A financial advisor or financial planner is a professional that offers financial advice to customers based on his/her financial expertise. In most countries, financial advisors are required to complete certain formal training and pass an exam approved by the government before offering financial advice. The financial advisor has the authority to give, adjust or collect payment for accounts receivables. The advice given is generally made on behalf of a client on an agreed fee.
Typical fees include a commission, fee for services and investment tips. Financial advisors can also offer advice on how to handle individual portfolios and investments. They can choose to act as brokers on behalf of groups of investors, which may have differing objectives. Brokers are compensated on a commission basis only.
Some states have further restrictive licensing rules for financial advisors compared to other professionals. The rules in such states usually require a licensed public accountant to serve as financial advisors under the supervision of a board certified public accountant. The rules may also restrict the amount of education that financial advisors need to obtain. There are also no minimum number of years of experience for a financial advisor under the rules of some states.