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Finance Advisor

As the name suggests here in this article we would be discussing about Finance Advisor.


As the name suggests here in this article we would be discussing about Finance Advisor.

Who is a Finance Advisor

He / she is an individual that provides financial advice or guidance to its customers so that they can claim compensation. They have a lot of services to offer in their bucket:

  • Investment Management
  • Income Tax Preparation and
  • Estate Planning

In order to carry on their business with the public they need to have a Series 65 license. A wide variety of licenses are also available depending on the services they wish to offer to the public.

A breakdown of the term “Financial Advisor”

It is a generic term with no precise definition provided by the finance industry insiders. Most of the finance professionals fall into this general category.

  • Stockbrokers,
  • Insurance agents,
  • Tax preparers
  • Investment managers and
  • Financial planners

All the above are called financial advisors. In some cases, Estate planners and bankers are also called Financial Advisors.

Some of the examples of Financial Advisors

There are cases when product salesperson, such as a stockbroker or a life insurance agent also fall in the category of Financial Advisors. In true definition, financial advisors is the one who is:

  • Well-educated,
  • Credentialed,
  • Experienced, and
  • Financial professional

Who works on his / her clients behalf, opposite to that of serving the interests of a financial institution. In general, he / she is an independent practitioner operating in a fiduciary capacity making client’s interests as his / her own. Only those Registered Investment Advisors (RIA), who are regulated by the Investment Advisers Act of 1940 can operate in the fiduciary capacity. Some agents and brokers do practice using this methodology, but their salary or compensation structure is designed in such a way that are contract bound with the companies they work for.

A whole lot of information about Finance Advisor is available online and a Google Search of this term will better serve the purpose.