Leeds Beckett University - City Campus,
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How to become a financial adviser
Provide expert advice to people and businesses making important decisions about their finances and investments.
What is a financial adviser?
Financial advisers work with their clients to recommend the most appropriate financial products for their requirements and circumstances.
You’ll help clients consider products that will make best use of their financial means, now and in the future.
You might work for a financial institution which only offers their own products, for a specialist financial advice company which offers products from a number of providers, or as an independent financial adviser (IFA) – which gives you the opportunity to deliver advice on all financial products on the market.
What qualifications do you need to be a financial adviser?
A degree is not a prescribed requirement to be a financial adviser, but many employers may expect this for individual roles.
You’ll need to study for a level 4 qualification in financial advice which is recognised by the Financial Conduct Authority before you’ll be allowed to start a career as a financial adviser.
Undergraduate degrees – degrees in financial services, business management or accounting may be useful and may be required by organisations who have large teams of financial advisers.
Postgraduate studies – Master’s degrees in, for example, finance and investment, investment management and financial planning are available for financial advisers looking to develop their careers.
FCA Qualifications – you’ll need a qualification approved by the Financial Conduct Authority before you’ll be permitted to operate as a financial adviser, these include:
- Diploma in Regulated Financial Planning from the Chartered Insurance Institute
- Diploma for Financial Advisers from the London Institute of Banking and Finance
- Investment Advice Diploma from the Chartered Institute for Securities and Investment
What does a financial adviser do?
As a financial adviser, you’ll discuss finances and financial goals with businesses or private clients, help them develop their financial strategies and recommend products which meet their requirements and are suitable for their circumstances. You’ll monitor the success of their investments and offer ongoing advice on the availability of new products. Some financial advisers work for or with businesses to provide advice to them on benefits for their employees.
You’ll need to keep up to date with the introduction of new products and changes to existing products, in order to provide comprehensive and accurate advice to clients, and ensure the maximum benefit and least risk to their investments.
As a financial adviser you’ll work with clients to assess their current financial situation, which may include expenses, income, pensions, insurance coverage, financial objectives, tax status and risk tolerance.
You’ll need to prepare or interpret financial document summaries, investment performance reports and income projections for clients. You’ll need to present these in a form that allows clients to understand complex financial products and have confidence that they are receiving the most appropriate advice.
All financial advisers will carry out multiple tasks on a daily basis, including:
- Assessing clients’ financial situations to establish a baseline of a client’s current situation
- Helping current and potential clients with questions about financial plans and available products
- Maintaining an ongoing relationship with clients
- Studying the current national and international financial climate to predict opportunities
- Researching and applying for new products and services on behalf of clients
- Maintaining required qualifications and memberships of trade bodies
Becoming a financial adviser could be for you if…
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You love all things data
You’ll need to be able to assess large amounts of financial data, interpret clients’ requirements and produce considered proposals.
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You’re a people person
Complex financial products can be difficult for people to understand, so you’ll need to be able to summarise and communicate recommendations clearly and concisely.
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You're trustworthy
You’ll be charged with custodianship of significant amounts of personal, private and sensitive financial information, so clients will need to be confident in your trustworthiness.
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You’re self-motivated
Much of your work will be carried out independently, so you’ll need to be results focussed and driven to succeed.
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You’re a maths whizz
You’ll need to be confident dealing with numbers and using multiple IT systems.
What are the typical working hours for a financial adviser?
You’ll probably work regular office hours if you work for a large financial institution. If you work as an independent financial adviser, you’ll need to be more flexible in order to fit in with client availability and preferences.
In a salaried role working for a large organisation, average pay scales are:
- Trainee or new starter - £22,000 to £30,000
- A qualified and experienced financial adviser - £30,000 to £45,000
- Senior financial adviser - £60,000+
As an independent financial adviser working on a self-employed basis, you’ll be dependent on a combination of fees from clients, referral fees and commission, so earnings vary according to your client base and your commitment.
