CHALLENGES OF REGULATING PERSONAL FINANCIAL PLANNING AS A PROFESSION

Personal financial planning, as a new profession, is primarily associated with developed countries, where the development is supported by a strong capital market and an increasing number of financial services available to consumers who lack the necessary knowledge. In countries with specific legal requirements or cer- tification schemes, the professional title of “financial planner” can only be utilized by financial advisors who have met these specific criteria, as the financial planner, and thus the personal finance planner, typically represents the highest level in the certification hierarchy of financial advisors. In most countries with developed financial markets, the conditions for providing various financial advisory services are not homogeneous, which raises the question of whether a specific license for providing certain financial services is sufficient, or whether financial advisors must undergo specialized education and possess particular qualifications. In the absence of clearly defined rules and standards, the paper highlights the transnational private regulation of personal financial planning through examples of certification schemes. The analysis of the EU legal framework concerning investment advice and insurance distribution also indicates shortcomings in defining standards for determining “kno- wledge and expertise” and the corresponding training. Finally, the operations of a small number of financial advisors in Serbia are regulated by regulations depending on the type of service they provide. Still, it can be concluded that, particularly in the area of mediation and representation in insurance, the requirements regarding expertise and knowledge are more comprehensively regulated compared to other financial services.

Keywords: financial advising, personal finance, investing, insurance, kno- wledge and expertise, professional qualifications