Qualifications and Requirements to become Financial Advisor and Insurance Agent

For the purposes of this discussion, we will show the requirements for financial advisors and insurance agents here in the Philippines. Since the income of financial advisors here in the Philippines requires that you sell financial products like insurance and investments and earn through commissions, financial advisors require both IQ and EQ. People skills are also essential.

In the Philippines, financial advisors are not paid consultancy fees for their financial advice. The market for individuals who pay consultancy fees for financial advice in the Philippines is tiny. Most Filipinos still prefer to get free financial advice, so they usually prefer commission-based financial advisors.

Financial advisors can be divided into insurance agents (those offering insurance-based products) and investment solicitors (those offering mutual funds and UITF). Let me first discuss about insurance agents.

Here are the requirements for financial advisors (insurance agents) in the Philippines:

LEGAL REQUIREMENTS:

1. Must be at least 18 years old
2. They must have taken the training and exam from the Insurance Company of their choice. We at Team Aetos are affiliated with Manulife Philippines because they offer both insurance and pure investments (a separate company from the Manulife insurance company).
3. Must pass the insurance exam by the Insurance Commission

EDUCATION REQUIREMENTS:

As you can see, the requirements do not require you to be a business/finance graduate or even a college graduate at all.

CHARACTER AND PERSONALITY REQUIREMENTS:

The requirements for character and personality depend on the team you are joining. Most teams have their own sets of core values, missions, and visions. You should ask for this information to know if the company’s core values and principles match your own. Additionally, the company or team you want to work with may have its own set of standards for hiring financial advisors.

PURE INVESTMENT (MUTUAL FUND & UITF) FINANCIAL ADVISORS

Many financial advisors also want to sell pure investment products because most mutual funds and UITF allow clients to open an account for only a P1,000 initial deposit and usually no early withdrawal fees. For example, Manulife Life Insurance Agents can be accredited as Manulife Investment Agents. Some insurance companies say they have investment products, but in reality, they are not pure. All investment products of insurance companies have an insurance component and are usually not good for short-term to medium-term goals (like buying a car or house in the next 2 to 3 years) because they have fees for early withdrawal. So, it is also good you consider becoming a pure investment agent.

To be a pure investment agent, you must contact a team offering UITF or Mutual Funds (like Aetos). For example, we at Aetos Financial are affiliated with Manulife Insurance and Manulife Investments. There is a separate examination for Manulife Insurance and Manulife Investments. Once you have a team you want to join, request the requirements to take the investments exam.

The first step to becoming a financial advisor is knowing if you are fit to become one.

Next Step: Take This Quiz To Know If You Are Fit To Become A Financial Advisor

ABOUT THE AUTHOR

Mark Fernandez, CPA, RFC, AFA, CWP, CEPP started as an insurance agent/financial advisor right after graduation at age 22 while working as an auditor at SGV&Co (Ernst & Young). He worked as a part-time financial advisor for six months before going full-time. Despite having no insurance background or connections, he became a Million Dollar Round Table member (MDRT) at age 23 due to his perseverance to learn more about the world of investing and insurance. He is currently a life (at least 10 years MDRT) and qualifying member of the MDRT and is a 2022 Top of the Table Member. He is the founder of Aetos Financial Insurance Agency Inc, which has its head office in Makati. Aetos was the Top 1 in terms of FYP and Top 5 in APE in life insurance agency rankings nationwide in 2021. Currently, Aetos has operations and financial advisors in Luzon, Visayas, and Mindanao. He is currently completing his master’s degree at the Asian Institute of Management. You may reach us by calling Aetos Financial Office Landline at 02-8789-9128 or contacting our Hotline at 0905-FINANCE or 0905-3462623.