Association Of Financial Advisers Malaysia (AFA)

AFA is the official association endorsed by the regulators to benchmark the industry best practice model and also to spearhead changes in the Malaysian financial landscape. This role is in line with the blueprints set out by Bank Negara Malaysia and the Securities Commission in the Financial Sector Master Plan and The Capital Market Master Plan respectively.

An Approved Financial Adviser (FA) is a company, approved by Bank Negara Malaysia (BNM), under the Financial Services Act 2013 (FSA), to carry out financial advisory business, analyzing financial planning needs relating to an insurance product, and recommend or arrange a contract in respect of banking products and services. Approved FA are expected to represent clients’ interest, by providing independent advice and recommendations through multiple product providers.

An Approved Islamic Financial Adviser (IFA) is a company, approved by Bank Negara Malaysia (BNM), under the Islamic Financial Services Act 2013 (IFSA), to carry out Islamic financial advisory business, analyzing financial planning needs relating to a Takaful product, and recommend or arrange a contract in respect of banking products and services. Approved IFA are expected to represent clients’ interest, by providing independent advice and recommendations.

Financial Adviser’s Representative (FAR) means an individual, who is in the direct employment of, acting for or by arrangement with an approved FA who performs for the FA any services relating to financial advisory business.
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An Islamic Financial Adviser’s Representative (IFAR) means an individual, who is in the direct employment of, acting for or by arrangement with an approved IFA who performs for the IFA any services relating to Islamic financial advisory business.

Financial Planning Company is a company holding Capital Markets Services Licence from Securities Commission Malaysia (SC) to carry out regulated activities in Financial Planning.

Licensed Financial Planner (LFP) means an individual, who is in the direct employment of, acting for or by arrangement with a Capital Markets Services Licensed Financial Planning Firm who performs for the Financial Planning company any services relating to financial planning business.

LFP is allowed to provide advice to clients pursuant to the assessment and analysis undertaken on his client’s needs including on matters related to the plan which has been drawn up. This may include analysing client needs over areas such as investments, savings, tax planning, estate and retirement planning.

Licensed FP with expanded scope can provide specific advice on
• Equities, debentures, or warrants listed on Bursa Securities (with additional examination  of Module 7 of the SC Licensing Examination (SCLE)); or
• Unlisted corporate bonds and sukuk (with additional examination of Investor Protection  Professional Certification (IPPC) / Pasaran Kewangan Malaysia Certificate (PKMC))