How to become a financial planner?

What does a financial planner do?

A financial planner helps clients manage their money and achieve their financial goals. They look at all facets of a client's finances and ways to save, invest, and budget. Financial planners partner with their clients, facilitating a healthy financial standing in current circumstances and helping them plan for their retirement. 

Here's a list of financial planning services:

• Financial assessment
• Investment planning
• Retirement planning
• Tax planning
• Estate planning
• Education funding
• Insurance advice
• Debt management
• Budgeting and savings plans

Financial planner vs financial advisers: what’s the difference?

A financial planner and a financial adviser both provide financial advice to clients, but their focus areas differ. A financial planner creates comprehensive financial plans, addressing long-term goals like retirement, education, and estate planning. In contrast, a financial adviser typically focuses on managing investments and offering advice on buying and selling securities.

Both roles involve assessing clients' financial situations, recommending strategies, and providing ongoing support. However, financial planners often take a more holistic view, while financial advisers may concentrate more on investment portfolios and immediate financial decisions. Both careers require relevant qualifications and adherence to regulatory standards.

What are the benefits of being a financial planner?

Given the holistic nature of financial planning, this profession has many benefits. The benefits of being a financial planner are outlined below:

• Job satisfaction: Helping clients fulfil their financial goals is fulfilling.
• Earning potential: Financial planners earn competitive salaries and may enjoy commissions and bonuses, depending on their firm.
• Flexibility: Being a financial planner offers you the flexibility of being self-employed, allowing greater control over your schedule.
• Career growth: The financial sector offers opportunities for continued learning and development.
• Diverse clientele: Financial planners work with various clients, from individuals to businesses.
• Economic impact: Financial planners contribute positively to clients' financial well-being and economic stability.

How much do financial planners earn in the UK?

Financial planners' salaries vary based on experience and qualifications in the UK. On average, entry-level financial planners in London earn a base salary of £45,000 annually, with potential commissions or bonuses of around £6,000. In contrast, highly qualified and experienced financial planners can earn up to £95,000 annually, a salary of a £75,000 base and £20,000 in added income.

However, the average salary for financial planners in England is approximately £48,761, while for chartered financial planners, the average salary is £65,000.

What qualifications are required to become a financial planner?

You need specific qualifications to become a financial planner in the UK. The Chartered Institute for Securities and Investments (CISI) outlines the qualification process as follows:

Entry requirements for the Certified Financial Planner (CFP) certification:

• You must hold an RDR-compliant qualification, e.g., an Investment Advice Diploma (IAD) recognised by the UK's Financial Conduct Authority (FCA).
• While a business- or equivalent degree isn't essential, it can boost your eligibility to become a CFP.

Education and exam requirements:

• CFP candidates must achieve CISI Level 6 in Advanced Financial Planning.
• They must also do a Level 7 Financial Plan Case Study.
• Mastering the theoretical Level 6 and practical Level 7 results in a Level 7 Diploma in Advanced Financial Planning.

Additional requirements:

• CISI membership at MCSI level or above.
• CISI IntegrityMatters test.

What skills are required to become a financial planner?

Successful financial planners have a skill set that ensures effective client interactions, sound financial advice, and career growth. Here are some examples of the practical and soft skills needed:

• Analytical skills to assess financial data and market trends.
• Communication skills to clearly explain financial concepts to clients.
• Interpersonal skills to grow and maintain client relationships.
• Detail-oriented to ensure accuracy in financial planning.
• Problem-solving to develop tailored financial strategies.
• Time management to handle multiple clients and deadlines.
• Ethical judgement to adhere to regulatory standards and maintain client confidentiality.
• Sales skills to attract and retain clients.

How to become a financial planner

Training to become a CFP through CISI can cost just shy of £1,400 and can take between one and two years to complete the studies and a further one to three years for an internship. Here are some other pointers to help you become a financial planner:

Get experience in the field

Gaining practical experience is crucial whether you want to work as a self-employed financial planner or for a firm. Start in entry-level roles, such as financial adviser assistant, to understand client interactions and financial planning processes.

Financial planner training schemes

Many financial firms offer training schemes for aspiring planners. These programmes combine study support and material with on-the-job training, helping you gain the necessary qualifications and practical experience.

Apprenticeships 

Financial planning apprenticeships are another pathway. They offer paid work while students study towards qualifications. These usually last 18-24 months and provide experience and formal training.

How long will it take to become a financial planner?

The total time to become a financial planner in the UK can take 18 months to five years, depending on your qualification route. This period includes completing qualifications like the CISI Level 7 diploma and gaining the necessary experience. Per the CISI, experience requirements are either one year (with supervision) or three years (without supervision).

Can I become a self-employed financial planner?

It is possible to become a self-employed financial planner in the UK, but doing so has advantages and disadvantages. Advantages include flexibility, a higher earning potential, and autonomy in client selection. 

However, challenges include building a client base, managing business expenses, and ensuring compliance with regulations. Furthermore, your success as a self-employed financial planner requires strong networking, marketing skills, and a solid reputation in the industry.

What is career progression like for financial planners?

Financial planners' career progression often starts with entry-level roles like financial adviser assistants. With experience and advanced qualifications, junior planners can become senior financial planners, team leaders, or partners in financial firms.

Specialising in tax planning or investment management can also enhance career opportunities. Ultimately, many financial planners progress to executive roles or establish their own practices.

Want to work with Unbiased? 

Financial planners look at clients' finances holistically, helping them to manage, save, and prepare their funds for economic stability and increased wealth. Becoming a financial planner in the UK requires obtaining the necessary qualifications and completing an internship, which can take 18 months to five years, depending on the route taken.

If you're a financial services provider looking to grow your firm or you’re a self-employed financial planner who wants to expand your business, join Unbiased Pro today.