How to become a
financial adviser
Financial advisers instruct or advise people on how to reach their financial goals, based on their current financial circumstances. Choosing a career in financial advice can be rewarding, though it involves specific steps.
In this article, we will take a closer look at the pathway to becoming a financial adviser, whether it is right for you, and how Ord Minnett can help you achieve your finance career goals.
If you would like to learn more about our Associate Adviser Program, please enquire today.
Your pathway
to becoming a
financial adviser
Becoming a financial adviser involves a combination of qualifications, exams, and a professional year. Each stage involves different steps with their own completion times and skills that need to be drawn upon.
Qualifications
To qualify as a financial adviser, your first step is to meet the qualification standard by completing a bachelor's degree (or higher) from the list of degrees approved by the Minister for Financial Services. Several universities around Australia offer various degrees approved by the ministry. Before undertaking study, we recommend speaking with education providers to discover which approved degrees will best meet with your goals and aspirations.
Professional Year
Once you have completed an approved qualification, you must undertake one year of supervised work experience. In total, 1,600 hours must be completed, with 100 being structured training (such as financial product accreditations).
During your professional year, you’ll go from direct to indirect supervision and move from supervised client observations to indirect supervision and client advising. This professional year can be completed in a calendar year, or it can be spread out in a manner that suits you.
Before starting the third quarter of your professional year, you must successfully complete the Financial Adviser Exam. Comprised of multiple-choice questions, the exam tests prospective advisers on topics such as legal and regulatory requirements, ethics, financial adviser standards and other subject areas.
Once you have completed your approved qualification, passed the Financial Advisers Exam, and successfully completed your professional year, you are ready to start applying for financial adviser roles.
Tips for becoming a financial adviser
Being a financial adviser can be an immensely fulfilling career, but it can be hard to navigate. Here are some tips on how to become a financial adviser for students, graduates, and career changers.
Students
Any students wanting to become a financial adviser should attempt to secure internships at wealth management companies. These present the perfect opportunity to understand what a financial adviser does.
We recommend asking your teachers and lecturers if they have any leads on potential internships that you could take up.
It’s also worthwhile searching for part-time administration positions at financial institutions while you study. They can help give you an understanding of the financial adviser environment, as well as offer networking opportunities for future roles.
Graduates
Finance graduates looking to become advisers should begin searching for companies to complete their professional year experience. Ideally, you should look for wealth management institutions that offer a structured program to help complete your professional year, as well as general graduate programs.
Additionally, Ord Minnett’s three-year Associate Adviser Program, which advisers complete after their Professional Year, helps develop the various skills and qualities needed to grow into a successful financial adviser.
Find out more about Ord Minnett’s Associate Adviser Program in the video below.
Career Changers
Making a career change can be daunting, but it is possible to pivot from your current career into the world of financial advice. If you haven’t completed one of the approved qualifications (as outlined above), you may benefit from exploring such pathways as a Graduate Diploma of Financial Planning to get a taste of what the financial services field is like. Many of these are available part-time and at night, which can allow you to balance your current career with finance studies.
Before making a decision, it’s always best to speak with an education provider or professional institute to discover which course best suits your goals, including becoming a financial adviser. You may also benefit from contacting a private wealth or advice firm to find out about entry-level roles and pathways that can help you get a foot in the door in the world of financial advice.
While changing careers can make you feel anxious and unsure, it’s very common in the financial services industry. Ord Minnett is always supportive of people making this transition, and will help you on your new career path.
Is being a financial adviser right for you?
Financial adviser careers can be immensely rewarding. The simultaneous drop in adviser numbers and the rise in intergenerational wealth transfer have made financial advisers highly sought after.
If you are good with numbers, goal-planning, and have a genuine interest in helping people, then being a financial adviser is an excellent career path. For more insights, check out this video of the day in the life of a financial adviser:
If you want to find out more about becoming a financial adviser with Ord Minnett, head over to our careers page to learn more about our Associate Adviser Program and other opportunities. Your dream career might just be waiting for you.
Frequently Asked Questions
How is a financial adviser different from a financial planner?
Though both assist clients with their financial goals, their scope is different. Financial advisers advise on specific, immediate actions to manage and generate wealth. This role can encompass investment advisers, tax professionals, estate planners and others.
Financial planning, on the other hand, develops strategies focused on achieving a client’s long-term financial goals, such as budgeting and retirement planning.
How long does it take to become a financial adviser?
In general, it takes at least 3 to 4 years for someone to become a financial adviser. This includes 3 years of bachelor-level study and one professional year before being fully qualified.
Is there demand for financial advisers in Australia?
With a significant degree of intergenerational wealth transfer taking place, financial advisers are in high demand. In addition, the amount of financial advisers has dropped from approximately 28,000 to 15,400 since 2019.
As a result of this demand, advisers can have a well-compensated career path.
What qualifies you to be a financial adviser?
To be qualified as a financial adviser, you must complete a bachelor or postgraduate degree (or an equivalent qualification), as well as a professional year and pass the financial adviser exam.
Is it too late for me to become a financial adviser?
No, it is never too late for you to become a financial adviser. Many people have a successful career as financial advisers after having a previous, unrelated career. As long as you complete the required qualifications, you can never be too old to become a financial adviser.
How do you become a financial adviser in Australia?
To become a financial adviser in Australia, you are required to complete a recognised degree, pass the financial adviser exam, and complete a professional year. The professional year can be spread out for as long as you need. It must take place at a recognised financial institution.
Some firms may offer newly-qualified financial advisers in-house learning and development programs to support their ongoing skills and professional development, such as Ord Minnett’s Associate Adviser Program.
.jpg)