How To Become A Financial Planner In Australia?

Are you interested in a career as a financial planner in Australia? Financial planning has gained significant traction in recent years as one of the most sought-after careers in the finance industry.

However, becoming a financial planner is not as easy as it seems. With changing regulations and industry standards, the path to becoming a financial planner in Australia can be confusing and overwhelming.

In short, to become a financial planner in Australia, you must obtain an education in financial planning, complete relevant professional development courses, and obtain registration with the Australian Securities and Investments Commission (ASIC).

This article will provide an in-depth guide on each step of the process and outline the industry's various career opportunities and job prospects.

Are you curious about the various types of financial planning careers and which one might be right for you? Are you interested in knowing how much a financial planner earns in Australia?

Or are you simply looking for more information on how to get started in this exciting and rewarding career?

No matter your reason for wanting to become a financial planner, this article will provide you with all the information you need to start your journey. So, without further ado, let's dive into the world of financial planning in Australia!

What Is a Financial Adviser/Financial Planner?

In general, in Australia, the phrases "financial advisor" and "financial planner" refer to the same person: a licenced professional who assists individuals in establishing and pursuing their monetary objectives.

They offer guidance in financial matters such as financial planning for retirement, tax preparation, budgeting, investing, and superannuation.

To be capable of calling oneself a financial adviser or planner, you must be licenced by the AFS to provide personal financial advice on items related to the financial industry.

In addition, you need to be included in the Financial Advisers Registry and adhere to the established professional standards. After the Financial Services Royal Commission, measures were implemented in January 2019, resulting in tightening these standards.

You are required to do the following under the professional standards:

• Applicants must demonstrate that they possess a recognised qualification at the bachelor level or higher (AQF 7 or higher).
• Get a passing score on the exam for financial advisers.
• Satisfy continuous professional development needs.

These people do not work as financial advisors:

• Those who, through mediums such as books and podcasts on the subject of finance, offer broad guidance on financial matters.
• Consultants that can offer assistance with virtual banking goods, standard insurance policies, or consumer credit insurance.

Words and Phrases You May Come Across in the Financial Sector

1. Australian Financial Services (AFS) licence

ASIC is in charge of evaluating applications for the licence necessary to operate in the financial services industry in Australia.

2. Financial Advisers Register

A listing of qualified individuals who are permitted to act as financial advisers. Take a look at the Register.

3. AFS Licensees Register

A listing of financial advisers (and businesses) that are in possession of an AFS licence.

4. Authorised Representatives Register

A listing of financial planners who are working under the AFS licence of another company as authorised representatives of that company.

5. ASIC

An autonomous agency of the government of Australia, the Australian Securities and Investments Commission (ASIC) is responsible for regulating the corporate, market, and consumer credit sectors in addition to the financial services industry.

As of the start of 2022, ASIC has assumed the role of regulator for the financial services industry, having previously been held by FASEA.

How Essential Are Financial Planners?

Each person's financial circumstances and objectives are distinctive, and the considerations involved can often be rather involved.

Even if a financial planner is unable to address every one of your inquiries, there is a good probability that they will be capable of putting you in touch with other trained specialists such as accountants, solicitors, estate planners, and finance brokers who can assist you in designing suitable plans.

What Do Financial Planners Do?

Financial planners are professionals in designing financial strategies for individuals as well as organisations.

They guide their customers through the process of making hard choices and aid them in determining the most effective approach to maintain and expand their wealth.

Other tasks that may fall within a Financial Planner's purview include taking an active part in the process of corporate development and searching for new investment opportunities, all while maintaining a rigorous adherence to the procedures and standards governing risk and compliance.

It is absolutely necessary for you to continue your education and training if you want to be a Financial Planner.

This will ensure that the advice you provide to your clients is always correct and up-to-date.

Tasks

• Evaluating the client's current financial situation as well as their anticipated results.
• Developing strategies in order to meet the objectives of the consumer.
• Providing guidance on investing, budgeting, and overall financial management and planning.
• Being knowledgeable of as well as being able to explain financial rules and regulations.
• Keeping abreast of recent developments in financial matters, including investments, planning methods, tax, and insurance.
• Providing advice and recommendations on suitable financial goods and services

Skills for Success

In order to properly advise customers and retain them as clients over a lengthy period of time, corporations and financial institutions demand financial planners to have outstanding analytical abilities and an outgoing attitude.

You will need to be meticulous and precise, proficient with numbers, and enthusiastic about achieving the best possible outcome for your customers if you want to succeed in this field.

Skills & Attributes

• Excellent abilities in speech and listening
• Capacity to perform well under adverse conditions
• Capacity for carrying out research
• Excels in dealing with numerical data.
• The ability to analyse and plan effectively

Become a Financial Planner

Learn about the educational and professional experience requirements and the ethical duties of financial advisers.

The first of the year 2019 marked the implementation of a professional standards structure for financial planners, which established the minimum educational and professional expertise criteria as well as ethical requirements.

You are required to accomplish the following steps in order to work as a financial planner:

• a degree equivalent to or higher than a Bachelor's that is recognised
• a year of supervised work experience gained in a professional setting
• an examination for financial advisors administered by ASIC

1. Education Standards

Before a person can become a provisional financial adviser, they are required by the education standards to complete an approved qualification at a level equal to or higher than a bachelor's degree (AQF 7), a graduate diploma (AQF 8), or a master's level (AQF 9), or another qualification that is equivalent to one of those levels.

Checking the most recent version of the relevant legislative document is an important step to take before signing up for a class because it ensures the class is legitimate.

Before the 31st of December in 2021, the Financial Adviser Standards and Ethics Authority (FASEA) was responsible for evaluating educational programmes.

For the purposes of the Companies Act 2001, degrees that FASEA has approved before the 31st of December 2021 are still considered to be authorised degrees.

2. Professional Year of Experience

The professional year of expertise must be comparable to one year of monitored full-time work (1600 hours) inside an AFS licensee and must include 100 hours of organised training. This requirement must be met in order to be eligible for an AFS licence.

You will be designated as either a provisional financial planner or a provisional financial adviser for the duration of the year during which you will be working and receiving training.

In addition to this, a professional year strategy needs to be put into place in order to cultivate the following competencies:

• the ability to perform technically
• client care and practice
• regulatory compliance
• protection of consumers, professionalism, and ethical conduct

You will not be permitted to begin the third quarter of your business year after you've first earned a passing grade on the relevant national examination.

3. Financial Adviser Exam

The exam to become a financial adviser takes three and a half hours to complete, not counting the required reading time of at least 15 minutes.

The test includes multiple choice and written response sections, and students can bring statutory materials into the exam with them.

If you're a financial planner who already offers or wants to provide retail clients with tax (financial) consulting services for a charge, you are required to be one of the following:

• a 'qualified tax relevant provider', and
• identified as a qualified practitioner on the Financial Adviser Register and licensed with ASIC as of the first of the year 2023.

ASIC will principally regulate you in accordance with the Corporations Act, and the Financial Services and Credit Panel will serve as the single disciplinary authority for all financial planners who provide personal guidance to consumers on products that are pertinent to that guidance.

Pros of Being a Financial Planner

1. Helping people achieve their financial goals

You have the ability to assist other people in accomplishing their monetary objectives if you work as a financial planner. This may be an extremely satisfying endeavour, particularly when you are able to observe your clients achieving their financial goals.

2. High earning potential

The average annual compensation for a financial adviser in Australia is quite high. The amount of money that can be made has the ability to grow along with one's level of experience and the size of one's client base.

3. Job stability

The field of financial planning is one that is experiencing rapid expansion in Australia. As a consequence of this, there is a significant need for competent professionals. This ensures that financial advisors will have steady employment opportunities.

4. Flexible working hours

Many financial planners' work schedules are flexible, making it possible to maintain a healthy work-life balance—something that may be challenging to do in other types of employment.

5. Variety in the job

Clients come from all walks of life and have a wide range of requirements when it comes to their finances while working with financial advisers. This might lead to a more interesting and varied career, which helps keep things intriguing and new.

Cons of Being a Financial Planner

1. High-pressure job

The job of a financial planner may be quite stressful due to the ongoing need to keep up with changes in the business and provide outstanding service to clients. In addition, there is a constant requirement to provide excellent service to clients.

2. Regulatory compliance

Compliance with the stringent laws that apply to financial advisers in Australia can be both time-consuming and expensive due to the nature of the regulations.

3. Unpredictable income

Because it is contingent on the commissions that are generated from clients, the income of a financial planner is not always predictable. Some who are more comfortable with a consistent income may find this to be a source of anxiety.

4. High qualification requirements

In order to work as a financial planner in Australia, an individual must first fulfil a number of stringent qualifying requirements. Getting this done may require an investment of both time and money.

5. Risk of lawsuits

Financial planners could be held accountable for damages if they provide poor advice or make other errors. This might result in expensive lawsuits, which can be detrimental to the financial planner as well as the clients they serve.

How Much Money Do Financial Advisors Typically Make?

The average starting salary for a financial planner in Australia is around $70,000, while the median salary is $119,964. This is more than enough money to establish a secure financial future, particularly if you implement what you've learnt into your own personal finances.

Your timing can not be better if you are considering pursuing a profession in financial advice. Although the financial and insurance services industry is rapidly growing, the additional standards have made it more difficult to enter (and continue working in) the profession.

With the reforms, it has become necessary for some financial advisers to earn a new qualification in order to keep their jobs. Because of these developments, many people left the profession, which created a skills gap that you can immediately fill.

How to Get Real-World Financial Planning Experience

While you are completing the educational and licencing requirements to become a financial planner in Australia, you might want to explore working as a financial planner assistant or intern so that you can obtain some hands-on experience in the field. You can also look for chances to volunteer or attend meetings hosted by industry organisations, network with other financial planners and experts in the sector, and more.

How Much Guidance Can I Expect From a Financial Planner?

It's possible that financial planners are only qualified to offer advice on particular types of products.

For instance, a financial planner might be eligible to provide you with advice on insurance and superannuation.

Still, they might not be able to provide you with guidance on investing in shares. Your financial adviser needs to explain what they can and cannot accomplish financially for you.

In addition, some financial advisors would only propose goods or services that are on their APL, which stands for authorised product list. For instance, you might want your financial planner to offer you a loan from Commbank, but because her company has an Approved Product List, she can only offer guidance on loans from NAB. In this case, you would be out of luck.

Conclusion

In conclusion, becoming a financial planner in Australia can be a satisfying career option for those who are enthusiastic about assisting other individuals in managing their personal money and accomplishing their own financial objectives.

Education, hands-on experience, and a steadfast dedication to continuous professional development are all necessities for achieving this level of success.

To become a financial planner in Australia, you will need to obtain relevant qualifications such as a Bachelor's degree in finance or a field related to finance, complete a course in professional financial planning, and gain practical experience through internships or entry-level positions.

In addition, you will need to have a minimum of five years of experience in the field.

In addition, it is very necessary to keep an active membership with a professional body such as the Financial Planning Association of Australia (FPA) and to comply with the regulatory criteria set forth by the Australian Securities and Investments Commission (ASIC).

There are numerous tools available to help you get started if you are interested in pursuing a career as a financial planner in Australia.

These options include courses, workshops, and opportunities to network with other professionals in the field.

You can have a prosperous and satisfying career in the financial planning sector if you are willing to put in the effort required to complete the appropriate steps and keep expanding your knowledge and capabilities.

Content Summary

• Financial planning has gained significant traction in recent years as one of the most sought-after careers in the finance industry.
• With changing regulations and industry standards, the path to becoming a financial planner in Australia can be confusing and overwhelming.
• In short, to become a financial planner in Australia, you must obtain an education in financial planning, complete relevant professional development courses, and obtain registration with the Australian Securities and Investments Commission (ASIC).
•  ASIC is in charge of evaluating applications for the licence necessary to operate in the financial services industry in Australia.
• Authorised Representatives Register: A listing of financial planners who are working under the AFS licence of another company as authorised representatives of that company.
• ASIC: An autonomous agency of the government of Australia, the Australian Securities and Investments Commission (ASIC) is responsible for regulating the corporate, market, and consumer credit sectors in addition to the financial services industry.
• As of the start of 2022, ASIC has assumed the role of regulator for the financial services industry, having previously been held by FASEA.
• Even if a financial planner is unable to address every one of your inquiries, there is a good probability that they will be capable of putting you in touch with other trained specialists such as accountants, solicitors, estate planners, and finance brokers who can assist you in designing suitable plans.
•  Other tasks that may fall within a Financial Planner's purview include taking an active part in the process of corporate development and the search for new investment opportunities, all while maintaining a rigorous adherence to the procedures and standards governing risk and compliance.
•  The first of the year 2019 marked the implementation of a professional standards structure for financial planners, which established the minimum educational and professional expertise criteria as well as ethical requirements.
•  Before a person can become a provisional financial adviser, they are required by the education standards to complete an approved qualification at a level equal to or higher than a bachelor's degree (AQF 7), a graduate diploma (AQF 8), or a master's level (AQF 9), or another qualification that is equivalent to one of those levels.
•  Prior to the 31st of December in 2021, it was the responsibility of the Financial Adviser Standards and Ethics Authority (FASEA) to evaluate educational programmes.
•  You will be designated as either a provisional financial planner or a provisional financial adviser for the duration of the year during which you will be working and receiving training.
•   You will not be permitted to begin the third quarter of your business year after you've first earned a passing grade on the relevant national examination.
•  The exam to become a financial adviser takes three and a half hours to complete, not counting the required reading time of at least 15 minutes.
•  The average annual compensation for a financial adviser in Australia is quite high.
• Many financial planners' work schedules are flexible, making it possible to maintain a healthy work-life balance—something that may be challenging to do in other types of employment.
•  Clients come from all walks of life and have a wide range of requirements when it comes to their finances while working with financial advisers.
•  The job of a financial planner may be quite stressful due to the ongoing need to keep up with changes in the business and provide outstanding service to clients.
•  Compliance with the stringent laws that apply to financial advisers in Australia can be both time-consuming and expensive due to the nature of the regulations.
•  Because it is contingent on the commissions that are generated from clients, the income of a financial planner is not always predictable.
• Some who are more comfortable with a consistent income may find this to be a source of anxiety.
•  In order to work as a financial planner in Australia, an individual must first fulfil a number of stringent qualifying requirements.
•  The average starting salary for a financial planner in Australia is around $70,000, while the median salary is $119,964.
•  Your timing can not be better if you are considering pursuing a profession in financial advice.
• While you are completing the educational and licencing requirements to become a financial planner in Australia, you might want to explore working as a financial planner assistant or intern so that you can obtain some hands-on experience in the field.
•  It's possible that financial planners are only qualified to offer advice on particular types of products.
• For instance, a financial planner might be eligible to provide you with advice on insurance and superannuation.
• Your financial adviser needs to explain what they can and cannot accomplish financially for you.
•  In addition, some financial advisors would only propose goods or services that are on their APL, which stands for authorised product list.
• For instance, you might want your financial planner to offer you a loan from Commbank, but because her company has an Approved Product List, she can only offer guidance on loans from NAB.
• Education, hands-on experience, and a steadfast dedication to continuous professional development are all necessities for achieving this level of success.
•  To become a financial planner in Australia, you will need to obtain relevant qualifications such as a Bachelor's degree in finance or a field related to finance, complete a course in professional financial planning, and gain practical experience through internships or entry-level positions.
•  There are numerous tools available to help you get started if you are interested in pursuing a career as a financial planner in Australia.
• These options include courses, workshops, and opportunities to network with other professionals in the field.
• You can have a prosperous and satisfying career in the financial planning sector if you are willing to put in the effort required to complete the appropriate steps and keep expanding your knowledge and capabilities.