The difference lies primarily in the scope of services they offer and the clientele they typically serve:
Wealth Managers typically look after high-net-worth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs). These clients have significant investable assets, often in the millions or even billions, and who have complex financial needs. Sometimes these are referred to as HNW and UHNW.
Financial Planners work with a broader range of clients, including middle-class individuals, families, young professionals, small businesses and retirees. They address a wider range of financial needs and goals, regardless of their client’s wealth level.
Wealth Managers offer a holistic approach to wealth management. They go beyond just investment advice and delve into areas like estate planning, tax optimisation, risk management and legacy planning. They often collaborate with other professionals like lawyers and accountants to offer a more integrated suite of services.
Financial Planners typically focus on creating a comprehensive financial plan for their clients. They consider factors like income, expenses, savings goals, retirement planning, and budgeting/debt management. They may also provide investment and insurance advice, but the focus is on creating a roadmap for achieving the client’s financial objectives.
Wealth Managers often actively manage their clients’ investment portfolios. They make investment decisions based on the client’s risk tolerance and financial goals. The focus is on preserving and growing wealth, often involving sophisticated investment strategies, personalised asset management, and a comprehensive approach to managing a client’s entire financial ecosystem.
Many wealth management firms have a minimum investment requirement. This ensures they can dedicate sufficient time and resources to managing larger portfolios.
Financial Planners may or may not actively manage investments. Some offer investment recommendations, while others focus solely on the financial planning aspect. Their focus is on creating detailed financial plans that help clients achieve specific financial goals over different time horizons.
Financial Planners generally don’t have minimum investment requirements. They are accessible to people at various financial stages.
As well as having the Level 4 Diploma many Wealth Managers go on to have the Chartered Financial Planner qualification for professional Financial Planners and Financial Advisers.
Some Wealth Planners go onto being a Fellow. Progressing to Fellowship can be achieved by either:
“Becoming a Fellow of the Personal Finance Society shows that you have attained and maintained the most prestigious level of professional achievement. Fellows can demonstrate this to their peers and clients by using the designatory letters FPFS.” Full information can be found here: https://www.thepfs.org/membership/join-us/fellow/
With the CII,” By achieving the ACII, you have already demonstrated a high level of commitment, but the Fellowship shows that you have taken this commitment one step further. Acquiring the FCII designation will further demonstrate your knowledge, experience and professionalism to the world.” Here is more information: https://www.cii.co.uk/learning/qualifications/fellowship-qualification
As a minimum, Financial Planners and Financial Advisers will have completed the Level 4 Diploma for financial advice.
No matter which route you take, it’s all about putting the client first and to do this you need to be qualified to give clear and informed advice to your clients.
To make it clear, neither career is “better”, it simply depends on your strengths and what kind of advice you prefer to offer. Both play important roles in assisting clients with their finances. There are ,of course, some defining factors that might make someone lean towards one career path or the other and make them stand out in their field, and these might be worth considering if you are just setting out in your career, or fancy a change:
Wealth Managers handle complex financial scenarios and must have an in-depth knowledge of asset allocation, investment strategies, tax implications, and estate planning.
Wealth Managers must analyse financial data, identify and assess investment risks and opportunities, and make informed decisions tailored to their clients’ specific needs.
Wealth Managers provide more than just investment advice and consider every aspect of a client’s financial situation. This includes tax planning, estate planning, philanthropy, and risk management strategies.
Wealth Managers frequently work alongside other professionals, such as lawyers, accountants, and trust officers, to deliver comprehensive financial solutions to their clients.
Establishing and nurturing relationships with high-net-worth individuals is essential. Wealth Managers must possess strong networking and communication skills to attract and retain affluent clients.
Wealth Managers cater to a discerning and potentially demanding clientele, with high standards, who expect exceptional service. Building trust and exceeding client expectations are key to success in this competitive industry.
Effectively conveying complex financial concepts in simple, understandable terms is essential. Financial Planners must connect with clients from diverse backgrounds and adapt their communication style to meet each client’s needs.
It’s vital to grasp a client’s financial goals, risk tolerance, and life circumstances. A skilled Financial Planner listens carefully and establishes a strong connection with their clients.
Always prioritising the client’s best interests is essential. Financial Planners must be transparent about fees, avoid conflicts of interest, and focus on the client’s financial well-being.
The financial services industry is constantly evolving. Effective Financial Planners stay up to date with market trends, new investment products, and regulatory updates to deliver reliable financial advice.
Building long-term relationships with clients is essential. A good Financial Planner takes the time to understand their clients’ needs and supports them as they navigate different life stages.
While not mandatory, some Financial Planners choose to specialise in specific financial planning for young professionals, teachers, doctors, or dentists.
Ultimately, your choice depends on your career aspirations and your target clientele.
Are specialised Financial Planners who cater to a very specific wealthy clientele with detailed financial needs and offer more extensive tailored services. So, if you’re passionate about complex financial issues, enjoy in-depth analysis and strategising, and are comfortable managing high-net-worth relationships, then pursuing a career in wealth management could be the right path for you.
Quite often Wealth Planners, if sourcing from whole of market options for their clients, are also called IFAs
Address a broader range of clients and focus on the overall financial picture, potentially including investment advice, for a wider audience.
So, if you enjoy building and maintaining relationships with a broad range of clients, want to focus on financial planning and communication, and are comfortable in a role that may require ongoing client acquisition, then becoming a Financial Planner might be a good fit. Again if whole of market, maybe called IFAs.
No matter if you choose to be a Wealth Manager, or a Financial Planner in financial services, clients’ needs come first. If you are driven by the desire to support your clients with their wealth management needs, by truly getting to know them and listening to really understand their needs, then whichever role type you choose, you will do great things.
Fantastic financial advice comes from putting the client first!
Talk to us here at Truestar Talent – just like you, we listen to people’s needs, we factfind with you as well as focusing on the soft facts. Once we have agreement with you on your needs, we provided informed choices for you and support you with additional information on the companies, to enable you to make the choice that is right for you within wealth management.
Addresses a broad range of clients and focuses on the overall financial picture, potentially including investment advice, for a wider audience
No matter if you choose to be a Wealth Manager, or a Financial Planner in financial services, clients’ needs come first. If you are driven by the desire to support your clients with their wealth management needs, by truly getting to know them and listening to really understand their needs, then whichever role type you choose, you will do great things
