Financial adviser vs wealth manager
The titles overlap more than many people expect. The useful comparison is what the firm is actually authorised to do, who it serves and what service you are buying.
Typically focuses on personalised financial planning and regulated recommendations across areas such as pensions, investments and protection, depending on permissions.
Often combines financial advice with investment or portfolio-management services and commonly targets more affluent clients.
There is substantial overlap
Many wealth-management firms also provide financial advice. Many financial-advice firms also provide ongoing investment management through portfolios or platforms. A business name or job title therefore tells you less than the actual regulated permissions and service description.
The FCA’s Financial Lives research treats wealth management as distinct enough to analyse separately, while also noting that many wealth managers offer advisory services.
Where the service can differ
A financial adviser may centre the relationship around planning: goals, pensions, tax wrappers, retirement, protection and recommendations. A wealth manager may put more emphasis on managing an investment portfolio, sometimes with discretionary decision-making depending on the firm’s permissions and mandate.
That does not mean every wealth manager offers discretionary management or every adviser uses the same planning model. Check the actual service.
Wealth-management minimums are often higher
Wealth-management businesses commonly target more affluent clients and may set higher investible-asset minimums. The FCA’s Financial Lives work uses higher-asset populations when examining wealth-management users, reflecting the way the market is typically positioned.
For a consumer, the key question is simple: does the firm’s minimum client size and service model fit the amount and complexity you actually have?