FSA Approval with a criminal record

Bonam25

Hello,

I'm ashamed to say that I was convicted of assault back in early 2003, and was sentenced to 6 months in prison. 8 years on and having tried to put my life back together as best I can, I'm now thinking of pursuing a career in financial advice. Actually, I'm about half way through the CII Diploma in Regulated Financial Planning. However, I've just discovered that the FSA requires disclosure of all criminal convictions-spent & unspent.

Does anybody know if the FSA is likely to approve me? And, has anybody had experience of trying to find work in the financial advice sector with a criminal record?

To be frank, this is 'worrying me to death'. When I was convicted back in 2003 I was a secondary school teacher, and subsequently left the profession because I knew that even if I was permitted to continue teaching, the conviction would remain a major 'blot on my copy book'. (I should point out that the violent incident concerned was drink related and nothing to do with school or children.) I desperately wanted to move forward and try to put things, as much as possible, behind me, so I left teaching. After doing 'bits & pieces' for the last 8 years, I've now found something that I really want to do, but this realisation that my past could stand in my way once again, has completely demoralised me.

Any information and/or advice that you could give me would be much appreciated
A.

jamesd

If you haven't done it yet, read the FSA leaflet about this.

jem16

Has anything changed since you last posted about exactly the same thing in November and were advised then to contact the FSA?

https://forums.moneysavingexpert.com/discussion/comment/48790577#Comment_48790577

The FSA are the only people who can help so contact them.

Bonam25

Sorry for repeating myself. I did contact the FSA and the person I spoke to said pretty much what I expected... that each case is assessed on an individual basis, that a criminal record does not automatically mean refusal, that openness in communication with the FSA is vital, ..., but that they can make no promises prior to an actual application for approval.

I was wondering if anybody out there has been in this situation? Have you applied for approval with a criminal record? Or, do you know anybody that has? If so, I'd really like to hear about your experiences. Cheers, A

atush

It wont change your outcome if anyone here has had this problem or not, as the FSA said all cases are handled individually.

given the time and effort you have put into getting into this field, I would get your paperwork in order. Get as many references from upstanding citizens (professionals esp) you can, and perhaps get an employment lawyer to help you draft your case. And take it all to the FSA. Even get a reference frm a firm willing to take you on if you get the qualifications.

Good luck.

And let this be a salutory lesson to avoid putting in time and effort on qualifications until after you have investigated such possibilities. This reminds me of those who book FL holidays not knowing they will need a VISA for the same reason.

dunstonh

I dont want to cause additional concern but it isnt just the FSA you will need to persuade. As a new adviser who has never held competent adviser status, you will not be able to work under your own company. You will be required to join an existing company as an employee or self employed but attached. Either way, that will mean that company will need to be aware of this and will need to decide if they want to take you on or not.

It is hard enough for new advisers to get employed nowadays. The banks have stopped offering jobs like they did. The tied salesforces hardly exist nowadays and IFAs tend to look for experience or something you can bring to the party. You are going to need something pretty special to bring to the party to make a prospective employer consider you. Many will reject you outright due a nil tolerance stand. Others may be sympathetic. You may want to try local employers to see what their views are.

Bonam25

Hi, thanks for your comments. Yes, this has also been playing on my mind-the fact that not only will I have to persuade the FSA that I'm 'fit & proper', but also an employer. It would probably be a good idea to give up on my dream of working in financial services and to try to pursue a career where I can leave my 'past' behind me. 'Financial advice' does really interest me though, and I don't want to give up too easily.

Your comments about the job market really interested me. I must admit that I know very little about it. As I wrote in my initial post, I'm about half way through the CII Diploma in Regulated Financial Planning, and am really enjoying it, but I don't know much about the array of job opportunities, or lack of, that exist for people with this qualification. Are things really that tough? Are jobs for 'new' entrants into the sector that hard to come by? And, what are the options for someone with the diploma starting out? Any info/advice would be very much appreciated.

Thanks a lot,

A.

dunstonh wrote: »

I dont want to cause additional concern but it isnt just the FSA you will need to persuade. As a new adviser who has never held competent adviser status, you will not be able to work under your own company. You will be required to join an existing company as an employee or self employed but attached. Either way, that will mean that company will need to be aware of this and will need to decide if they want to take you on or not.

It is hard enough for new advisers to get employed nowadays. The banks have stopped offering jobs like they did. The tied salesforces hardly exist nowadays and IFAs tend to look for experience or something you can bring to the party. You are going to need something pretty special to bring to the party to make a prospective employer consider you. Many will reject you outright due a nil tolerance stand. Others may be sympathetic. You may want to try local employers to see what their views are.

atush

Who are you studying this thru? Can you ask them for advice?

I might try visiting local firms and find out if they are hiring and it they would look at someone such as yourself.

dunstonh

Are things really that tough? Are jobs for 'new' entrants into the sector that hard to come by? And, what are the options for someone with the diploma starting out?

Over half of new advisers leave the industry within the first two years. Usually in debt. Most common reason for failure is lack of clients. An experienced adviser will build up a client bank over time. A new adviser has nothing and has to build up one from scratch. How would you do that?

The earnings are that the top 20% will earn 80% of the money. If you are in that top 20% then you will do very well. If you are in that 80% it will be harder.

Around 1/3rd of IFAs/FAs are expected to give up their investment level authorisations in the next 12 months. Most will drop to mortgage/insurance and become introducers. So, the mortgage/insurance side is likely to see an oversupply of advisers whilst the investment side sees a shortfall.

The salesforces barely exist now and banks dont appear to be recruiting without experience. Some banks have pulled out altogether. The old career path that you would move up the ladder by starting as an agent of an insurer or a bank and aiming to be an IFA later in life has gone. More commonly now, new recruits have to start as mortgage advisers and learn the investment side on the job and pay for it out of their own money. Going straight to IFA is difficult. Passing the exams is one thing. It will take another few years before a lot of what you learnt actually falls into place. You also have to learn that what you were taught in "generic" terms is not the case in reality some of the time.

It used to be said that new recruits are better off with the banks as they could make their mistakes on bank customers who either wouldnt be able to tell mistakes were being made or if they did, the bank would pay to put it right and you would not be personally responsible (part of the reason why banks have so many complaints). So, many established firms are wary of taking on new recruits as it will often mean they are at risk of a greater liability for complaints or have to do a higher level of training. So, unless the new recruit offers them something to fit their needs, they usually turn away.

The other thing is the industry is in decline. in 2009, there were 29,000 advisers. 10 years ago there were over 100,000. it is still currently very much a cottage industry. However, it looks like it will end up following the way that solicitors and accountants have gone with consolidation of small local firms into fewer regional and national firms with very few local independent independents left.

Mortgage and insurance will mostly go the way of the internet. IFAs will not be interested in small cases (not cost effective) but will focus on medium to higher net worth where there is still plenty of work and need for advice. There may well be scope for volume business in the bottom end of the market for restricted advice and some providers are indicating they may get involved there. However, we have heard that before and nothing happened.

My opinion is that it is not a profession you would want to get into unless you are clear in what you will be doing and how you will be doing it (possible one is to look for a retiring IFA or one that wants to phase down who wants someone to service their book going forward leaving them to cherry pick)

GreenBee_2

So are you in the 80% or 20%? Ooh, isn't that a cheeky question!

dunstonh

GreenBee wrote: »

So are you in the 80% or 20%? Ooh, isn't that a cheeky question!

Lets just say that I am coming up to 20 years, RDR ready, an employer and currently undergoing an expansion. Couldnt get away posting on here like I do if I was in the 80%. Plus, would you really want to do nearly 20 years and not be in that position?