What does a financial adviser do?
Financial advisers help clients reach their financial goals through a series of actionable steps and strategies. While financial advisers give general advice about wealth management, their expertise goes into other specific areas of the finance world.
In this article, we will give a breakdown of what financial advisers do, how they assist with achieving financial goals, and what their role looks like day-to-day.
If you would like to learn more about our Associate Adviser Program, please enquire today.
Financial advisers: more than just wealth management
A financial adviser’s role doesn’t just involve wealth management and recommending suitable investments. When working with a client, a financial adviser also focuses on:
How financial advisers help clients
Financial advisers can guide both individuals and organisations on how to increase their wealth and plan for their financial future. These are just some of the areas in which financial advisers can support clients:
Financial Advice
Financial advisers provide financial advice for everything from tax to investments to income protection to debt management and much more.
Through this advice, financial advisers help clients build wealth towards major life goals, such as housing, raising children, and retirement.
Superannuation and SMSF
Helping clients stay on top of Super planning is a crucial role of a financial adviser. It affects people at all career stages, and can be beneficial even for those not close to retiring.
Whether clients have a self-managed super fund or another arrangement, financial advisers help them understand the various factors that can affect Super, including tax changes, and insurance options.
This helps clients to make the right decisions for their financial future.
Retirement Planning
Australia has an ageing population, and what retirement looks like for Australians is constantly evolving. Financial advisers help clients put plans in place for their retirement years.
Whether clients are 5, 10, or more years away from retirement, financial advisers work on investment strategies to assist with post-work planning and retirement savings.
Retirement planning looks different for everyone, and many people engage in philanthropy, paid grandparenting roles, volunteering, and other roles in their retirement years. A financial adviser must understand all these options and which will work for their clients.
Stockbroking
Stockbroking can be difficult for the novice investor to navigate. The combination of risk versus reward, yield, growth, and the sheer amount of financial data can be daunting.
A good financial adviser brings extensive stock market research experience to maximise a clients’ stock returns. You should identify stock opportunities that are in your client’s best interest and provide sound investment advice.
Estate Planning and Deceased Estates
Financial advisers cover multiple facets of estate planning, including protecting assets, tax minimisation, and other areas that affect how wealth is distributed after someone
passes.
As part of this process, a financial adviser assists with gathering documents, dividing assets, and implementing plans to ensure a client’s wishes are carried out.
Not-for-profits, Institutions and Corporations
Organisations such as non-profits, institutions and corporations have a diverse range of areas from which they receive funding to carry out operations. In a climate where people are under serious financial strain, it can be challenging to attract investors and make the
right decisions to benefit these organisations.
A financial adviser can review current investment strategies, increase organisational influence, and navigate mergers and acquisitions. Financial advisers also focus on finding new funding opportunities, delivering sustainable returns, and uncovering new ways to promote growth.
A typical financial adviser's day
An average day for a financial adviser consists of activities like:
- Reviewing overnight market movements and general financial trends. Conducting meetings with clients to discuss their financial strategies.
- Conducting meetings with clients to discuss their financial strategies.
- Attending internal meetings to learn from what other team members are doing with their clients.
- Updating and amending client strategies in light of developments and new information.
- Implementing client strategies and carrying out any administrative tasks required to keep things running smoothly.
For a specific overview of a day in the life of a financial adviser with Ord Minnett, check out the video below:
How do you become a financial adviser?
Becoming a financial adviser requires you to:
- successfully complete a bachelor’s or higher-level degree from the list of degrees approved by the Minister for Financial Services.
- complete a professional year at a finance institution.
- pass the financial adviser exam.
Once you have completed these requirements and become a registered financial adviser, there are many different support pathways and organisations available to continue developing your financial adviser skillset, such as Ord Minnett’s Associate Adviser Program.
You can find out more about the Ord Minnett Associate Adviser Program in the video below:
Frequently Asked Questions
How does a financial adviser differ from a financial planner?
In general, a financial adviser offers specific, actionable advice on how to grow and protect clients’ wealth, including specific financial products. A financial planner, on the other hand, offers a more holistic and long-term approach to growing clients’ wealth, and instructs you on how to make confident, informed decisions to safeguard your financial future.
What are the duties of a financial adviser?
In general, a financial adviser’s duties include developing plans and strategies to build their clients’ wealth, managing investments, planning for taxes, and ensuring compliance through their client strategies.
What are financial advisers allowed to do?
An ASIC-registered financial adviser is allowed to create financial plans for retail clients, which can encompass setting goals, retirement, managing investments, and estate planning. Registered financial advisers may also offer advice on superannuation best practices and budgeting.
In this context, a retail client is an individual who is less financially literate than a wholesale client, and does not meet the eligibility requirements to be considered a wholesale client (as outlined in section 761G of the Corprorations Act 2001). Registered financial advisers must comply with a range of disclosure, dispute resolution, training, product design and conduct requirements in order to advise retail clients.
Do financial advisers need strong research skills?
Yes, they do. Successful financial advisers need strong research skills to keep on top of financial product developments, as well as being educated on market conditions and the array of options available to clients for wealth creation.
Through research, advisers should be able to identify risks for clients, as well as industry trends and new opportunities that may benefit them.
What is an investment adviser?
At Ord Minnett, our investment advisers exclusively deal with wholesale clients, creating targeted financial plans and advising them on investments, tax, insurance, and other areas of wealth and finance.
A person or organisation is considered a wholesale client if they meet one of the following eligibility tests (outlined in section 761G of the Corporations Act 2001):
- Product Value Test
- Individual Wealth Test
- Large Business Test
- Sophisticated Investor Test
- Professional investors Test
Passing one of these tests means that they are considered to have a greater level of financial literacy than a retail client. As such, investment advisers are not required to comply with the same level of disclosures and training that financial advisers are bound to for retail clients.
Do financial advisers work by themselves?
While some financial advisers manage their own business and work alone, most advisers operate within a larger financial institution.
Are financial advisers the same thing as accountants?
No, financial advisers and accountants are not the same thing. Accountants advise on tax, business finances and asset protection, while advisers develop plans and offer comprehensive financial advice to grow wealth into the future.
Can a financial adviser help with tax planning?
Yes, they can. Financial advisers can advise on tax laws and how to structure your assets for the best tax benefits. To provide such tax guidance, advisers must be educated in specific competencies and registered with ASIC.
How do you become a financial adviser?
Becoming a financial adviser involves completing an accredited degree-level course, combined with passing the financial adviser's exam, and a year of professional experience. Once you have completed these requirements and become a registered financial adviser, some financial institutions offer in-house programs to aid your continued professional development in the field, including Ord Minnett’s Associate Adviser Program.
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