A new professional body for the financial planning sector has been set up by an association of local businesses.

The Financial Planning Association of Bermuda was formally launched in March and becomes the first to provide monitoring, certification, education and training for individual members of this growing profession.

The Financial Planning industry is already regulated by the Bermuda Monetary Authority, but its role only extends to the firms themselves as opposed to the individuals.

Financial planning firms would generally fall under Bermuda's Investment Business Act which says that if you are going to carry out investment business in Bermuda, you have to be licensed. (Investment Business covers most things to do with securities.) In addition to being licensed, you have to meet conduct of business standards, which are monitored and enforced by the BMA.

Individuals working as financial planners have up until now fallen through the cracks and the new FPAB will occupy an important role in regulating, certifying and training its members. According to Munro Sutherland, superintendent of banking, trusts and investment for the BMA, the FPAB will carry out a similar function to the Bar Association for lawyers or the Institute of Chartered Accountants of Bermuda for accountants

Mr. Munro said that the BMA regard the FPAB as a positive development: "We are keen to see these sort of groups which are trying to strengthen professional standards."

The FPAB's founding president, Jennifer Patterson, said: "The FBAB will speak with one voice to regulators, the media and the public about what the financial planning profession is all about."

Six local companies have become sponsor members: Bank of Bermuda Limited, First Bermuda Group, LOM Asset Management, BF&M Limited, Appleby, Spurling & Kempe and Capital G.

Mrs. Patterson said: "Their sponsorship represents an endorsement to our commitment in leading the financial planning industry in Bermuda to a higher standard.

:We are pleased to welcome their commitment and their expertise."

Very few training and education programmes are offered in the local market at the moment with larger organisations tending to arrange their own in-house training programmes at substantial costs.

The private sector have therefore responded by setting up this non-profit organisation which will answer issues such as how people can enter the profession, how financial advisors keep up to date with developments in the industry and how they preserve public trust in the profession.

The organisation will also play a role in informing consumers who are trying to plan their financial future.

Seminars to enhance professional expertise will commence from May. In addition, consumer brochures and a special consumer section on their website are currently being finalised. Membership for individuals and corporations is also being finalised, but is generally open to anyone who believes in financial planning and the financial planning profession.