How to become an investment advisor?
Learn how to become an investment advisor in 2022!
Announcements
The investment advisor or independent investment agent (AAI) is an extremely important professional for the financial market.
His job is not simply to give recommendations, but to help investors learn about good product options and answer questions.
In other words, it guides investors in relation to financial investments according to each person’s profile.
This means they help brokerages sell more and investors make more appropriate choices.
Want to know how to become a successful investment advisor? Then keep reading, as we’ll give you several tips!
What is the job market like for this profession?
In recent years, Brazilians have become more interested in the financial market.
For this reason, the demand for advisors' work is increasing.
In fact, in the first half of 2021, More than 2,000 people have started working as investment agents in Brazil. There are almost 16,000 registered with the CVM.
With the number of people interested in the world of investments, the work provided by this professional becomes indispensable.
After all, the guidance they give is extremely useful in the decision-making process.
However, to stand out in your career, you need to know the main steps to becoming an advisor and, obviously, understand investments and finance in general.
What skills are required?
As we said, understanding the investment market is essential to be successful in this job.
But it is not enough to just have basic knowledge about financial applications and the main market trends.
It is also necessary to combine technical knowledge with good communication, so that you can give good guidance and ensure that the client can easily understand what you are saying.
The technical part alone is not enough, as it is necessary to adapt your language and understand the investor profile of each of the clients.
5 steps to becoming an investment advisor
There are several advantages to becoming an investment advisor.
But after all, how do you start on this path?
The process consists of a few steps and below you will find out what the essential steps are:
1. Understand your work profile
Every advisor needs to have a good knowledge of the financial market. This, in fact, is a skill required for everyone.
But each professional has a different profile and characteristics. In addition to understanding the world of investments, it is necessary to have a profile compatible with the role.
Knowing how to communicate, as you already know, is essential, as clients need to understand what you mean and want to be sure that you really understand the financial market.
It is also important to mention that you will work independently, which requires more responsibility in relation to your own career.
2. Get certified
An investment advisor can only work in the field after he obtains a certification.
The proof of Ancord (National Association of Securities, Exchange and Commodities Brokers and Distributors) It is the process that verifies whether candidates have the skills and knowledge necessary to perform the activity.
After passing the test and receiving certification, you will need to register with the CVM. In addition, it is important to keep an eye on the fees that the institution charges registered professionals.
The exam lasts 2h30. The test has 80 multiple choice questions that cover content related to the financial market.
The test content is divided into 15 modules:
I. The Activity of the Autonomous Investment Agent – CVM 497/11
II. Professional Ethics and Behavioral Aspects
III. Money Laundering – Laws No. 9,613/98; BACEN Circular 3461/09; CVM Instruction No. 301/99
IV. Fundamentals of Economics
V. Structure of the National Financial System – SFN
VI. Institutions and Intermediaries of the National Financial System
VII. Risk Management
VII. Capital Market: Products, Operational Modalities, Taxation and Basic Regulation
IX. Investment Funds
X. Other Investment Funds Regulated by CVM
XI. Securitization of Receivables
XII. Investment Clubs
XIII. Financial Mathematics
XIV. Financial Market: Products, Operational Modalities, Taxation and Basic Regulation
XV. Derivatives Market: Products, Operational Modalities, Taxation and Basic Regulation
3. Register with the CVM
The Securities and Exchange Commission (CVM) is an autonomous entity linked to the Ministry of Finance.
The authority regulates the financial market, reconciling the interests of investors with those of publicly traded companies.
And this is one of the obligations of those who pass the Ancord exam. After obtaining the certification, it will be necessary to register with the CVM, which is the main capital regulatory body.
Therefore, registration is essential for the work to be carried out completely within the law.
4. Sign up with a consultancy
The investment advisor must be linked to a securities brokerage firm.
This way, you will be able to present to customers the financial products that are part of the company's portfolio.
5. Provide good service
Good service is essential for anyone who wants to work as an advisor, regardless of the area (investments, finance, marketing, accounting, etc.).
After all, you will be dealing with different types of investors. Some are more experienced, while others will need more guidance.
Your knowledge is obviously essential for you to be successful in the field. However, without good customer service, it is practically impossible to win customers.
Demonstrating knowledge, adapting your language to the profile of investors and guiding them according to their needs are essential for you to retain current customers and win new ones.
In fact, if your current clients like your work, they may even recommend you to their friends and acquaintances.
Conclusion
The investment advisor will have a close relationship with his target audience.
Therefore, it is not enough to simply present investment possibilities, but also to monitor the investor's progress and answer their main questions.
Follow this step by step and continue improving your knowledge in the area, so that you can stand out in your profession!
Due to the increase in Brazilian investors, the market is promising! Therefore, it is worth taking advantage of the opportunities that the area offers.
