In This Article
- What is a financial advisor?
- What does a financial advisor do?
- 5 steps to becoming a financial advisor in Malaysia
- Top courses offering exam exemptions in Malaysia
- Financial advisor salary in Malaysia
- What skills do financial advisors need?
- Financial advisor jobs in Malaysia
- Guide clients towards financial success
A financial advisor helps clients manage their finances by giving advice on various finance-related matters, such as financial planning, retirement planning, debt management and insurance protection.
Navigating diverse financial situations can be daunting for some. RinggitPlus reported in their Malaysian Financial Literacy Survey 2023 that 55 per cent of Malaysians spend their entire earnings or more each month. Getting the assistance of a financial advisor may be beneficial in getting them back on track to achieving their financial objectives.
The career outlook for financial advisors in Malaysia is also improving significantly. According to Statista, the total market value of the financial advisory field is projected to hit US$19.36 billion by 2029. Since there is a growing demand for these finance professionals, you can find plenty of opportunities to work in this field.
A financial advisor typically has a bachelor’s degree in finance or a related discipline such as accounting or economics. They are required to have a licence from a regulatory organisation to practise their profession and give financial advice to clients.
Read further to discover how you can pursue a career in this field in Malaysia.
What is a financial advisor?
Financial advisors offer expert guidance to individuals or organisations to help them achieve their financial goals. They help their clients form financial strategies and give suitable recommendations according to their circumstances.
These finance professionals may work with businesses, families, retirees and other groups of clients. You can find them working for investment companies, banks, insurance organisations or other financial institutions. Some of them may be self-employed.
Independent financial advisors typically find and grow their own client base using various methods, such as hosting seminars, advertising on social media and creating their own financial websites.
What does a financial advisor do?
The main responsibility of a financial advisor is to provide professional advice to clients on various financial-related matters. Their duties may involve:
- analysing a client’s financial circumstances by examining their financial goals, assets, financial history, risk tolerance and other aspects
- preparing strategic plans that can help clients reach their financial objectives
- recommending financial products and services that can support clients achieve financial targets, such as insurance plans and investments
- conducting market research to keep up with the latest financial trends
- creating and maintaining healthy professional relationships with clients
- producing various financial documents like proposals and reports
- checking in with clients regularly and revising their financial plans if necessary
- ensuring compliance with the appropriate financial regulations
5 steps to becoming a financial advisor in Malaysia
A financial advisor is usually expected to have a combination of relevant education, work experience and an official licence. Find out what your journey may look like in this career field with these steps:
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Acquire an undergraduate degree
After finishing your Sijil Pelajaran Malaysia (SPM) studies or equivalent, study a Diploma in Finance or a pre-university programme, such as A-levels, foundation or Sijil Tinggi Pelajaran Malaysia (STPM). Depending on your programme, it may take you one to two and a half years to complete your studies.
Upon completing your course, pursue a bachelor’s degree in finance, financial planning, accounting or a related field. Learn fundamental financial principles and develop industry-relevant expertise as you take on subjects like Financial Management, Corporate Finance and Financial Accounting. The typical duration of a bachelor’s programme is three to three and a half years.
You can also look for courses that require you to complete an internship as part of your studies. This enables you to gain valuable hands-on experience and exposure to the finance industry.
Getting a bachelor’s degree is important for financial advisors as this academic qualification is a common requirement to enter a financial planning certification programme.
Studying an undergraduate degree in finance-related fields is also a good option for working professionals with a background in other disciplines who want to switch careers to become financial advisors.
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Gain practical experience
Start your professional journey by taking on an entry-level role related to finance, such as finance assistant, junior accounts executive or account clerk. Take this time to get acquainted with standard practices in the financial services sector.
As a junior, your duties may revolve around supporting senior finance professionals. Observe and learn how your seniors build their clientele and develop strong investment portfolios.
You need to obtain at least three years of working experience to fulfil one of the requirements of financial planning certification programmes. The first few years of your financial career are also crucial to help you decide if you want to specialise in a specific area, such as tax planning, wealth management or investment planning.
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Get a financial planning certification
Financial advisor roles require you to have a licence from a regulatory body to give professional advice to clients.
To become a licensed financial advisor, you first need to have a recognised financial planning certification. Two professional organisations in Malaysia issue these certifications, which are:
• MFPC, which provides the Registered Financial Planner (RFP) and the Shariah Registered Financial Planner (Shariah RFP) certifications
• The Financial Planning Association of Malaysia (FPAM), which offers the Certified Financial Planner (CFP) and Islamic Financial Planner (IFP) certifications
You are required to study and pass module examinations to get designated as a certified financial advisor. -
Apply for a licence
In Malaysia, there are two main regulators in charge of different aspects of the financial services sector. After acquiring your professional certification, choose a regulatory body to register for a licence, depending on your specialisation area:
• Bank Negara Malaysia, which offers the Financial Adviser Representative (FAR) licence
• Securities Commission Malaysia, which provides the Capital Market Service Representative Licence (CMSRL) -
Pursue a postgraduate degree
While a master’s degree isn’t a requirement to become a financial advisor, it can greatly improve your credibility as a finance professional to potential clients. You can study a master’s programme in a finance-related field and typically complete your studies in one to three years.
Not only can you develop your financial expertise, but you can also gain networking opportunities with peers, faculty staff and professionals in the same industry. This can help you expand your reach as a financial advisor to identify new clients.
Top courses offering exam exemptions in Malaysia
You can find various university programmes providing exam exemptions from various professional financial organisations. These exemptions can help shorten your journey to get a professional certification, which can boost your financial career.
Professional credentials from eligible bodies, such as Chartered Institute of Management Accountants (CIMA), the Association of Chartered Certified Accountants (ACCA) and the Malaysian Association of Company Secretaries (MACS), can also be used to satisfy an entry requirement for the financial planning certification programme from MFPC or FPAM.
Undergraduate level
| University | Programme |
|---|---|
|
Bachelor of Finance & Investment (Hons) • After completing your course, you are eligible for exam exemptions from FPAM, MFPC and CIMA. |
|
| Taylor’s University |
Bachelor of Finance and Economics (Hons) • As a graduate, you can get exam exemptions from MFPC and FPAM. |
| UCSI University |
Bachelor of Arts (Hons) Accounting and Finance • The university’s partnership with ACCA allows you to receive nine paper exemptions from the organisation. |
| Universiti Tunku Abdul Rahman (UTAR) |
Bachelor of Economics (Hons) Financial Economics • The course offers certain exam exemptions from MACS. You can also acquire a professional qualification from CIMA by completing 3 case study examinations during your study. |
| SEGi University |
BA (Hons) Accounting and Finance • After completing this programme, you can get 9 paper exemptions from ACCA and 8 paper exemptions from the following bodies: CIMA, Certified Public Accountant (CPA) Australia and the Institute of Chartered Accountants (ICA). |
| MILA University |
Bachelor of Arts (Hons) in Accounting and Finance • Graduates can receive the highest allowable exam exemptions from ACCA, CIMA and CPA. |
|
Bachelor of Accounting and Finance (Hons) • Upon completing this course, you can obtain exemptions for 9 ACCA papers, 6 CPA Australia papers and 8 CIMA papers. |
|
| Universiti Kuala Lumpur (UniKL) |
Bachelor of Business Administration (Hons) in Islamic Finance • As a graduate, you will receive these qualifications from the Islamic Banking & Finance Institute Malaysia (IBFIM): Associate Qualification in Islamic Finance, Intermediate Qualification in Islamic Finance, Certified Qualification in Islamic Finance: Banking, and IFP. |
Postgraduate level
| University | Programme |
|---|---|
| TAR UMT |
Master of Investment Management • Upon completing this course, you can get 3 module exemptions for the CFP certification programme. |
| HELP University |
Master of Accounting and Finance • Graduates can get a maximum of 3 exam exemptions from CPA Australia. |
| SEGi University |
The programme offers exam exemptions from MFPC. |
Financial advisor salary in Malaysia
The average monthly salary for financial advisors in Malaysia ranges from RM4,000 to RM5,000, according to Indeed. Explore the average salary for a financial advisor in each state and territory below.
| State/territory | Average salary per month |
|---|---|
| Kuala Lumpur | RM4,000 to RM5,000 |
|
Johor |
|
| Selangor | RM4,000 to RM5,000 |
| Putrajaya | RM4,000 to RM5,000 |
| Penang | RM4,000 to RM5,000 |
| Negeri Sembilan | RM3,000 to RM4,000 |
| Labuan | RM4,000 to RM5,000 |
| Perlis | RM4,000 to RM5,000 |
| Sarawak | RM8,000 to RM9,000 |
| Perak | RM3,000 to RM4,000 |
| Terengganu | RM3,000 to RM4,000 |
| Kedah | RM3,000 to RM4,000 |
| Sabah | RM2,000 to RM3,000 |
| Pahang | RM2,000 to RM3,000 |
| Kelantan | RM1,000 to RM2,000 |
What skills do financial advisors need?
Explore some of the top financial advisor skills that you should develop to be successful in your role.
Soft skills
Communication: This skill is essential as you need to create and build positive relationships with your clients. Effective communication includes listening to your clients attentively to properly grasp their financial situation. You may also need to explain technical terms when you provide financial advice in a way that clients can easily understand.
Detail-oriented: As a financial advisor, your explanations need to be thorough and filled with details to ensure your clients understand what steps they should take. This skill also enables you to prepare financial reports accurately.
Analytical thinking: Having this skill allows you to assess your client’s circumstances carefully to develop effective strategies to help them achieve their financial goals. You may also analyse current trends and changes in the economy as you prepare solutions for your client.
Hard skills
Research: Conducting research plays a large part in your role as a financial advisor. It may involve analysing your client’s financial situation, comparing various investment plans and assessing market trends. Effective research skills allow you to put together financial advice that suits your client’s needs.
Financial expertise: You must have expert knowledge in versatile financial matters to provide professional advice to clients. This may include knowing diverse financial options to recommend to clients, such as loans, stock options and investments. You also need to be familiar with the latest industry developments and regulations to adjust your financial recommendations accordingly.
Risk assessment: In this role, you need to analyse various risks that may affect your client as they work towards achieving their financial objectives. You must also check their risk tolerance to understand how much financial risk they’re willing to endure. This helps you prepare better strategies that fit their financial preferences.
Financial advisor jobs in Malaysia
You can find different types of financial advisors offering professional advice in various areas related to finance, such as:
| Career | Responsibilities |
|---|---|
| Financial planner | In this role, you use your financial expertise to make recommendations to clients to help them achieve long-term financial plans. Your financial advice may cover various areas such as retirement planning, risk management and budgeting. |
| Tax advisor | As a tax advisor, you help clients minimise tax liabilities, maximise tax deductions and reduce tax risks. You also ensure your clients’ compliance with tax regulations. |
| Insurance broker | An insurance broker keeps the client’s best interests in mind when suggesting insurance policies. After understanding the client’s insurance needs, you negotiate with insurance companies to obtain the best terms for your client. You may also help them get their claims settled with their insurance firm. |
| Investment advisor | Investment advisors mainly focus on helping clients build their wealth. Your responsibilities may include managing investment portfolios, assessing financial markets and offering strategic investment advice. |
| Estate planner | As an estate planner, your area of expertise involves the transfer of your clients’ wealth after they pass away. You assist clients in preparing wills to distribute various types of assets, such as personal property, real estate and trust property. |
Guide clients towards financial success
Many individuals and organisations rely on financial advisors to help them work towards attaining their financial goals effectively. You must have expert knowledge in various financial matters to be a competent professional in this field. One way to start building your expertise is to study a finance course. Explore diverse finance programmes offered by leading universities in Malaysia here.