Who is a Financial Consultant and What Do They Do?

Financial Consultant: Roles, Objectives, and Requirements

Who is a Financial Consultant: Overview of the Profession

A financial consultant studies financial markets and provides advice on the best investment alternatives to clients.
In addition, they explain the advantages, costs, and risks of each alternative offered by various financial institutions, banks, or real estate brokerage firms.
They assist in creating a financial plan, taking into account personal economic conditions and the goals to be achieved in both the short and long term.
Specifically, they can provide practical advice for daily life to manage savings effectively and make them profitable.

According to Treccani, a financial consultant is an individual or legal entity authorized to provide advice on financial investments, provided they meet the professionalism, integrity, independence, and financial requirements established by regulations adopted by the Ministry of Economy and Finance, in consultation with the Bank of Italy and CONSOB (National Commission for Companies and the Stock Exchange), and registered in a specific register.
They provide advice without holding client money or financial instruments.
Professional requirements for registration in the register are assessed based on rigorous evaluation criteria, considering past professional experience, properly documented, or based on evaluative tests.

Financial Consultant, Banker, and Economist: Are They the Same Person?

The terms financial consultant, economist, and banker refer to experts in finance and related legal and tax aspects, focusing on the world of investment services and capital management.

What Does a Financial Consultant Do: Tasks, Duties, and Objectives

A financial consultant must ensure transparent and continuous service for clients.
It is essential that, during initial meetings, they clearly explain their role, the necessary documentation, and ensure constant assistance to build a trusting relationship that extends to after-sales.
The main goal is to provide impartial advice tailored to individual client needs and conditions amid the evolving market.
The consultant meets with the client to define shared goals in detail, including:

– In-depth analysis of the client’s economic and financial situation
– Study of available market alternatives such as loans, savings plans, and investments
– Handling documentation and administrative tasks
– Constant client support and monitoring progress
– Client retention and acquisition

Becoming a Financial Consultant: Necessary Requirements to Practice the Profession

To work as a financial consultant, one must have knowledge in economics and finance.
Passing an exam to register in the professional register and staying updated are crucial.
Here’s the path to follow:

Degree and Training

Having at least a high school diploma is required, while a degree, particularly in Economics and Finance, Business Management, or Accounting, is highly recommended.
These degrees provide essential knowledge in accounting, microeconomics, macroeconomics, financial mathematics, and statistics to plan investments, manage financial operations, and monitor markets effectively.

Specific Courses, Competitions, and Exams

To start working as a financial consultant, passing the examination by the Oversight Body and joining the Financial Consultants’ single register is necessary.
The exam consists of practical and theoretical questions to be answered within a specified time.
Subjects include financial market law, private/commercial law, mathematics, financial economics, and insurance law.
Meeting the integrity requirements is essential, along with proficiency in financial analysis software and investment management.

Ongoing Training in the Profession

Continuous professional development is crucial to maintain registration.
Candidates must comply with integrity standards, possess financial analysis skills, and stay updated on market dynamics and investment products.

Where Does a Financial Consultant Work: Employee vs.
Independent

Financial consultants can work as employees in credit institutions, financial companies, insurance firms, investment companies, or savings management entities.
As employees, they follow their institution’s advice.
Independent consultants work autonomously, offering unbiased recommendations and receiving payment solely for their services.