CeFA exam questions

dunstonh

You now have the certificate level exams but you will need the diploma level by 2010 unless you join a company before then, in which case you have until 2012.

Going straight to IFA is very hard as you not only have the application of knowledge, you also have 50,000 or so products to pick from compared to around 10-15 with a tied agent. Also, IFAs have to portfolio build and recommend funds. Tied agents do not.

So, it is easier to start as a tied agent, make your mistakes on customers without any liability to yourself and then after 2-3 years you can then look to moving towards IFA.

Many IFA firms wont consider you without experience anyway. Some networks wont either. Most people dont realise the expenses involved in being an IFA and having one that has no track record of compliance or earnings means you are taking a potential liability.

Banks are your natural training ground nowadays. They cover your mistakes, you get to deal with customers who wouldnt know your advice is good or bad and the product range is simple. Yes, it means you know you wont be giving best advice but at least you start learning.

new2civvystreet

I've booked my CeFA 3 and 4 exams for one week apart at the end of feb/beginning of March and am now in a state of mild panic! But at least it will force me to do more study (I find it difficult to study if I don't have a deadline).

Good luck to anyone else sitting exams soon

icy

Good luck with the exams. I think the 1 week gap between Cefa 3 and 4 is about right.

welsbyc

I would advise against working for a bank. This is not advice, and is just sales. Whilst you learn about completing a factfind and making recommendations (from a very limited range) you would be better off trying to get into an IFA firm somewhere rather than wasting time with a bank (I've been there, done that, wouldn't do it again). Working for a bank is very demoralising.

As you don't have any industry experience, you may find that you need to get into a company at a different level. I changed career years ago from IT into Financial Services and started working in the support dept.... this meant a massive paycut but I learnt quickly and moved up the ladder quickly.

I notice you don't mention CF5. Do you plan to sit this any time soon?

Catriona.

dunstonh

I would advise against working for a bank. This is not advice, and is just sales. Whilst you learn about completing a factfind and making recommendations (from a very limited range) you would be better off trying to get into an IFA firm somewhere rather than wasting time with a bank (I've been there, done that, wouldn't do it again). Working for a bank is very demoralising.

No-one would say working for a bank is good or ideal (unless they have got to the point of being brainwashed, which does happen). However, the banks do give you the chance to be paid whilst you get qualified and learn the basics with 10-15 products.

Going straight to IFA is very hard work and many people cant handle it. I have known tied agents who couldnt handle the move and went back.

Its a case of either jumping in at the deep end or doing time and suffering at a bank but realising that its probably doing you a lot of good.

welsbyc

I guess it depends very much on the type of person you are. Some people would prefer the easier route of starting with a bank and learning the basics (although you won't get much beyond that), whereas others (especially career changers with a vast amount of business experience) would prefer to "get on with it" and be thrown in at the deep end. I think it's true to say that not all bank 'advisers' could cut it as IFAs as you arguably need to be more 'on the ball' as an IFA.

Like I said in my previous post, I personally believe the best way for someone who wants to "get on with it" is to take a lower position in an IFA firm, prove their intelligence and worth and move up the ladder quickly to become an IFA.

Catriona.

dunstonh wrote: »

No-one would say working for a bank is good or ideal (unless they have got to the point of being brainwashed, which does happen). However, the banks do give you the chance to be paid whilst you get qualified and learn the basics with 10-15 products.

Going straight to IFA is very hard work and many people cant handle it. I have known tied agents who couldnt handle the move and went back.

Its a case of either jumping in at the deep end or doing time and suffering at a bank but realising that its probably doing you a lot of good.

lcharm

The way i'm currently doing it is I got a package deal with a financial services network where I train and get new permissions. I'm currently a protection consultant with them now, next month i'll have my CeMAPs and permissions to advise mortgages and i'll also be licensed to write wills. Then equity release and business protection and during the period while trading i'll also be training for my CeFAs and the DipFA which will take me into early next year. I'm enjoying going out and hunting for business and getting experience consulting people and once i get permission to deal with financial advise i'll have a full array of profit centres I can work with or specialise in.

I agree it's the deep end route but I'd much prefer to get started developing my business and client base now than to do it for a bank where i can only offer their products and make profits for them!!

dunstonh

I have seen tied agents fail because they couldnt cope. Can you imagine how they would have been as IFAs? I think you have to be honest with yourself and also have the personality and confidence to pull it off.

Re networks; they are not all the same. My network will not consider taking on advisers who are not qualified or had competent adviser status and a minimum of 12 months experience. They can join another firm but they cannot start their own firm.

The term network has become very muddied in recent years. So many different models exist now.

lcharm

dunstonh wrote: »

I have seen tied agents fail because they couldnt cope. Can you imagine how they would have been as IFAs? I think you have to be honest with yourself and also have the personality and confidence to pull it off.
.

Exactly!! Tied agents are just sales people because they can only offer products from a specific provider so no doubt they would have failed because their job doesn't really involve proper consultation and advise.

The firm I've joined takes you on as a Registered individual and after you submit a certain number of successful cases they'll assist you and help you progress to AR status but they don't penalise you for lack of experience, alternatively they will train you up and assess you competence regularly through supervised field visits until your no longer high risk but this is all at a cost (which is reasonable). They deal with all the compliance, money laundering etc... that the FSA require and privide you access to the whole of market for most products. I think they are one of the few, if not, the only FS network that do this at the moment.

sons_2

dunstonh wrote: »

No-one would say working for a bank is good or ideal (unless they have got to the point of being brainwashed, which does happen). However, the banks do give you the chance to be paid whilst you get qualified and learn the basics with 10-15 products.

Going straight to IFA is very hard work and many people cant handle it. I have known tied agents who couldnt handle the move and went back.

Its a case of either jumping in at the deep end or doing time and suffering at a bank but realising that its probably doing you a lot of good.

I think your right, this is a good way for advisers to start and I don't think people should write it off or say working for an IFA is better, this is how I started and I'm glad I did it that way.