Finding the right role for you: Financial Adviser v Financial Planner

If you’re considering a career in the Financial Services industry, then it’s essential to get a clear idea of the different paths you can go down. There are so many roles within the industry that at the beginning of you journey it can seem like a whole other language. We’ll help with that by decoding roles within Financial Services, their purpose, and what qualifications you need for the job. We’re starting with Financial Advisers and Financial Planners.

Managing money can be a confusing and difficult situation, that’s why people go to professionals for help in doing this. Financial Advisers and Financial Planners both do this, but the roles differ slightly. Every financial planner is a form of financial adviser, but it is not the same the other way round.

Financial Planners:

A Financial Planner focusses on assisting a consumer meet their long-term financial goals. This involves saving, investing, planning, and budgeting. People have different goals in life and the role of the financial planner is to create a financial plan to suit and reach these goals. For example, a change in one’s life such as a divorce would unbalance their finances. A Financial Planner’s job in this situation is to ensure your future is not in danger and a financial plan to ensure this is put in place to support the family’s future. They can also spot any potential issues in one’s finances that yourself may not see. An expert will have to be able to give impartial advice, that can lead to more efficient planning.

A Financial Planner requires a certificate through The Charted Institute for Securities and Investment (CISI), completing the CISI’s Financial Planning and Advice examination.

Financial Advisers:

A Financial Adviser will have a narrower focus. For example, one could ask a financial advisor for help to build their portfolio. This involves ensuring one’s investments are growing sufficiently with as little risk as possible. Tax planning would involve investment strategies that lower one’s tax liability, which will lead to further growth in investments.

In the UK to be a Financial Adviser an undergraduate degree is essential, as well as meeting QCF level 4. A Financial Adviser primarily focusses on managing one’s investments, stocks and shares and tax plans. It is a broad term involving professionals of different titles. These include stockbrokers, bankers, insurance agents and more. Financial Advisers solely aims to help a consumer with their money and investments, whereas a financial planner aids with one’s future goals and plans.

This gives a brief overview of two jobs with similar titles, but different responsibilities and qualifications required. We hope you found this useful and if you are considering a job in the Financial Services check out our jobs page or contact us for more information.

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