Becoming a financial advisor can be incredibly rewarding. This job provides the opportunity to help people through some of the biggest stages of their lives while truly offering variety. However, with its benefits comes great responsibility.
Determination, insight and organisation are all required to be able to best advise clients and help them navigate through making financial decisions, which may at times be tough.
What do financial advisors do?
Financial advisors work with clients to help them make a whole range of financial decisions with confidence. They explain the pros and cons of taking various courses of action and advise on which is best based on a client’s specific situation and financial position.
A financial advisor’s realm covers, but is not limited to, savings, mortgages, investments, loans, estate planning, and pensions. Clients may call on a financial advisor at different times in their life depending on what they need advice with and as their circumstances change.
As well as helping clients understand the implications of different financial decisions, advisors can also help them gauge how this will impact other areas of their life and which is the best fit based on the associated risks and opportunities.
Some financial advisors may choose to specialise in one product, such as investments, whereas others offer advice on a whole host of different products.
What are the requirements?
As it is a regulated profession, you will need to gain qualifications that meet the Financial Conduct Authority’s (FCA) criteria if you want to become a financial advisor.
There are multiple routes that you can take to achieve this.
You can complete a degree that will help you get a role at a financial services firm, but you do not need a degree to become a financial advisor.
Instead of obtaining a degree, you could get one of the following qualifications:
- Investment Advice Diploma at Level 4
- Diploma in Regulated Financial Planning
- Diploma for Financial Advisors
Once you have one of these, you can then pursue further specialist qualifications. You may also choose to gain chartered status.
If none of the following appeal to you, you could instead seek an apprenticeship at a firm where you will learn on the job and become qualified.
As well as qualifications, specialist professional indemnity insurance can be purchased to provide yourself and your clients with security.
How much do financial advisors earn?
The average salary in the UK for a financial advisor is just over £40,000. However, junior positions are slightly less, generally starting at around £30,000. There is also the potential to earn much more, especially once you have several years of experience under your belt.
