A career as a financial adviser can be varied, rewarding and interesting. If you have an aptitude for numbers and an interest in finance and investment, a career as a financial adviser might be ideal for you.
In this article, we'll cover:
- What is a financial adviser?
- The different types of financial adviser
- The responsibilities of a financial adviser
- How to become a financial adviser in the UK
- Salary expectations of a financial adviser
- Frequently asked questions about becoming a financial adviser
Key facts
- There are three main pathways to becoming a financial adviser: study a degree, do an apprenticeship or work your way up
- The average starting salary for a newly qualified financial adviser in 2024 ranges between £22,000 - £33,000 according to Prospects
- To work as a financial adviser, you'll need to have a level 4 qualification in financial advice recognised by the Financial Conduct Authority
- You'll also need to register as an approved person by the Financial Conduct Authority to work as a financial adviser
What is a financial adviser?
Financial advisers as also known as wealth managers or financial planners. Financial advisers advise on savings, pensions, investments and insurance products to businesses and individuals.
A large part of your role will include researching the market so you can recommend the most appropriate products and services to clients.
To work as a financial adviser, you must have professional qualifications and follow strict financial industry rules as it is a regulated industry.
As a financial adviser, you may choose to specialise in certain products and clientele. This could include:
- Selling employee pension schemes to companies
- Offering mortgage advice to private clients
- Advising on pensions to private clients
- Providing private clients with investment advice
- Managing savings plans
- Advising on insurance
It's also possible that you might work across all of the above areas.
Types of financial adviser
There are two types of financial advisers and advice: independent and restricted.
- Independent advisers are also known as independent financial advisers (IFAs). Independent advisers research and check investment products and providers, ensuring they give unbiased and unrestricted advice.
- Restricted advisers provide limited advice and will focus on a specific range of products from one or a few selected providers.
Before providing any recommendations, advisers must inform their clients whether they'll be offering independent or restricted advice.
Responsibilities of a financial adviser
The day-to-day role of a financial adviser could include:
- Discussing and developing financial plans with clients. After assessing a client's financial situation, a financial adviser will develop personalised advice to help a client reach their goals.
- Monitoring financial situations. Advisers will monitor clients' investment portfolios and recommend changes to improve performance.
- Researching financial products and regulations. Financial advisers must stay current with new financial products and regulations that may affect their clients.
- Producing reports on the current and projected performance of the products they sell.
- Financial advisers are sometimes responsible for growing their own client base. Financial advisers grow their client base by marketing themselves through seminars, webinars, events, and networking.
- Some financial advisers buy and sell financial products on behalf of their clients. This means they have to negotiate with vendors to get the best rates for their clients.
Routes to becoming a financial adviser
There are three main routes to becoming a financial adviser in the UK:
You could study a degree at university to become a financial adviser. The role of a financial adviser is open to graduates of most subjects, however, you may have an edge over other candidates if you study a relevant subject.
To work as a financial adviser after graduating, you will also need to have a level 4 qualification in financial advice recognised by the Financial Conduct Authority.
You could study the following relevant degrees at the University of Central Lancashire:
- Accounting & Finance, BA (Hons)
- Accounting & Financial Studies, BA (Hons)
- Business & Management, BA (Hons)
A full-time degree usually takes 3 years to complete. Studying a degree also opens up other career opportunities to you
Entry requirements for a degree
Depending on the institution, you’ll usually need:
- Two to three A Levels, or equivalent
Always check the entry requirements for the course and institution you’re applying to.
Once you've graduated or finished your studies, you could apply to join a bank or finance company as a graduate trainee adviser.
Postgraduate study
Already completed your undergraduate degree? You could study a postgraduate degree in Financial Management to progress your career opportunities in a finance related role.
Salary expectations for a financial adviser
According to Indeed, the average salary for a financial adviser in the UK is around £45,000 per year. This can vary based on where you are in your career and the type of clients you work with.
- Trainee advisers can expect to earn between £22,000 and £33,000
- Qualified financial advisers earn between £30,000 and £45,000
- Senior financial advisers can earn in the region of £60,000
- Private client advisers and wealth managers in major retail and private banks can earn more than £100,000
Frequently asked questions about becoming a financial adviser
To summarise, becoming a financial adviser is an incredibly rewarding career with lots of progression opportunities.
If you have questions or want to find out more about becoming a financial adviser, chat to our team.
