Tuesday, November 28, 2023
If you’re considering a career in finance, you might be interested to know that while there are plenty of careers in the field, there are also multiple career choices in helping individuals and organizations manage their finances. If working with people and helping others is something you’re passionate about, one of these careers could be the right fit for you. So what’s the difference between a Financial Advisor and a Financial Planner?
Financial Advisor vs. Financial Planner: What’s the difference?
In Ontario, Financial Advisor and Financial Planner are titles that are regulated by the Financial Services Regulatory Authority of Ontario (FSRA). Financial Advisors typically focus their knowledge on at least one common investment product, meaning this term covers a breadth of different specialties and financial products, with a focus on supporting people through making financial decisions such as choosing investment products. A Financial Advisor will receive a specific licence or designation for their area of expertise. Some companies that employ Financial Advisors are banks, investment firms, insurance brokers and more.
A Financial Planner is a person who focuses specifically on developing long-term integrated financial plans for their clients. This requires them to have knowledge about each of the core personal finance areas, which include but are not limited to the following: estate planning, tax planning, retirement planning, investment planning, finance management and insurance/risk management. They can then help someone plan to meet their future financial goals. A Financial Planner might work for or own a wealth management firm.
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What are the different credentials required to obtain each title?
In order to use the titles Financial Advisor or Financial Planner in Ontario, you must earn one of the relevant credentials provided by an FSRA-approved credentialing body. The credentials do not overlap, meaning you cannot earn one credential and be able to use both titles. The purpose of the credentials is to help dispel confusion in the consumer market for the services provided by both Financial Advisors and Financial Planners.
Financial Advisor Title Credentials
- Professional Financial Advisor (PFA™) - offered by the Institute for Advanced Financial Education
- Designated Financial Services Advisor (DFSA™) - offered by the Canadian Securities Institute
- Registered Financial and Retirement Advisor® (RFRA®) - offered by the CIFP
- Registered Retirement Analyst™ (RRA™) - offered by the CIFP
Financial Planner Title
- Certified Financial Planner® (CFP®) - offered by FP Canada™
- Qualified Associate Financial Planner™ (QAFP®) - offered by FP Canada™
- Chartered Life Underwriter (CLU®) - offered by the Institute for Advanced Financial Education
- Personal Financial Planner® (PFP®) - offered by the Canadian Securities Institute
- Registered Retirement Consultant® (RRC®) - offered by the CIFP
Which programs can I take at Fanshawe to prepare for these careers?
Fanshawe offers three programs related to these two careers. Our Business Finance Diploma Program, our Professional Financial Services Graduate Certificate Program and finally, our Finance and Wealth Management collaborative College Diploma Degree Program with King’s University College at Western University.
Which programs prepare you for which credentials?
All three of our programs at Fanshawe will directly prepare you to earn credentials to become a Financial Planner. They can also indirectly help you to prepare for a career as a Financial Advisor. Please note that these programs are only the first step in the process of obtaining your credentials and additional steps will be required once the program is complete to obtain your desired credentials.
- Our Professional Financial Services Graduate Certificate Program prepares students to earn the following credentials: CFP®, QAFP®, PFP®, RRC®
- Our Business Finance Diploma Program prepares students to earn the following credentials: QAFP®, PFP®, RRC®
- Our collaborative Finance and Wealth Management College Diploma Degree Program prepares students for the following credentials: QAFP®, CFP®, PFP®