Discover your career. in financial planning

Transcription

1 Discover your career in financial planning

2 Welcome to our world A career in financial planning is hugely rewarding, both in helping people plan and achieve their life goals over many decades, and in giving you great career and earnings potential. It offers incredible variety and the flexibility to work for a large organisation or be your own boss. If you like working with people, have an enquiring mind and enjoy problem solving then read on. You help people make real and positive changes in their lives You work with a wide range of people, from young professionals through to chief executives and pensioners You can be your own boss and take an entrepreneurial approach to running a business You decide how much money you earn

3 What is financial planning? Financial planners (sometimes called financial advisers or wealth managers) help people organise their money and assets to achieve long-term goals. By making the most of clients money, now and in the future, they can plan a range of achievable goals, such a buying a home and ensuring a comfortable standard of living in retirement, even if that seems a very long way away. They can also ensure you are prepared for the unexpected, such as losing your job through illness. Financial planning makes sense of a wide range of goals and sometimes complex financial demands. Financial planners regularly review important aspects such as investment risk and the impact of taxation. Financial planners use their knowledge of financial products and markets to help clients set their goals and priorities. They hold regular meetings to ensure that any changes in circumstances are reflected in an amended financial plan. Investing in professional financial planning gives you confidence that your finances are organised; it also helps to lay out your financial priorities and life goals in the short, medium and long term. That means less stress, leaving you free to enjoy life more. Most people lead busy lives and do not have the time or knowledge to manage their finances. However, without professional financial planning you risk making financial decisions today that could cost you dearly tomorrow.

4 From Premier League ToChelsea Pensioners There is no typical client for a financial planner. Most have a range of clients at different life stages with different financial planning needs. Some specialise in advising other professionals, such as doctors or sportspeople. Footballers, for example, can earn very high salaries for a short space of time, so it is important to help them invest their assets efficiently to secure their financial future when they retire from the game. Sometimes, financial planners will advise a type of client based on their location. For example, some Scottish firms specialise in clients who work on oil-rigs in the North Sea. Other financial planners in London have many clients who are bankers, lawyers, traders and stockbrokers they can have large bonuses and, sometimes, income originating overseas. All financial planners need to be ready to offer advice to the next lottery winner that walks through their door how would you advise someone to invest 25 million?

5 Key financial planning stages Just about everyone needs financial advice at some point after all, we want to make the most of the money we have. Your personal and financial circumstances will change through your life. They might look something like this: 20s & 30s At this age, you could be thinking about paying off your student loan, saving up for a deposit on a property and travelling. It may even include getting married. 30s & 40s At this stage, you may be looking to start a family. Recent research showed the average cost of raising a child from birth until their 21st birthday can exceed 200,000, so protecting your income against illness or even premature death might be important. You will need to think about saving for your children s university fees and even what level of income you would like when you retire. We are all living longer so think carefully about balancing spending today with saving for tomorrow. 50s & 60s onwards By this time, your children may have left home; even if they are still living with you, you will be planning more closely for retirement. Your previous financial plans may mean that you can repay your mortgage or even start to look at tax efficient ways of transferring your wealth to your children. You may have inherited money or property, so it s important to speak to a financial planner to ensure you keep as much of your inheritance as you can.

6 Financial planning companies There are thousands of financial planning companies across the UK, ranging from rural businesses with one financial planner who is also the business owner, to corporate employers with hundreds of financial planners serving cities across the UK. Small companies often have fewer than three financial planners, an administrator to help with the filing and the running of the office and a paraplanner who is responsible for researching investment solutions and writing client recommendations. They may have 300 clients and manage assets of more than 10m. Some small companies have fewer clients and focus on providing a complete service to wealthy families who may be living around the world and with assets worth tens of millions of pounds. Medium-sized companies have fewer than 100 financial planners with a team of support staff and administrators. These types of companies may have thousands of clients and several hundred millions of pounds in assets under advice. Large companies have hundreds of financial planners across the UK, some with offshore divisions dealing with expatriate clients. These companies have large teams of paraplanners, administrators and client service staff. The largest companies, have thousands of financial planners and assets under management of billions of pounds. FP INTERNATIONAL PLC

7 Jobs in financial planning There are roles for both school-leavers and graduates in financial planning companies. You don t need to hold a specific degree or particular A levels. What is important is who you are as a person and the soft skills you have (see box below). There are a variety of jobs in financial planning, each requiring a slightly different skill set. Here are just some of the key roles: Financial planner A client-facing professional who requires strong communication skills, excellent empathy and the ability to translate sometimes complicated financial data into simple terms for a client. Paraplanner An office-based professional who works to support a financial planner. Paraplanners need good research and data analysis skills, as they find the best solutions for the financial planner s clients. Some paraplanners use the role as a stepping stone towards full financial planner status; others find it a rewarding career in its own right. Average earnings: Administrator / customer service 15,000-20,000 Trainee financial planner 20,000-30,000 Paraplanner 25,000-50,000 Office manager 30,000-50,000 Qualified financial planner 35,000-70,000 Compliance / technical manager 40,000-75,000 Experienced Chartered financial planner 75, , % for London Administrator An office-based role which requires good communication and organisational skills. This is often the first role that someone takes on when joining the sector. If a career in financial planning interests you, but you are not sure about becoming a financial planner, there are a variety of other interesting roles within financial planning firms, product providers or investment companies. Some are shown below in the earnings table. What skills are financial planning employers looking for? Ability to listen to, and empathise with, clients Ability to manage client relationships Ability to understand financial products and investment strategies Ability to identify financial planning opportunities Presentation skills - advisers must convince clients to act on recommendations Networking skills with other professions such as law and accounting Organisational skills - compliance awareness and record keeping Analytical and research skills

8 Been there done that! I am acknowledged as one of the leading paraplanners in the UK, working for a multi-award-winning firm of Chartered financial planners in the North East of England. During my A levels, I had a residential visit to the University of Cambridge and I decided that my planned career as a solicitor wasn t for me. I researched financial careers that would allow me to develop technical skills and work with people. I sent a speculative CV to a highlyregarded local financial planning firm. The Managing Director was impressed and offered me a full-time position as a trainee financial planner. I began working as an administrator to gain practical experience and combined on-the-job learning with professional study in my own time to gain my basic financial qualifications. I was quickly promoted to technical administrator and progressed to higher level qualifications. After two years, the business model changed and I elected to move to my current small but highly-qualified firm as a paraplanner. The firm works with a wide range of clients who see the value in our service and whom we help to achieve their aims and objectives in life. I honed my report-writing skills and developed an in-depth knowledge of financial planning solutions. I was encouraged to continue my qualifications and became one of the UK s youngest Chartered financial planners and a Fellow of the Personal Finance Society. This puts me on a par with professionals in other sectors. Gemma Siddle FPFS Chartered Financial Planner In 2008 I became a regulated financial planner and worked alongside a retiring director to look after his clients. This taught me that it is important to build relationships with clients so that they feel comfortable sharing their personal details. This helps me to understand what they want from their lives in future and I can tailor their financial plan. I missed the technical aspect of my role as a paraplanner and now straddle two roles: meeting with my clients at least once a year to review their financial plans whilst providing a high level of technical support to my financial planner colleagues. I sit on the firm s Investment Committee and I write client financial plans. This role appeals to my inquisitive nature and enables me to work with clients to help them get to where they want to be in life. I love what I do! In 2012 I won the national Paraplanner of the Year award at the Personal Finance Society s Chartered Awards. Progressing to a high level has seen my earnings increase substantially and opened lots of doors for me, giving me choices in my career. I thoroughly recommend a career in financial planning, as a financial planner or a paraplanner. These careers offer a lifetime of development and opportunity and it never gets dull. It is not for the faint-hearted but it is very rewarding on a personal and financial level for those who are willing to become highly qualified.

9 I first encountered Saunderson House and the world of financial planning when I met a director of the firm at a university careers event (the same director I have now been working with for 7 years). I knew I wanted to work in finance, but having experienced investment banking through an internship, decided I would prefer a career with a better work/life balance, but still with good prospects. Financial planning at Saunderson House seemed to fit the bill perfectly; the chance to engage in the finance arena and focus on building long-term relationships with high-net-worth individual clients/families, the majority of whom are country-leading specialists in their own areas of expertise. So I signed up for their graduate scheme and over five years progressed through professional exams (CII Certificate, Diploma and Advanced Diploma in Financial Planning) and became a Chartered financial planner, the pinnacle of our profession, as well as a Fellow of the Personal Finance Society (PFS). I spent the early part of my career learning a lot from the team around me while working on the administration side of advice for clients (but including the opportunity to attend client meetings), using the experiences to enhance the knowledge acquired from the exams along the way. This proved invaluable when, in April 2012, I was authorised by the FCA to provide financial advice, and took on all the important responsibilities that entails. Saunderson House advises over 1,500 high-net-worth clients across the UK, with a focus on the self-employed professional market (such as partners of leading law and accountancy firms as well as barristers and judges), though our client base also Chris Coomber FPFS, Chartered Financial Planner includes entrepreneurs and former cabinet ministers, even the occasional film star or celebrity. It s a great buzz to advise the top minds in the City, and to have them respect and appreciate the advice you give because of the relationship you foster with them, supported by the professional qualifications from the CII. There is a real opportunity to progress in this industry and for several years I have been managing one of the company s teams, working closely with my director to take a more key role in the relationships with his clients, while also building a client bank of my own. After seven years at the firm, I am entrusted with a lot of responsibility. My role not only involves providing advice to clients, leading client meetings, managing my team members and trying to win new clients for the business, but I also have the opportunity to be involved with operational projects within the company and to help shape the future of it. The real joy in the work is the variety one encounters in dealing with private clients; each one has their own opinion, their own priorities, and their own quirks. It is truly satisfying when you are able to help each and every one of them overcome their own personal challenges and achieve their goals.

10 Next steps Complete a licence to practise qualification such as the CII Diploma in Regulated Financial Planning Gain experience in a company that offers financial planning services and get the compliance documentation showing that you are deemed competent If you are a full-time school, college or university student in the UK, you can become a Discover member, which gives you all the key benefits of membership for free. discover@cii.co.uk to sign up Become a member of the professional body, the Personal Finance Society This enables you to attend local events and network with others working in the profession. The PFS has over 35,000 members across the UK Speak to sector professionals about their own experience. You will receive plenty of helpful advice

11 Apprenticeships and university If you are still deciding what to do after school or college, you have two options Apprenticeships or university. 1 Apprenticeships Certificate-level Apprenticeship months This is a good level to get in to, and would support your knowledge as you work through an Administrator position towards a Paraplanner role 2 University If you are thinking of going to university, or are already there, it is worth knowing that some employers look for graduates with finance-related degrees. Students who hold the following degrees will have more knowledge about the sector than students of other subjects and can claim more credits towards CII professional qualifications: University of Bradford BSc Financial Planning Glasgow Caledonian University BA Finance, Investment and Risk University of Northampton BSc Banking and Financial Planning Even if you are studying, or already hold, a degree in a business or financerelated subject, you may still be eligible for CII credits that help you complete our professional qualifications more quickly. discover@cii.co.uk to find out.

12 For more info visit: or About the Personal Finance Society The Personal Finance Society (PFS) is the professional body for people working in financial planning and wealth management. There are over 35,000 PFS members. Its mission is to raise standards for the ultimate benefit of the profession and consumer alike. We do this through training and professional development. The PFS is part of the CII Group, the world s largest professional body for insurance and financial services. The CII has been at the forefront of setting professional standards for over a century and has over 115,000 members in 150 countries. About Discover Fortunes Discover Fortunes is our free interactive event that introduces students and teachers to the key concepts of financial planning. Delivered around the UK, and supported by local employers, it has become an essential part of learning about the world of financial planning.