Thinking of becoming an IFA

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  • dunstonh
    dunstonh Posts: 116,373 Forumite
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    Just out of interest, how well paid is a Financial Adviser (typical salries with X amount of experience)?
    FA’s Salary Survey 2004 reveals that IFAs working in the greater London area have the highest salaries in the UK with average earnings of £63,516.
    The south east as a whole is the most lucrative for IFAs, with salaries of £63,438 in East Anglia and a slightly lower £61,683 in the south east area.
    While Scotland and Northern Ireland – with an average salary of £41,818 – are home to the country’s lowest-earning IFAs, there are some surprises towards the upper end of the IFA pay scale. Wales is ranked fourth highest in terms of salary with an average salary of £59,143 and the average IFA salary in Yorkshire stood at £51,684. The average salary in the UK for an IFA was £56,326.

    owner/partner/director IFAs would be expected to earn in excess of £100k a year with employed IFAs being much lower.

    Single tied advisers are the poor relation with just under 30k the average IIRC from a recently published article in the press. Although most salesforces tend to have low averages. For example, Edward Jones salesforce have an on track earnings of £35k.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Dips
    Dips Posts: 128 Forumite
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    Anyone got a copy of CF1 text book or reading materials they no longer need? I think I should do CF1 before CF2 then, already got the CF2 material though.
  • stphnstevey
    stphnstevey Posts: 3,224 Forumite
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    What qualifications do you need to just be a Mortgage adviser?

    There doesn't seem to be a large amount of overheads to set up in business from home or over the internet?
  • ohmsoft
    ohmsoft Posts: 280 Forumite
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    Having not to long ago competed my CFP I would recomend CF1 first and CF5 the in betweenys make no odds to the order but remember CF3 and CF4 are about half the size of CF2 (and the exams are 1 rather than 2 hours) - you may therefore like to do them together....

    I did mine in 9 months, CF1 first the next 3 in the following sitting then CF5 (plus resits - maybe not wise!!).
  • dunstonh
    dunstonh Posts: 116,373 Forumite
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    Although CF1-5 wont be enough in the future. You will also need the Diploma exams unless you want to be a simple adviser offering basic advice only
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ohmsoft
    ohmsoft Posts: 280 Forumite
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    dunstonh wrote: »
    Although CF1-5 wont be enough in the future. You will also need the Diploma exams unless you want to be a simple adviser offering basic advice only

    I''ve even heard rummers that ths FSA may insist on Chartered/Associate level to qualify as an IFA (without supervision) in the future? and similary the Advanced CeMap becoming essential form MAs?

    Just to be on the safe side I'm already practising my jumping backwards through a flaming hoop while riding a unicycle trick!!!
  • dunstonh
    dunstonh Posts: 116,373 Forumite
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    I''ve even heard rummers that ths FSA may insist on Chartered/Associate level to qualify as an IFA (without supervision) in the future?

    I will take that. That would save between £20k and £30k a year in expenses for me. Well worth the extra study. However, I think they will have to phase it more if they do that. Less than 10% of advisers have AFPC (or modern equivalent). It would take a fair number of years to get to that stage. However, you really would be culling the IFAs significantly and pushing most back into a lower earning, lower consumer protection and generally more boring role.

    I really see the basic advice role being the drive thru equivalent of financial services. Especially when you read that there will be no come back on bad advice as the requirement will be that you have to offer "better than doing nothing" and that is the only requirement. It will allow the rebirth of endowments.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • john_kane_2
    john_kane_2 Posts: 54 Forumite
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    I searched on google and found this thread.

    I am in my first year studying for my ACA with a big 4 accountancy firm. Becoming an IFA appeals to me. Is it at all common to see those with ACAs train to become an IFA?

    I generally would love the job I think (relatively).

    Thanks if you can posts your thoughts

    john
  • wizzy211080
    wizzy211080 Posts: 40 Forumite
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    Titan wrote: »
    I'm lucky that my employer pays part of my exams, well, only the FP1 and FA2 exam, but I guess it makes sense as we only do SIPPs and WRAPs... pension stuff all (or almost all) of it.


    Titan

    I know this is going back a long way now but I am looking to take my FA2 exam and wondered how difficult is was and where I can get some mock papers from?

    I work for an IFA as an adminstrator and am now wondering if this was the best one for me to take, someone else has suggested CF4?

    Any advice please?!
  • dunstonh
    dunstonh Posts: 116,373 Forumite
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    I know this is going back a long way now but I am looking to take my FA2 exam and wondered how difficult is was and where I can get some mock papers from?

    Which exam is FA2?

    The CF1-5 is the CII version of the exams (over 90% use the CII exams). Getting those five will get you enough of a qualification to work under current rules but RDR is almost certainly going to see an increase for IFAs to have a minimum of the diploma level which will require a further four J0x exams (x indicating number of exam). Tied sales reps will not have to sit the higher level exams but then they wont be called advisers any more (note these are the current proposals not the final outcome).
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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