Financial advisers help clients plan their finances. They advise individuals and business clients about the most suitable financial products and services, such as investments, savings, pensions, mortgages or insurance.

Financial advisers can be tied, multi-tied or independent:

• tied advisers usually work for banks, building societies or insurance companies, and only offer that company’s financial products
• multi-tied advisers deal with a number of companies and sell products from only those companies
• independent financial advisers (IFAs) offer whole-of-market advice.

The work involves:

• setting up meetings with clients
• finding out about clients’ current finances and future plans
• researching financial products
• explaining details of products so that clients can make informed choices
• meeting sales targets
• negotiating with providers of financial products
• keeping detailed records
• producing financial reports
• keeping clients regularly updated about their investments
• keeping up to date with new products and changes in the law.

All financial advisers follow strict rules and guidelines from the Financial Services Authority (FSA), to make sure that they act fairly and are properly qualified to give appropriate financial advice.

Hours and Environment

Your hours may vary depending on whether you are tied or independent. As a tied adviser, you will often work 9am to 5pm, Monday to Friday, and possibly on Saturday mornings. Evening or shift work is common in banking contact centres. As an IFA you will often have to meet clients in the evenings and at weekends.

Most financial advisers are office-based, but some IFAs work from home.

Skills and Interests

To be a financial adviser you need:

• excellent communication and listening skills
• the ability to explain complex information clearly and simply
• good sales and negotiation skills
• an interest in financial products and markets
• good mathematical and computer skills
• the drive and motivation to meet targets
• honesty and a trustworthy manner
• accuracy and attention to detail
• the ability to analyse and research information.

Entry

There are no set entry requirements for becoming a financial adviser. Many employers consider ‘people skills’ and a strong background in customer service, sales or financial services to be more important than formal qualifications.

You will often start as a tied adviser in a bank, building society or insurance company, after being promoted from a customer service role and working towards a Financial Services Authority-approved qualification.

You could also start as a paraplanner, providing administrative support and research for IFAs.

If you are not already working in financial services, you could take an FSA-approved qualification for trainee financial advisers before you join the industry. See Training section below for full details.

Some banks, building societies and large firms of IFAs offer graduate training schemes for new advisers with degrees or similar qualifications.

You may be able to get into the financial services industry through an apprenticeship scheme. Funding for apprenticeships is available for 16-24 year olds and some over-25s. To find out more, visit www.apprenticeships.org.uk. For information about apprenticeships in other parts of the UK, see Scotland, Wales and Northern Ireland.

Training

Your training will usually be a mixture of practical experience and study for qualifications in financial planning. If you are a tied adviser, you will also receive training in the company’s financial products.

As a trainee financial adviser you must take an industry-recognised qualification that meets Financial Services Authority (FSA) standards, such as:

• Chartered Insurance Institute (CII) Certificate in Financial Planning
• Institute of Financial Services (IFS) Certificate for Financial Advisers (CeFA)
• Chartered Institute of Bankers in Scotland (CIOBS) Certificate in Investment Planning.

Contact the Financial Services Skills Council for a full list of appropriate exams for financial advice.

You can study flexibly by distance learning, or at colleges or private training centres. See the CII, IFS or CIOBS websites for more information on their qualifications and training (contact details in Further Information below).

As mentioned in the Entry section, you can also take these exams before you start working in the financial planning industry.

You should continue to develop your skills and knowledge throughout your career. You may help your career by taking more advanced qualifications such as:

• CII Diploma in Financial Planning
• CII Advanced Diploma in Financial Planning.

You can achieve Chartered Financial Planner status when you have the Advanced Diploma in Financial Planning and at least five years’ experience in the industry. See the CII and Personal Finance Society websites for more details.

The CII, IFS and CIOBS all offer a range of short courses and formal continuing professional development (CPD) schemes to help you keep up-to-date with new products and financial regulations.

Opportunities

As a financial adviser you could work for any organisation that sells financial products, such as banks, building societies or firms of investment consultants.

Jobs may be advertised in the local press and financial pages of the national press, on employers’ own websites, in financial services industry magazines like Financial Adviser and Money Marketing, and by specialist financial recruitment websites and agencies.

With experience, you could choose to specialise in one type of advice, or work as an independent financial adviser, either in a firm of IFAs or self-employed. If you work for a large organisation, you could move into management or compliance work (making sure that the company follows FSA regulatory guidelines).

Annual Income

Figures are intended as a guideline only.

Financial advisers working for a company are usually paid a basic salary plus commission. Independent financial advisers can be paid either by fees or commission.

Basic salaries without commission range from around £18,000 to £25,000 a year.

Salaries including commission (known as OTE or 'on target earnings') may be advertised as up to £40,000 or £50,000 a year. However, these earnings are based on meeting targets and are not guaranteed.

Very successful financial advisers could earn up to £100,000 a year.

A salary package may also include car allowance, insurance and pension benefits.

Further information

25 The North Colonnade
Canary Wharf
London
E14 5HS
Tel: 020 7066 1000 IFS House
4-9 Burgate Lane
Canterbury
Kent
CT1 2XJ
Tel: 01227 818609 Drumsheugh House
38b Drumsheugh Gardens
Edinburgh
EH3 7SW
Tel: 0131 473 7777 42-48 High Road
South Woodford
London
E18 2JP
Tel: 020 8530 0852 51 Gresham Street
London
EC2V 7HQ
Tel: 0845 257 3772 20 Aldermanbury
London
EC2V 7HY
Tel: 020 8989 8464