Financial advisors need certain qualifications and practical training to meet regulatory requirements. Would-be advisors can start off studying full time or join a large financial institution and study while working.
The gold standard is a university degree and postgraduate diploma in financial planning. But a matric is enough to get started in the industry while you study towards the required minimum qualifications. If you are certain financial planning is your future career, you can start with a BCom degree that has financial planning subjects or a business, accounting, law or psychology degree.
But if funding is an issue or you are not sure the profession is the right one for you, it is possible to enter the industry with just a matric and to study on the job. If you are switching from another career path, such as teaching or accounting, your existing qualifications may assist you or be recognised towards the required qualifications.
However, once you enter the industry, it is necessary to work initially as an employee under a more experienced advisor to obtain practical experience. Before you choose your route to entering the profession, it is worthwhile knowing what is required as a bare minimum by law.
Regulatory requirements
Financial advice in South Africa is a profession regulated by the Financial Advisory and Intermediary Services (FAIS) Act. To provide financial advice as a representative within a financial institution or advisory practice, you need to meet the fit and proper requirements under the FAIS Act and its regulations, including:
- Obtaining certain minimum qualifications – this is typically a relevant qualification at the South African Qualifications Authority’s NQF level 5.
- Meeting certain minimum experience requirements and working under supervision until you have sufficient experience to give advice, typically between six months to two years for advice.
- Passing the applicable regulatory exam. If you are starting out as a financial advisor, you will most likely be hired by a Financial Services Provider (FSP) to give advice in Category I and on long-term insurance products or sub-category A. In this case, you will need to pass the RE5 exam.
- Completing what is known as Class of Business training for the products on which you will be giving advice – for example, life insurance or investment products.
- Completing product-specific training for the products on which you will be giving advice – for example, a provider’s specific life policy or investment.
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The gold standard
If you have a matric with a university pass, the quickest route to a successful career in financial planning and the gold standard in academic qualifications is to study an appropriate bachelor’s degree – typically in commerce, accounting or law – and then do a Postgraduate Diploma in Financial Planning.
Some institutions, such as Akademia, Milpark Education, the University of Johannesburg and Nelson Mandela University offer a BCom degree in financial planning that includes financial planning subjects, particularly in the later years of the undergraduate degree.
Your degree will give you an NQF level 7 qualification and the postgraduate diploma is an NQF level 8 qualification, which will mean you meet the minimum qualification requirements to start giving advice.
If you complete the Postgraduate Diploma in Financial Planning at an institution recognised by the professional body for financial advisors, the Financial Planning Institute (FPI), you will have the educational qualifications to enable you to obtain from the FPI one of the highest financial planning and internationally recognised designations – the CERTIFIED FINANCIAL PLANNER® (CFP®) designation.
The FPI ensures the international Financial Planning Standards Board (FPSB) requirements for this designation are met by maintaining a list of recognised qualifications that meet its educational standards for the CFP® designation. These qualifications are offered by institutions including:
- Milpark Education
- Moonstone Business School of Excellence
- Nelson Mandela University
- University of KwaZulu-Natal
- University of Johannesburg
- University of Stellenbosch
- University of the Free State (School of Financial Planning Law)
The qualifications may be subject to change, so be sure to check with the FPI before you embark on your studies.
To obtain the CFP® designation, you also need three years of experience providing financial advice without supervision or one year under the FPI’s mentorship programme.
You also need to complete the FPI’s eight-week Capstone course and financial plan assessment.
The Postgraduate Diploma in Financial Planning can be completed while you are working, as many providers offer online or hybrid courses with lectures after working hours. This means you can do a three-year degree and work to gain your work experience while you study your postgraduate diploma.
Universities that offer undergraduate degrees with a financial planning focus often offer the equivalent of the postgraduate diploma as an honours degree that can be taken full time.
Even with a degree, postgraduate degree or honours in financial planning, you will need to pass the regulatory exams, complete Class of Business and product-specific training and to work under supervision before you will be ready to give financial advice.
Once you hold the CFP® designation, you will need to maintain it by agreeing to abide by its code of ethics and meet the FPI’s annual CPD requirements.
Working while you study
Large financial institutions, such as the big insurers or banks, will take on those who want to be financial advisors with just a matric but you will not be able to give advice until you complete certain training and you will work under supervision while completing certain minimum qualifications.
The large institutions may even take you on without a matric if you have been working in the industry and you meet the competency requirements. Smaller independent financial advisory practices typically have less capacity to train staff with no work history or educational qualifications.
Thionay Morgan, human capital executive for retail mass market at Old Mutual, explains that a matriculant starting at Old Mutual as an aspiring advisor will have a sales execution role – they can only sell by following a script and cannot give financial advice.
To progress beyond an execution-only role, a new employee needs to meet the minimum competency requirements set out in the FAIS fit and proper requirements.
The minimum level of competency you need depends on the category of advice being given, but a broad range of qualifications from a wide variety of institutions are included in a list published by the FSCA in Board Notice 37 of 2025.
If you do not have any qualifications, it makes sense to do something that you will be required to have in future and that assists you to pass the required regulatory exams for giving advice.
The fit and proper requirements under FAIS stipulate that within six years of being hired as a representative of an FSP you will need to complete a FAIS-compliant qualification – typically at NQF level 5. The one-year NQF level 5 Higher Certificate in Wealth, such as that offered by Moonstone Business School of Excellence or Milpark Education, is commonly used for this.
Edel Goldbach, the academic manager at Moonstone Business School of Excellence, says you can do a Higher Certificate in Wealth with just a matric – you do not need a university bachelor’s pass.
In terms of the FAIS fit and proper requirements, within your first 12 months of being hired by an FSP you will be required to undergo training in the Class of Business products you will be advising on. The large financial institutions typically provide this training in-house.
Within your first two years of being hired you will also need to pass a required regulatory exam, most probably the RE5 exam.
Most large institutions with in-house training academies provide training on products on which you will give advice, but typically qualifications such as the Higher Certificate in Financial Planning and courses to pass the RE5 exam are offered in conjunction with accredited education providers, Goldbach says. The qualification must also recognise the purposes of the FAIS fit and proper requirements.
Morgan says an aspiring advisor joining Old Mutual and taking the Higher Certificate in Financial Planning needs to complete modules within specified timeframes and the entire qualification within five years of being appointed.
Advisors with the necessary qualifications can take leadership and talent development programmes to advance to more senior roles within Old Mutual. Qualified advisors with at least two years’ experience are able to choose to operate an agency franchise distribution business on the company’s licence, Morgan explains.
A number of large financial institutions offer franchised businesses to more senior advisors. These are supported with business plans and feasibility studies, tools and ongoing training and mainly distribute the institution’s products.
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Your choices
Being accepted by a financial institution with a matric or an existing qualification to be trained and funded to study to become a financial advisor while you are working, is a viable option for those who do not have the means to study full time.
If you want to study first or do not get hired immediately, the year-long Higher Certificate in Financial Planning or Occupational Certificate: Financial Advisor is a good way to upskill yourself and improve your chances of being hired.
You can follow this up with an Advanced Certificate in Financial Planning at NQF level 6 to further your qualifications and earning ability.
Once you become a financial advisor, even as a representative for an FSP, you will need to do a certain amount of learning or continuous professional development (CPD) each year to meet the FAIS fit and proper requirements.
FPI designations for certificate holders
If you obtain a recognised NQF level 5 qualification from Milpark Education, Moonstone Business School of Excellence, Sanlam Academy, Boston City Campus or Integrity Academy the FPI will let you register for its Registered Financial Practitioner® (RFP®) exam and if you meet all the requirements, you can use this designation.
With the Advanced Certificate in Financial Planning (NQF level 6) from Milpark Education, Moonstone or Boston City Campus, the FPI will let you take its Financial Services Advisor® (FSA®) exam and if you meet all the requirements, you can use this designation.
You can also take this exam if you have a BCom degree in Finance or Financial Planning from Akademia, Milpark Education, Nelson Mandela University or the University of Johannesburg.
Nici Macdonald, head of certification and standards at the FPI, says the FPI assists new entrants to the profession in finding their pathway, gaining knowledge, skills and the competency that will allow them to be awarded a designation by the FPI.
If you have obtained an NQF level 6 qualification, the independent statutory body that regulates higher education, the Council on Higher Education, states that you need to obtain an NQF level 7 qualification before you can do the Postgraduate Diploma in Financial Planning. Goldbach says these qualifications are difficult to find and most advisors with NQF level 6 do not want to do a three-year undergraduate degree before they can do the postgraduate diploma.
Education providers may recognise prior learning and admit suitably experienced or qualified individuals to undertake these qualifications. Goldbach says Moonstone stipulates that applicants must have, at minimum, the Advanced Certificate in Financial Planning and five years of industry experience before they may be exempted from the NQF level 7 qualification and advance to the postgraduate diploma.
She says this gives Moonstone some sort of assurance that the advisor will be able to deal with the postgraduate diploma, which is known to be a challenging qualification to do.
Moonstone also checks with the FPI that if the person were to successfully complete the postgraduate diploma, the FPI would accept them for the CFP® designation.
Beyond CFP®
Once you have a Postgraduate Diploma in Financial Planning, you can add specialised qualifications to enhance your educational qualifications. Universities, such as the University of the Free State, offer a Postgraduate Diploma in Estate and Trust Administration for those who want to become fiduciary experts and one in investment planning for those who want to give advice to boards of trustees and venture into areas such as portfolio construction.
Tax is another area that advisors find useful to specialise in. Universities also offer postgraduate diplomas in tax and the FPI serves as a controlling body for those who want to register with the South African Revenue Service as a tax practitioner. The FPI also provides CPD points for tax practitioners.
Many advisors also find it useful to develop their soft skills and find coaching qualifications a useful addition. The University of the Free State’s School of Financial Planning Law offers a financial coaching programme online over 12 weeks.
Financial assistance and internships
If you are hired by a large financial institution, it may offer a study bursary to allow you to study in fields that align with your career development.
If you are looking for financial assistance to study to become a financial advisor, the FPI recently launched an Education and Training Trust to fund bursaries, scholarships, work-integrated learning and development programmes for those who wish to become financial advisors.
Keep an eye on the FPI’s website at FPI Education and Training Trust for communication on funding windows.
Black South African graduates of either universities or TVET colleges with any degree or qualifications such as the Higher Certificate in Wealth Management or Financial Planning may also participate in an independent financial advisor internship programme run by the Association for Savings and Investment South Africa (ASISA) Academy. The programme sponsored by four ASISA members is aimed at those entering the workplace for the first time. Between 30 and 35 qualifying graduates are selected for positions at between 25 to 30 participating independent financial advisory practices in major centres. More than 80% of the interns are employed permanently after the 12-month internship.
The final word
The financial planning profession offers opportunities to people with a range of academic abilities and financial means. It’s best suited to those who are both able to work with numbers and to work with people. While you must be able to do certain financial calculations, getting people to understand the numbers and agree to follow your recommendations is key. People skills are likely to be increasingly important as technology increasingly takes care of the numbers.
