|December 10, 2024
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It’s an important and often highly rewarding role so in this guide, we explore how to become a financial advisor.
There’s no doubt that money makes the world go round, to borrow a popular saying – but given its importance, many in the UK could use some financial advice.
More than 20m people – 39% of adults – do not feel confident managing their money, 11.5m have under £100 in savings, and nearly nine million are in serious debt. That’s according to a recent Financial Capability Survey.
And statistics from SJP show that the benefits to taking financial advice are not purely monetary, with 84% feeling better mentally or emotionally too.
It suggests that there’s a strong need for the profession. There’s also a clear need for new recruits, with the majority of current UK financial advisers falling into the 50-59 age bracket.
That’s according to FT Adviser, using Financial Conduct Authority (FCA) data. The role of the FCA is to regulate Financial Services in the UK, protecting consumers first and foremost – it also approves the qualifications that advisers take.
Financial advisers meet with clients to discuss their financial situation, goals, and risk appetite. They conduct in-depth reviews of clients’ financial circumstances, current provisions, and future aims.
Based on their analysis, advisers develop and present financial strategies and plans best suited to individual clients’ requirements.
They recommend appropriate financial products, which may include savings, investments, pensions, insurance, mortgages, and equity release options.
If you’re considering a career as a financial adviser, you have several paths to choose from.
Let’s explore.
Here is the first of the main routes to becoming a qualified financial adviser in the UK.
While you can enter the field with a degree in any subject, some relevant options include:
After completing your degree, you can apply for graduate trainee adviser positions at finance companies or banks.
However, to work as a financial adviser, you’ll need to obtain a level 4 qualification in financial advice recognised by the FCA – more on these later.
Alternatively, for aspiring financial advisers who prefer a more practice-based approach to learning, apprenticeships are a good alternative.
You can pursue:
These programs combine on-the-job training with academic study, allowing you to earn while you learn.
Entry requirements typically include:
Many successful financial advisers start their careers in entry-level positions within the financial services industry and work their way up.
For example, you could begin as a:
Many employers support their staff in obtaining these qualifications, sometimes offering training contracts that cover the cost of your studies.
While in these roles, you can study for the required level 4 qualification focusing on financial advice.
These include:
All three qualifications provide a solid foundation for a career in financial advice, meeting FCA requirements and offering pathways for further professional development.
The choice between them depends on individual career goals, employer preferences, and personal learning styles.
Additionally, the study time and upfront cost required varies depending on the qualification.
Another relevant professional body, the Personal Finance Society (PFS), is worth knowing about. It does not maintain any professional qualifications, but supports continuing professional development (CPD).
Regardless of the route you choose, you’ll need to register as an ‘approved person‘ with the FCA to work as a financial adviser. The role is also subject to enhanced background or criminal record checks – required for any role where honesty, integrity and trust are crucial to protect consumers.
Once qualified, you can explore various specialisations within financial advice.
Financial advisers often specialise in specific areas, including:
Financial advisers need strong analytical and problem-solving skills. Naturally, a keen interest in financial markets and products helps too.
Find out more about what soft skills are and which ones to consider developing then ultimately, including on your CV.
Whether you choose to study at university, undertake an apprenticeship, or work your way up from an entry-level position… The key lies in obtaining the necessary qualifications and developing the skills to provide valuable financial guidance to clients.
Becoming a financial adviser offers a rewarding career path with opportunities for growth and specialisation. Related careers include working as insurance or stockbrokers.
Working as a stockbroker is one of the most potentially lucrative roles in the UK, with the National Careers Service suggesting an average salary as £125,000 for experienced professionals… Although, watch out, the typical hours are 50-60 a week!
We hope this guide has helped you learn about the different ways to become a financial adviser in the UK.
But if you’re not sure this is the right career path for you, but you still believe something finance-related is the correct choice, take a look at this guide… How to become an accountant (UK), including our guidelines and a breakdown of the qualifications needed.
Or for something completely different, find out how to become a life coach!
Whichever career path you choose, it’s very important to tailor your CV to the job description and in general, the industry you’re working in. For example – find out how to write an investment banking CV in the UK.
And no matter whether you go down the university, apprenticeship or working towards the role route, at some point you will need a top-notch CV that does justice to all your hard work so far.
For our latest advice on how to make a great CV, browse through our blog. Recent articles include:
But just like many people in the UK do not feel confident managing their money… Often, outstanding candidates aren’t sure how to write a CV that works hard for them and will deliver a good return on investment.
Alternatively, they feel like they understand the principles of a great CV, but don’t have time to put the theory into practice.
That’s where we come in – our amazing team of experts offer professional CV writing services that candidates in all industries, including Financial Services, love. We also offer a wide range of accessories, including one-on-one interview coaching to help you prepare with confidence.
To see how we can help you, please get in touch.
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