What Is a Financial Advisor?
A financial advisor is a general term that can apply to anyone who helps you manage your finances.
Financial advisors work at banks, brokerages, financial planning and accounting firms, and even insurance companies.
Rules around who can call themself a financial advisor or financial planner vary by province.
Quebec has regulated the financial planner title since 1998, and its rules also prohibit most people from using "financial advisor".
In Ontario, the Financial Professionals Title Protection Act restricts both titles to people holding an approved credential from a body approved by the Financial Services Regulatory Authority of Ontario (FSRA). Ontario's transition period ended in March 2024 for financial advisors and runs to March 2026 for financial planners, so the rules now apply to everyone using those titles.
New Brunswick's Financial Advisors and Financial Planners Title Protection Act came into force on January 1, 2026, with transition periods of two years for advisors and four years for planners for people already using the titles.
Saskatchewan adopted its own legislation in July 2020, but as of May 2026 its rules were still being finalized. Check with the FCAA for the current status of its rules.
In the rest of the country, including Nova Scotia, the titles are generally unregulated, which means someone without formal credentials may still use them.
Before hiring anyone, ask about their credentials and check their registration with your provincial securities regulator
What does a financial advisor do?
Depending on their qualifications, a financial advisor may counsel you on investments, taxes, budgets, insurance, and more. If they are providing a full financial plan, then they’ll follow a similar process to:
Understand your current situation based on your income, expenses, assets, liabilities.Â
Determine your short and long-term goals.Â
Develop a plan to reach those goals, often through investment and insurance recommendations.
Monitor and adjust the plan and investments over time.
đź’ˇ Financial advisor vs. financial planner
A financial planner is a specific type of financial advisor who specializes in comprehensive long-term financial planning for clients.
Areas of expertise for financial planners include tax planning, retirement preparation, estate planning, and investing.
Regulations about who can use the financial planner title also vary by province. In most cases, a financial planner will hold a relevant designation such as Certified Financial Planner, Personal Financial Planner, Registered Financial Planner. Qualified Associate Financial Planner (QAFP), or the Quebec-specific Pl. Fin.
How do financial advisors make money?
Your financial advisor could be paid in one or a combination of the following ways:
Flat fee/hourly fee. This is a transparent fixed fee for a specific service, like creating a financial plan or providing a second opinion on an existing financial plan.
Management expense ratio. Also known as a MER, this is a percentage based on the value of the assets they manage for you
Commission. Financial advisors can earn commissions in three ways:
A cut for an initial investment amount or a new insurance policy.
Potential ongoing payment to maintain client relations.
Transaction commissions for buying and selling stocks.
Salary/bonus. Financial advisors working at financial institutions may earn a salary and bonuses for performance. Even if they earn a salary, they may earn additional commissions or other percentage-based fees.
The Canadian Foundation for Financial Planning provides group workshops and one-to-one support for community members seeking personalized financial guidance. Get in touch with a CFFP volunteer here.
Understanding the need for a financial advisor
The more complex your finances or circumstances, the more likely you are to benefit from having a financial advisor.
About 37% of Canadians work with a financial professional, according to FP Canada's 2025 Financial Stress Index, and use seems to increase with wealth: a 2025 KPMG survey found 23% of mass retail investors work with a financial planner, compared with 62% of mass affluent investors.
People tend to hire advisors for guidance in planning for major financial goals, such as buying a home, saving for a child’s education, and retirement planning. They may be prompted to seek financial advice in developing contingency plans for long-term care and estate planning, or managing inheritance and financial windfall.
Here are some examples of how a financial advisor can provide value:
A deep knowledge of all financial instruments, and which ones will help you reach your specific financial/life goals.
Tax expertise, including the latest legislations and opportunities to reduce your income tax burden.
Proficiency in wealth management, asset allocation and the ability to rebalance and adjust your portfolio over time as your goals and the markets change.
Retirement and estate planning capability, including how to plan intergenerational wealth transfers.
Even if you have knowledge in some areas, a financial advisor can help you avoid making fear-based or emotional decisions that would be financially detrimental.
How to find a financial advisor
A successful advisory relationship is predicated on trust, so the best way to find one is to get referrals from friends and family who appreciate their advisors.
Aside from referrals, you can visit your local financial institution, insurance or investment company and ask for a staff financial advisor who can help. Additionally, you can read reviews on the products and services offered by these institutions to find the most endorsed candidates.
Questions to ask a financial advisor
Before entering into a relationship with any advisor, make sure you have the answers to these questions:
What are your certifications, qualifications and designations, and where are you registered?Â
How long have you worked in this field, and where have you worked?Â
Who are your clients?Â
What products and services do you offer?Â
How are you paid? And how does this influence your investment advice?Â
How do you decide on the investments you recommend?Â
How do you work with your clients?Â
How often do we meet, and how will you keep me informed?Â
Before following the guidance of, or investing with, any individual or firm, always verify that they're properly registered Use the online database offered on the Canadian Securities Administrators website.
Pros and cons of working with a financial advisor
Pros
- Saves time: Even if you have broad financial knowledge, it takes time to maintain a portfolio and stay current on tax and investment strategies.
- Accountability: When a financial advisor oversees your plan and follows predetermined strategies, you’re more likely to stick to the plan and potentially avoid making bad or impulsive fear-based decisions.
- Strategic adaptation: As your life changes, so too should your financial plan. Your advisor is a sounding board for these changes, and will update the plan to encompass your new or adjusted goals.
Cons
- Potential conflicts of interest: Depending on how an advisor is paid, their investment recommendations may not be 100% in your best interest.
- Risk of becoming disempowered or complacent: While most financial advisors empower their clients with knowledge, going hands-off by leaving the advisor in charge can be risky if they’re not the right person.
- Cost: Unless your advisor is 100% salaried or pro-bono, you’re paying for their services either directly (through flat or hourly fees) or indirectly (through commissions or MERs). Even a 1% or 2% fee will erode your overall growth over time.
Frequently asked questions
How do you become a financial advisor in Canada?
To become a financial advisor in Canada, you need to complete relevant education, earn required product licenses or professional designations, and register with your provincial or territorial regulator. Many dealer-affiliated advisors are also overseen by CIRO (the Canadian Investment Regulatory Organization, formed in 2023 from the IIROC and MFDA merger).
Are financial advisors worth it?
Yes, if you’re looking for experts whose job is to help you create wealth, save tax, and harness your finances to help you achieve your life goals. Depending on the complexity of your situation and your financial knowledge, financial advisors can save you some missteps.
Sources
NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.
- BMO - Nesbitt Burns. Financial Advisor vs. Financial Planner vs. Wealth Manager: Which is Right for You. Accessed Oct 1, 2026.
- FSRA. Financial Planners and Financial Advisors. Accessed Oct 1, 2026.
- Financial and consumer services commission of New Brunswick. Financial Advisors and Financial Planners. Accessed Oct 8, 2026.
- Investment Executive. Potential for increased FA proficiency still in play. Accessed Oct 1, 2026.
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