A Financial Advisor: What Do They Do?
May 08, 2023 By Susan Kelly

A financial adviser is someone who works with customers to provide advice and direction on things relating to investments, insurance, and other aspects of financial planning. They also assist customers in establishing their financial objectives and developing strategies for achieving them.

In addition to offering guidance on investments, financial advisers assist clients in making plans for retirement, managing their taxes, and navigating the effects of life transitions such as getting married or having children. So, how to be a financial advisor?

Responsibilities of Financial Advisors

Financial advisers are responsible for a diverse set of tasks, all of which contribute in some way to assisting their customers in accomplishing their monetary objectives. However, one of the most important responsibilities is researching various investment strategies and methods. This involves keeping up with the latest trends, comprehending how the various types of investments operate, and being aware of the appropriate times to purchase and sell.

A further important duty is to interact face-to-face with customers. As a result, advisers can get to know their customers, understand their client's financial conditions, and evaluate their client's requirements. When advisers have access to this information, they can better assist clients in making decisions on investments and strategies that suit them.

How to Become a Financial Advisor

To become a financial adviser, it is normally necessary to complete training relevant to the business, pass a test, and receive the necessary licenses. If you are interested in a profession in finance and have the necessary qualifications, you may become a financial adviser by following the steps below:

Find Some Work

Finding work in a company that would sponsor you for your financial advisor licenses is the first thing you need to do if you want to pursue a career as a financial adviser. Some companies will recruit individuals with no previous expertise in the financial field and then teach them to become financial advisers. However, these companies are typically looking for people with strong sales skills; if you have experience selling products or services, be sure to mention it in your resume and bring it up during your interview if you want to get hired by one of these companies.

Complete All Required Tests for Licencing

It is essential that everyone who is interested in entering the field of financial advice first achieves the necessary levels of success on the licensing tests. In most cases, this necessitates obtaining a passing score on the FINRA Series 7 Exam, in addition to passing any other examinations that may be necessary depending on the kinds of goods and services you want to market. You will need to pass the FINRA Series 66 Exam, for instance, if you wish to be able to sell securities in the majority of states and suggest stocks to customers.

Conduct a Check of Your Background

You will be required to go through a background check as part of being registered as a new financial adviser. Your company will coordinate this procedure; nevertheless, it may take a few weeks to complete, and you may have some of your actions limited until it is finished. For instance, you may be required to operate under the supervision of a fully-licensed broker. At the same time, your background check is conducted, or you may be prohibited from creating a book of business during this time.

Build a Book of Business

If you ask any financial adviser, they will tell you that developing a robust business book is one of the most important factors in achieving success. In its most basic form, a book of business refers to a person's or company's clientele. Clientele might be individuals or other enterprises to whom one offers consulting or financial services. And just like any other healthy relationship, cultivating and maintaining a solid book of business requires consistent, focused work.

Maintain Your Competence Through Ongoing Schooling

Financial advisers must comply with stringent standards imposed by their firms and regulatory agencies to keep their licenses current. Completing courses for ongoing education and demonstrating competence on recurring tests are two examples of these obligations. Financial advisers must have current knowledge of the most recent rules and best practices, even though complying with these standards may be a time-consuming process that is not too difficult.