Financial Adviser or Independent Financial Adviser-IFA

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dunstonh

1) In which of both I can find more job offers?
2) Which is the one that gives the most financial advices to clients?
3) Is it possible to receive a constant income -monthly salary, for instance- as an IFA working for an IFA company?
4) Is it true that working shifts as an IFA are as not smooth as described- nights and weekends and travel to meet clients in their own homes-?
5) As an IFA can I work at the same time -in the same company- with other IFAs in charge of Pensions, Investments, mortgages, equity release and insurance areas to broaden my network?
6) Is it necessary to choose from the beginning the area of one’s work for the long term -Pensions, Investments, mortgages, equity release, insurance, retirement-? Or is it possible to choose one at the beginning and then change to another area -Pensions, Investments, mortgages, equity release or insurance- in the same company or move to another company that works with another area? Will that damage my income or the progress of my professional career?
7) Is it possible to work as an IFA in a company where you can learn of pensions, Investments, mortgages, equity release, general insurance and retirement and all of them at that same company?

1 - IFA is more complicated and IFA firms tend to want to take on experienced advisers. An IFA is typically something you become later in the career path. FAs are where you tend to start. However, since RDR, the more common career path is mortgage advice and then moving up.
2 - It has changed over the years. There was once over 300,000 insurance agents, FAs, IFAs. Now just over 20,000. There is no official number but it is believed that IFAs outnumber FAs. IFAs have the greater distribution.
3 - Salary only is a rare model. Most remuneration models see the IFA being paid x% of their fee income. No fee income = no pay. There is often a standing monthly charge too.
4 - Not sure what you mean by shifts. Flexible working is common. Established IFAs rarely do evening appointment but FAs/IFAs starting out wont have the luxury if they want to earn money. Working evenings in office is common. I didnt finish until 10:30 last night.
5 - an IFA cannot be restricted in the business area. However, mortgages and insurance have their own classification. Not many IFAs do mortgages. Although most IFA firms have mortgage advisers on the books.
6 - If you do mortgages and insurance only it would be daft to be an IFA. The costs and requirements of being an IFA are far higher. You would be better being a mortgage adviser. You tend to find newer advisers do everything (through necessity) and as you move on in your career you stop doing mortgages/insurance. I went to a meet with other IFAs earlier in the year and they brought in an insurance company employee to have a segment on insurance focusing on mortgages/household. When asked for a hands up who does insurance, not one IFA in the room did it.
7 - yes. Although you are taking on a lot at once. Hence why the mortgage/insurance only route to begin with it common.

System

dunstonh wrote: »

1 - IFA is more complicated and IFA firms tend to want to take on experienced advisers. An IFA is typically something you become later in the career path. FAs are where you tend to start. However, since RDR, the more common career path is mortgage advice and then moving up.
2 - It has changed over the years. There was once over 300,000 insurance agents, FAs, IFAs. Now just over 20,000. There is no official number but it is believed that IFAs outnumber FAs. IFAs have the greater distribution.
3 - Salary only is a rare model. Most remuneration models see the IFA being paid x% of their fee income. No fee income = no pay. There is often a standing monthly charge too.
4 - Not sure what you mean by shifts. Flexible working is common. Established IFAs rarely do evening appointment but FAs/IFAs starting out wont have the luxury if they want to earn money. Working evenings in office is common. I didnt finish until 10:30 last night.
5 - an IFA cannot be restricted in the business area. However, mortgages and insurance have their own classification. Not many IFAs do mortgages. Although most IFA firms have mortgage advisers on the books.
6 - If you do mortgages and insurance only it would be daft to be an IFA. The costs and requirements of being an IFA are far higher. You would be better being a mortgage adviser. You tend to find newer advisers do everything (through necessity) and as you move on in your career you stop doing mortgages/insurance. I went to a meet with other IFAs earlier in the year and they brought in an insurance company employee to have a segment on insurance focusing on mortgages/household. When asked for a hands up who does insurance, not one IFA in the room did it.
7 - yes. Although you are taking on a lot at once. Hence why the mortgage/insurance only route to begin with it common.

Hi dunstonh!
Thanks for your answers, much appreciate it.
I am doing some more research based on your answers to facilitate my proper decision making when choosing this new career path, and I would be very grateful if you would give me some more answers when I come back later on.
Thanks in advance and Merry Christmas.

wjr4

What about starting as a paraplanner? Also, you could be an employed IFA? I’m lucky because we are an established company so normal 9-5 hours for me and no visiting clients, they come to see us!

System

rjw4 wrote: »

What about starting as a paraplanner? Also, you could be an employed IFA? I’m lucky because we are an established company so normal 9-5 hours for me and no visiting clients, they come to see us!

Hi, I was reading about starting as Paraplanner, but not idea is that could lead me to be an IFA in the medium-long term (within 3 years, for example)

wjr4

mariana_m86 wrote: »

Hi, I was reading about starting as Paraplanner, but not idea is that could lead me to be an IFA in the medium-long term (within 3 years, for example)

You really need the experience of the financial industry though before you become an IFA - do you have any at all?

I started as an office assistant 5 years ago (age 20), completed two certificate level exams in a year, became a paraplanner within 18 months and qualified as an IFA last year (age 24). The IFA exams took me 2 years to complete as I wanted a life as well. Personally, I'd recommend starting at the bottom as you appreciate everything that goes on behind the scenes - unless you already have experience in the industry.

System

rjw4 wrote: »

You really need the experience of the financial industry though before you become an IFA - do you have any at all?

I started as an office assistant 5 years ago (age 20), completed two certificate level exams in a year, became a paraplanner within 18 months and qualified as an IFA last year (age 24). The IFA exams took me 2 years to complete as I wanted a life as well. Personally, I'd recommend starting at the bottom as you appreciate everything that goes on behind the scenes - unless you already have experience in the industry.

Hi rjw4!
Thanks for your answers,

Yes, I know I need the experience in the financial industry (which I haven't got yet, that's why I am here asking ), every IFA's job offer I read on Linkedin, Indeed, Total jobjs, CV library, etc, says it's essential for the IFA to have got experience- at least 1 year.

What I didn't know is how to get that experience, through what way to start- being Paraplanner? Being FA? Being mortgage or insurance or pension adviser? So I know now I can start by being paraplanner.

But I still got the doubt if being paraplanner at the beginning is better than being, for example, mortgage or insurance adviser in terms of money (expenses on qualifications) and time (path that remains to be walked until being an IFA).

Well, as you were kind answering my question, I have got some more, would you please help me with them?

1) When you say "completed two certificate level exams in a year"
What two certificates did you get?

2) I am now choosing among these four qualifications in order to be an IFA, but I haven't got a clue on which one is better in terms of money (expenses) and time (How long does it take to complete them)
• CII Level 4 Diploma in Regulated Financial Planning
• CFA UK Level 4 Investment Management Certificate
• LIBF (formerly IFS) Level 4 Diploma for Financial Advisers
• SQA/Calibrand Level 4 Diploma in Professional Financial Advice

(I know the second one-IMC/CFA- is not RDR compliant)

3) Can an IFA operate as a whole-of-market adviser? (This means that they research and gain in-depth knowledge of the entire range of products available on the market for specific purposes. They will then provide their clients with their recommendations for the most suitable product out there for them which will help them best achieve their financial goals. They’ll also get commission from the providers based on their recommendations which result in sales.)

4) Being an IFA, in which area or specialisation is better to work in terms of income for the IFA professional-Pensions? Investments? Retirement income products such as annuities? Mortgages? Equity release? Insurance?
Am I guessing properly if I think of Mortgages, Equity release and Insurance are far better because IFAs can be paid commissions on them?

Thanks in advance for your answers.

wjr4

mariana_m86 wrote: »

Hi rjw4!
Thanks for your answers,

Yes, I know I need the experience in the financial industry (which I haven't got yet, that's why I am here asking ), every IFA's job offer I read on Linkedin, Indeed, Total jobjs, CV library, etc, says it's essential for the IFA to have got experience- at least 1 year.

What I didn't know is how to get that experience, through what way to start- being Paraplanner? Being FA? Being mortgage or insurance or pension adviser? So I know now I can start by being paraplanner.

But I still got the doubt if being paraplanner at the beginning is better than being, for example, mortgage or insurance adviser in terms of money (expenses on qualifications) and time (path that remains to be walked until being an IFA).

Well, as you were kind answering my question, I have got some more, would you please help me with them?

1) When you say "completed two certificate level exams in a year"
What two certificates did you get?

2) I am now choosing among these four qualifications in order to be an IFA, but I haven't got a clue on which one is better in terms of money (expenses) and time (How long does it take to complete them)
• CII Level 4 Diploma in Regulated Financial Planning
• CFA UK Level 4 Investment Management Certificate
• LIBF (formerly IFS) Level 4 Diploma for Financial Advisers
• SQA/Calibrand Level 4 Diploma in Professional Financial Advice

(I know the second one-IMC/CFA- is not RDR compliant)

3) Can an IFA operate as a whole-of-market adviser? (This means that they research and gain in-depth knowledge of the entire range of products available on the market for specific purposes. They will then provide their clients with their recommendations for the most suitable product out there for them which will help them best achieve their financial goals. They’ll also get commission from the providers based on their recommendations which result in sales.)

4) Being an IFA, in which area or specialisation is better to work in terms of income for the IFA professional-Pensions? Investments? Retirement income products such as annuities? Mortgages? Equity release? Insurance?
Am I guessing properly if I think of Mortgages, Equity release and Insurance are far better because IFAs can be paid commissions on them?

Thanks in advance for your answers.

You will struggle with any job because you also need experience to become a paraplanner. Maybe start as an IFA administrator?

1) CF1 & FA2, Award in Financial Administration - CII
2) DipPFS - Diploma in Regulated Financial Planning
3) An IFA views the whole market and is not restricted in any way. You only receive commission for mortgages/protection products (I am not a mortgage adviser). You receive fees for everything else.
4) Being an IFA means you need to know everything. If you want to specialise in mortgages/protection because of the commission become a mortgage adviser. I don't advise on mortgages but I understand them. I specialise in pensions and retirement planning but I am not a pension transfer specialist YET - working on.

System

rjw4 wrote: »

You will struggle with any job because you also need experience to become a paraplanner. Maybe start as an IFA administrator?

1) CF1 & FA2, Award in Financial Administration - CII
2) DipPFS - Diploma in Regulated Financial Planning
3) An IFA views the whole market and is not restricted in any way. You only receive commission for mortgages/protection products (I am not a mortgage adviser). You receive fees for everything else.
4) Being an IFA means you need to know everything. If you want to specialise in mortgages/protection because of the commission become a mortgage adviser. I don't advise on mortgages but I understand them. I specialise in pensions and retirement planning but I am not a pension transfer specialist YET - working on.

Thanks again rjw4!
Much appreciated!
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