The increased interest in financial planning services has led traditional business advisers to provide personal financial planning to their clients. Accountancy firm BDO Simpson Xavier launched a Personal Wealth Management service to address this demand last year. According to the firm's recent Financial Services News, even it was surprised at the demand for this service.
Although financial planning is a fairly unregulated practice in Ireland, members of professional bodies are usually compelled to hold professional indemnity insurance. For example, members of the Institute of Chartered Accountants in Ireland must hold insurance equal to 21/2 times the annual turnover of the firm subject to a minimum of £100,000 (€126,974), a spokesman said.
Under the Investment Intermediary Act, businesses which provide financial planning secondary to their primary purpose - such as solicitors and accountants - are regulated by their professional body. However, if 20 per cent or more of a firm's business is dedicated to financial planning then they are accountable to the Central Bank.
At the moment, standardised personal financial planning (PFP) qualifications are not available in the Republic.
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