A Guide to Financial Advisor Apprenticeships

A Guide to Financial Advisor Apprenticeships

Financial services is a huge industry, and many apprenticeships are dedicated to this massive sector. Today, we’re drilling down into one type of financial services apprenticeship – financial advisor apprenticeships.

What Does a Financial Advisor Do?

In a nutshell, a financial advisor advises clients on how to manage their money. This could be services provided to private clients via individual advisors or you could work for a bank or specialist advisory business.

Some financial advisors specialize in particular projects such as mortgage advice, pensions, or private investment opportunities. 

Why Become a Financial Advisor? 

Completing your training to become a financial advisor opens up the potential for almost unlimited earnings, a choice of industry, and a flexible work schedule.

Since the majority of companies and many individuals employ at least one financial advisor, you can choose your professional specialization, and which industry you would prefer to work in. You will work closely with your clients and offer them the benefit of your expertise.

That’s not to say it’s easy money. You will need to dedicate time and considerable effort to building a client base and managing someone else’s money and assets can be a stressful occupation. You will need the right temperament to succeed, and financial advisors have a high burnout rate due to stress. 

What Is a Financial Advisor Apprenticeship?

Financial Advisor apprenticeships are Level 4 or Higher apprenticeships designed to provide apprentices with the knowledge and qualifications required to work as a financial advisor. It is developed with a framework from The Financial Skills Partnership (FSP) and is recognised by the Financial Conduct Authority. Although it was created for those with no experience working in financial services, it can also be an opportunity for career progression for someone in a related role. You will work with a dedicated mentor and have regularly scheduled check-ins, as well as a structured study plan and resource package. 

The course is also known as a Higher Apprenticeship in Providing Financial, depending on the training provider. 

What are the Entry Requirements? 

The usual entry requirements for a level 4 financial advisor apprenticeship are:

  • Good A-level passes or equivalent in Maths and English
  • 5 Good GCSE passes – A* to C or equivalent

To apply for any UK apprenticeship, you must be:

  • 16 or over
  • Not in full-time education
  • A UK resident

How Do I Apply?

You can apply to the apprenticeship provider, which includes but is not limited to:

How Long Does it Last?

The level 4 financial advisor apprenticeship typically lasts around two years.

What Can I Expect to Learn?

The role of a financial advisor combines communication and customer service, business development, risk management and the use of systems and processes. Throughout your apprenticeship, you will learn all these skills and more. You will need to be proactive and maintain high ethical standards at all times. You will learn technology and relevant processes, including records maintenance and forecasting.

What Qualifications Will I Gain? 

You will earn the equivalent of a foundation degree, a Diploma in Regulated Financial Planning.

You can then continue to an Advanced Diploma in Financial Planning and on to Chartered Financial Planner status if you choose to.

Can I Get Funding? 

Yes, the UK Government will provide a maximum of £9,000 for financial advisor apprenticeship training.

What Can I Earn when I’ve Completed my Apprenticeship?

Your potential starting salary will be around £23,000 – £35,0000, depending on your location in the UK and the company you work for. However, as noted, the sky is the limit. 

Which Jobs can I Apply for After a Financial Advisor Apprenticeship?

The financial advisor apprenticeship is designed to give you a broad overview of the knowledge and skills required to work in finance. Once you have completed your training, many career pathways are open to you within the financial services sector.

Financial Services Administrator

Your higher financial advisor apprenticeship can be a step to becoming a financial services administrator. This is an accountancy position, usually in-house, overseeing all of a business’s financial activities. You will prepare the company’s reports detailing the incomings and outgoing throughout the month or year.   

The average UK  financial services administrator’s yearly salary is £25,000 – £27,000.

Mortgage Advisor

If you wish to specialise in mortgages, as a financial advisor, you can help with the planning and budgeting of a property purchase. However, you would need to qualify as a mortgage advisor (mortgage broker) by earning a Certificate in Mortgage Advice and Practice (CeMAP) if you wish to help clients get mortgages approved. 

A mortgage advisor is a knowledgeable professional who helps clients purchase a property to find a suitable mortgage. They do so by working with specialist lenders, banks and building societies without bias.

A respected mortgage advisor makes, on average, approximately £36,389 a year. However, your location and the housing market considerably influence this figure. 

You also have a couple of further career options from this point, from setting up a mortgage brokerage company to personal wealth management and financial control positions.

Paraplanner 

Last but not least, you could become a paraplanner. Similar to the role of a paralegal in a law firm, a paraplanner works alongside financial planners and pinpoints clients’ investment needs. It is a junior position, but the best paraplanners are often promoted to financial planners. Some paraplanners specialise in areas such as venture capitalism or estate planning. The average yearly salary for a UK paraplanner is approximately £39,600 plus compensation. 

We hope this guide has answered some of your questions about financial advisor apprenticeships.
If you would like more guidance, please don’t hesitate to get in touch.