IFA to restricted adviser

HappyHarry

Having spent many years as an employed Independent Financial Adviser (IFA), my employers have sold their business, and in three months' time I will become a Financial Adviser (FA).

For a long time I have told clients, prospective clients, posters on these boards, and indeed anyone who will listen that if they are going to trust anyone with their funds and future plans, they must make sure the person you are dealing with is an Independent Financial Adviser (IFA), and preferably a level 6 (Chartered) Financial Planner.

I now find myself in a position where I am obliged, by terms of my employment, to encourage my employer's clients to transfer from an Independent to a Restricted offering.

I cannot see any obvious benefits to the clients, and certainly none for me as I am not an owner of the business.

I am not keen on making myself intentionally unemployed with no income, which means there are going to be some interesting conversations over the next few months with clients and my employers.

In the meantime, my hunt for a new employer who still has their Independent status is under way.

This post is partly to let off steam, but partly to highlight that with the huge amount of consolidation taking place currently in the financial advice sector, people must be aware of the status of their advisers, Independent or otherwise, and that it can change over time.

eskbanker

I now find myself in a position where I am obliged, by terms of my employment, to encourage my employer's clients to transfer from an Independent to a Restricted offering.

I cannot see any obvious benefits to the clients…

An interesting but unwelcome dilemma I'm sure, but out of curiosity are you provided with any sort of script or template to use to support the encouraging?

QrizB

I can see how this is an unwelcome turn of events!

Best of luck with the job hunt, and thank you for all your contributions to the forum to date.

Keep_pedalling

Surely as an IFA you obligations to your clients best interests override any BS in your terms of employment?

Marcon

https://forums.moneysavingexpert.com/discussion/comment/82042820#Comment_82042820

You're missing the point - he won't be an IFA for much longer unless he finds a new employer.

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/82042826#Comment_82042826

I read it that this was a requirement for the next 3 months where the OP is an IFA.

barnstar2077

https://forums.moneysavingexpert.com/discussion/6673415/ifa-to-restricted-adviser

How old are you please? Is your own retirement on the horizon? If so, could you pivot into something else for the last few years?

dunstonh

One of my long-term friends has just sold up to a consolidator. He has to stay with them for another five years to maximise his exit remuneration. The changes that will happen for them won't be over one year. It'll just be a bit at a time in most cases.

1. Firstly, the back-office software
2. then the platform
3. then the investments

They won't be expected to change at all immediately.Although new business would expect it to go to their own branded platform and investments.

Do you have a window where it needs to be done over? I.e., if you do, then that will buy you some time.

Roger175

I find it concerning that this seems to be the trend. Given that the majority of people now find themselves with DC pensions and are expected to make their own provision for retirement, I would expect there to be a huge demand for Independent Financial Advice.

Having educated myself in financial matters and not having used an IFA for many years, I haven't been personally affected, but everything I read suggests proper independent advice is now hard to come by and relatively expensive unless you have a substantial portfolio.

In my view this is going to end in tears for a large number of people. Only yesterday, I was speaking to a relative (of my stepfather, so not close) and having told him I was now retired, we got talking about pensions. He fully admitted to being totally clueless and didn't understand a word I was talking about when I offered some broad suggestions, like the fact that he needs to locate all his old pensions and check if he's invested in the default funds etc. His eyes just glazed over and he said he would get some advice…but from where? He's not the sort likely to be capable of doing his own research and he is crying out for a basic review and a bit of help steering him in the right direction. He may strike lucky and find a decent FA, but he wont get impartial advice.

RogerPensionGuy

https://forums.moneysavingexpert.com/discussion/comment/82044619#Comment_82044619

Yes I also think lots of tears for lots of people.

Historically in the UK many people had generally good DB schemes and life was maybe a bit more simple.

One person working say 40 hours per week and maybe the other mostly the home~family person.

Maybe they purchased a house with a mortgage of between 2 to 3 times the salary of the person working and mortgage paid off by age 55ish.

No awkward university debts for anyone.

Woman got state pension at 60 and man 65 plus than nice DB topping up the spending pot.

********

Now is very very different and the present and future play won't be like it used to be for many.

We will see the state picking up much more of the tab for people that just don't have good provisions for later life.

*********

However life will carry on, house owners will be happy if house prices keep going up & up and we can all moan more & more that the younger than generations can't get good jobs, can't buy houses, can't fill pensions, but can pay rent and pay back university debts many of us never had.

It's a real mess unfortunately, it will be interesting how UK history looks back at the 2000 to 2040 zone of years.

NoMore

https://forums.moneysavingexpert.com/discussion/6673415/ifa-to-restricted-adviser

Any thought of just going it alone and taking your future employers clients with you, or is there a clause to prevent that ?