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| Financial Planning and Wealth Management - An Overview |
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Wealth management is a term that originated in US in 1970’s when the Broker Dealers from banks, insurance etc involved themselves in providing financial consulting to high net worth individuals and top clients of firms in US. Financial consulting eventually developed into an advanced type of financial planning that provided individuals and even families with private banking, investment management, taxation advice, and portfolio management. In 1990’s, wealth management services, hitherto confined to only wealthy people, extended to consumers at large in US. |
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In 1985 CFPCM Board was established at Denver, USA, to promote Certified Financial Planner Certification so that consumers could benefit from unbiased and competent advice by the qualified financial planners. In India mainly the private banking clients of foreign banks enjoyed wealth management services until 2001 when Financial Planning Standards Board India was set up as an affiliate of CFPCM Board USA in collaboration with financial sector organizations with a similar objective of educating and guiding the consumers in investment management, taxation advice, retirement planning etc.
This set the stage for expansion of wealth management services in the country. Private sector and some of the public sector banks stepped in. Corporates and firms keep joining the rank of traditional wealth managers. The need for wealth management services was never as great as it is today because the financial markets across the world are integrated and economies globalized making it far more difficult for a consumer to take any financial decision. In India a robust consistent economic growth has added to the demand of wealth management services to serve the growing size of high net worth individuals as well as middle income group with considerable savings. According to Forbes Billionaires Report India had the most number of billionaires, outracing China and Japan in 2007 and 2008. |
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