Financial Planning Essay Example | Topics and Well Written Essays - 2000 words - 1

Financial Planning - Essay Example The role of three companies, like Colonial First State Investments Limited and Professional Investment Services Pty Ltd related to provide financial planning services has been sorted out in the assigned study. The of Financial planning in Australia begun in the years 80s, as during those years there were no Financial Planners as they were not existing then. This occurred due to the fact that as there was no prerequisites for the clients within the Marketplace to enable them get efficient financial advice. It was only network of insurance that existed during that period under review. The Financial Planning Association of Australia (FPA) is the peak professional body for Australia's financial planners, representing approximately 12,000 individuals and businesses (The Financial Planning Association of Australia (FPA). However, (Cowen, Blair, Taylor, 2006, p 4) reveals that "In the early 1980s, a leading Australian financial planning industry stalwart Gwen Fletcher visited the United States intent on pursuing discussions with the U.S. industry association, the International Association for Financial Planning (IAFP). These discussions related to the creation of either a new industry body for A ustralia or the establishment of an affiliated chapter of the IAFP. At a later meeting of dealers conducted by the Department of Corporate Affairs (the then-regulatory body issuing licenses to dealers of securities), the affiliation model was proposed but rejected. However, a new industry body consisting of an elite group of independent advisors was formed, the Association of Independent Professional Advisors (AIPA). It is important to note that this group excluded all banks and insurance companies from membership". Additionally, following the International Conference of IAFP held in Australia in the years 1982 and 1984 respectively, Australian IAFP was officially launched. (Cowen, Blair, Taylor, 2006, p 4) states that after the launching, "The IAFP in Australia was to be an open forum for individuals, dealers and fund managers alike. Following U.S. IAFP requirements, the newly formed Australian association sought and was granted a license for the CFP designation and subsequently established the Diploma of Financial Planning (DFP) course. This necessitated strong collaboration between the United States and Australian bodies with the College of Financial Planning in the United States providing much of the DFP educational materials and resources. The US IAFP oversaw and closely monitored the development of educational standards to ensure that the Australian DFP met the educational requirements for the CFP designation. This involved an ongoing process of quality assurance by the U.S. body". It is e stimated that there are about 5,500 financial planning practices in