How To Become A Financial Adviser
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- Опубликовано: 1 июн 2024
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I get asked at least once per week for advice on how to become a financial adviser, and for ages, I’ve thought that I really should sit down and deal with the subject definitively so that in future I can just reply to these good people with a link! Today I’m going to consider everything you need to know and everything you need to do if you fancy a career in financial advice in the UK.
00:00 Introduction
01:53 7IM Tom Sheridan retirement.
03:07 So many people ask Pete about how to become an adviser.
04:13 What you need to know - Becoming an adviser is difficult.
04:28 A bit of history of Pete
06:22 When Pete did his qualifications.
08:05 Qualifications now, different levels.
09:32 Providers of qualifications.
09:58 What you need to have knowledge about.
10:40 Different roles in financial advice.
11:00 1. Administrators and what they do.
12:04 2. Paraplanner and what they do.
13:32 3. Advisers, the client facing individuals.
14:12 Satellite roles.
14:29 Essential skills of an adviser.
15:19 - The ability to listen, to hear what is not being said.
16:05 - Ability to coach people.
16:33 - Ability to communicate, make the complex simple.
17:11 Distinction between advice and planning.
19:06 What do you need to do to become a financial adviser.
19:37 CII Diploma in Regulated Financial Planning.
20:16 Level 6 - Chartered financial planner.
20:59 How long training takes.
21:21 Certified Financial Planner (CFP).
23:46 Start training before approaching potential employers.
24:14 Pick your discipline - holistic financial planning, mortgage advice, protection advice.
26:34 Reach out to local firms.
28:42 How do you find a good local firm?
29:42 Prepare for a pay cut.
31:32 Document your journey.
33:59 Outro
I was in my second year of university, when I watched this. It really helped me in deciding to pursue my passion of becoming a financial advisor over a boring job in cyber security. I managed to get a position in a financial planning firm despite any experience or relevant qualifications and purely just a passion for personal finance. I start next week! If I could give anyone any advice on getting a position, I would say don't bother just trying to apply for graduate positions. Take some initiative, call these companies up! It's how I managed to get my job. Emailing companies is also not going to get your personality across. Financial Advisory is all about people skills, so go prove to these companies you have them. If your absolutely getting no where, then consider spending the money on the certifications. You'll stand out.
Exciting, I am interested in following a similar path in life, just now starting my final year in university and how has the process of getting certifications been for you?
Doing the certifications is always going to be a challenge. I have recently finished my Diploma which is the main six RO exams, just make you set aside some time to revise.@@jackfernandez3440
hey matt how you doing now?
@@JtheMitch I’m doing well thank you. I’m currently a paraplanner eventually looking to step up as an adviser between a 1-3 year timeframe.
@@matthewpeoples1190 wow that's great work congrats! I'm I'm a similar dilemma, done R05 and R01, working In an insurance firm currently protection and are unsure if going into an advisor role straight away would be suitable or if paraplanning first would br the way to go. Thanks for the response
Looking at this in 2020, It's very useful to me still! Thank you.
Brilliant, comprehensive summary. Thanks for taking the time to produce this.
This video was so helpful! I'm currently studying towards the diploma and have been documenting my journey so this is really encouraging!
Hours of research and many the key questions all in 1 video..what a great gem, thank you!
Thanks so much, Rod! Glad it was helpful 👊🏻🙏🏻👍🏻
Really useful and practicable advice, thanks for putting this out there!
Thank you for the information one step forward to my career in the financial field to help me help others.
Fantastic video! Really helped me in trying to understand if becoming a financial adviser/planner is really for me and what that process would entail :)
Really glad you found it helpful! Shout if you have any questions...
Thx for this clearly articulated walkthrough of the profession. Gold!
Thank you - glad you enjoyed it!
Great video Pete. I'm halfway through my CII Diploma and loving these videos! They're much help with my transition from from trainee paraplanner to paraplanner and eventually adviser.
Great stuff Matt - glad to be of help! Good luck in your journey...
@@PeteMatthew Thanks Pete! Just discovered your Pension Masterclass Podcast series, proving to be great help for my R04 exam!
Really, REALLY great stuff Pete!
Cracking podcast as always Pete 👍🏻
Hello my name is Kynadi Edwards. I am currently 19 years old and I just recently graduated high school. I'm enrolling into online school for the personal convenience. I know that I will be deprived out of opportunities and alliances by not attending university. But this is the best I can do for myself right now. High school was a really tough experience for me. I was bullied and socially isolated. I was supposed to graduating last year. But because of my circumstances I was held back another year. I wanted to drop out. I felt worthless. At 18 I thought I would be a failure. But I now realize that I am more of that. I know I can be more of that. It is my duty to do so. As a young black woman who will soon be competing in a predominantly white male field, I know I will be held back just for the color of my skin. Not how intelligible I am, not because of work ethic. I know that I will have do deal with the racism, sexism, and misogyny in this field. But I have to I need to break the glass sealing. I don't want to become another statistic. I hope when I reach your age that there is more diversity. So I know this video will help me. Thank you.
Wishing you all the luck in the world, Kynadi!
Those minutes flew by. No wonder you are a successful IFA. Great advice Pete. Thanks !
This is very interesting.Thank you for sharing.
Interesting to see the lesser amount of Financial Advisers compared to Accountants and Solicitors in the UK. All three work well together as core Professional connections for clients on any stage of their Financial Journey.
Thank you , really helpful, keep it up
Thanks this is really helpful, recently passed my CII Diploma in Regulated Financial Planning and have been struggling to find a good idea of where to go next in my career. Thanks
Hi, how did you find it? was it hard?
Do you think you'll find it hard to find a job?
Thanks!
@@Gastrorecetario Hi, doing the Diploma in Regulated Financial Planning was a lot harder than I first thought it would be. I ended up just finishing work then getting home and revising/learning for 5 hrs after work for ages. You've got to just prioritize the diploma properly when you've got exams coming up. I also used some materials from Brand Financial Training which really made some of the material a lot easier to digest (especially the maths practice for R03/R04) . Best of luck if you're going for it! I failed R03/R04 first time around but I was determined to keep learning and passed both 2nd time (R04 I was only 1 mark off passing first time too 🤦)
Hi Joseph, sorry when u say ‘you’re struggling to find where to go next in your career’
Are u already working in financial services or not?
Have u applied to any roles since u passed? I’m assuming u passed all 6 modules right. Yes, I’ve heard from people say cii is soooo difficult especially vs the easier DipFA
Easy to listen, and nice podcast
Nice video sir, ive just passed the fsre exam with libf - a first hurdle in a great industry!
Well done - great job! If you can pass the driest of exams, then it gets, if not easier, then certainly more interesting and practical from here on out.
@@MeaningfulMoney definitely, i currently work for an investment platform / back office provider for fa's so it comes naturally to the role.. should be qualified by september thanks for the info interesting to hear how you started!
Pete, I’m currently a 20 year old going. Through a Politics and Economics degree with a lean into econometrics. I’d love to get into this field and was wondering to what extent this degree would help or hinder me and to what extent I would be employable if I took the Level 4 as a replacement for a Masters. Is this the kind of career you can enter as a first job, or would you recommend getting a few years in other office jobs before I take the leap.
Thank you for all the content you have given to us for free in videos like this.
Thank you for sharing, I'm researching career options (I'm 19 and a business major) and this is definitely helpful. I feel like this work would be very rewarding
It really is. Good luck with your plans for the future
GaryV! He is a wonderful person! Also, could you give some advice on what I can do now to learn in detail things about financial planner/advisor? Is the first step learning and trying to get a 'certificate in financial services'? Thank you very much for your incredible video!
First step is to get your DipFA qualification. You can do that through LiBf or Cii
Omg. We used to pay our insurance on the door this way too. My sister would talk the ears of the young guy. It was Britannica.
Thank you
Thank you for your video.
You sort of touched on this. Will a financial adviser starting out today be able to compete with the Robo-advisors (who are cheaper etc) that also offers a human contact option too going forward and as technology gets better? Will it still be a great overall career?
Yeah, I reckon so. I've been doing my job for nearly 22 years now, and the longer I do it, the more I realise that finance is more about people and their relationship to money, than it is about the money itself. I'm convinced that computers will be able to handle much of what we advisers do, but the behavioural finance stuff? Never.
I am a LIBF Alumni and the DipFA is something I am thinking of doing.
Hello, there I am interested to make my second career anything related to Finance. I don’t have any qualifications from the UK. Do you have any ideas on how can I progress through and able to get achieve any finance-related qualification? Thanks in advance.
I am thinking about starting a Business | OCR Cambridge Technical Certificate in Business | Level 3 at college in the U.K. will it help me to become a financial advisor onwards?
It interest me so much I'm in Canada though any body has info on that ?
Thank you for sharing this information. This was very insightful. As a current Accounting and Finance student, do you have any advice on what the best steps after university would be in order to become an advisor/planner?
I am also wondering about this. If you find out please let me know
Hi George. I'd definitely look for a decent financial planning firm in your area and see if you can do work experience or internship over the summer. There's a very good chance a job might come out of it, and advisory firms are always looking for good people. Plus it'll give you first-hand experience of what the job actually entails. Good luck with your studies!
@@MeaningfulMoney Thank you!
I'm coming from a different perspective, I'm a teacher and coach living in a "problematic" area of London which I love btw. I myself am doing well but feel so many in my community would benefit from having someone sit down with them. I reckon I'll do the diploma anyway - for fun as i love learning but in the sense of gaining more insights would citizen advice be a starting point? Or any other ideas? Fantastic episode btw, really well thought through
Cheers Liam - wishing you all the best. Educate yourself first. This podcast, plus others such as Money To The Masses, Maven Money, Financial Wellbeing podcast will serve you well. Plus get to know Dave Ramsey's output, particularly his Baby Steps. That'll serve you well.
Superb vid Pete. I did think about this career path … but wonder if AI is going to further decimate the opportunities for talented humans to build a career in advising. Thoughts?
Thank you I love you, great help
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Which is why I have two very simple questions:
1. As busy professionals who want to lose weight, what are the two biggest issues you’re dealing with?
2. Regarding weight loss, what would you wish for more than anything else?
Thanks so much in advance - looking forward to reading your answers!
Hi Pete. For someone who's stuck working in a job to pay the bills and can't easily take a clean break to study for a new profession in Financial Advising, can you recommend what route to take? I notice you mention 3 organisations for taking the various qualifications - the CII, the CISI and the LIBF. Which do you think is best and most accessible for someone who will have to self teach from home? Thanks, your videos are great.
Most accessible, probably the LIBF route, I’d say. CII very dry and boring, plus the exams are deliberately designed to catch you out, IMO.
I have been an engineer for 7 years and after breaking my arm just before lockdown I had plenty of time to think. During my time at home I was frothing for some physical or mental learning! I saw an advert from online trading so I started learning a lot about finances through this, I decided I'd had enough of engineer so I have started my journey in Financial advice and started my CISI course. I cant wait for this journey.
Good luck, Aaron! Remember that trading is different from investing...
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Hi Pete, once you have done a diploma, are you free to strike out straightaway as a self-employed financial planner or do you need to have a minimum amount of supervised work experience first?
Hi JJ. You'd need to to be signed off by someone as competent, not sure how that works if you're not working for someone else. You may need to join a network for a couple of years and get their training and signoff...
@@MeaningfulMoney Thank you very much for the prompt response! That's very helpful, thanks, Jon
Wow amazing post Pete went on cii for level 2 award could you recommend ant books or webpages I can go on for learning or practice test
Thank you
Hi Anthony. Not sure really; it's a VERY long time since I sat my CII exams. I have a shed load of videos on this channel which will help - just be careful as some of them are quite old. Check our Brand Financial Training at brandft.co.uk/ - Catriona knows her stuff and can doubtless help you.
I’m in my final year of my bachelors in Accounting and finance. Would it be feasible for me to try and become a financial advisor, or should I have started much earlier
Never too late, Lemarr!
Hi there i just watched your video and i am now interested in becoming a financial advisor and btw i love to help people reach their financial goals and love to communicate also btw do you know or have any recommendations what i should pick for my a levels if wanna be an financial advisor and btw how did you become one what a levels and grades did you get and what degree did you study at uni and do you recommend me going if yes what degree and if not like whats the best route thanks lmk as soon as possible thank you very much think this job is for me and right so really thanks pls reply to this and answer my questions that will make my day so thankss???
Does a UK degree in business mean anything in terms of getting a foot hold in the industry or equating to the levels required?
You could certainly submit your degree to the examination body and they may well give you credit for prior learning. It’s at their discretion though...
Hi there, new subscriber to your channel and thanks for the great content.
I have a question or two if I may?
As a 43 year old retired professional golfer I've been looking into a new challenge and possibly starting my level 4 diploma as a financial advisor (planner) but just wondered in your opinion would it be a realistic undertaking or is it something you need to have had years more experience in (I also have two young children!)
Also I was looking to start the London institute one but you say this maybe not as good as the cii? I just found the information and website easier to navigate (probably says more about me though)
Many thanks in advance anyway if you get the time to respond.
Kind regards.
Hi Ken. The London Institute qualification will be OK - you may need to add further (CII) exams in the future as it is definitely less 'acceptable' to employers. But the LIBF is a good segue into the subject for sure. Yes, I think it's possible, even with young kids. I warn you though: it's dry in places, so you'll need some staying power! That's where doing the exams on the job is helpful - you have context for the info you're learning. Of course, that's a catch-22: you need the exams to get the job, but the job helps with the exams. So unless you want to start very much at the bottom and find a company prepared to invest in you, you're going to need to get the exams and then see if you can join a company as a qualified paraplanner/trainee adviser. HTH - Pete
I'm sad to be here 10 months after your post and not see a comment.
Did you ever get an answer?
Great video Pete! In your option, is it possible to become a financial advisor for someone who hasn’t completed high school? I left school before completing my A levels, but have been successful in a number of sales positions since then and possess great people/relationship building skills. Would you hire someone based on this?
Hi Jake. Yes, definitely. The exams are not easy, but with hard work I’m sure you could do it, especially if you’re learning on the job. Plus there are different routes to Diploma - look at the LIBF route called DipFA - it’s less academically challenging I believe, but will still give you everything you need. Your people skills will be your biggest asset. Consider getting into the profession as an administrator, where you will learn the context for everything an adviser does. Good luck! - Pete M
Great video thank you so much! I've just graduated with a business degree, I have a level 3 certificate
from CISI and have started the level 4 diploma from CII and really want to be a financial advisor/ planner. I'm looking to work within a financial institutions but having difficulty finding opening's do you have any suggestions please?
It's the hardest part about getting into the business, Daryl. If you haven't already, make sure you're going along to local PFS and CISI meetings. Talk to EVERYBODY - there's no substitute for hard work and pressing the flesh. Also, get to know the guys at Next Gen Planners - they have a jobs board, and the kinds of firms they're working with are the good guys.
@@PeteMatthew thanks so much! I didn't think of those cheers!
Daryl Sivell
Hi, did you pass cii in the end? Or u still doing it
Thanks
@@SuperKoreanzombie Hi, I did complete the first of these exams, RO1 in January so I am happy about that but unfortunately due to the virus the two following exams I planned to do got cancelled but CII say they are opening up these exams again in July. I was able to squeeze in LP2 exam from CII just before lockdown kicked in and passed that too as my current employer wanted me to have that to ensure I had competent knowledge of the work I am doing. I hope to have R02 and R03, (the other exams I was going to do by this time this year if not for the virus), completed by the end of the year. So basically everything is just getting pushed back by about 4 months or so.
Daryl Sivell
Oh excellent, at lease u managed to squeeze that prior to lockdown. An old friend of mine is an IFA, he’s urging me to give it a go but it’s a long process to get to his stage with many many exams as u know plus the experience needed too.
Add me on LinkedIn (I sent you a request) name is Tony.
Thanks
Do you have to do all 1-3 before you can take a level 4 cii diploma
Nope - you can go from zero to hero in six exams by taking the level four dimploma from scratch
In America you just need a series 7. 125 questions and boom you’re an advisor !
That's a bit scary, no?
Great video currently I am a qualified accountant At AAT level however I think with the knowledge I have to do with my own savings and investments I feel like I can help others out there too so I am going to start learning to be a financial advisor.
It’s a super-rewarding career, Craig. If you haven’t already, check out the good people at www.nextgenplanners.co.uk/ They have a ton of resources for aspiring advisers.
@@MeaningfulMoney thanks for that means a lot will defenetly have to check that out
Serious question, do you think that someone who is relatively unacademic (thick) could make it as an advisor? I'm eager to chase this CII diploma, but I need to know if I'm out of my depth as a someone who didn't do well at school. Brutal honesty would be appreciated.
Honestly, you should be thinking from the client's perspective. If you were in their shoes, would you trust your life savings with someone who they themselves believe to be "thick"? Knowing the subject matter is a given, what is more important is the ability to communicate that knowledge and expertise to people in a clear manner, empathise with them, understand what they truly value in their lives and what kind of goals and aspirations they have. If you're a people person, you being thick is unimportant.
Hi Jesse, school isn’t for some people, rather than thinking you are thick, maybe you were just not interested in what was being taught or how it was being taught. You should discover what interests you and then you may find that this interests helps you to succeed. So the question is, are you interested in financial planning and helping other people?
Can you become a financial advisor in the UK by doing the CFP?
Yes, I believe so. Certainyl there is a pathway to Diploma-level advice with the CISI, which is the body in the UK that administers the CFP. The CFP (Certified Financial Planner) is a level 7 qualification though, so way ahead of what you need to advise. I adctually think you have to have at least a level 4 qualification before you can sit the CFP. Good luck!
So i cant just make a contract and have someone sign it and take 1%? As i help them save and grow their money?
Afraid not, Kyle, though you might think it was this easy. Not all advisers are sheisters...
What do you have to study in GCSE to become a financial advisor
Hi Meerab!
There are no prerequisites to study at GCSE; nothing that you *have* to study. But you'd do well to focus on maths, economics (if that's an option), maybe psychology and certainly english - Communication is really important, both in speech and in writing. But you can learn all that on the job - it's just a baseline that you need.
Good luck!
@@MeaningfulMoney thank you 😊
Can you enter financial advisory with an IMC?
I don't believe so - I'm fairly sure you need an advice-specific qualification because the IMC is just about investing, and advice is much wider in scope than that.
@@MeaningfulMoney what do you believe I should do to supplement the IMC to make the transition from Asset Management to Financial advisory?
@@MrMouray Don't think he's interested mate, do u?
Nice 👍
Do financial planners really understand investing? The advice is mostly passive buy and hold low cost index funds. Don’t need to pay anyone to do that.
Exactly my message here - most people don’t need an adviser, and certainly not to set up a passive portfolio!
What's a BIBA?
Dunno. Where did you hear that?
Stop waffling