The Pathway to Becoming a Financial Planner (Not a Product Seller)

In the world of financial planning, there’s a growing need for a clear and distinct pathway for professionals who want to focus on holistic life planning rather than selling financial products. This distinction is critical for those who aspire to be true financial planners—coaches and guides helping clients map out their life goals—not tied to the sales-driven objectives of the financial advice industry.

Why We Need a Professional Pathway for Financial Planners

The current landscape of qualifications and professional recognition is dominated by bodies aligned with product sales industries. The CII (Chartered Insurance Institute), CISI (Chartered Institute for Securities & Investment), and LIBF (London Institute of Banking & Finance) cater primarily to advisers regulated by the FCA (Financial Conduct Authority). These organisations issue qualifications that are geared towards financial product advice—whether it’s insurance, investment, or banking products. However, financial planning itself, focused on client well-being and long-term life goals, is not an FCA-regulated activity. This means planners who want to avoid the sales aspect are left in a grey area without clear representation.

The Problem with Current Qualifications

For aspiring financial planners, the current qualifications can feel misaligned. If you want to practice life-centred financial planning without selling products, you don’t need the FCA’s Statement of Professional Standing (SPS) certificate. Yet, bodies like the CII and LIBF often insist on this certification for ongoing membership and use of titles like DipPFS, even if you’re not engaging in regulated product sales. This creates a barrier for planners who want to focus solely on client needs rather than pushing products.

The result? Many qualified financial planners find themselves excluded from these organisations unless they continue to hold a product sales focus. It’s a frustrating experience for those who have chosen a different path—one rooted in holistic financial guidance rather than commission-based selling.

The CISI Alternative: A Step in the Right Direction

During a recent presentation by the CISI, we found a glimmer of hope for planners seeking a different route. Unlike other bodies, CISI has confirmed that financial planners can maintain their titles and accreditation without being tied to product sales. Achieving a designation like the Certified Financial Planner (CFP) through CISI provides recognition and credibility without the requirement to sell financial products.

While it’s not yet a complete solution to the problem, it’s a positive step forward. For those looking for a development pathway that aligns with the principles of financial planning (as opposed to financial advising), CISI currently offers the best fit. It’s the only body that acknowledges the need for a distinct professional pathway and allows financial planners to be registered on platforms like Wayfinder, even if they don’t hold an SPS.

The Long-Term Vision: A Professional Body for Financial Planners

What’s clear is that the industry needs a dedicated professional body for financial planners. A body that recognises the unique skills and focus of financial planners—those who prioritise life planning and human capital development over product sales. This new body would offer a registration, title, and post-nominal accreditation for planners, separate from the sales-focused recognition provided by the CII, CISI, and LIBF.

While this vision may take time to realise, we are taking steps in the right direction. For now, the pathway through CISI offers a feasible solution for those who want to focus on holistic financial planning, free from the constraints of product-selling incentives.

Your Path Forward as an Aspiring Financial Planner

If you’re looking to develop your skills as a financial planner without being pulled into product sales, the roadmap starts with recognising the difference between financial planning and financial advice. By pursuing qualifications and accreditation through bodies like CISI, you can maintain your professional standing while staying true to your values and approach.

This pathway won’t require you to compromise on your principles or adopt a sales mindset. Instead, it allows you to focus on what matters most: helping clients achieve their life goals, supporting human capital development, and delivering unbiased financial guidance.

Take the Next Step with Confidence

For aspiring financial planners who are disillusioned with the product-driven approach of traditional financial advice, this is your opportunity to carve out a new path. By aligning yourself with the right professional body and focusing on holistic life planning, you can build a practice based on integrity, transparency, and genuine client service.

The journey might be challenging, but the rewards are worth it. As the landscape continues to shift, you have the chance to be part of a new era of financial planning—one that puts people before products.

If you’re ready to take the next step, we’re here to guide and support you on your journey. Join us as we work towards creating a professional pathway that truly reflects the values of financial planning.

Q&A: The Development Pathway for Aspiring Financial Planners

Q: What’s the difference between a financial planner and a financial adviser?

A: A financial adviser typically focuses on recommending and selling financial products like insurance, investments, or pensions. Their role is closely tied to product sales, and they often earn commissions or fees from these products. In contrast, a financial planner takes a holistic approach, helping clients set and achieve life goals through personalised planning without being tied to selling specific products. It’s about guiding clients on their life journey rather than pushing financial products.

Q: Do I need to be FCA-regulated to be a financial planner?

A: No, you don’t need to be FCA-regulated to practise financial planning. Financial planning itself is not a regulated activity because it focuses on guidance and planning rather than product advice. This means you can work as a financial planner without the need for a Statement of Professional Standing (SPS) certificate, which is typically required for regulated advisers.

Q: What professional qualifications are available for financial planners who don’t want to sell products?

A: At the moment, the CISI (Chartered Institute for Securities & Investment) offers the most suitable pathway for financial planners who wish to focus on life planning rather than product sales. Their Certified Financial Planner (CFP) designation provides recognition and credibility without requiring you to sell financial products. This is a great option if you want to build a career based on holistic, client-centred planning.

Q: Why are CII and LIBF not ideal for non-regulated financial planners?

A: The CII (Chartered Insurance Institute) and LIBF (London Institute of Banking & Finance) are primarily focused on financial advisers who are regulated and involved in product sales. They often require members to hold an SPS certificate, which ties them to the product sales industry. If you decide to focus purely on financial planning without selling products, these bodies may not recognise your qualifications or allow you to maintain your titles, making it challenging to continue your professional journey with them.

Q: What’s the benefit of pursuing the CISI pathway for financial planners?

A: CISI offers a pathway that aligns with the principles of financial planning, focusing on life planning and holistic client support rather than product sales. By achieving designations like the Certified Financial Planner (CFP), you gain professional recognition and can maintain your titles without the need for product sales or FCA regulation. This provides a more client-centred approach and aligns with the values of holistic financial planning.

Q: Will there ever be a dedicated professional body for financial planners?

A: That’s the long-term goal! There’s a growing recognition that financial planners deserve a professional body that focuses on life planning rather than product sales. For now, the best option is to pursue accreditation through CISI, which offers a supportive and flexible pathway. However, the push for a dedicated professional body is ongoing, and we hope to see this become a reality in the future.

Q: How do I get started on the development pathway as a financial planner?

A: Start by clarifying your goals. If you want to focus on holistic financial planning without being tied to product sales, consider pursuing the Certified Financial Planner (CFP) designation through CISI. This qualification will provide you with the skills, recognition, and credibility you need to build a client-centred practice. Along the way, seek support from communities like the Academy of Life Planning, which can guide you and connect you with like-minded professionals. If you would like to learn more, here is a video you can watch.

Q: I’m already a regulated adviser. Can I transition to financial planning without losing my qualifications?

A: Yes, transitioning from regulated advice to financial planning is possible, but it may require some adjustments. If you’re currently a member of CII or LIBF, you might face challenges in maintaining your titles without an SPS certificate. However, by switching to the CISI pathway and achieving the CFP designation, you can retain professional recognition while shifting your focus to holistic financial planning. This transition allows you to leave behind the product sales focus and embrace a client-centred approach.

Q: What’s the biggest advantage of becoming a financial planner instead of an adviser?

A: The biggest advantage is freedom. As a financial planner, you can focus entirely on your clients’ needs and goals without the pressure to sell products. This leads to more genuine, trust-based client relationships and allows you to offer truly holistic planning services. You become a guide and coach for your clients’ financial and life goals, which can be incredibly rewarding and fulfilling.

These Q&As aim to clarify the pathway for aspiring financial planners who want to step away from product sales and embrace a holistic, client-focused approach. If you have more questions or want support on your journey, reach out—we’re here to help you every step of the way.