The Education Requirements of a Financial Adviser

Financial advisers help clients make sense of their money.

Financial advisers assist people in creating strategies to best utilize their money, both in the short and long term. A variety of branches of financial advising exist, some of which require licenses to sell products. While there are no strict education requirements become a financial adviser, employers look for certain degrees and certifications.

Education

Financial advisers do not have specific education requirements; however, holding a bachelor's or master's degree may help in securing a job. Most employers prefer candidates with a background in accounting, business, economics or mathematics. Those who already hold degrees may complete a certificate program for financial advising. Such certificate programs may include coursework on risk management, tax planning and employee benefits. Continuing education certificate programs should not be confused with the certification provided by the Certified Financial Planner Board of Standards.

Certification

To obtain the Certified Financial Planner (CFP) credential, candidates must have three years of relevant experience and a bachelor's degree, and successfully complete a CFP board-registered education program. Some candidates with certain degrees or credentials may bypass the education program. These include certified personal accountants, licensed attorneys, chartered financial analysts, chartered financial consultants, chartered life underwriters and those with a Ph.D. in business administration, business or economics. Candidates also need to pass a comprehensive exam and adhere to the Certified Financial Planner Board of Standards code of ethics. Certification is not always required; however, many employers recommend it to boost professional standing.

Licensure

Only finance professionals who directly buy or sell stocks, bonds, insurance policies or give specific investment advice need licenses. Generally, these professionals need a specific combination of licenses based on the products they sell. Also, finance advisers who sell insurance generally need to be licensed or registered in their state of residence.

Advancement

By continuing to work toward certifications and updating their skill sets, financial advisers may advance into managerial positions, open their own branch offices for securities firms or serve as independent registered representatives of securities firms.

References

• Bureau of Labor Statistics; Personal Financial Advisors; Dec. 17, 2009
• Certified Financial Planner Board of Standards: Steps to Initial CFP Certification
• Education Portal: Financial Advisor Education Requirements and Career Info