What is a Financial adviser

Financial Services Part 1 - I suppose one of the things I should have done is at least explained what a financial adviser actually is or does. From a recruiters perspective its probably a good idea to 'know your quarry' and if you're looking to come into the financial services industry as a financial adviser then this will give you a good idea as to what to expect. There are a few very good websites that you can look at to get an idea as to what a financial adviser actually does such as the IFA guide website or the Prospects University graduate website, however, here we will give you a brief outline of what you can realistically expect from a financial adviser, whether looking for a job opportunity or a potential candidate for a role.

The title 'Financial adviser' basically explains itself, it does what it says on the tin - a financial adviser will literally advise someone on financial matters, making recommendations on ways to use their money - thats if, given the credit crunch you still have any! Enough joking - the role involves explaining the mulititude of products and services that are available to clients and helping them choose the ones that best meet their needs.

There are different types of advisers varying from corporate advisers that deal with commercial entities - providing say employee benefits advice, High Net Worth specialists that deal exclusively with affluent clients through to general practitioners who offer advice in all areas, pensions, savings, investments, mortgages, etc

There are thousands of advisers across the UK and they are either 'tied', multi -tied or 'whole of market'. The differences are explained below:

• Tied - Can only offer advice on products from one provider - usually one they work for, usually a bank, building society or assurance society


• Multi tied - Can offer advice on products from a panel of different providers - ususally employed in similar settings to the above but with more scope.


• Whole of market - Truely 'Independent'. These advisers can work for a company or be self employed but they can offer advice on the full range of products available from the 'whole of the market' and by law must offer the most approriate advice.

Make no mistake about it, the financial advisory role is a sales job and with sales comes targets and bonus payments for success. However, its not just about making sales at all costs. The products offered are regulated, so there is a strong emphasis on carrying out the right procedures and there are compliance processes in place in order to be able to show that the client has received the best advice. The decisions you help the client make are important decisions for their finances and future, so protecting them and making sure they get the right advice is essential. Having said that, most advisers earn their salaries from commissions on whatever sales they make, although a number do offer clients the option to pay fees for advice. IFAs are obliged to offer their clients this choice. We are tending to see more and more organisations going over to this method of payment now as it inspires consumer confidence and the closer to the RDR review we get in 2012, the more we will see this business model.

When you start out as a financial adviser it is more than likely that it will be in a Bank, building society or assurance society and more than likely as a tied adviser. This will give you good basic training in a range of financial products. Most employers usually provide this in-house. New advisers will usually start by undertaking some of the research and admin and then, gradually begin to deal directly with clients, under supervision. As new financial advisers become more experienced, they acquire their own client portfolio.

If you have succesfully been a financial adviser for a period of time you may want to progress your career. Most will move into multi tied or 'whole of market roles, dealing with higher value clients perhaps or maybe specialise in dealing with one type of advice - pensions specialist or mortgages - or one type of client - commercial or long term care clients, say. You may even want to go self employed which is another option.

Salaries for financial advisers can be varied. As a 'tied' bank adviser you could realistically expect a base salary between £18,000 and £28,000 per annum initially, rising to say £40,000 for an experienced financial adviser with OTE of £60,000. Self employed IFA's can earn anything from £25,000 up to £100,000 per annum. Its a great opportunity whether looking for your 1st or 2nd career.