CeFA

kinglewis

Is it fair to say that all IFAs do mortgages?

The reason I ask is that I would imagine this would be a very good way to meet more clients who might then go on to use you for other aspects of financial advice... as people are more likely to initially trust you to find them a good mortgage before they trust you with advice on their life savings???

One would think that it would be tough to acquire clients to start withas they have to trust you with ALL aspects of their financial lives. Without recommendations this must be an uphill struggle!

dunstonh

Is it fair to say that all IFAs do mortgages?

Not any more. Most dont. Its part of the progression that most will to start with but as they become established and perhaps specialise, the mortgages get dropped. I havent done a mortgage in the last 13 years. However, I employ mortgage advisers to do that. That is the most common IFA business model as it keeps it in house but allows the two roles to be handled by people focused on those areas rather than a jack of all trades, master of none.

I went to a meeting recently in Norwich where a number of other IFAs were present and there were a few speakers present. One was a home insurance provider. When he came up to do his presentation, every IFA there left the room as none of us did mortgages.

Mortgage regulation and costs are a lot lower than IFAs. So, if you are spending most of your time doing mortgages, then why pay all that extra for it?

However, when starting out, you will need every opportunity you can get.

sanj13

Hi guys, this forum is a great help to me as i can't find any decent info !! Wonder if any of you guys can help,

I am thinking of a career change and am interested in becoming an IFA. Firstly which route is better, Cefa or CFP ?, secondly having no experience and wanting to set up my own business, would i be able to go into the industry and work as an IFA after passing my exams or do i need some on the job training i.e shadowing ?.

At the moment i can't afford to give up my day job and what i want to do is to do this after my work hours e.g. weekends or after work.

Any help would be most appreciated.

dunstonh

Firstly which route is better, Cefa or CFP ?,

much the same but personally I prefer the CII as you get used to their exam techniques and they are the only ones that do the higher level exams at the moment.

secondly having no experience and wanting to set up my own business, would i be able to go into the industry and work as an IFA after passing my exams or do i need some on the job training i.e shadowing ?.

You will not be able to set up your own business as an inexperienced adviser who has never held competent adviser status. You may find the odd network who may consider you under a higher level of supervision but i would doubt it.

At the moment i can't afford to give up my day job and what i want to do is to do this after my work hours e.g. weekends or after work.

There are three mortgage exams if you want to do mortgages.5 to get the certificate level which allows you to become a trainee and work under supervision. Then another 4 to get to level 4. Each exam has around 60-100 hours learning time.

sanj13

Thanks Dunstonh for the quick reply, it looks like i will need to work under someone or company before i can branch out.

Do you know if it's possible to train with someone via weekends or after hours ?

dunstonh

sanj13 wrote: »

Thanks Dunstonh for the quick reply, it looks like i will need to work under someone or company before i can branch out.

Do you know if it's possible to train with someone via weekends or after hours ?

Its possible. However, I doubt any IFA is going to do that for nothing and many dont work weekends in an office (although many do continue work at home).

If you were to get the mortgage side yourself (which is fairly easy) then you may find firms willing to take you on as a mortgage adviser who introduces other business to them and you can then learn the investment class business on the job.

sanj13

Thanks Dunstonh, might have to go through the mortgage route.

Many thanks