How to Become a Financial Advisor
To become a financial advisor candidates must pass a professional qualification such as DiPFA. DiPFA is The Diploma for Financial Advisers and is the benchmark professional qualification for any candidate who wants to provide financial advice in the UK. Financial advice is regulated by the Financial Conduct Authority (FCA), which requires all advisors to attain the relevant qualification before they can do so. DiPFA is a London Institute of Banking and Finance Regulated Qualifications Framework (RQF) Level 4 qualification and is listed as an appropriate qualification recognised by the FCA. To become a financial advisor it requires certain skills including: Understanding regulation, communication, technical and research skills and the ability to apply that knowledge.
Skills and role of a Financial Advisor
A financial advisor must use their skills and expertise to establish client affordability, suitability and risk profile based on the information provided by the client. An advisor will offer holistic advice providing solutions to help clients achieve their objectives based on their needs and circumstances that may change as their clients move through the different life stages. A Financial advisor will recommend the most appropriate advice and products from protection, through to investments and retirement solutions as well as estate planning. Advisors can also choose to concentrate on wealth management and estate planning, enabling them to manage their clients portfolios on an ongoing basis. Advisors can work as either an employed advisor and get paid a salary or as self-employed where they can charge a fee paid by the customer.
- Meeting with clients to discuss their current circumstances to establish affordability, suitability and their attitude to risk.
- Select the most appropriate solutions and products from the vast range available to fulfil the client’s needs and help them to achieve their objectives.
- Explain complex financial information simplistically to clients.
- Explain the features, benefits and risks of the products recommended.
- Excellent communication skills, both verbal and written.
- Numerate and articulate.
- Have a lateral mind to combine solutions.
- Honest, trustworthy and ethical.
- Sociable and friendly.
- Hardworking and diligent in order to keep their knowledge up to date.
- Organised – Advisers must be organised in order to maintain adequate records in order to remain FCA compliant.
The Diploma for Financial Advisers (DipFA®) is a professional qualification for any candidate who wants to work as a Financial advisor. UK financial services are regulated by the Financial Conduct Authority (FCA). DipFA® is a London Institute of Banking and Finance RQF Level 4 qualification and is recognised by the Financial Skills Partnership.