It is one thing to qualify to be a financial consultant; it is another to decide where to be one. Options can be overwhelming given the number of financial advisory firms around. If you are just starting out to be a financial adviser, or looking for a change, here are some considerations on how to choose your employer, as cited in this article by Manulife for online news site The Middle Ground.
1. A financial advisory firm should not come between you and the best interests of your clients
A good financial advisory firm will not push you to sell products that do not fit your client’s profile. It will always respect your decision to place your client first, so there’s no conflict of interest.
There are firms like Manulife FA which carry a range of products beyond those from their brand. In that case agents should be able to recommend policies from other insurers; it all depends on which products they deem fit their clients best.
2. Your firm should provide good career progression prospects.
A good financial advisory firm to work for is one that shows good career progression prospects. You should also be empowered to step out of your comfort zone, which will help you grow professionally and demonstrate your strengths and leadership potential. Following the same routine day-in and day-out can stifle your career development due to the lack of exposure in other areas.
For example, a good firm will clearly communicate the different career stages that lie ahead in your professional journey. It should be candid with you when assessing your strengths and ensure that you are aware of your weaknesses. You should feel that your talent is recognised and that you are empowered to get to where you want to be.
3. Holistic benefits and growth opportunities – look for benefits beyond just a pay cheque
While commissions may seem attractive, these might not be sustainable in the long run or be subject to cuts at some point in time. Good financial advisory firms should take longer-term considerations into account, such as ways to derive recurring income, so as to future-proof their financial consultants’ needs. You should see the bigger picture of long term growth as well.
Another example is diversified product mix, which will ensure that you are not limited to a small number of products to sell, and are able to advise on the best-fit product for you clients with ample choice. Providing training budgets and allocating the necessary resources to ensure you’re adequately equipped to help your clients reach their financial goals are also important.
4. Go for the financial advisory firm with the right working culture and support.
While there is no “correct” working culture or environment, it’s important to find a culture that fits you well. A larger firm or one that has been around for a long while may have more branches for you to look for one whose values and ideals coincide with yours. Having the right support and sufficient resources are also important. Having a reliable and trustworthy partner for support provides assurance that your financial advisory firm has fundamentally secure backing, instead of being a random ‘fly-by-night’ operation.
5. The financial advisory firm should provide mentorship and guidance.
Most insurers will place new financial consultants under mentorship; this is quite routine and expected. It’s possible that the methods used by some mentorship programmes will not work for you. For example, some mentorships will have you start learning by learning theory first, while others may prefer that those mentored gain more practical exposure first and be told how they could have improved later.
There is no “more correct way”, but you need to ensure that the methods are working for you, and that you are in a firm which actually has some plans for mentorship arrangements to help teach you what you need to know.
The original article can be found at The Middle Ground website.