Search
Close this search box.
Search
Close this search box.
Search
Close this search box.
  • Home
  • Self-employed investment advisor: how to become an AAI!

Self-employed investment advisor: how to become an AAI!

The Brazilian investment world is experiencing continued growth, the reality of the tokenized economy stimulates the generation of many attractive opportunities and, in the midst of such a favourable scenario, the investment advisor is the central character.

According to ANBIMA data, the volume of investments by individuals reached almost R$6 trillion in September 2023 and this volume, at that time, had already exceeded the result for the year 2023 by 9.7%.

On the other hand, Brazilians are, in essence, still young and novice investors, have many doubts about investment decisions and need qualified professional guidance such as the AAI.

But how can you take advantage of this excellent market opportunity?

What are the duties and how can tokenization in investments be a great ally?

BLOCKBR, a company that develops tokenization infrastructure, is going to talk about what a freelance investment advisor is and how it will be a career of the present and the future!

WHAT IS AN INDEPENDENT INVESTMENT ADVISOR?

The AAI (independent investment advisor) is the financial market professional responsible for helping people invest more and better. To do this, they partner with a financial institution, which can be a bank or securities brokers.

Basically, the AAI’s work consists of:

  • Prospecting and attracting potential investors;
  • Investment profile analysis;
  • Guidance and advice on the best investment assets;
  • Forwarding customer orders to the registration systems.

To achieve success in these activities, let’s talk about the duties of an investment agent.

WHAT AN INVESTMENT ADVISOR DOES

The independent investment advisor is the central player in the dynamics and smooth functioning of the capital market – the financial ecosystem in which companies raise funds in a wide variety of ways to develop their growth projects.

The main responsibility of an investment agent is to be the interlocutor between the distribution of securities by companies and the government and the public interested in investing.

From this assignment, we have a series of others. Let’s talk about the main ones.

MONITORING THE CAPITAL MARKET

This is the first and most important task of an investment advisor: to monitor the performance of assets and all the movements that influence the market and to advise their clients on the potential of each one and the best options to invest in at any given time.

This is even more strategic in such a diverse market of financial assets, especially with the tokenization of assets that allows new products to be created every day and traditional investments to be modernized.

PERSONALIZED INVESTMENT OFFER

In-depth knowledge of investment options allows the advisor to offer solutions with maximum customization, reconciling risk tolerance, expected earnings and investment horizon with the most suitable financial assets.

Offering individualized solutions is important to obtain the best results and to maintain the interest and confidence of investors, especially beginners and those who want to make their portfolios bolder.

DRAWING UP AN INVESTMENT PLAN

This is the main product that an independent investment agent offers its clients: a plan for investing in the right assets, timeframes and characteristics, based on knowledge of how financial products are performing in the market.

As we can see, dynamics dominate the creation of an investment plan: various aspects and facts can change the guidelines. For example, the continued fall in the basic interest rate affects the attractiveness of fixed-income securities.

This is just one example of a wide range of situations, which reinforces the need to keep up to date.

Free download - E-book: Investment Advisors of the Future: Tokenization and Earning Opportunities!

PORTFOLIO MONITORING AND DIVERSIFICATION

The independent investment advisor monitors and points to the diversification of the product portfolio as an essential strategy for preserving and increasing the profitability of the assets in which the client is investing.

There is no routine in today’s investment world and decisions must be agile, but based on solid studies and criteria – the basis of the investment advisor who is prepared for optimum gains.

In addition, the investment advisor must maintain the attractiveness and alignment of the results with the investor’s expectations. Knowing their profile is key to predicting the risks they may or may not want to take and finding opportunities that leverage the portfolio’s performance.

INVESTMENT EDUCATION

Providing financial education to investors is an important responsibility in the work of freelance market advisors, as it has many benefits:

  • It provides investors with certainty about the decisions they make;
  • It gives you the confidence to take an active part;
  • Strengthens the relationship between advisor and investor.

More broadly, investor education helps to strengthen the work of the advisor and eliminate myths and beliefs that limit people’s willingness to invest.

HOW MUCH A SELF-EMPLOYED INVESTMENT ADVISOR EARNS
Image: Canva

HOW MUCH A SELF-EMPLOYED INVESTMENT ADVISOR EARNS

The remuneration of an investment agent is naturally challenging due to the activity itself, as it depends directly on the commission percentages on the volume raised with each financial asset offered to their clients.

Generally speaking, an AAI’s annual income is around 0.60% to 1.50% of the total volume raised by the professional. So, if we take the example of a revenue of R$10 million, the turnover could vary between R$60 thousand and R$150 thousand.

This number varies because each financial product has different commission factors and, above all, because you need to create a satisfied and loyal customer base.

SOURCES OF INCOME FOR AN INVESTMENT ADVISOR

When we talk about the earnings of an AAI, the first image is of a professional advising his clients (and potential clients) on the best alternatives for investing and receiving from the brokers who are responsible for executing the operations.

This is the main activity, but self-employed advisors can increase their earnings with other activities that are equally important to their clients.

  • Asset management fee: periodic fee (quarterly or half-yearly) on the volume of investment assets managed;
  • Performance fee: an additional percentage on earnings above a market benchmark or a previously agreed performance target;
  • Financial advice: in addition to investment advice, this fee can be charged for services related to investments, such as risk analysis and retirement planning;

Finally, the most positive aspect of the AAI profession is that there are no limits to earnings; the greater the volume traded, the greater the income.

This is undoubtedly a differentiator for professionals who have expertise in the financial products market and enjoy the challenge of winning over and retaining more customers, earning from their solutions and seeing their investors realize their dreams – the best proof of success!

HOW TO BECOME A SELF-EMPLOYED INVESTMENT ADVISOR

Becoming an AAI requires fulfilling certain steps and regulatory requirements. Let’s talk about the steps to becoming a self-employed investment agent.

TECHNICAL TRAINING

Being a self-employed investment agent doesn’t require a university degree, just a high school diploma. However, you need to invest in finance courses to gain the knowledge base that is indispensable for providing efficient and secure advice.

The CVM (Securities and Exchange Commission) requires certain certifications to practice the profession:

  • CNPI (National Certification of Investment Professionals): issued by the Association of Capital Market Investment Analysts and Professionals (APIMEC), this is one of the main certifications in the financial market;
  • CPA-20: offered by the Brazilian Association of Financial and Capital Market Entities (ANBIMA);
  • CFP (Certified Financial Planner): although it is not compulsory, it has international recognition and adds important value. It is issued by the IBCPF (Brazilian Institute for the Certification of Financial Professionals);
  • ANCORD certification: issued by the National Association of Securities, Exchange and Commodities Brokers and Distributors, mandatory for professionals to act as AAIs.

In addition to certification, ANCORD has a certification exam which is the milestone in the process of becoming qualified to practice the profession.

ANCORD ACCREDITATION

After passing the ANCORD exam, the future AAI must apply for accreditation, as this is mandatory in order to establish agreements with financial institutions. In addition to this, the professional must request adherence to the AAI’s code of professional conduct and self-regulation code.

CVM REGISTRATION

This is another fundamental step in working as an AAI. You need to apply for registration as an independent investment agent to offer investment advice in Brazil.

In June 2023, the CVM (Securities and Exchange Commission) put into effect a regulatory framework for investment advisors aimed at redefining practices and modernizing the sector. Among them, the most important is the end of the exclusive investment advisor.

This measure favors clients, as AAIs can broaden their recommendations and promote greater diversification of asset portfolios.

Check out our e-book with everything you need to know to become an investment advisor of the future and start getting results today!

INVESTMENT ADVISOR: THE PROFESSION OF NOW AND THE FUTURE!

We can say that the AAI profession has great potential for success today and that it will continue to do so in the future with a solid foundation. Let’s talk about a few factors.

INCREASED INTEREST IN INVESTMENTS AMONG BRAZILIANS

This is a major benefit of globalization and the Internet for the economy: the volume of qualified information on investments and capital markets, democratizing access and simplifying understanding.

Investing is no longer something for rich people; on the contrary, there are products in which people with lower purchasing power can put their money to work – but despite so much content being available, the presence of the AAI is indispensable to avoid wrong decisions.

CHANGE IN THE AVERAGE INVESTOR PROFILE

In AMBIMA’s September 2023 survey, two movements caught the eye: the 3.8% drop in the volume of investment in savings accounts and the 19.3% increase in real estate funds.

This shows the change in the Brazilian investor profile, moving away from the security (even though it’s a great myth, really) of savings and the desire to obtain better returns, even if at a conservative investor stage, still concentrated in fixed-income products.

ECONOMIC STABILITY

The Brazilian economic scenario is very positive for 2024 and the coming years. The national GDP grew by 2.9% in 2023, mainly driven by agribusiness – a sector that consistently invests in the crop token – and the projection for 2024 is an increase of 1.80%.

The country continues with the pace of the necessary structural reforms – administrative, fiscal and tax – and with a recovery in employment, all supported by the downward trend in the Selic rate, creating a scenario of confidence for those who want to invest – and especially to start.

GREATER CONCERN ABOUT STABILITY IN RETIREMENT

Guaranteeing a peaceful retirement is still a major challenge for most Brazilians, and the capital market can be a great alternative to make capital yield consistently and become an important financial reserve in the future.

With professional guidance from the AAI, including retirement planning, investors can achieve better results.

HOW TOKENIZATION CAN BOOST AAI REMUNERATION
Image: Canva

HOW TOKENIZATION CAN BOOST AAI REMUNERATION

In addition to democratizing access to existing investments, the capital market is betting on token applications as a way of allowing all types of investment to reach as many people as possible. Here are some examples.

Tokenizing investments will be the leitmotif of all of them!

And what benefits does the token bring to AAI’s performance?

AUMENTAR O POTENCIAL DE GANHOS

Offering investments in tokens is in line with the trend for advisors to become increasingly autonomous, without ties to institutions, to diversify their operations and sources of income.

In tokenization, the AAI can attract investors to tokenized financial assets and gain both in the performance of the asset and in the agility, security and transparency provided by the token.

EXPAND THE CUSTOMER AND BUSINESS BASE

Tokenization has a differential that boosts the attractiveness of any financial asset: fractioning the asset into hundreds or thousands of smaller parts at prices that are accessible to most people.

A company can tokenize a new production unit to raise funds and offer it in smaller tokens – as in a share offering system – and thus obtain more liquidity and a higher return.

With a wide range of real and financial assets on offer, the advisor has a large field in which to operate and increase his business and earnings base.

In addition, it is possible to offer traditional investments and tokenized applications to customers and give them new experiences to increase their income!

TOKENIZE ASSETS WITH BLOCKBR AND BOOST YOUR RESULTS!

Tokenization is a reality in the market, with an increasing number of companies and people generating revenue with tokens. Recent actions by BACEN and the digital real are increasing the credibility of the technology.

For the success of your project, it is essential to have an adequate and efficient tokenization infrastructure for the financial and other markets, comprising:

  • Technical, fiscal and legal feasibility study;
  • Issuance of tokens and smart contracts with transparent governance;
  • Distribution of tokens on a simple and secure sales platform;
  • Efficient and assertive tokenization governance.

Discover BLOCKBR’s infrastructure work for regulated and unregulated markets through an All-In-One platform that offers interoperability between assets and investors.

You don’t want to see your competitor get ahead to make more money.

Or do you want to?

BLOCKBR is a fintech specialized in building infrastructure that allows a simplified migration to tokenization, meeting the needs of a highly regulated environment.

Our main mission is to develop autonomy for the capital market so that it can move, grow and potentially access digital assets. We develop legal and technological solutions that create opportunities and simplify the way in which financial services will operate, from the structuring and new roles of the agents involved to the management and supply of these assets, generating efficiency, lower costs and greater speed of liquidity.

We take care of the entire technological infrastructure for tokenization and regulation, simplifying your life so that you can take care of your customer relationship.

Visit http://www.blockbr.com.br or @blockbr_ on social media and find out more!

share this content

You might like it too