CISI Professional Practice Exam 2025 – Complete Prep Guide

The primary role of investment advisors is to provide financial planning services. This involves assessing clients' financial situations, understanding their investment goals, risk tolerance, and time horizons, and developing tailored investment strategies to meet those objectives. Investment advisors take a holistic approach to their clients' financial health, often incorporating various aspects of life's financial planning, including retirement, estate planning, and insurance needs.

While executing trades for clients, managing companies' investments, and offering regulatory compliance advice are vital functions within the financial services industry, they do not encapsulate the primary focus of investment advisors. Executing trades is typically handled by brokers, and companies' investment management is more aligned with fund managers or institutional advisors rather than individual investment advisors. Regulatory compliance advice pertains to ensuring that investment strategies comply with applicable laws and regulations, which fall more under the purview of compliance officers or legal advisors within financial institutions. Therefore, the emphasis on financial planning distinctly identifies the core responsibility of investment advisors.