Registered Investment Adviser

RIAs manage assets or provide financial counsel, unlike that of a Financial Planner – a broad profession, with no legal mandates. Experts in wealth creation process, designation recipients are certified in working effectively with high-net-worth clients while integrating ethical considerations into financial life planning process. These professionals have a proficient understanding of how to work with individuals to develop compensation, retirement strategies and how to guide individuals in the areas of tax minimization, retirement planning and estate planning.

• RIAs must meet legal and professional qualifications
• RIAs must pass NISM- Series XA and NISM-Series-XB exam
• RIAs must register with Securities Exchange Board of India (SEBI)
• RIAs must distribute disclosure document to all clients, sign a Letter of Engagement and are legally required to act in fiduciary capacity for their clients at all times

CFP – Certified Financial Planner

The most common and one of the most stringent of certifications for financial planners, this certification is conferred and owned by the Financial Planning Standards Board of India. Many regard it as the “gold standard” of financial advisor designations. It requires a bachelor’s degree; extensive professional experience; passing a difficult exam in financial planning, taxes, insurance, estate planning and retirement; plus completing continuing education programs each year—CFP® , CERTIFIED FINANCIAL PLANNERTM and FPSB registered CFP are certification marks owned by Certified Financial Planner Standards Board of India. These marks are awarded to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Financial Advisor

It is a broader term for those who helps manage your money including investments and other accounts. A financial advisor refers to anyone who helps clients manage their money. On the other hand, a financial planner specifically focuses on building financial plans to help clients reach their ultimate goals.

Mutual Fund Distributor(MFD)

MFDs are persons or entities involved in selling, marketing and distribution of mutual fund schemes on behalf of Asset Management Companies. MFDs can only sell and distribute mutual fund schemes and in this process, they have to ensure “appropriateness” of sold products while distributing to clients like explaining product specification, disclosing product features and risk associated with those products. MFDs have to abstain from mis-selling activities for any extra commission or any other reason. All commissions to be disclosed and no pass-back to be given as an incentive for buying any schemes. MFDs cannot do financial or goal planning, cannot provide advice for investment in securities or investment products, cannot call themselves with nomenclature like “adviser” or with any other similar name.

Insurance Agent

Agent — a person or organization who/that is authorized to act on behalf of another. An insurance agent is a person or organization who/that solicits, negotiates, or instigates insurance contracts on behalf of an insurer and can be independent or an employee of the insurer. Insurance agents are the legal representatives of insurers, rather than policyholders, with the right to perform certain acts on behalf of the insurers they represent, such as to bind coverage.

For More Information:

Investopedia – Financial Designations Definitions

SEBI – Approved Designations

CFP – Financial Planner Standards Board of India

IRMI – International Risk Management Institute