whose members have authorised almost 70,000 individuals to use the certified financial planner marks worldwide.