The Definition of a Financial Representative

A financial representative helps a client reach investment goals.

A financial representative applies business acumen and economic knowledge to evaluate a client's financial data and personal information to recommend investment ideas. A representative working in the sales force of a financial institution, such as a bank, a mutual fund or an insurance company, helps sell investment products to the institution's clients.

Financial Representation Defined

Financial representation consists of financial planning advice and the sale of financial products. For example, a junior financial sales associate at an insurance company may act as a financial representative by contacting clients and recommending various investment products to them, including stocks, bonds or mutual funds. Alternatively, a senior personal financial adviser working for the same insurer may act as a financial representative by evaluating a client's accounting data and proposing long-term investment strategies.

Responsibilities

Types of financial representative responsibilities vary, depending on the company, industry served or role. A personal financial adviser, also called wealth manager, applies economics and accounting acumen to gauge a client's finances and recommend asset selections, such as derivatives or convertible bonds. A financial services agent working for a bank or an insurance firm is essentially a salesperson who needs to meet periodic sales quotas that management set. This employee discusses investment opportunities with a client and typically sells financial products to the client.

Education/Training

Academic requirements may differ in the financial services industry, but most financial representative jobs typically mandate four-year college degrees in business. Applicants with liberal arts backgrounds may receive practical training before performing tasks. Advanced degrees, such as master's and doctorate degrees, are not uncommon in the industry, especially among senior professionals. A financial representative also may have a professional certification such as the chartered financial analyst (CFA) designation.

Salary

A financial representative's salary depends on education, length of service and industry served. The U.S. Labor Department reports that median wages of personal financial advisers were $69,050 in 2008, with the middle 50 percent earning from $46,390 to $119,290. Compensation levels for financial sales associates may be lower. The same government data indicates that median wages of financial sales associates were $68,680 in 2008, with the middle half earning from $40,480 to $122,270.

Career Development

An undergraduate financial representative may seek a graduate degree in accounting or investment analysis to increase chances of career growth. A Master of Business Administration (MBA) in a business field may be the best option for a wealth manager seeking a senior role. Alternatively, a financial sales associate may be promoted by receiving a professional license such as the certified public accountant (CPA) designation. A competent financial representative moves to a senior role in three to five years.

References

• Bureau of Labor Statistics: Banking
• Bureau of Labor Statistics: Personal Financial Advisors
• Bureau of Labor Statistics: Financial Analysts
• Bureau of Labor Statistics: Securities, Commodities, and Other Investments
• Bureau of Labor Statistics: Securities, Commodities, and Financial Services Sales Agents