Investment Advisors’ role encompasses a comprehensive vision on a variety of financial topics, including investment and guidance. They work with their clients to make investments and allocation decisions, providing unbiased and unrestricted advice with the aim of helping them reach their financial goals by building a financial plan.
Investment Advisors are normally hired within the financial industry, usually working in the following work settings: investment banks, investment trusts, stock trading, brokerage firms, insurance providers, non-banking financial companies, and private equity firms.
Here’s a non-exhaustive list of common tasks Investment Advisors are required to complete.
- Creating, developing, and fomenting a network of successful individuals with the goal of managing their wealth:
- Establishing business relationships with clients and prospecting, building, and retaining a client base;
- analyzing financial records and identifying customers’ needs to personalize the financial advising services offered;
- choosing suitable solutions to meet customers’ financial plans and goals with the aim of expanding their portfolio;
- developing investment and trading strategies while ensuring their clients’ best interests are being served;
- promoting financial products and services, as well as their purchase and sale, recommending the best-suited products to their customers;
- providing a professional level of financial based advisory and transactional services to customers, including cash and investments management, insurance coverage, as well as retirement and estate planning;
- reviewing and giving solutions to clients’ changing needs and financial circumstances.
- Following up on portfolios in order to ensure quality and profitability:
- Keeping track of the expansion of customers’ portfolios, actions executed, decisions made, and recommendations given;
- conducting risks analysis; and
- researching the marketplace and advising on new and existing products and services.
- Contributing to ongoing professional business development activities:
- Cooperating with the company’s endeavor of achieving gross revenue and net operating income objectives; and
- working in conjunction with colleagues to gather marketing information, statistics, and trends.
- Staying up-to-date on current investment products, markets, and legislations.
- Taking care of the financial planning and management of portfolios.
- Ensuring necessary due diligence to support the accuracy of all clients’ activities and maintaining high ethical standards.
- Monitoring the marketplace and industry trends, as well as their conditions.
- Designing financial strategies.
- Carrying out the purchase or sale of investment products.
- Researching, gathering and analyzing data to make effective and profitable decisions on behalf of customers.
- Communicating with other professionals, such as estate agents and solicitors.
- Providing education, counselling, and consultation related to investments and finances.
- Buying and selling financial products on behalf of their clients.
- Developing a customers’ database based on referrals.
- Contacting clients and setting up meetings.
- Keeping detailed computerized records.
- Preparing financial reports.
The average Investment Advisor salary is $72,906 per year or $37 per hour. This is around 2.2 times more than the Median wage of the country. Entry level positions start at $51,000 while most experienced workers make up to $102,000. These results are based on 48 salaries extracted from job descriptions.
- Interpersonal and communication skills:
- Communicating clearly, both in writing and verbally, in order to effectively advise and interact with clients;
- acting with transparency, keeping customers informed about decisions made, and transactions executed;
- displaying strong customer service skills, as well as great listening skills in order to fully understand and meet the clients’ requirements;
- establishing and maintaining supportive work relationships; and
- being able to deal with team members and customers in potentially adversarial situations using a calm, tactful, discreet, and effective approach.
- Organizational and time management skills:
- Prioritizing and planning work activities in order to manage time efficiently while handling a high volume of work; and
- multitasking; being able to work in a dynamic, fast-paced environment.
- Analytical, problem-solving, and decision-making skills:
- Effectively analyzing numerical data, drawing logical inferences, and providing reasonable recommendations;
- identifying issues and resolving problems in a timely manner; and
- being able to exercise strategical thinking and mature judgment.
- Strong attention to detail:
- Efficiently and accurately entering and reviewing portfolios’ information into a database; and
- staying focused during highly repetitive tasks.
- Goal-oriented, reliable, flexible, and confident:
- Being self-motivated, highly driven, and having an entrepreneurial personality; and
- being able to work independently.
Investment Advisors are responsible for building and managing a wealth advisory practice. In this regard, Investment Advisors apply a holistic management approach with the aim of discovering and achieving customers’ objectives. Therefore, having an entrepreneurial spirit, connecting well with people, being eager to planning solutions, and meeting clients’ financial needs are crucial for this career.
Due to the nature of this position’s responsibilities, it is fundamental for Investment Advisors to have strong quantitative and problem solving skills, as well as a background in Sales, Public Funds, Investments, and Finances. These practitioners play a determinant role in customers’ endeavors of fulfilling their financial goals and, therefore, should be capable of determining risk tolerance to identify whether an action represents a risk or an opportunity.
Ethics should prevail in this line of work, hence, disseminating deceitful or fraudulent advice goes against the Canadian regulatory Codes of Ethics, which oversees the activities of Financial Advisors.
Likewise, Investment Advisors cannot buy and sell securities or making decisions without the client’s prior consent. Once their customers give their consent, Investment Advisors can be conferred a discretionary authority, which gives them the faculty of acting on behalf of their clients without a prior formal permission.
In Canada, there are many designations and fields of specialization for Investment Advisors, however, these practitioners require training in money management, investing, tax, estate planning, and insurance. In this regard, most Investment Advisors are usually required to have completed a bachelor’s degree in Accounting, Global Business, Finance, Business Administration, or Economy, or to have obtained any other equivalent certification.
Additional credentials are usually required and will vary according to the Investment Advisor’s location and specialization. In Canada, these credentials include, but are not limited to, the following:
- Certified Financial Planner (CFP) Certification;
- Personal Financial Planner (PFP) Certification;
- Chartered Financial Consultant (CHFC) Designation;
- Registered Financial Planner (RFP);
- Chartered Accountant (CA) Designation;
- Certified General Accountant (CGA) Certification; and
- Investment Dealer Compliance Course (IDCC) Certification.
Most Investment Advisor positions require a minimum of 3 years of experience working in a client- facing, sales, or relationship-focused roles. Having a vast knowledge of the sector in which the applicant wants to work is always a must.