Financial Advisers

A financial advisor or financial adviser is an expert who offers financial advice to customers according to their financial circumstances. In the United Kingdom, financial advisors are required to complete certain training and obtain registration with a regulatory body. In the United States, financial advisers are allowed to practice without regulatory authority but without a license. The Financial Advisers Act of 1994 permits US financial advisors to practice in the United States without licensing. According to the law, financial advisors can engage in financial advising services even when they are not insured, unless they agree to accept compensation for their services from regulated bodies.

Types of Financial Advisers

Financial advisors must follow applicable laws, such as those regulating financial planning, investment, insurance and taxation. Financial advisors are also bound by their ethical duties to present customers with information and options that will help them manage their financial affairs. Financial advisors must also ensure that the advice they give is reliable.

To become a financial advisor, you need to complete formal education and gain experience. Some states do not require licensing for financial advisors, while others do require that they have a university degree, pass an examination, or be registered as an investment professional with the state Board of Investments. Many insurance agents, bank accountants and other financial professionals also work as financial advisors. Business professionals also work as financial advisors.

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