Become a Financial Adviser
Considering a career change? Here’s how to become a financial adviser
Financial advisers and planners all have a unique and varied story about how they entered the profession. There are more than a handful of different pathways in, and there is growing interest in a career in financial advice among second jobbers. In fact, in a recent nationwide survey,?one in 10?respondents were considering retraining as financial advisers, while?15%?said they would consider a switch into the profession.
If you’ve reached a point in your working life when you need a new challenge or perhaps a completely different career direction and are?wondering whether the?role of the financial adviser?might be right for you, we take a look at how to make the leap to financial advice in this blog.?From transferrable skills to training and development, if you’re considering a career in financial advice, read on to find out more!?
Why financial advice?
So, what makes financial advice such a tempting career path for second jobbers? Well, for starters, financial advisers today are in demand.?Due to the delayed impact of the Retail Distribution Review,?one in five?advisers are set to exit the industry in the next five years. That means just?18,000?advisers are expected to still be working in 10 years' time – and new?recruits just aren’t entering the advice industry at the rate required to meet the growing need for advice and protection. Thanks to this growing demand, along with plenty of opportunities for workplace-based training and development, it’s no wonder financial advice is such a popular route for those looking to change careers.?
The rewards of a career in financial advice speak for themselves. In fact, the Recruit UK 2022 salary guide shows that the average adviser basic salary earnings have soared to ￡51,000 with the senior end earning on a basic average of ￡72,000. And the rewards don’t stop there – there’s also a great work/life balance, and as a financial adviser, you’ll have the ability to build strong relationships with your clients and really help people improve their financial situations. What’s more, as a self-employed financial adviser, no two days are ever alike, and there are new opportunities to grow, learn and achieve around every corner.
For self-employed advisers, after an initial challenging two-to-three-year period of setting up the business, developing operational processes, and getting clients on board, successful self-employed advisers could see their firm generate a turnover of between ￡100-￡120,000 at the low end and up to ￡1,000,000 at the high end.
Is financial advice right for you?
So, is financial advice the right route for you? Without a doubt, the?role of the financial adviser?is best-suited to professionals who want to make a difference in the lives of others and enjoy building relationships. The best second-act financial advisers are people with grit who have a history of overcoming adversity and a track record of prior success. Having had the wisdom of real-life experience is a huge benefit for second career financial advisers because over the years they’ve learned to understand how financial, personal and professional aspects of life can intersect and change. Integrity, care and competence are worthy qualities as well – and being a known trusted professional in a previous industry will also translate well into a second career as a financial adviser because trust is essential to the financial advice industry. Think you’re ready to make the leap? Here’s how to become a financial adviser…
Build up your transferable skills?
The good news is that you will most likely already have a number of relevant skills from your current profession that can be passed over to the financial planning profession. For example, if you are currently working in a customer-facing role, you will already know the importance of customer care and how essential it is to build strong relationships with people. And if you are already in the advice industry – perhaps are a mortgage adviser or working in a bank – you will have first-hand experience of the difference that having the right advice can make to somebody’s life.
What other skills are needed? Well, successful financial advisers need to be?self-motivated and totally dedicated to gaining the knowledge and expertise required to deliver high-quality financial planning. You should also have an entrepreneurial and self-motivated nature and be able to demonstrate an ability to develop relationships. Finally,?financial advisers need to be hard-working, independent, dedicated, determined, and client-focused – all skills which second jobbers have most likely already learned in their previous role.
Network, network, network
Financial advisers rely heavily on word of mouth to build up new business, so if you want to make the jump to financial advice, it’s important to get out there and network among professionals already doing the job you want. It’s not just about industry knowledge: in order to rise up the ranks and become a successful financial adviser, you need to show that you are proactive and that you have great people skills – which is why the relationships you foster are crucial to the success of your financial advice career.
In addition, effective networking will also help you to master your ability to be proactive, market yourself and demonstrate how you can add value. If you’re going to get out there and win business as an employed or self-employed financial adviser,?you’ll need to be able to communicate effectively with people across entire businesses and from all backgrounds – so if you want to move forward and grow your client base, you need to work on your holistic skill base and interpersonal skills too.
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Consider the right qualification route?
When deciding on your route into financial advice, it’s important to think about all of your options and make a decision that’s right for you.?
And what about exams – how long do you think you will take to complete your Level 4 qualifications? Whilst Level 4 is challenging, it’s still doable for career changers and it is most helpful when an employer can give new advisers some support and a track to run on.
For this reason, some adviser firms set up academies to take on people who are part qualified and looking to move into advisory roles, as well as those already in other financial planning roles, such as paraplanning or administration who want to step across into financial advice.
These training programs will see you shadowing financial advisers who will support and mentor you, teaching you the skills you need to become a financial adviser yourself.
Recruit UK have put together a guide that highlights the cost of building a career in financial planning through the three primary bodies advocating financial planner and paraplanner status:
We don’t advocate whether one qualification is better than another; each individual will have their own desires and expectations on the career path they wish to take and where they intend to end up, whether that be in support roles, paraplanning, or financial planning.
Ready for a change?
A career in financial advice is incredibly rewarding: there’s plenty of variety, unbeatable training, and development, and the financial rewards are unrivaled. If you’re ready to take the next step in your career and want to find out more about?how to become a financial adviser,?contact?Recruit UK to find out about the opportunities and be sure to follow the Financial Planner Life Podcast to hear more about the profession from those that work in it.