Financial advice

Financial advice exists in a variety of formats, often specific to a sub-sector of financial services, such as:

• investment
• insurance
• borrowing
• saving
• life assurance
• retirement planning

The need for financial advice grows as government increasingly wants individuals to rely less on the state and to achieve their financial security.

Financial advice is carried by advisors with varying titles including:

• financial advisor
• financial planner
• independent financial advisor (IFA)
• stockbroker
• investment advisor or broker
• mortgage advisor
• retirement planner
• insurance broker

In the UK, these roles are regulated by the Financial Services Authority (FSA), a government body that must be satisfied that an advisor is a “fit and proper person” before they can advise.

What skills does the subsector need?

The Association of Independent Financial Advisers (AIFA) lists the qualities and skills needed to be an independent financial adviser (IFA).

• Industry and product knowledge- to understand the majority of a large range of financial products available and their features, benefits, technical details and usage rules
• Great communication skills – being able to convey complex information in simple terms is fundamental
• Good listening skills – to hear what clients are saying and also to read between the lines to identify any future needs
• Interpersonal skills – IFAs actively manage all their client relationships, building trust and respect. They are also at ease with networking, as this is a great way to develop business contacts
• Self-motivation – IFAs need to update their product and market knowledge and be up to date with regulation, taxation and legislation that affects their business on an on-going basis. There is constant change to keep pace with
• Good organisation and planning – both personally and for their clients
• Good analytical skills – identify potential pitfalls and define practical solutions