Financial adviser

A successful financial adviser combines specialist knowledge of investments, savings and money management with strong interpersonal skills

As a financial adviser, you'll provide clients with expert guidance on how to manage their money. You'll research the marketplace to recommend the most suitable financial products and services based on your client's needs and objectives and then help them put these plans into action.

You may choose to specialise in specific areas, such as offering advice on employee pension schemes to employers, or mortgage, pension or investment advice to individual clients. Alternatively, you could offer a broader range of services that also includes savings plans, protection insurance and tax-efficient investment strategies.

To provide financial advice in the UK, you must hold a recognised qualification and comply with strict rules and regulations set by the Financial Conduct Authority (FCA).

Financial advisers are also known as financial planners, retail investment advisers or wealth managers, depending on their area of specialism and client base.

Types of financial advisers

There are two types of financial adviser and advice - independent and restricted.

• Independent financial advisers (IFAs) research, consider and recommend products from the whole of the market. They must provide clients with unbiased and unrestricted advice based on a comprehensive and fair analysis of all relevant retail investment products and providers.
• Restricted advisers can only recommend certain products or providers. Their advice may be limited to a specific product type (e.g., pensions or mortgages) or to products offered by a single provider or a limited number of providers.

All financial advisers must clearly inform their clients, before providing advice, whether they provide independent or restricted advice.

Responsibilities

Your tasks will vary depending on your role but typically you'll need to:

• contact clients and arrange meetings, either in person, online or by phone, depending on client preference
• conduct thorough reviews of your clients' current financial situation, existing provision, financial goals and risk tolerance
• carry out risk analyses and suitability assessments to ensure advice meets clients' needs
• analyse client information and develop personalised financial plans and recommendations
• research the marketplace to identify suitable products and solutions from a range of providers (or from a limited range, if restricted)
• design and present clear financial strategies to help clients achieve their short- and long-term goals
• support clients in making informed financial decisions, clearly explaining complex information
• monitor clients' financial plans, reviewing them regularly and adapting to changes in circumstances or market conditions
• maintain accurate, compliant client records and ensure all documentation is up to date
• ensure all advice complies with FCA regulations, including disclosure, product suitability and cost transparency
• manage and grow a portfolio of clients, building long-term relationships with existing clients and receiving continued referrals for new business
• use financial planning software and CRM systems to manage client information and support decision-making
• work collaboratively with other professionals such as paraplanners, solicitors and accountants
• if in a sales-focused role, meet agreed business targets and support firm growth through business development and referrals
• keep up to date with changes in financial products, tax legislation and regulatory requirements through regular continuing professional development (CPD).

Salary

• Salaries at administrative level typically range from £22,500 to £35,000, depending on your experience and location.
• Junior financial advisers can earn between £30,000 and £45,000. With experience, this can rise to between around £35,000 and £60,000.
• Senior financial advisers may earn in the region of £55,000 to £100,000. Wealth managers or private client advisers may earn more than £100,000.

Salaries vary considerably depending on your employer and location. For example, salaries in London are likely to be higher. Other factors affecting your salary include your level of qualifications and experience. Some employers will look for financial advisers who are chartered or working towards chartership.

You may also earn bonuses and commission and have additional benefits on top of your salary.

Self-employed financial advisers have the potential for high earnings. However, success depends on a range of factors such as your:

• client base size and wealth
• ability to retain clients
• referral network
• charging model
• business model.

Income data from Heat Recruitment. Figures are intended as a guide only.

Working hours

These vary depending on your employer and client needs. Although you will typically follow standard office hours, usually Monday to Friday, you may need to work additional hours during busy periods or to attend networking events and client meetings.

There may be opportunities for hybrid or flexible working, particularly at larger firms.

If you're self-employed, you may need to meet clients outside of normal office hours, including evenings and weekends, to fit round their schedules.

What to expect

• Financial advisers are typically office-based, although IFAs may work remotely and meet clients in their homes, workplaces or online.
• Opportunities exist across the UK for both restricted and independent advisers. Some roles are more likely to be concentrated in financial hubs such as London, Edinburgh, Manchester and Belfast. Most roles are UK-based due to regulatory requirements.
• Self-employment and freelance work are common. You will typically start your career in an employed role to gain experience before moving into self-employment.
• The financial services sector is working to improve equality, diversity and inclusion (EDI). Initiatives include support networks such as Women in Banking and Finance, a membership network that promotes diversity and gender equality in financial services. Some firms are also implementing mentoring and training schemes aimed at women.
• Travel during the working day is common for client meetings, especially for IFAs, but overnight stays away from home are rare.

Qualifications

To practise as a financial adviser in the UK, you must have a recognised qualification from a body that is accredited by the FCA. The minimum level of qualification is a Level 4 diploma, although many financial advisers will have further qualifications or chartered or certified status.

Relevant qualifications include the Level 4:

• Diploma for Financial Advisers (DipFA) - The London Institute of Banking & Finance (LIBF)
• Diploma in Regulated Financial Planning - Chartered Insurance Institute (CII)
• Investment Advice Diploma - Chartered Institute for Securities & Investment (CISI).

Although this area of work is open to graduates of any discipline, the following subjects may improve your chances:

• accountancy
• business management
• finance or financial studies.

After your degree, you can apply for a job as a trainee financial adviser. Some employers will require you to already have the Level 4 qualification, while others will support you to complete it during your training.

Alternatively, you can undertake an apprenticeship, which combines paid work at a financial organisation with part-time study for an FCA-approved qualification. The recognised route is the Paraplanner and Financial Planner Level 4 Higher Apprenticeship.

It's also possible to start in a financial services administrator, pensions administrator or customer services role and work your way up to the role of financial adviser by taking one of the FCA-recognised Level 4 qualifications. Your employer may pay for you to take the qualification as part of your professional development. If not, you will need to cover the costs yourself.

A pre-entry postgraduate qualification is not needed.

All retail investment advisers must also have a Statement of Professional Standing (SPS), which is issued by an FCA-appointed accredited body, such as the CII or CISI. This confirms you have successfully completed an FCA-approved Level 4 qualification and will adhere to a code of ethics set by your accredited body.

To advise on mortgages or equity release, you'll need specialist qualifications in these areas.

Skills

You'll need to have:

• excellent communication, interpersonal and listening skills
• the ability to explain complex financial information clearly and simply
• strong relationship-building and networking skills
• research, analytical and critical thinking skills
• influencing and negotiation skills, with resilience and persistence
• effective time management and organisational skills
• excellent customer service and client care skills
• motivation and self-discipline
• attention to detail
• strong numeracy skills and confidence using financial planning software
• discretion and commitment to client confidentiality
• professionalism and a commitment to ethical standards
• sound judgement and decision-making abilities
• adaptability and a flexible approach to meeting client needs
• a goal-oriented and proactive mindset
• a commitment to ongoing professional development.

A full driving licence is useful, particularly if you're an independent financial adviser (IFA), as you may need to travel to meet clients in person.

Work experience

Pre-entry work experience is valuable as it demonstrates to potential employers that you have relevant skills and a genuine interest in the profession.

Relevant experience can include roles in customer service, sales, banking, financial services or advisory positions, especially those that help develop communication skills, numeracy and commercial awareness.

You can also look for internships or insight programmes with banks, wealth management firms or financial advice companies. Some larger employers offer summer internships or placement years for undergraduates.

Spending time shadowing a financial adviser or speaking to someone in the role can give you a valuable insight into what the job involves. You could also volunteer for charities that provide information on money and debt, such as Citizens Advice.

Find out more about the different kinds of work experience and internships that are available.

Employers

Financial advisers typically work for:

• financial planning and wealth management firms
• independent financial advice companies
• insurance/life and pensions companies
• investment firms
• retail banks and building societies.

You may also find opportunities with estate agencies and specialist pension consultancies.

Many financial advisers become self-employed, either by starting their own business or joining national advisory networks with support structures in place.

IFAs may work for a firm or operate independently, offering advice on a range of products across the whole market.

Look for job vacancies at:

• City Jobs
• efinancialcareers
• LinkedIn

Jobs are also advertised by recruitment firms specialising in finance, such as Premier Jobs UK, Nelson Scott and Finlink.

Professional development

You'll typically receive in-house training from your employer in a range of financial products. You'll work with clients under supervision at first and as you gain experience, as well as your qualification, you'll be given your own book of clients.

Once qualified, you must keep up to date with changes in financial products, tax legislation and regulatory requirements through regular continuing professional development (CPD). This ensures that you continue to provide accurate and up-to-date information to clients.

You must renew your Statement of Professional Standing (SPS) annually by completing at least 35 hours of CPD related to financial advice. This can include:

• attending seminars, workshops and lectures
• attending or presenting at conferences
• taking short courses, which may take the form of webinars or e-learning
• coaching, training and mentoring
• undertaking further qualifications.

As you gain experience you may want to study for more advanced or specialised professional qualifications. These may include:

• Level 6 Advanced Diploma in Financial Planning, which can lead to Chartered Financial Planner status with the CII.
• Level 7 Diploma in Advanced Financial Planning, which can lead to Certified Financial Planner status with CISI.

It's also possible to study full or part time for an MBA.

Career prospects

Once you've gained experience as a financial adviser, a variety of career progression routes are available. You could choose to:

• work with high-net-worth clients who have more complex financial planning needs and larger sums to invest
• specialise in a particular area, such as pensions, retirement planning or investment advice
• move into a managerial role, which may involve overseeing a team of advisers, training new staff or taking on business development responsibilities, such as building referral networks with accountants, solicitors and estate agents
• pursue senior leadership opportunities, such as becoming a regional manager, financial director or partner within your firm.

Some of these roles will require further training or qualifications. You can also enhance your career prospects by working towards Chartered Financial Planner (CII) or Certified Financial Planner (CISI) status.

Alternatively, you may choose to become self-employed, either by joining a network as an IFA or by setting up your own advisory business.