How to become a financial adviser
Are you looking for a career where you can make an impact and help people reach their financial goals?
As a financial adviser, you can play a pivotal role in helping individuals navigate the often complex world of finance, make informed decisions and achieve their financial goals—which can ensure they thrive in the realms of family, business, health, lifestyle, travel and beyond.
It’s a rewarding career that offers opportunities to make a significant difference in people's lives. And in more good news, it has a number of pathways to entry.
Below, we’ll explore what the role of a financial adviser actually involves and discuss the steps to become one in Australia—including how long it takes to go from student to paid professional. Finally, we’ll outline the skills required to be a successful financial adviser to help you determine whether it’s the right pathway for you. Let’s dive in.
What does a financial adviser do?
A financial adviser works with clients on an individual basis to help them make decisions and take the right actions to meet their financial goals. While both financial advisers and financial planners often require the same qualifications that open up a number of career possibilities, there are key differences between the two.
Financial planners help clients manage finances holistically over their lifetimes by offering advice on saving, investing and budgeting to meet long-term financial goals.
Financial advisers usually have a specific area of expertise such as investment management or insurance, and can come from a number of categories including brokers, bankers and money managers.
How to become a financial adviser in Australia
A career in financial advising attracts people with varying professional and educational backgrounds. To become a qualified financial adviser in Australia, there are several steps to follow. Here’s a breakdown of the process:
Gain an accredited qualification
The first milestone on the pathway to financial advising is completing an accredited qualification from a recognised institution. Whether you’re a practising financial adviser wanting to hone your expertise or a budding financial enthusiast ready to upskill and make your mark in the field, there are a number of qualification options available.
Victoria University (VU) Online’s Master of Financial Planning is a fully accredited postgraduate qualification that equips students with advanced skills in financial planning and the in-depth knowledge needed to stand out as an expert in the field.
The online master’s degree is open to applicants with an Australian undergraduate degree in a similar industry, but if you don’t have one of those, you still have options. Courses like a Graduate Diploma in Financial Planning or a Graduate Certificate in Financial Planning also provide great pathways toward the many lucrative careers in the financial industry.
Complete your professional year
After completing your accredited degree, you’re required to undertake one professional year of supervised work experience—also sometimes referred to as a “year of work and training”.
Per the official regulatory requirements, it must be a year of full-time work, equivalent to 1,600 hours, with a minimum of 100 of those hours to be ‘structured training’—which may include formal study, professional designation courses, or specific financial product accreditations. But the ‘year’ can be completed over whatever period you need - there’s no time limit, allowing flexibility.
Generally, the professional year is divided into quarters, progressing from direct to indirect supervision. The first quarter involves client observations, the second includes supervised client engagement and the final two focus on indirect supervision.
When the time comes, you’ll work with your supervisor and Australian Financial Services (AFS) licensee to establish a professional year plan, as outlined in the Corporations (Work and Training Professional Year Standard) Determination 2018.
Complete the financial adviser exam
Passing the financial adviser exam is a critical step to becoming a registered financial adviser in Australia. This exam, originally administered by the Financial Adviser Standards and Ethics Authority (FASEA), is now overseen by the Australian Securities and Investments Commission (ASIC). While the administering body has changed, many finance professionals still recognise it as the ‘FASEA exam’.
Designed to ensure aspiring financial advisers have the necessary knowledge and skills to provide high-quality advice to clients, the exam tests candidates on topics like ethical and professional standards, financial advice construction, and legal obligations. It consists of multiple choice and short-answer questions.
Continue professional development
Once you’ve passed the exam and completed your professional year, continuing professional development (CPD) is required to maintain your registration as a financial adviser and ensure you’re staying up to date with the latest regulations and industry trends.
In Australia, the regulatory CPD requirement is currently 40 hours each year and 70 per cent of them must be approved by their AFS licensee. These CPD hours could consist of workshops and seminars, online courses and webinars, regulatory and compliance training, practical experience, or specialist education or programs.
How long does it take to become a financial adviser?
The time it takes to become a qualified financial adviser in Australia will vary, depending on the level of educational and professional experience of each candidate.
To become a financial adviser in Australia, you must attain an accredited graduate diploma. Typically, completing an accredited qualification can take between one to two years, depending on whether you study full-time or part-time. Online courses like the online Graduate Diploma in Financial Planning offer flexible and accelerated study options, with a duration of as little as 16 months.
You can also continue your studies to gain a Master of Financial Planning, providing you with advanced knowledge and helping you stand out to employers.
The professional year adds another year to the process, though much of it is spent in the field so is focused on practical, hands-on experience. Including this year, most prospective financial advisers will spend 2-4 years becoming fully qualified.
Is becoming a financial adviser right for me?
Before you start the process of becoming a financial adviser in Australia, it’s also important to establish whether financial advising is the best fit for you.
In addition to having a genuine interest in and passion for finance, successful financial advisers are also detail-oriented and committed to ongoing learning and professional development. There are a number skills important in the finance industry, which can broadly be categorised under accounting, analysis, technology and communication.
When it comes to how those skills are applied in a practical sense as a financial adviser, examples include:
- Analytical thinking: This involves collecting and analysing financial information to detect patterns, integrate data and make decisions. In practice, this could involve running different financial reports to identify costs that may have been previously missed.
- Problem-solving: This refers to identifying and understanding problems and evaluating the alternatives to decide on and implement an effective solution—such as recognising why a business is showing at a loss despite otherwise healthy financials.
- Strategic financial planning: This refers to determining how a business will manage its finances and ensure it achieves its financial goals in both the long and short-term.
- Quantitative risk analysis: This involves using a risk analysis technique that assigns a numeric estimate to the risk on a particular objective, for example estimating future insurance premiums.
- Qualitative risk analysis: This means using a qualitative risk analysis technique that creates a written definition and evaluation of risk, along with risk mitigation measures to put in place.
Comprehensive courses like VU Online’s Master of Financial Planning and Graduate Diploma in Financial Planning are designed to prepare you for a range of professions within the financial sector. If you’re still unsure about enrolling, these courses provide a robust foundation that can open doors to various career opportunities in finance.
Invest in your future as a financial adviser
Investing in the right education and professional development is critical to becoming the kind of financial adviser who can make a positive impact in the lives of others and pave a successful career.
If you wish to begin a new career as a financial adviser, VU Online’s Graduate Diploma in Financial Planning is an approved pathway that will help you reach your goals. With this 100% online degree, you will develop the skills and knowledge to become an accredited financial adviser and gain an understanding of the relevant ethical and legal requirements in Australia.
You can also choose to continue your studies with VU Online’s Master of Financial Planning. This comprehensive degree will build on your foundational knowledge and help you gain a thorough understanding of the ethical and professional capacities required of financial planning advisers.
Students will be equipped with industry-leading knowledge in all aspects of finance from risk management and estate planning and financial and investment principles, to accounting and financial management and the art and practice of leadership—and much, much more.
Both courses are FASEA-approved and delivered 100% online through our award-winning postgraduate online block model, which facilitates a consistent, management and connected online learning experience—and optimised student outcomes.
Whether you want to boost your earning potential or carve out a fulfilling career you’re truly proud of, the pathway of financial adviser is rich in possibility.
VU Online’s Master of Financial Planning is designed for students who want to start or progress their careers in finance and gain advanced skills to stand out as an expert.
Learn more about VU Online’s Master of Financial Planning by visiting our website or contact one of our Student Enrolment Advisors.
