By Cecilia T. Williams, CFP®, AIF®, COO/CCO at Halbert Hargrove
Interested in a career as a financial advisor? This article shares my perspective on the requirements you’re likely to face – along with the personal traits and interests that are integral to this profession.
When I was interviewing with Halbert Hargrove 17+ years ago – I’ll be honest – I had no idea what the firm did or how we served clients. Although I was a business major with a concentration in finance, the classes I took prepared me for a much wider range of finance: corporate, banking, accounting, etc. Luckily, today there are more and more degrees being offered, which I think is a great step in introducing a financial advisor career to those who might flourish in it.
As the firm’s Chief Compliance Officer, I must fully disclose that there are a lot of nuances to becoming a registered financial advisor – there are many items to consider, including state vs. SEC registration, being a solo practitioner vs. joining a firm, and pursuing additional credentials like the CFP® certification, AIF®, CFA®, etc. Today I will put on my “hiring manager” hat and provide recommendations on the course to take based on Halbert Hargrove’s view of the advisory landscape. I hope you’ll find our view helpful in determining if becoming a financial advisor makes sense for you!
1st things first: have an interest in finance
Before considering this career, do you have an interest in helping clients and their families with their financial goals and planning? Financial advisors should definitely have a knack for numbers, great quantitative skills and analytical acumen. But without a genuine passion for helping clients, I believe you’d probably be better served looking into investment banking or corporate finance. The financial advisory business is centered around clients and your relationships with them. A high amount of emotional intelligence (EQ) is necessary to ensure you are truly listening to their needs and helping them reach their goals.
Do you need a degree to be a financial advisor?
The short answer is yes. Get a degree. Most of you who have scoured the popular job posting websites like LinkedIn, Indeed, Monster, etc. are probably familiar with the sections that list qualifications as “required” or “preferred.” It would be difficult to find a financial advisor position that didn’t require at least a bachelor’s degree or equivalent. A bachelor’s degree is also a requirement for additional credentials like the CFP® certification (more on that below).
Do you need a license to be a financial advisor?
At Halbert Hargrove we require all our advisors to pass regulatory examinations – the majority take the Series 65 (this may vary depending on previous work experience or exams previously taken). The Series 65 topics include state and federal securities acts, rules and regulations for investment advisors, along with fiduciary obligations. Anecdotally, we’ve seen our associates take anywhere from two to six months to study for and pass this exam. If you are coming to us straight from college or as a career switcher, our firm pays for the exam and study materials which is a big plus! For more information on the Series 65: Series 65 – Uniform Investment Adviser Law Exam | FINRA.org.
Work experience
We’ve been very lucky to have had amazing interns over the years. Some of them have become full-time associates who have now been here 9+ years. If you’re looking to start your career as a financial advisor, I would definitely recommend an internship. Our program gives our interns insight into our client discovery process, proposal meetings, meeting preparation and performance reporting, along with an in-depth exposure to our culture and values. It would be a great start to anyone who wants to learn more about what financial advisors do.
I would estimate that it would take anywhere from 2-5 years of work experience here or at another advisory firm before we would consider hiring or promoting someone into the financial advisor position. This degree of experience ensures our people have the skills and knowledge base to serve our clients.
Additional financial advisor certifications and requirements
All of our Wealth Advisors are CERTIFIED FINANCIAL PLANNER® professionals. Not every firm has this requirement, but Halbert Hargrove believes it’s a necessity for clients to have at least one member of their team with this credential to enhance our planning and fulfill our fiduciary duty to clients. There are of course some clients who may not need planning advice, but the majority of our clients will find the greatest value from us in the planning we perform in concert with them. We want our team to be well versed in how to do that. For more information about this certification, you can visit CFP Board | Certified Financial Planner Board of Standards, Inc.
There are a ide array of additional certifications that may make sense for you as an advisor, depending on the clients you serve. For example, we have a few advisors who are professionals. Their professional training and expertise helps them assist clients in navigating the financial aspects of divorce. The CFA® designation, on the other hand, is more heavily investment focused, and is a plus for professionals who work with institutional clients.
For those of you who are job searching, I wouldn’t recommend pursuing any certification or additional degree unless you know the job you want really requires it. The roads to a CFP® certification or a CFA® are vastly different, and you don’t want to end up with one credential and then realize you needed the other to land your dream job. I’m all for lifelong learning – but play it smart with your finances and your time. Neither are infinite. Do as many mock interviews and internships as you can to find out more details about requirements. Hopefully you’ll be fortunate in finding a firm that fits your needs!
For more information on what HH looks for in associates, visit us at Careers in Finance | Halbert Hargrove.
Disclaimer:
Halbert Hargrove Global Advisors, LLC (“HH”) is an SEC registered investment adviser located in Long Beach, California. Registration does not imply a certain level of skill or training. Additional information about HH, including our registration status, fees, and services can be found at www.halberthargrove.com. This blog is provided for informational purposes only and should not be construed as personalized investment advice. It should not be construed as a solicitation to offer personal securities transactions or provide personalized investment advice. The information provided does not constitute any legal, tax or accounting advice. We recommend that you seek the advice of a qualified attorney and accountant. All opinions or views reflect the judgment of the author as of the publication date and are subject to change without notice. All information presented herein is considered to be accurate at the time of writing, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted.
