Welcome to the second instalment in our industry guide (the first can be found here). If you’re interested in a career in Financial Services, we aim to help you navigate some of the terminology you’ll encounter.
Skilling Gate is a recruitment firm based in Bristol, specialising in roles in the Financial Services sector. Its founders built their careers working in the industry and therefore have an insight into the industry that is fairly unique to recruitment.
It’s an incredibly broad sector. In the UK it accounts for 6.5% of total economic output and employs 1 in 14 people. Any firm involved in the investment and management of money and assets can be considered Financial Services, from commercial and investment banking to retail current accounts. Stockbroking and share dealing to advice about pensions. Insurance and mortgages. From something as seemingly simple as a bank cashier to complex derivatives traders, ultimately, it’s a huge duty of responsibility and the privilege to look after people’s money, wherever you are in the chain.
This simply comes down to the level of advice and management undertaken in relation to a private client’s portfolio.
Execution-only means that a firm offer no advice to the client in relation to the investment transactions undertaken. The client makes the decision about what to buy and sell and instructs their broker or investment platform to carry out – or “execute” – their trades.
It usually relates to investments, but with the rise of the do-it-yourself investor, it can also be applied to mortgages and insurance. Any financial transaction where the end investor takes no advice from a regulated and authorised individual or firm.
Advised investment means that the private client has taken guidance from a financial advisor or investment professional in relation to the transaction. An advisor might meet with the client and identify their attitude to risk and investment goals and recommend a portfolio of assets in which to invest. Investment professionals might offer advice on specific shares or securities and their potential for growth. The advice can be one-off, or with periodic reviews of performance, and the client will pay a fee for this advice.
Discretionary investment usually involves placing an amount of cash with a discretionary fund manager, who will then actively invest the money on behalf of the client into a range of securities and assets. The decision of when to buy or sell investment will sit with the discretionary manager and the client will pay an ongoing fee for the service.
Interested in finding out more? Register today and we'll be in touch.
0117 428 6388
07711 622 676
Skilling Gate Group Limited
St Nicholas House
31-34 High Street
Bristol BS1 2AW