Becoming A Financial Investment Manager: The Australian Guide

If you're interested in pursuing a career in financial investment management in Australia, there are several steps you need to take. Firstly, you'll need to obtain a bachelor's degree in a related field such as commerce or business, with a major in finance, economics, or accounting. It's important to ensure that your degree is approved by the Australian Securities and Investments Commission (ASIC) and meets the professional standards set by the Financial Adviser Standards and Ethics Authority (FASEA). After completing your degree, you'll need to pass the ASIC financial advisor exam, which tests your knowledge in areas such as ethics, regulatory requirements, and communication. Once you've passed the exam, you'll need to gain practical experience through an internship or junior position, and eventually apply for registration with ASIC. Throughout your career, it's important to stay up-to-date with market trends and continue developing your skills through further education or certifications.

Complete a degree in commerce or business, majoring in finance, economics or accounting

To become a financial investment manager in Australia, you'll need to complete a commerce or business degree, majoring in finance, economics or accounting. This is typically a bachelor's degree, although some master's degrees may also be approved. A bachelor's degree in business with a major in finance or financial planning is a great option for aspiring financial investment managers. During your degree, you'll cover a range of subjects like financial planning, finance, and accounting, which will provide you with a solid foundation for your career.

In Western Australia, most universities offer relevant courses, so you can choose an institution that suits your needs and preferences. It's worth noting that the education and training requirements for this occupation are currently under review, so there may be changes to the specific requirements in the future.

After completing your degree, it's common to gain some work experience in the industry before progressing to a management role. This could involve starting as an intern or in a junior position, allowing you to develop your skills and build knowledge. During this time, you'll receive on-the-job training and gain a better understanding of the industry. Many financial investment managers have several years of experience working in the field before stepping into management roles.

Additionally, further studies in management or postgraduate qualifications can boost your career prospects and provide you with advanced skills relevant to the role of a financial investment manager. You can also explore certifications offered by recognised industry bodies, such as the Financial Planning Association of Australia (FPA) or the Association of Financial Planners (AFA).

Gain further qualifications in management or postgraduate studies

To become a financial investment manager in Australia, you will need to gain further qualifications in management or pursue postgraduate studies. This is in addition to completing a commerce or business degree, majoring in finance, economics, or accounting.

Gaining further qualifications in management will equip you with the necessary skills and knowledge to effectively manage and lead teams within the financial industry. These qualifications can include a Master of Business Administration (MBA) or a Master's in a related field such as finance, economics, or accounting. Obtaining an MBA will provide you with a strong foundation in business management, strategy, and leadership, which are essential skills for a financial investment manager.

Alternatively, you may consider pursuing postgraduate studies through a graduate diploma or master's program in financial planning or a related field. This will enhance your knowledge and expertise in the area of financial planning and advisory, allowing you to provide more specialised services to your clients.

It is important to note that the education and training requirements for this occupation are subject to change, and it is recommended to refer to the latest information from official sources. Additionally, gaining practical experience in the industry through internships or junior positions is crucial for your career development and can complement your academic qualifications.

Pass the financial adviser exam

To pass the financial adviser exam, you must first ensure you are eligible to sit it. The exam is administered by the Australian Securities and Investments Commission (ASIC) and is mandatory for all financial advisers, including new financial advisers.

The exam tests your practical application of financial advice across three key areas: regulatory and legal requirements, financial advice construction, and applied ethical and professional reasoning and communication.

Regulatory and Legal Requirements

This section of the exam covers obligations under the Corporations Act 2001, the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, the Privacy Act 1988, and the Tax Agent Services Act 2009. It is crucial to understand these legislative frameworks and their implications for providing financial advice.

Financial Advice Construction

Here, the exam assesses your ability to tailor financial advice to different consumer groups, taking into account consumer behaviour and decision-making. It evaluates your understanding of suitability and alignment between advice and the needs of diverse clients.

Applied Ethical and Professional Reasoning and Communication

This section focuses on the ethical dimensions of financial advice and your ability to communicate effectively. It covers the Financial Planners and Advisers Code of Ethics 2019, ensuring you can apply ethical principles and maintain professional standards in your interactions with clients.

Exam Format and Preparation

The financial adviser exam is three and a half hours long, including 15 minutes of reading time. It consists of multiple-choice questions and written responses, and you are allowed to refer to statutory materials during the exam.

To prepare, familiarise yourself with the exam format and the knowledge areas outlined above. ASIC provides resources such as exam preparation guidance, practice question guidance, and exam preparation videos. Additionally, you can refer to the Financial Adviser Exam: Exam Policy for further insights into the exam content and structure.

Booking the Exam

Visit the ASIC website for information on booking your exam. You can also contact ACER (Australian Council for Educational Research) at [email protected] for queries related to booking and sitting the exam.

Remember, passing the financial adviser exam is a crucial step towards becoming a fully qualified financial investment manager in Australia.

Get a professional year of supervised experience

To become a financial investment manager in Australia, you'll need to complete a professional year of supervised experience. This involves working full-time for at least 1,500 to 1,600 hours under supervision within an AFS licensee, and must include 100 hours of structured training. During this time, you will be known as a provisional financial adviser or planner.

Your professional year plan should focus on developing key competencies, including technical competence, client care and practice, regulatory compliance, and consumer protection, professionalism, and ethics.

To ensure you're on the right track, you must pass a national exam before beginning the third quarter of your professional year. This exam, lasting 3.5 hours, will test your practical knowledge in areas such as ethics and communication.

After completing your professional year and exam, you can then apply for registration with ASIC, who will assess your application to determine if you meet the requirements to become a financial adviser.

It's important to note that the professional year of supervised experience is just one part of the requirements to become a financial adviser in Australia. You'll also need to obtain an approved bachelor's degree or higher and pass the financial adviser exam.

Obtain registration and licensing with leading bodies

To become a financial investment manager in Australia, you will need to obtain registration and licensing from leading bodies. The specific requirements may vary depending on the state or territory in which you intend to practice. However, here is a general overview of the process:

Firstly, you will need to ensure that you meet the minimum education requirements, which typically include completing an approved bachelor's degree or higher in a relevant field such as commerce or business, with a major in finance, economics, or accounting. It is important to confirm that your chosen course is approved by the relevant legislative instrument.

Once you have obtained your degree, you will need to pass the financial adviser exam set by the Australian Securities and Investments Commission (ASIC). This exam tests your practical knowledge in areas such as ethics, communication, regulatory and legal requirements, financial advice construction, and applied ethical and professional reasoning.

After successfully passing the exam, you will need to complete a professional year of supervised experience, equivalent to 1,500-1,600 hours of work, within an AFS licensee. This professional year will allow you to develop essential competencies such as technical competence, client care, regulatory compliance, and ethics. During this time, you will be known as a provisional financial adviser or planner.

Finally, you can apply for registration and licensing with leading bodies such as the Australian Financial Services (AFS) and ASIC. It is important to maintain your registration by completing any required continuing professional development (CPD) programs.

Frequently asked questions