Financial advisers work on a suitability standard of care, meaning they can suggest suitable strategies and products for their clients, but they don't have to be the best options for their particular situation.Īside from not being obligated to inform clients about the nuances of using a particular product, they also aren't governed by laws or regulations, which means that they tend to neglect to educate their clients about alternative investment strategies. One of the biggest differences between a financial adviser and a financial planner relates to the relationships that they have with their clients. Financial advisers only need certifications for specific roles and responsibilities. Additionally, financial planners must have a Certified Financial Planner (CFP) certification and adhere to the CFP board's four E's (education, examination, experience and ethics) to practice in their profession. Though both professions often require a bachelor's degree, this qualification is much more strictly and universally enforced for financial planners. Because of this, they usually have regular, ongoing meetings with their clients each month or quarter. While a financial adviser might fulfill a short-term purpose that requires one or two meetings, financial planners typically have an ongoing, long-term goal. Some of the primary differences between financial planners and financial advisers include: How often they meet with clients View more jobs on Indeed View More Financial planner vs.
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