Becomming an IFA

scap_uk

Hi Everyone

Any helpful tips for someone wanting to join a company as a trainee IFA? I don't really want to join a BIG company - would prefer to join a small one and take things from there.

Thank you in advance!

Sarah

dunstonh

Most companies would want you to have some experience before coming an IFA. That usually involves get trained as a tied agent (with a bank for example) and getting your qualifications with them. That usually takes about 18 months. Once you are then competent advisor status, you are free to apply to become an IFA or set up your own firm. Many networks will not consider anyone with less than 3 years experience when setting up a company.

The other option is start as a general insurance advisor and/or mortgage advisor. Get those qualifications, gain some experience and then move towards the qualifications from there. I have someone doing that for me at present.

You would find it quite hard to go straight to IFA nowadays without that experience as not many IFA firms are going to want to pay for your training, compliance requirements and liability without knowing you have at least some experience.

deemy2004

scap_uk wrote:

Hi Everyone

Any helpful tips for someone wanting to join a company as a trainee IFA? I don't really want to join a BIG company - would prefer to join a small one and take things from there.

Thank you in advance!

Sarah

IFA ?

4 easy peasy multiple choice exams and a couple of written case studies and your an IFA !

http://www.cii.co.uk/qualifications/financialplanning/cfp_2005/cfp_what_does_it_involve.aspx

Yeh, youd be best joining a firm of IFA's as theres a lot of regulatory crap involved i.e. procedures to follow so you don't get sued for mis-selling.

Robert_Sterling_3

deemy2004 wrote:

IFA ?
Yeh, youd be best joining a firm of IFA's as theres a lot of regulatory crap involved i.e. procedures to follow so you don't get sued for mis-selling.

So procedures to prevent mis-selling are crap.

OK then

Let's bring back the days when "Commission Crazed" advisers sold more than 80% of FTB endowment mortgages.

deemy2004

Robert_Sterling wrote:

So procedures to prevent mis-selling are crap.

OK then

Let's bring back the days when "Commission Crazed" advisers sold more than 80% of FTB endowment mortgages.

A ton of paperwork... i guess a busy IFA would need to hire staff to do it all just to keep the regulators happy

As to whether it actually would prevent mis-selling ?

dunstonh

A ton of paperwork... i guess a busy IFA would need to hire staff to do it all just to keep the regulators happy

As to whether it actually would prevent mis-selling ?

Yes, there is a ton of paperwork. Some of it is extremely helpful. Some of it is totally unnecessary IMO and given the levels that have to be issued, it can detract from the important paperwork. i.e. client needs copies of so much now, that the important stuff can be swamped by the unimportant stuff.

Financial services is like any other industry or profession. You have some very good people and some very poor people doing the jobs. However, given the consumer protection that is in place now, it is very hard to mis-sale and get away with it in the event of a complaint. The old reason why letter (as it used to be called) has turned into a reason why not letter for everything else and although it was originally designed to describe the recommendation, it has turned into a document to protect the IFA in the case of a complaint.

Darryl

Deemy didn't say that procedures to prevent mis-selling were crap. He said that procedures to stop IFA's being sued over mis-selling were.

I agree (strangely) with Dunstonh that a lot of the paperwork nowadays is totally useless and can just further swamp a confused investor.

As for 'commission crazed' IFAs - they haven't gone away. It's just that the latest mis-selling scandal hasn't hit the headlines just yet... only a matter of time IMO.

Anyway, let's not put Sarah off her chosen career path... although this thread indicates that you won't be joining the most loved 'profession' in the world...

Darryl.