What does a Financial Advisor do at Banco Carregosa?

At a glance

  •  At Banco Carregosa, the term "investment advisor” refers to the advisory role carried out by either the Account Manager, in the Savings and Investment department, or the Private Banker, in Private Banking.

  •  Investment advisory is based on personalised, well-founded recommendations tailored to each client’s profile, objectives and circumstances. The final decision always rests with the client.

  •  The process begins by understanding the investor and translating their objectives into a strategy. Each recommendation is then placed within the context of their portfolio and the markets.

  •  Execution of orders is limited to carrying out the client’s decisions. In contrast, advisory services involve analysis, suitability assessment and justification prior to each decision.

  •  As assets grow, the number of objectives increases and the portfolio becomes more diverse, the need for professional support tends to become increasingly important, particularly in maintaining discipline during periods of volatility.

  •  In Portugal, this activity is known as investment advisory and is regulated by the CMVM under MiFID II. Each recommendation must be appropriate for the client’s profile.

Investing is now much more accessible. Digital platforms have made it easier to access markets and increased the variety of products, information and opinions available. Although this democratisation has brought clear advantages, it has not simplified the decision-making process. In fact, the greater the variety of options available, the more crucial it is to distinguish information from noise, evaluate risks, and guarantee that each decision aligns with the investor’s goals.

This is why investment advisory is so relevant. Rather than simply recommending a product or predicting market movements, its purpose is to structure the investment process by getting to know the client, prioritising their needs, analysing alternatives, and formulating recommendations tailored to their circumstances. At Banco Carregosa, the Account Manager or Private Banker provides this advice, depending on the model.

So, what exactly does a Financial Advisor do?

The investment advisor is the specialist liaison between the client and the markets. Their work does not start with the product; it starts with the individual and their assets, and the objectives those assets are intended to fulfil. In practical terms, the role can be divided into four complementary areas.

1. Understanding the client and their investor profile

It is necessary to understand the client’s financial situation, existing assets, time horizon, liquidity needs, objectives and tolerance for temporary losses before making any recommendations. This assessment allows us to determine the client’s investor profile and establish the parameters within which an appropriate strategy can be developed.

2. Converting objectives into an investment strategy

Objectives are seldom found in isolation. Preserving capital, generating income, financing the purchase of a home or preparing for retirement all require different time horizons and levels of risk. The advisor’s role is to help organise these priorities and translate them into a coherent strategy. This ensures that individual decisions do not compromise the overall balance of the portfolio.

3. Providing personalised, well-founded recommendations

Once the profile and strategy have been defined, the advisor can recommend financial instruments, such as shares, bonds, investment funds or ETFs. They will explain the role of each instrument within the portfolio, the main risks involved, and why each instrument may be suitable for the client’s specific situation. This rationale sets advisory services apart from generic market opinions: a recommendation is only truly useful when it considers who is investing, their purpose, and how long they intend to invest for.

This recommendation does not replace the client’s decision. In investment consultancy, the investor always has the final say on whether to proceed with a proposed transaction.

4. Monitoring the portfolio and supporting investment discipline

What constitutes an appropriate strategy can change if objectives, financial circumstances or market conditions change. Therefore, the monitoring process should allow for assumptions to be reviewed, risks to be reassessed and the portfolio to be adjusted where there are sound reasons to do so.

This monitoring is particularly important during periods of increased volatility. The pressure to respond to short-term changes can result in decisions that differ from the original plan. Structured advice helps distinguish relevant market changes from cyclical noise, ensuring the strategy remains consistent.

Advising is not the same as executing

It is essential to understand the difference between order execution and investment advisory. The client has already made the decision regarding execution and simply requests that the transaction be carried out. In advisory services, clients receive personalised, well-founded recommendations in advance, but retain the power to make the final decision.

At Banco Carregosa, the clients’ points of contact are the Account Manager, in the Savings and Investment Department, or the Private Banker, in Private Banking. In the former case, advisory services take the form of one-off advice, whereas in the latter they take the form of ongoing advice. If the client wishes to delegate investment decisions within the agreed framework, the applicable service is Asset Management, which is a distinct service.

The differences between one-off and ongoing advisory services

Although both types share the same principles of suitability and personalisation, they differ in terms of the level of support they provide.

  •  One-off advisory (Savings and Investment): this is intended for clients who are looking for support at specific times, such as when they want to invest a new sum, review their portfolio, or assess a particular opportunity. The recommendation is tailored to a specific need, but the final decision always rests with the client.

  •  Ongoing advisory (Private Banking): this involves regularly monitoring the strategy and portfolio, which is suited to larger or more complex portfolios. The aim is to ensure that recommendations evolve alongside the client’s needs and relevant market changes.

An explanation of the regulatory framework in Portugal

In Portugal, this service is formally designated as investment advisory. This activity is both regulated by the Portuguese Securities Market Commission (CMVM) and governed by the Markets in Financial Instruments Directive (MiFID II).

This framework is founded on three core principles:

  •  Suitability: every recommendation must consider the client’s profile, objectives, financial situation, and time horizon.

  •  Personalisation: a general market analysis or opinion does not constitute investment advice in itself; recommendations must be tailored to specific clients.

  •  Client’s decision: although advice informs and supports the decision-making process, it does not transfer the power to decide to the advisor. This type of delegation only occurs in a separate service, such as discretionary portfolio management.

Although regulation improves the quality of the process, it does not eliminate market risk or guarantee results. The value of any investment remains subject to fluctuations and, depending on the instrument, there is a risk of partial or total loss of the invested capital.

When is it advisable to seek financial advice?

There is no universal threshold above which it becomes necessary to seek professional advice. In many cases, the complexity of the situation is a more relevant factor than the value of one’s assets.

Financial advisory services tend to add value when:

  •  Several financial objectives are competing for the same capital;

  •  The portfolio comprises a variety of asset classes, markets, and currencies;

  •  It is important to strike a balance between returns, capital preservation and liquidity needs;

  •  Decisions are often affected by volatility or conflicting information;

  •  The client wants to review their strategy in a structured way, but they don’t want to delegate the final decision.

The right moment therefore arises when investing ceases to be merely a matter of choosing a product. Instead, it requires coordination between objectives, risks, time horizons and liquidity. Advisory services tend to be most useful in the transition from making isolated decisions to adopting a wealth management strategy.

Banco Carregosa’s approach

Founded in Porto in 1833, Banco Carregosa has held a banking licence since 2008. The Bank has developed a service model based on proximity, specialisation, and personalised support. In the field of investment consultancy, this means seeking bespoke solutions for each client, rather than relying on a standard response.

The Bank operates under an open architecture model, providing access to a range of instruments and solutions from various international institutions and asset managers. This broad approach enables us to analyse a range of alternatives and make recommendations that are not limited to a specific set of products. At the same time, we seek to align each proposal with the client’s overall strategy.

This approach has been recognised by independent bodies. For example, we were named Best Pure Play / Boutique Private Bank Portugal (Euromoney Private Banking Awards 2024 and 2025), and Best Broker for Customer Service (Rankia Awards 2024).

While this recognition reinforces the position, it does not replace it. The key factor remains the quality of the relationship, which involves understanding the client, providing clear information, and ensuring that every recommendation is consistent with their objectives and their risk tolerance.

FAQs

Is "financial advisor” a role or a job title?

In this context, the term primarily refers to someone who provides investment advisory services. At Banco Carregosa, this role is fulfilled by either the Savings and Investments Account Manager or the Private Banker.

Does the advisor make investment decisions on behalf of their clients?

No, in investment advisory services the client always has the final say on each recommendation. If they wish to delegate this decision within a defined mandate, they should use a separate service such as asset management instead.

Is financial consultancy regulated in Portugal?

Yes, investment advisory is a regulated activity governed by MiFID II and overseen by the CMVM. Such recommendations must be personalised and tailored to the client’s profile, objectives, and financial situation.

Is it necessary to have a significant number of assets in order to seek advisory services?

There is no universal minimum threshold. The value of advice depends on factors such as the complexity of the objectives, the composition of the portfolio, and the extent of the need for support in decision-making.

What qualifications should be considered when choosing a financial advisor?

Relevant indicators include technical training, experience, recognised certifications and ethical standards. However, these should be assessed alongside the ability to listen, and the capacity to explain risks and costs transparently and clearly.

Legal disclaimer: This article has been prepared by Banco Carregosa for information and educational purposes only. Under no circumstances does it constitute an investment proposal, recommendation to purchase, or personalised financial advice. Investing in financial instruments carries risks, such as market, credit, exchange rate and liquidity risks, as well as the possibility of losing some or all of the invested capital. Past performance is neither a guarantee nor a reliable indicator of future returns. Before making any financial decisions, you should assess whether the solutions are suitable for your investor profile, wealth objectives, time horizon, and liquidity needs, by consulting the pre-contractual and legally required documentation (such as the KID).