Independent Financial Advice - Recommendations

[Deleted User]

Prism wrote: »

To be fair, you don't need to be hugely qualified to provide financial advise or accountancy. .

Bookkeeping - no, but accounting really does require education and experience. Not for simple returns, but for businesses there are a lot of subtleties and knowledge of what the state and auditors would accept. It’s a fact that accountants have to graduate and work under supervision before they are qualified.

Prism

Deleted_User wrote: »

Agreed. They are. However accountants, lawyers, doctors and vets also have to study for years, have experience of working under supervision. You can’t start operating on people or dogs by a bit of self-education.

I guess on that measure many people have to sell themselves or their business to some degree. However it seems to me that those particular professions are rewarded by a considerably higher salary for their years of study. I don't get the feeling that a typical IFAs is in that same category whatever we feel about their charging methods. You would need an awful lot of millions under advice before that 0.5% charge turns into cash in someone's pocket.

dunstonh

Prism wrote: »

I guess on that measure many people have to sell themselves or their business to some degree. However it seems to me that those particular professions are rewarded by a considerably higher salary for their years of study. I don't get the feeling that a typical IFAs is in that same category whatever we feel about their charging methods. You would need an awful lot of millions under advice before that 0.5% charge turns into cash in someone's pocket.

We have recently taken on a new young employee who will be on a 6 year plan to become qualified. Earnings will be way below the national average for nearly all of that period. She will also be studying beyond that for chartered status. So, it will probably be 10 years studying and learning. And we all have CPD beyond that as things are continuously changing.

As an employer, we will suffer higher costs for a lot more of that period. Licences for software, supervision, monitoring and more frequent file checks, especially until compentent status has been granted. And for much of that period, there will be little extra income for us.