Route to becoming an IFA

fforsythuk

Hi,

Please can anyone advise the route needed to take to become an IFA??

I hold a BSc degree in Maths and Finance obtained in 2003.

Employment history has been in accountancy and tax but no formal qualifications achieved.

I'm currently on maternity leave and won't be returning to work. I wanted to take the opportunity to re-train/take exams etc over the next couple of years...

Thanks!

ACG

You need to pass the Diplima in financial planning:
http://www.cii.co.uk/qualifications/diploma-in-financial-planning-qualification/
or
http://institute.ifslearning.ac.uk/Qualifications/QualificationsinFinancialAdvice/DipFA.aspx

fforsythuk

That's great, thanks!

dunstonh

Also worth noting that you have posted this in the mortgage section. Most IFAs do not do mortgages. They employ mortgage advisers or refer to mortgage advisers. So, are you looking at being a mortgage adviser rather than an IFA or will you try and do both?

fforsythuk

I've recently seen an IFA to sort out a mortgage at our local estate agent.

My query, I guess, was more around how to start a career in this area. I was under the impression though that they were IFAs and qualified to advise in multiple areas.

Is there a distinct difference between a mortgage advisor and an IFA then???

fforsythuk

Also, I'd be quite happy doing whatever qualifications will give me the greatest scope and opportunity...

dunstonh

I've recently seen an IFA to sort out a mortgage at our local estate agent.

That is very unusual for multiple reasons.

1 - Most estate agents use a tied agent (of the insurer).
2 - Most estage agents use only mortgage advisers
3 - It would be a terrible waste of money to be an IFA working out of an estate agent

I do know some small independent estate agents will have local relationships with IFAs but the scenario you describe is rare apart from those.

I was under the impression though that they were IFAs and qualified to advise in multiple areas.

IFAs can take their IFA hat off and put a mortgage adviser hat on. However, mortgages have their own set of qualifications. They have their own regulatory requirements and their own set of costs on the levies. IFA costs are significantly higher than mortgage advisers. The levies, for example, have different blocks. Insurance, investment, pensions, mortgages. Software for mortgages is cheaper than investment. PI insurance is cheaper on mortgages too.

I gave up mortgages in the late 90s. It was unrealistic to keep up-to-date with the mortgage side and the investment/planning side and I felt you couldnt be a Jack of all trades. It is a little easier for tied agents/restricted to do both as they are limited by product and investment and dont have to retain knowledge in a whole range of areas.