Financial Advisor

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What is a 'Financial Advisor'

A financial advisor is one who provides financial advice or guidance to customers for compensation. Financial advisors (or advisers) can provide many different services, such as investment management, income tax preparation and estate planning. They must carry the Series 65 license in order to conduct business with the public. A wide variety of licenses are available for the services that a financial advisor can provide.

BREAKING DOWN 'Financial Advisor'

'Financial advisor' is a generic term with no precise industry definition, and many different types of financial professionals fall into this general category. Stockbrokers, insurance agents, tax preparers, investment managers and financial planners are all members of this group. Estate planners and bankers may fall under this umbrella, as well.

The Investment Advisers Act of 1940, a U.S. federal law, was enacted to regulate the actions of investment advisers/advisors. Advisors are administered by the Securities and Exchange Commission.

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