How To Become A Financial Adviser In New Zealand
As you may be aware, I’m studying to become a financial adviser here in New Zealand and I wanted share my chosen path on how to become a financial adviser in New Zealand.
Now my journey is not the must way to do it, it is just what I have chosen and kind of ended up on.
How does a financial adviser differ from others out there
The world of finance is full of jargon and can be confusing.
And when it comes to those who want to help you with your money, well they come with multitude of different titles.
Financial adviser, financial planner, financial mentor, personal finance coach, money coach, etc. No wonder your head might be spinning.
The main thing that you need to know is that in New Zealand financial advisers need to be registered with Financial Service Providers Register (FSPR) and practice under a licensed financial advice provider (FAP). You can check if an adviser is registered here.
Financial adviser and financial planner is sometimes used interchangeably, as long as the person is registered.
There are 3 different classes of full financial advice provider licenses, and they might restrict what kind of advice can be provided under each.
What sets a registered financial adviser apart from other titles is that they can give investment, lending and insurance advice (an adviser can specialise, like mortgage brokers do), compared to helping with budgeting or debt reduction for example.
There is also a trademarked certification called Certified Financial Planner™(CFP™), Financial Advice New Zealand is the licensing authority for it in New Zealand.
While becoming a registered financial adviser requires a level 5 certificate, in order to start CFP™pathway program you need to be registered, have 3 years of work experience giving advice in all 6 areas (financial management, asset & investment management, insurable risk management, tax planning, retirement planning and estate planning) and have completed an approved post graduate diploma or undergraduate degree (level 7).
My journey so far
I started a Bachelor of Accountancy in 2018 and after studying for a year and a half, then took a break once my oldest daughter was born.
During the break I decided to change majors (Bachelor of Accountancy is technically a Bachelor of Business with an accounting major) from accountancy to financial planning and advising.
Thankfully all the courses I completed for the major was counted towards the new major.
I have been studying part-time, and through summer semesters too in order to get my degree completed. And now I have only two semester left part-time before graduation.
Some of the courses I’ve completed are:
- The Financial Planning Process
- Introduction to Investments
- Financial Institutions and Markets
- Introduction to Property Finance and Investment
- Financial Modelling
- Business Finance etc.
Next year I’ll also be completing courses like:
- Estate and Tax Planning
- Financial Advice Implementation
- Personal Risk Management etc.
I am also starting a level 5 Certificate in Financial Advice soon, which means I will be able to register to give financial advice once completed.
I should have both my degree and certificate done by November next year, and I’m super excited about it.
I’ve also requested to join the Financial Advice New Zealand Association as a student member, so look forward to hearing about that.
I’ll keep sharing my journey as it progresses, and hopefully by the end of 2023 I’ll be financial adviser!
Did you already know what it takes to be a financial adviser? Let me know in the comments!
