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How to become a financial advisor

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How to become a financial advisor

People who work as financial advisors tend to have very rewarding and interesting careers. Financial advisors often get the satisfaction of helping people achieve their financial goals, while continuously learning and building upon their own knowledge and skills. A career in finance can also give you a significant, and secure, earning potential.
But, what is the pathway to becoming a financial advisor? In this article we’ll explain how to become a financial advisor in Australia, and recommend what you should study to reach your career potential. We’ll also delve into the job responsibilities and the skills you’ll need to be successful.

What is a financial advisor?

In short, financial advisors create tailored, expert advice to help clients or businesses reach their financial goals. Thanks to their exceptional understanding of market trends, they can help develop investment plans, create financial strategies and deal with budgeting.
Let’s take a look at some of the commonly-asked questions about this profession:

What is the job of a financial advisor?
The job of a financial advisor is to offer specialist financial advice to businesses, clients and organisations. They help individuals and businesses make informed decisions about taxes, insurance, savings and financial planning.

What are the duties of a financial advisor?
A financial advisor’s duties vary day-to-day. A big part of their function is to is to meet with clients and create plans to achieve their financial goals. They’re also expected to produce financial reports and advise clients about investment opportunities.

What is the difference between a financial planner and a financial advisor?

Financial planners and financial advisors are both specialists when it comes to numbers. It’s part of their job to help clients, businesses, and organisations manage their money.
However, there are some differences between the two roles. A financial planner is a specialist in helping their client to create strategies to reach financial goals. Whereas a financial advisor is a broader term that can be applied to brokers, bankers, and insurance companies.

How do I become a financial advisor?

  1. Your journey to become a financial advisor in Australia starts by studying a degree in finance. This degree will include a variety of subjects like financial planning, finance, and accounting.
  2. New financial advisors must complete and pass the ASIC financial advisor exam to comply with professional standards. This will test your practical knowledge in a range of areas, like ethics and communication. The exam lasts for 3.5 hours. You can book your exam here.
  3. Now you’ve got the qualifications, the next step is to get experience either from an internship or starting a junior position. To do this, you’ll need to make sure your CV reflects the relevant skills you’ve gained during your time at university, like problem-solving.
  4. Continue to develop your skills. The more time you spend in the field, the more experience you’ll gain, meaning you’ll be able to work more independently and grow in confidence as a financial advisor.

What qualifications do I need to be a financial advisor in Australia?
To become a financial advisor in Australia, you’ll need a bachelor’s degree or an approved graduate diploma and must pass the financial advisor exam to meet professional standards.

What is the best degree for a financial advisor?
There are lots of great degrees that allow you to become a financial advisor. This includes: Bachelor of Business with a major in finance, Bachelor of Business with a major in Financial Planning, and a Graduate Diploma of Financial Planning.

How long does it take to make it as a financial advisor?

Typically, a degree will take three to four years to complete. But the learning doesn’t stop there, typically once you have graduated, you’ll receive on-the-job training in a professional setting for around twelve months.

Should I become a financial advisor?

It’s crucial to have an interest in numbers, excellent problem solving and great communication skills if you want to become a successful financial advisor. This is because you’ll not only be dealing with finances and creating detailed reports for clients, but you’ll be helping them achieve their dreams.
There are lots of personal benefits that come with the position, including a great wage, flexible work schedule (that you control), and you’ll have the knowledge and experience to ensure your own financial security. Ultimately, it’s a fantastic career to step into and you’ll find it rewarding.

Is it hard or stressful being a financial advisor?

Like with most jobs, becoming a financial advisor can be quite challenging for some people, especially due to the fast-paced environment and range of clients you’re expected to manage. That said, it’s an exciting career which offers plenty of managerial opportunities for development and growth.

Learn more about our Finance and Financial Planning courses or contact our friendly Course Consultants for further information.

FAQs

A.
To become a financial advisor in Australia, secure an approved qualification at bachelor, graduate diploma, or master’s level, or an equivalent certification. Passing the Financial Advisor Examination (FAE) by ASIC is crucial, followed by a year of practical experience. If you hold a foreign qualification, you can seek assessment against local standards. A financial advisor needs to be a good communicator, have strong analytical skills, and be able to build trust with clients. They should also be detail-oriented and have a strong work ethic.
A.
To become a financial advisor in Australia, you need to meet the following requirements:
  • Complete an approved bachelor’s degree (AQF7 level) comprising 24 subjects, or above or equivalent.
  • Pass the financial advisor exam.
  • Complete a professional year.
  • Apply for registration with ASIC. ASIC will assess your application and determine if you meet the requirements to become a financial advisor. To maintain your registration, you will have to complete the continuing professional development (CPD) requirements.
A.
It takes about three to four years to become a fully qualified financial advisor in Australia. This includes the time it takes to complete the required education, training, and experience.
A.
Being a financial advisor can be challenging, but it is also rewarding. It requires a strong understanding of financial markets and products, as well as the ability to communicate complex financial concepts to clients. Financial advisors also need to be able to build trust with clients and manage their expectations..
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Yes, being a financial advisor can be stressful. Financial advisors are often under pressure to meet the needs of their clients, and they may be dealing with sensitive financial information. However, financial advisors who can manage their stress effectively can find the job to be very rewarding.
A.
A financial advisor needs to be a good communicator, have strong analytical skills, and be able to build trust with clients. They should also be detail-oriented and have a strong work ethic.
A.
Financial advisors have various responsibilities, but they usually involve helping clients create financial plans, looking at financial information, giving advice, handling client investments, and staying updated on financial rules.
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The key difference lies in their services. Financial planners offer holistic financial plans covering various aspects like retirement, savings, debt, and estate planning. Financial advisors focus on specific areas, such as investment management or insurance.
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The job of a financial advisor is to help people with their financial planning. This includes helping them set financial goals, develop a plan to achieve those goals, and make informed financial decisions. Financial advisors can help with a variety of financial matters, such as retirement planning, investment management, and estate planning.
A.
The minimum qualification required to become a financial advisor in Australia is an approved bachelor’s degree (AQF7 level) comprising 24 subjects, or above or equivalent. However, many financial advisors choose to complete a graduate diploma or master’s degree in financial planning.
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A financial planner typically has a broader scope of practice and can help with a wider range of financial matters. A financial advisor, on the other hand, is typically more specialised and may only focus on a particular area of financial planning, such as investment management or retirement planning.
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The best degree for a financial advisor is the one that will give you the skills and knowledge you need to be successful in the field. Some common choices include a bachelor’s degree in finance, economics, or accounting. However, many financial advisors also choose to complete a graduate diploma or master’s degree in financial planning. Some popular choices include: Ultimately, the best degree for you will depend on your individual interests and goals.