Typically, becoming a financial advisor entails completing industry-specific coursework, passing an exam, and getting licensure. If you’re ready for a career in finance, review the qualifications for becoming a financial advisor and then take the following steps:
1. Find Work
The first step toward becoming a financial advisor sydney is to get a job with a company that will sponsor your licenses. Some firms hire people with no prior financial industry knowledge and train them to become financial advisors.
However, because these companies are frequently searching for employees with great sales skills, emphasize your experience selling products or services in your CV and during your interview.
2. Pass Required Licensing Exams
Passing the relevant license examinations is a vital first step for anyone wishing to enter the financial advising sector. In the US for example, passing the FINRA Series 7 Exam, as well as additional exams based on the sorts of products and services you wish to market, is frequently required.
Also, if you want to offer securities in most states and provide investment recommendations to clients, you must pass the FINRA Series 66 Exam.
3. Submit to a Background Check
A background check will be required as part of the registration process for a new financial advisor. This process will be coordinated by your employer; nevertheless, it may take several weeks and you may be restricted in your actions until it is done.
For example, you may be required to work under the supervision of a fully licensed broker (or be barred from developing a book of business) until your background check is completed.
4. Create a Business Book
Any financial advisor will tell you that developing a strong book of business is essential to success. A book of business is essentially your clientele—the people or corporations to whom you provide advice and financial services. Building and maintaining a solid book of business, like any successful relationship, takes effort.
Here are some pointers on how to go about it:
Always provide excellent service. Your clients should have the impression that they are your first concern and that you always have their best interests in mind.
Be attentive to your clients’ requirements. They should have the impression that they may contact you at any moment and that you will respond swiftly.
Develop connections with other professionals in your sector. These relationships can help you refer clients to others and vice versa, allowing you to expand your businesses together.
5. Participate in Continuing Education
Once licensed, financial advisors must follow strict firm and regulatory standards in order to keep their licenses. Completing continuing education courses and passing routine tests are two of these requirements. While completing these criteria can take time, it is generally not difficult and is necessary for financial advisors to stay up to date on the newest rules and best practices.
What Is the Average Time to Become a Financial Advisor?
Within 30 days, you can join a firm and become licensed. Those who are serious about becoming a financial advisor should plan to spend months studying and preparing for licensing, as well as extra months or years obtaining additional licenses or specific certifications.
What You Should Know Before Becoming a Financial Advisor
There are some crucial considerations to consider before becoming a financial advisor. The first is if you have the right temperament for the job. Financial counseling can be unpleasant, and it demands the capacity to deal with angry or upset customers. The best financial advisors are able to deal with rejection, as many clients will not follow their advice.
Another crucial consideration is whether you have the necessary skills and knowledge. Advisors must understand financial principles and be able to convey them in layman’s terms. They must also be at ease with industry tools, as many components of the job are now done online.
Other factors to consider before determining whether to become a financial advisor include the following:
Be somewhat constrained. As a licensed financial advisor, your firm’s compliance department must evaluate and authorize all written communications with the public. This limits the amount of information you can disclose with clients or prospective clients.
Be a salesperson. The majority of financial advisors’ fees are based on sales or assets under management (AUM). If you want to be an advisor, you must be comfortable with being compensated depending on your sales.
Remember that clients are entitled to reasonable care. Clients want you to put their interests ahead of your own when working as a financial advisor. If you are unwilling or unable to make decisions or give advice to clients without consideration for your own interests, you might consider changing careers.
Types of Financial Advisors
Here are some examples of financial advisors to help you choose your specialization;
Certified Financial Planner (CFP)
To become a CFP, you must go through a rigorous certification procedure that includes passing difficult exams. CFPs are experts at creating comprehensive financial strategies for their customers.
Certified Financial Analyst (CFA)
The CFA Institute has qualified this type of financial professional to assist investors in valuing the assets they buy and sell.
Is a Career as a Financial Advisor Right for You?
A career as a financial advisor can be satisfying since it allows you to assist people make wise investment decisions and plan for their financial future. However, it is not suitable for everyone.
Financial advisors must be able to cope with concerned or agitated customers regarding their financial status. They must also be at ease with numbers and have a solid comprehension of financial principles.
In order to keep track of their clients’ finances, financial advisors must also be disciplined and organized. A career as a financial advisor, on the other hand, may be perfect for you if you are interested in assisting others with their finances and are ready to work hard.
More to read: Tips for Getting the Most Out of Your Financial Advisor