Necessary Qualifications of a Financial Advisor

A financial advisor is a professional who provides financial guidance to clients for compensation. They have the capability of providing an array of services, which include income tax preparation, investment management as well as estate tax planning. When you are looking to hire a financial advisor, here are some of the necessary qualifications to ensure compliance with the authorities.


Having a license is essential in conducting any form of service transactions to make profit. Such permits are used to get rid of quacks who will seek to exploit the cash making aspect of the profession while lacking the necessary qualifications. Such may result in severe losses for the one who requires financial assistance.

With this in mind, a financial advisor is required under the law to have official licensing before providing any services. The license will be granted by the AFS licensees which is a state authority that deals with the regulation of financial advisors. The license requires an applicant to provide all the necessary experience to work in the industry.

When looking to hire a financial advisor, always make an effort to confirm the license information to avoid any malpractice which may result in losses or breach of government regulations.

The RG146 Compliance

Another important qualification for any financial advisor is competently completing the RG146 Compliance solution. This is a learning program which promotes maximum flexibility while at the same time imparting all the critical skills required by a working financial advisor. The training program has been designed to meet the competency requirements which are needed by practitioners to offer any financial services to their clients. Once the learning is completed, one is handed a certification which proves that they are competent and capable of extending financial services to clients.

A financial advisor who is compliant of the RG146 is more than capable of offering excellent services intended to help you with your money.

Conformity To The AFA Code of Ethics

The last requirement to practice as a financial advisor is to strictly follow the code of ethics stipulated by the Association of Financial Advisors. This is a body which controls the integrity of the financial advisors. The body brings along certain principles a financial advisor should follow to offer professional service. The policies range from integrity, service standards as well as issues of conflict of interest.

The financial advisor you hire should present all these qualities for you to get better service delivery.