How to Become a Financial Advisor in Canada

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Nowadays, more people have the chance of earning more. Many younger professionals are gaining more because of their competitive salary packages and might feel overwhelmed or confused about managing their finances well. Most of them end up putting their money in a savings account for their future. Others end up investing carelessly, without professional advice.

The fact is that many Canadians are often at loss as to what to do with their money. That’s why financial advisors are significant. Also known as financial planners, these experts help other people manage their finances by advising on several vital matters related to finance. These areas include savings, investments, and other opportunities to make their money grow more.

We all know how vital financial advisors are. Here is everything you must know about becoming a financial advisor in Canada.

Education Requirements

Although there is little regulation in becoming a financial advisor, they must still have the basic requirements before they can practice in Canada. One of those is the education requirements.

Those aspiring to become financial advisors in Canada would typically have a bachelor’s degree in business administration, commerce, economics, or any related field. These degrees would help financial advisors understand everything they must know before giving valuable advice to their clients.

Licensing and Other Professional Requirements

Even though there is little regulation, financial planners are classified as regulated professions in Canada. Thus, they must be registered in their province’s respective regulatory authority before they can use the title “financial adviser” or “financial planner”. They also need the proper license and registration to provide services for their clients.

In addition, various training programs and courses are offered by several financial institutes and organizations in the country, such as the Institute of Chartered Financial Analysts, the Canadian Securities Institute, the Canadian Institute of Financial Planning, and so much more.

These training programs and courses may be required by employers.

They should also work on obtaining the primary Canadian securities sales license by accomplishing the Canadian Securities Course. This is run by the Canadian Securities Institute. This is needed because it will allow you to sell bonds and mutual funds to your clients.

For insurance sale, they should complete a Life License Qualification program. Selling derivatives and commodities requires a different type of specialized licensing.

Skills, Knowledge, and Other Requirements

Financial advisers and planners do many tasks related to finance and selling securities, insurance, and other related services for their clients. Financial advisers identify their clients’ financial goals and objectives, analyze their financial records, and develop financial plans that might be helpful for their clients.

They arrange for sales of financial products and investments to their clients, underwrite new issues of stocks and bonds. They also prepare to offer prospectus for the new issues of stocks and bonds. Part of their job is investigating any unethical conduct or breach of securities or commodity futures law.

They must be highly knowledgeable in subjects that will help them with their careers, such as economics, finance, sales, accounting, business administration, and client service.

They should also know more about law, government, and jurisprudence. Knowledge in these subjects would allow them to serve their clients even better. This is because they know what they have to advise their clients whenever they need something valuable.

Salary, Wages, and Job Opportunities in Canada

Financial planners are often self-employed or connected with an insurance firm. They earn decent wages compared to other professions in Canada. They make an average of $32 an hour, according to the estimates across the country.

They can earn upwards of $55 an hour, depending on their years of experience, skills, knowledge, and other relevant information such as additional certifications and other specialized licenses.

Financial advisors working in Newfoundland and Labrador can earn up to $75, though this is for seasoned financial advisors. This is the highest recorded hourly wage in Canada across all provinces and territories.

On the other hand, New Brunswick financial advisors start at $17 an hour, the lowest recorded hourly pay in Canada.

Financial advisors have different prospects depending on where they are based in Canada. There are fair prospects for financial advisers across the provinces and territories in the country, making it a bit difficult for new financial advisors to start in the business.

However, if they are hardworking enough, they can work their way to higher wages, bonuses, and incentives awarded to seasoned financial advisors.

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Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.

Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.