IFA and IVA

[inmypocketnottheirs]

I just wondered if anyone would know, does an IVA affect whether an IFA can continue to trade?

Many thanks.

[dunstonh]

As an employee or a company owner/partner or director?

[inmypocketnottheirs]

Originally Posted by dunstonh

As an employee or a company owner/partner or director?

In any capacity please.

[jimjames]

I can't answer for the legal side but I would be extremely wary of using an IFA that isn't even able to manage their own money.

[JohnRo]

Indeed, it hardly inspires confidence in the ability or integrity of said IFA to manage anyone else's money if he or she can't even manage their own.

[inmypocketnottheirs]

I am not using or intending to use an IFA in an IVA. I would like to know the legal position and if also the position of the FSA. Would the licence of the IFA be revoked?

[Rollinghome]

Originally Posted by JohnRo

Indeed, it hardly inspires confidence in the ability or integrity of said IFA to manage anyone else's money if he or she can't even manage their own.

They wouldn't be the first.

I've known just two IFAs well socially. One died recently living in a small rented flat. He was a very affable sort who loved spending money whether he had it or not. He didn't die in total poverty but he did find the going hard.

The other I've known since we were both 18 and though he does own his own house again he's had an "interesting" life with more than his share of financial ups and downs.

One of the problems for IFAs, like anyone in sales, is that their income can vary hugely from one year to the next. If they don't get the sales, the overheads can cripple them. I've seen IFAs set up businesses around here only to shut up shop just a year or so later.

It's possible that the implementation of RDR at the end of this year could cause financial problems for quite a few more

[jimjames]

Originally Posted by inmypocketnottheirs

I am not using or intending to use an IFA in an IVA. I would like to know the legal position and if also the position of the FSA. Would the licence of the IFA be revoked?

Why not contact the FSA directly rather than relying on the replies from a board? It would at least give you the definitive reply that you seem to need.

[inmypocketnottheirs]

Originally Posted by jimjames

Why not contact the FSA directly rather than relying on the replies from a board? It would at least give you the definitive reply that you seem to need.

Very fair point Jim! I guess that in the past this board has been such a valuable source of information, I have come to rely on it!!

[dunstonh]

To be honest, I dont know what the actual FSA rules are. I know my compliance rules and what I do with employees and prospective employees but not actually what the FSA require. I seem to recall that it is left to the discretion of the principle if the adviser is an employee but getting owner/partner/director control functions as well as customer control function would be difficult (mainly due to solvency requirements).

[bigmatt1174]

Originally Posted by jimjames

Why not contact the FSA directly rather than relying on the replies from a board? It would at least give you the definitive reply that you seem to need.

Sorry had to laugh - you used the words definitive reply and FSA in the same sentence!