What’s in a name? Do you need a ‘financial adviser’, an ‘investment manager’ or a ‘financial planner’?

The jargon surrounding different financial service roles can be overwhelming. Unfortunately, titles such as ‘financial planner’, ‘financial adviser’ and ‘investment manager’ are often used interchangeably, even though they usually describe different services.

This could be confusing and lead to frustrations if the support you receive doesn’t match your expectations.

That’s why we’ve put together this handy guide to help you understand why we use holistic financial planning to help you achieve your goals.

Financial advisers typically focus on specific products and short-term needs

Financial advisers tend to offer product-led advice that aims to solve a particular problem or need. For example, they might help you find appropriate life insurance or set up a pension.

As such, the relationship between a financial adviser and their clients is often short-term – just long enough for them to assess your needs and recommend a suitable product.

It’s important to note that many financial planners are also financial advisers. This means they can consider your broader life goals and help you identify relevant financial products to support them.

Qualifications and accreditations

In the UK, regulated financial advisers must hold at least a level four diploma in financial advice, such as the Diploma in Regulated Financial Planning from the Chartered Insurance Institute (CII). They must also be authorised by the Financial Conduct Authority (FCA).

Investment managers oversee your portfolio and make strategic decisions on your behalf

Investing is a cornerstone of long-term financial planning. It can help you build the wealth you need for a comfortable retirement or to leave a meaningful legacy for your loved ones.

However, you might not have the knowledge, time or confidence to manage your portfolio. According to Money Marketing, £137 billion could be unlocked for retail investments in the UK if individuals felt more financially confident. Additionally, 33% of UK adults said that a lack of knowledge stopped them from investing.

That’s where investment managers come in. Their role is to manage your investment portfolio on your behalf. This could include:

• Developing an investment strategy that aligns with your objectives and appetite for risk
• Building and maintaining a diversified portfolio by selecting funds, shares and other assets
• Monitoring and reporting on investment performance.

In other words, investment managers specialise in how your money is invested.

At Francis Clark Financial Planning, we have developed an extensive professional network to help us deliver the support and guidance you need.

On occasion, we may recommend an external investment manager to oversee your portfolio. Rest assured, our internal investment management committee continually monitors and reviews the performance of any connections we refer you to, ensuring you always receive the highest standards of service.

Qualifications and accreditations

Investment managers in the UK must be regulated and authorised by the FCA. Many hold investment-specific accreditations, such as Chartered Financial Analyst (CFA).

Financial planners offer long-term, holistic support to help you achieve life goals

In contrast to financial advisers and investment managers, who usually have a narrow focus, a financial planner can help you see the bigger picture.

They can help you to:

• Understand your entire financial situation – This may include your current income, spending, investments, pensions, business finances, tax liabilities and estate plan.
• Set meaningful financial objectives that support your life goals – A financial planner will take the time to learn about your life, priorities and aspirations. By asking questions such as, ‘What does financial freedom mean to you?’ and ‘Where do you see yourself in 10 years?’, they can build a financial plan centred around your goals.
• Build your financial knowledge and confidence – Through empathetic coaching and ongoing emotional support, a financial planner can improve your financial literacy and resilience. This could help you face ‘financial fears’ such as investing for the first time.
• Keep your finances as tax-efficient as possible – Without careful planning, your tax liabilities could significantly erode your wealth during your lifetime and after you’re gone. A financial planner can help you make the most of tax allowances and reliefs across all aspects of your finances, including your investments, savings, pensions and income.
• Embed your investment strategy in your wider financial plan – While an investment manager is likely to focus on how your money is invested, a financial planner will also consider the why. To ensure that your investments support your broader life goals.
• Meet your financial needs at every stage of life – Financial planners develop long-term relationships with their clients. By offering ongoing advice and guidance, they could help you meet your needs as they arise and cope with unexpected events, such as illness or divorce, that might affect your financial plan.

In other words, a financial planner can offer a holistic, goal-based approach that provides the personalised support you need both now and in the future.

Qualifications and accreditations

Just like regulated financial advisers, regulated financial planners must hold at least a level four diploma in financial advice and be authorised by the FCA.

However, many financial planners also hold higher-level qualifications and accreditations, such as the Chartered Financial Planner designation and Certified Financial Planner (CFP) certification. Some may have completed advanced courses in key specialisms, such as pensions and retirement planning.

At Francis Clark Financial Planning, we believe that a great financial plan isn’t about products, it’s about you

Only 14% of UK financial planning firms hold Chartered status, which is the industry gold standard. As such, we are incredibly proud of being a Chartered firm. This means you can expect the highest levels of expertise and service from our team.

When you meet with one of our financial planners, they will listen carefully and ask thoughtful questions to understand your needs and goals.

We don’t talk in jargon, just clear, down-to-earth English. Our clients often say their meetings with us are like catching up with an expert friend.

No matter your financial planning goals – whether it’s building a healthy retirement pot, winding down your business or preserving your wealth for the next generation – we can help.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate estate planning or tax planning.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.