Does anyone here know how bankruptcy impacts on jobs within the Financial Sector?

FixitM

Hello. My husband was in insurance sales, and was told that if bankrupt he wouldn't be able to do those types of jobs. Does anyone know anything about this please? He's currently looking for a job, but wondering if he has to rule those jobs out, given that's where the majority of where his experience lies?

TIA.

AndyBSG

Officially, these are the roles you can't do while bankrupt

Charity trustee
Company director
Insolvency Practitioner
Justice of the Peace

However, for many other jobs bankruptcy will lead to termination/dismissal or membership licences which are required to carry out a role will be revoked

For example if you work in security you need an SIA licence who will revoke your licence... Apparently they don't like people with debt issues looking after money.

Likewise Solicitors, Police, Estate Agents, Financial Advisors, etc could all find the professional memberships required to do their jobs are revoked

As a former BR myself who works in the financial sector I can confirm that I found it VERY hard to get a job as a result of my BR.

This was despite the fact I was not working in an FCA 'Approved Person' role, handling cash or giving financial advice, I work in IT.

I'd say 50% of the roles I applied for rejected me immediately once aware of my BR even though there is no requirement to do so as part of BR legislation.

As a Financial product salesman I assume your husband will actually be advising people on what products to buy? If that is the case then the chances are that it will be a factor.

It has got a lot easier finding work now my 6 years are up and the BR no longer appears on my credit file as they have to specifically make not having been BR part of the terms of employment, which many companies don't, and also a lot are willing to accept discharged BR's once it is off the credit records.

bellaboo86

I previously worked for a building society and you had to pass a credit check to work there and had a credit check carried out once a year.

FixitM

I thought as much. He's applying for general sales at the moment, but is going to be upfront, which I doubt will help in finding something. Tank you for your replies.

dancingfairy

I don't think being bankrupt is an automatic bar from.financial roles but don't the FCA ( financial conduct authority) have a test to make sure you are a fit and proper person? Bankruptcy is certainly going to look bad and not help things. It may depend on the circstamces and how long ago the bankruptcy was.
Don't forget on top of any regulations that he has to meet, each company will have their own policies and procedures as well.
Does your husband have specific industry qualifications? Or belong to a regulated body? He can phone them and ask for advice.
Regards
Df

FixitM

Thank you. He has qualifications for Financial Advising and Mortgage Advising, but we know he can't do those. It's specifically insurance, as that was his field for the last 6 years or so. He's not bankrupt as yet, but needs to be as soon as he can raise the fee.

TheGardener

Public sector financial management and insurance and risk are not barred to BR's however, budget management at a high level may not be possible. Insurance within the public sector is one of the 'back office' functions that few people think about but they are a very busy team - everything from events in the park to fending off 3rd party claims for potholes and 'catching your coat on a bit of a twig on a footpath' ...yes really - and they happen every day...

[Deleted User]

When I emailed the FCA they replied with some crazily (useless) email that it was up to each organisation to decide.

Therefore you'd have to convince the bank/building society/firm etc to take you on. If they do, then (in theory) as long as you have no continuing problems, there should be no bar to FCA regulated roles.

Even though couldn't give a straight answer though, and looking at AndyBSG's post above, it's unlikely to be successful at the employer level.

I'm IT too - haven't tried to go back into Financial Services though!