What does a financial advisor do?

When you choose to invest your money, it is important to know who you are entrusting to it and what role the person who will take care of it goes over to cover during the management of our savings.

Clarity, in this sense, is often lacking if not nothing. That’s why it’s good to understand who they are and what they do:

  • The asset manager
  • The financial consultant

The question: What does the financial consultant do? It is more than legitimate then, today I will try to clarify what his duties are and how this professional figure differs from the asset manager.

The name defines areas, tasks, tasks and activities that are different for the two professional figures. On your behalf, try asking yourself this question: Do I know whether to entrust my money to a consultant or a financial manager?

If the answer is vague or totally unresolved then you have a problem.

 

The professional role of the manager

The professional role of the manager

The asset manager is that professional figure responsible for the investments and the management of the single portfolio or of the mutual fund, he / she has a role that includes the management of a series of financial operations aimed at achieving pre-established objectives with the investor.

The capital management is delegated to this figure, hence the name “manager”. This means that once the contract is signed and the investor has decided on the amount he wants to manage, the manager will take care of the portfolio and will not ask the saver for the go-ahead for the individual operations he will carry out.

In essence, the manager operates as follows:

  1. Analyze securities or funds and ETFs
  2. It continues building the single portfolio.

It is obvious that, if you do not agree with the choices made by the manager, it is possible at any time to request the partial or total repayment of the invested capital.

 

Financial Advisor what does he do? The role of the consultant

Financial Advisor what does he do? The role of the consultant

There are differences between asset managers and financial advisors, the latter carries out a consultancy activity that is aimed at third parties. The consulting activity is of two types:

  1. independent
  2. not independent.

An independent financial consultant carries out a consultancy that takes into consideration all the products that the market makes available and earns only through fees received from the customer himself and not from investment houses.

This is done with the aim of reducing the presence of conflicts of interest and protecting operations in the interests of the customer as well as being an approach aimed at preserving transparency.

Instead the non-independent advice is that offered in Italy by the figures who were previously identified as financial promoters and therefore the consultant receives the payment from the management company for which he works.

So from this brief exposition we understand that the manager actively works on the money that the investor invests, while the consultant is the one who proposes the investments, this in a nutshell.

 

The work of the financial consultant

financial loan

The financial consultant also has other appellations, widespread in common use:

  • Investment Consultant
  • Financial promoter

The Financial Consultant is that professional figure that has recently been affirmed, it can be said that he is a substantially new professional figure, which is regulated by the EU MIFID directive implemented in Italy in November 2007.

The role of the Financial Consultant needs a global vision on various financial topics, among which it is obvious how it is, investment and consulting. They work together with their customers to make investment decisions, guaranteeing unparalleled and unrestricted advice that aims to help them achieve their goals by creating a financial plan.

Financial Advisors find employment in many financial institutions. They can work in banks and in the financial sector of large companies. Although some professionals decide to be autonomous and to provide their services to individual clients, the advice concerns the subject of personal financing rather than that of commercial investments.

 

The main responsibilities of the financial advisor

The main responsibilities of the financial advisor

Next I want to show you a partial list of some of the tasks that a Financial Advisor has.

  • Create
  • To develop
  • Expanding the customer portfolio through a series of actions: planning and developing business contacts for the purpose of creating and increasing the customer portfolio
  • customer loyalty
  • to find the most appropriate information and promotion channels to contact potential customers
  • conduct information and promotion activities for all financial products aimed at potential customers
  • analysis of the customer’s economic and financial situation
  • development of commercial strategies that are able to guarantee customer satisfaction
  • guarantee a highly professional advisory service with respect to the management of investments, for what concerns insurance coverage and pension planning
  • propose to the customer products suitable for his economic and financial situation, respecting and following the customer’s request.

Then there is the other part that is the responsibility of the Financial Consultant, the one concerning assistance to the customer and which provides for monitoring of the degree of satisfaction:

  • to limit the demand for financial products and services, based on the needs, expectations and preferences of the customer
  • to provide correct, clear and complete information on the contractual conditions of the product that the customer has chosen
  • inform the customer in a clear, correct and complete manner concerning the characteristics, prospects, and risks of the proposed financial product, the conditions offered and the mutual obligations.

Then there is one last aspect, that of providing a contribution to the development of the institution in which one operates, in this case the Consultant:

  • collects all the information it can find on the external factors connected to the money and financial market
  • it updates itself on the products offered by the various institutes / companies present on the market.

 

The Daily Activities of the Financial Advisor

The Daily Activities of the Financial Advisor

Given the general tasks, it is also necessary to see the tasks that a Financial Advisor performs every day.

  • He deals with financial planning and customer portfolio management
  • Guarantees the accuracy of each client’s activities
  • It maintains high ethical standards
  • Monitor the market trend
  • Develop financial strategies
  • Plan the purchase or sale of investment products
  • Research, collect and analyze data to make effective and profitable decisions for its customers, ensuring valid investment advice
  • It sells and buys financial products on behalf of clients and places them in a database created especially for them
  • Contact customers to organize meetings and keep computerized documentation to then make accurate reports

If you have read all you have understood the difference between the promoter of your bank and the profession that I carry out, that of the independent consultant who is like a curator of your finances and of your family.

Now sit back and think carefully, do you still need your promoter? Or an independent consultant who “exclusively” treats your interests is exactly what you were looking for?

In case you want to address me one or more specific questions about what I can do for you or simply comment on this article you can do it through my form .