Where?

Branches, offices, on the road.

Employers?

Banks, building societies, insurance groups, independent financial advisory groups and self-employed.

Where does the role fit in?

Financial advisers basically do what it says on the tin – they provide clients with advice on financial matters, making recommendations on ways to use and invest money. The role involves explaining the various products and services that are available and helping clients choose those that best meet their needs.

Some advisers specialise in certain products, depending on their clients – for example, selling employee pension schemes to companies or offering mortgage, pension or investment advice to individuals. Others are generalists, offering advice to clients in all of these areas, plus savings plans and insurance.

There are tens of thousands of financial advisers in the UK, and these are a mixture of tied, multi-tied and independent financial advisers (IFAs).

• Tied advisers work for a single organisation and only sell that organisation’s products. They usually work for financial services companies, insurance companies, investment firms, banks and building societies. Some are employed by estate agencies, law firms or retailers who have developed financial services as part of their business. Other tied advisers may be self-employed.
• Multi-tied advisers offer products from a panel of providers. They are usually employed in similar settings to tied advisers.
• IFAs may work for an organisation or be self-employed. Either way, they can sell any products from any company, and by law must provide clients with the best and most appropriate advice. Many work for firms that themselves are known as independent financial advisers. Many self-employed IFAs are members of IFA networks that provide the infrastructure, compliance procedures and the information that they need to fulfil their clients' requirements.

What you do

The work involves:

• reviewing clients' financial circumstances, current provision and future aims
• analysing information and preparing plans best suited to individual clients' requirements; designing financial strategies
• providing clients with information on new and existing products and services
• helping clients to make informed decisions
• talking to groups and individuals about personal finance
• researching information from various sources, including providers of financial products
• promoting and selling financial products to meet sales targets
• negotiating with product suppliers for the best possible rates
• liaising with head office and financial services providers; liaising with other professionals, such as estate agents and solicitors
• keeping up to date with financial products and legislation; maintaining detailed records to comply with the regulations laid down by the Financial Services Authority (FSA)
• producing financial reports
• contacting clients with news of new financial products, or changes to legislation regarding their savings and investments
• preparing and sending out annual summaries of investment and pension details to clients

These are sales jobs, and you are rewarded for success. However, it is not a question of making sales at all costs. These are regulated products, so there is a strong emphasis on carrying out the right procedures and auditing processes in order to be able to show that the client has received the best possible advice. These are important decisions for the client's future, so protecting the client and making sure they get the right product is seen as essential.

Most advisers earn their salaries from commission on sales made, although a number offer clients the option to pay fees for advice given. IFAs are obliged to offer their clients this choice.

Some jobs offer regular office hours, although a degree of flexibility is necessary, since some clients may require evening and weekend meetings.

Working from home is common. Self-employment and career breaks are possible.

What you need to get the job

Individual employers set their own entry standards and not all require a higher education qualification. Indeed, many IFAs come from other disciplines within the sector, such as banking or insurance.

Although this area of work is open to graduates of any discipline, the following subjects will improve opportunities:

• accountancy
• finance
• business studies/administration/management
• financial services
• insurance studies

Evidence of commercial awareness acquired through a relevant vacation job, longer-term placement or related opportunity is an advantage. Some experience in sales, advisory or customer service work will be useful. However, above all, this is an area where interpersonal skills come into play. Consequently, potential candidates will need to show evidence of the following:

• strong communication and listening skills
• networking and relationship-building skills, persuasiveness, determination, the ability to work in a team
• self-motivation and organisation, accuracy and attention to detail, high levels of numeracy
• a target-driven mindset
• confidence and the resilience to cope with setbacks; the ability to survive difficult circumstances (for example, when the stock market is low and clients are unwilling to make new investments)

Career prospects

After a period as a successful financial adviser, people wishing to progress their career could expect to:

• work on behalf of clients with larger sums to invest
• specialise in one type of financial advice, such as pension and retirement planning, or savings investments plans
• move upwards within a company and become responsible for the work of several other advisers, the recruitment and training of new staff or for marketing and promoting the company

Some advisers move into compliance work, which has become a big feature of the financial services sector. This involves ensuring that all advisers follow company rules and regulations issued by regulatory bodies. There may also be opportunities to become a director or partner.

Self-employment is another option. It is quite common for successful financial sales consultants to launch their own businesses as IFAs.

Advisers find that studying for further qualifications, such as the Advanced Certificate in Mortgage Advice and Practice (Adv CeMAP), enhances career options.

Qualifications and career progression

Many advisers tend to start as tied advisers, gaining basic training in a range of financial products. Employers usually provide this in-house, through a combination of formal tuition and on-the-job training, including work-shadowing an experienced financial adviser. New recruits will usually start by undertaking some of the research and administration connected with the work, and gradually begin to deal directly with clients, under supervision. As advisers become more experienced, they acquire their own list of clients.

Trainees are required to undertake industry-recognised training that meets standards set by the Financial Services Skills Council and is regulated by the Financial Services Authority (FSA). 

Under the FSA's Retail Distribution Review, which aims to address challenges identified in the distribution of retail investment products, financial advisers will need to obtain a Level 4 qualification and this requirement will come into force in 2012.

In responce to the changing regulations, the ifs School of Finance has developed the ifs Level 4 Diploma for Financial Advisers (DipFA).

Most employers will provide training and pay for exams, but trainees will usually be expected to study outside working hours. Once qualified, regular supervision ensures competence and compliance.

Income

Starting salaries

These vary from role to role, but are broadly as set out below.

£16,000–£24,000 for a trainee financial adviser training with a large firm or bank and taking their qualifications.

£16,000–£30,000 in salary and commission thereafter.

Career incomes

£30,000–£60,000

OTE (on-target earnings) for an experienced adviser in salary and commission (if tied/multi-tied), or in commission only if self-employed/working for a larger IFA group.

£60,000–£100,000 OTE for a successful IFA, whether working for an IFA group or self-employed.