FINANCIAL ADVISERS

A financial adviser is a person licensed to provide consultation and advisory services to individuals or businesses in the areas of financial planning or stock investment decision-making. Stock advisers often uses the investment modes of stocks, mutual funds and insurance products as well as budget and asset allocations and re-allocations (selling) strategies to re-align the financial status of their clients towards a future financial goal.

As a designated financial adviser, the main goal is to develop, nurture and sustain an acceptable level of professional trust with the client to achieve the desired end-result: attain a specific financial goal such as a profit target or make a turnaround from a loss within a time frame or period.

Aside from business clients, there is now an increasing demand for financial advisory services from individuals in the areas of trust fund, financial legacy or windfall management, retirement planning, employment contracts, employee stock options and other individual financial consultations. As such, the financial adviser is expected to have expert understanding and analysis of resource allocation, budgeting, forecasting, taxation and other financial tools to come up with an achievable financial plan and ultimately achieve the desired result.

In the United States, over 5,050 brokerage firms employ financial advisors. Their qualifications and eligibility are regulated by the Financial Industry Regulatory Authority (FINRA), who issue the licenses for financial professionals. Financial advisers must pass the Registered Investment Advisor Law exam (Series 65 or 66) and the State exam (Series 63), aside from the stock broker's Series 7 exam, to ensure that they are capable to perform complex decision-making and analytical functions that the client expects from them.

Financial advisers earn either through a fee-based arrangement (both commission from investments entered and a planning fee) or commission only, depending on their agreement with the client.