Career opportunities in financial planning is growing and it is a fulfilling career where you have the opportunity to make an impact on people’s lives. A career in financial planning is also intellectually challenging with the prospects of earning a decent salary. London and the South East of the UK continues to be a thriving area for the industry with a consistent upward trend in salaries. There are opportunities for graduates to join the industry at entry level and most firms offer consistent and clear career progression. There are also opportunities for professionals who have worked in related industries to join a Financial Planning firm and grow with the firm while doing relevant qualifications or on-the-job shadowing or fast-track learning.
A financial planning team typically consists of a financial planner (the advisor leading the work), a paraplanner (technical support), client service manager (client relationship and sales support) and an administrator (coordinator of all the backoffice administrative work).
Traditionally, if you were a junior professional trying to get into the industry you would start in an administrator role and climb the ladder in the firm. The natural step afterwards would be working as a client service manager and thereafter go on to a paraplanner role learning all the technical aspects. Some decide they enjoy working in the background doing the technical support as a paraplanner while others decide to go on to become a financial planner. Some firms offer traineeships where a graduate will join as a financial planner trainee and support the whole team doing various tasks but with the ultimate goal of becoming a client facing financial planner.
In terms of degrees, most financial planners have a bachelor’s degree in finance, economics or business. There are also various certifications and diplomas you can obtain from the Chartered Insurance Institute (CII) or the Chartered Institute for Securities and Investment (CISI). The Financial Conduct Authority (FCA) oversees the financial services industry.
What is a Financial Planner and what is the difference between Financial Planners and Financial Advisers?
Every financial planner is also a financial advisor, but not every financial advisor is a financial planner. Financial planners recommend plans or long term programs for their clients. A financial planner typically helps individuals and families. Financial Planners often work with high net worth individuals who are looking for ways to manage their wealth. However, financial planners are not just for the very rich, they also help normal families plan a way to fund children’s education, plan for retirement or help them invest wisely.
A financial advisor is a broad term that refers to most professionals who advises people on their finances.The term “financial advisor” can also include brokers, money managers, insurance agents and bankers. A financial advisor is specialised in one area (investments or insurance for example) and will focus on one specific problem such as offer guidance on investments or an insurance. A financial planner will look at the bigger picture, looking at your current financial situation, where you want to get to and make a plan to get you there. Both financial advisers and financial planners share many overlapping areas of expertise and hold similar qualifications.
Your job as a Financial Planner is to guide your clients in an ever-evolving, dynamic financial landscape. You will help your clients make a plan to manage their money and reach long term financial goals. You will need to have a good understanding of tax planning, retirement and pensions, insurance and investing. The industry is constantly changing so you need to be on top of regulatory changes, technological advancements and the UK economy.
A financial planner will usually start their initial advice by creating a financial plan and/or a financial review. A financial plan will be a forecast of your finances (income, expenses, assets and liabilites) and will show you the best way to achieve your objectives. A financial review will look at your pensions, investments, insurance and taxes and create a strategy for these finances. After the plan has been created, the financial planner will create a detailed report advising their client on what to do to improve their financial situation. Thereafter, if the client agrees to the advice, an implementation process will start to set up new accounts or transfers accordingly.
Key skills:
- Enjoy building relationships and talking to people
- Great with numbers
- Problem-solving skills and critical thinking
- Knowledge and an interest in financial topics
- Ability to analyse complex financial data
- An interest in financial markets and the wider economy
- Personal impact; confidence and presence
- Ethical judgement and integrity
What is a Paraplanner and what do they do?
Working as a Paraplanner is a technical role and is becoming more and more important to the industry. This is an analytical and research-based role and is generally not client facing (although you may join in some client meetings).The paraplanner will support the financial planner with technical analysis and research. This could include suitability reports, cash flow modelling, undertaking research on specific financial products and preparation of client advice.You need to be able to understand both simple and complex financial products and how to make recommendations for financial objectives related to a client’s risk tolerance.
Paraplanning evolved out of an administrative role (similar to a paralegal in a lawfirm) and was previously seen as a stepping stone to becoming a financial planner, but now it has become a career in its own right. Financial planning is becoming more complex and preparing client recommendations is both time-consuming and technical. Without paraplanners, financial planners would find it hard to provide top service to their clients.
Key skills:
- Analytical and methodical
- Ability to research
- Critical thinking
- Attention to detail
- Industry awareness and product knowledge
- An interest in financial markets and the wider economy
What is a Client Service Manager and what is their main role?
A client service manager, sometimes called account manager, relationship manager or senior IFA Administrator, is the person responsible for managing day to day client relationships. You will keep clients informed of any actions and updates and make sure clients receive annual reports and advice. After a new client has signed up to a service, it is the Client Service Manager who is in charge of the implementation process, which includes delivery of advice, execute fund switches or withdrawals, inter-plan transfers and top ups. You will work closely with the financial planner and keep the planner informed on any issues in delivering advice to clients or any client queries. Days can be varied, you might be assisting with suitability reports, dealing with providers or chasing clients for information or forms.
Key skills:
- Excellent communication skills
- An understanding of the financial planning process and financial markets
- Organised and be able to follow through on getting things done
- Be able to handle deadlines and pressure
- Proactive and focused
- Teamplayer
What is a Client Review Coordinator or IFA Junior Administrator?
A junior administrator or coordinator supports the financial planner, paraplanner and the client service manager. The coordinator’s main responsibility is to prepare the annual review reports for all clients. The review pack will consist of several documents and you will need to be very organised and methodical in your work. You will have a spreadsheet for each client listing all the relevant information and documents needed, including minutes from meetings, risk profiles, fee payments and so on. You may also have other administrative tasks such as preparing documents ahead of a financial planner’s meeting with a client. You may also be in charge of onboarding a new client and support the client service manager with the implementation work.
Key skills:
- Organised and methodical
- Attention to detail
- Be able to juggle multiple tasks
- Love administrative work which can be repetitive
- Teamplayer
Conclusion
Working in financial planning offers an exciting and rewarding career for those who are interested in helping others with financial goals and financial well being. There are a number of routes you can take to get into the sector. You can start in a junior role or a trainee role working for an experienced, independent financial planner or within a financial planning firm.
While gaining experience, if the goal is to become a financial advisor then it is also important to purse relevant industry qualifications such as the Chartered Financial Planner or Certified Financial Planner. You need to stay updated with relevant industry trends, regulations and financial products. Maintaining trust and integrity is vital in this profession.
As the industry has grown there are also opportunities to specialise and have a fulfilling, technical career as a paraplanner. For administrative staff without financial qualifications there are also opportunities to grow with a firm in service delivery roles or operational roles.
Understanding your motivations and your educational background and experience, you can embark on a career path in financial planning that is fulfilling and prosperous.