Stressed Accountant!! Pension Advice Please

Footsie_2

There are plenty of IFAs who have no idea about their industry. I specialise in researching pensions and investments for IFAs who sell their wares with no formal qualifications themselves. Having the title doesn't mean you actually KNOW anything. And, as steve says, there are different kind of accounts, someone who works in corporate taxation won't know a damn thing about pensions and quite frankly, who'd want to?!

Hope you're not frightened away Steve, we're an ok bunch really!

Retired_I.F.A.

Footsie wrote: »

There are plenty of IFAs who have no idea about their industry. I specialise in researching pensions and investments for IFAs who sell their wares with no formal qualifications themselves.

That's bull.
Every I.F.A. in the country has to have passed the relevent exams required in law otherwise they cannot advise on or sell any investment/pension plan.

Any idiot can be a specialist researcher of pensions and investments even one who does not know what an I.F.A. is.

Footsie_2

Excuse me Retired IFA but it is not bull at all.

Every IFA in the country may have passed an exam to say they can call themselves an IFA but that does not mean they hold specific qualifications, such as G60 for pensions. And then they need to use the services of a network.

And I'm not saying it's the vast majority but I speak to a LOT of IFA's with no industry knowledge, they literally sit their CFP exams and set up shop at home and then try to sell pensions.

Today alone I have had a call from a woman who didn't know she needed to a fact find (FPQ) when she sees a client and a man who asked for a "standard Reason Why Letter to transfer a client's pension to Canada Life as the commission is mint at the moment".

Retired_I.F.A.

The FPC though is a specific/ formal / qualification and G60 is merely a higher one required by one IFA in a practice or network in order to 'sign off' final salary schemes transfers. You dont just pay for the title as your post imo implied (you can be snobby enough to pay for the letters after your name though if you've passed)

Ok FPC is pretty basic and the level will be risen but it's an adequate level in order that one who has passed it is judged competent enough to give sound advice for the majority and know when to say this is beyond me I need to pass you on to someone more qualified.

As you point out though there's cowboys in every occupation. If you are working in a research dept of a network I imagine you speak to the newbies, the trainees and the IFA's assistants more than you do the IFA's themselves and their lack of knowledge may be diminishing you view of IFA's as a whole.

dunstonh

There are a number of low skilled advisers out there. It would be impossible to say otherwise. There are also a lot of highly skilled advisers out there as well.

The lower end is best suited to replace the old home service. Problem is many of them dont know their own limitations and when they see a higher net worth client they try and do the same thing that may be fine for a small £5-£25k investment but isnt good for a £100k plus.

I am looking forward to the RDR and hope the FSA dont water it down too much as I think it will create a distinction between IFAs with higher qualifications and experience and the rest. At the moment it is hard to tell if you dont know the signs to look out for.

Footsie_2

Retired_I.F.A. wrote: »

As you point out though there's cowboys in every occupation. If you are working in a research dept of a network I imagine you speak to the newbies, the trainees and the IFA's assistants more than you do the IFA's themselves and their lack of knowledge may be diminishing you view of IFA's as a whole.

Retired IFA, sadly I don't speak to hardly ANY administrators or paraplanners I actually speak to IFAs the majority of the time. I will admit that the IFAs that I speak to do not represent the majority of the industry but there are plenty of IFAs who really should not be seeing clients at all. I often speak to IFAs with supposedly years of experience who really don't know the most basic thing about pensions or investments and sometimes, more frighteningly, basic financial requirements such as money laundering and risk / financial planning questionnaire needs.

I'm well aware that there ARE professional and knowledgeable IFAs out there, I've worked for a lot of them. But I think IFAs are not aware of the huge numbers of bad IFAs who are ruining the reputation of the industry. The FSA needs to regulate the industry in a different way to ensure that these "rogue IFAs" are either trained adequatley or stopped altogether.

dunstonh

The FSA needs to regulate the industry in a different way to ensure that these "rogue IFAs" are either trained adequatley or stopped altogether.

If the FSA go through with the RDR proposals then it should do the job. Higher minimum qualifications for IFAs with the Diploma being the minimum instead of certificate. Tied agents (primary advice) will require the certificate. And removal of the ability to use the term adviser from all tied agents. These two actions will go a long way to show a clear split.

At the moment, it is too easy for a tied rep to become an IFA and still operate tied rep style.

I think IFAs are not aware of the huge numbers of bad IFAs who are ruining the reputation of the industry.

When you go to meetings, I tend to find that there are a handful of advisers who just havent got a clue. They should have retired years ago. The majority of the remainder are fine. One thing I just realised is that most of the "salesforce" style advisers never go to those meetings (noted as we have a couple of regional salesforce firms in our area and you never see anyone from them). I believe the salesforce does the most damage with its league tables, sales managers putting pressure on and incentives to do well (or get sacked if you dont).

stevetj

Footsie - thanks for the backup!!! -- I actually find it most amusing that most of the above have lost sight of the foundation question!!!!! The use of the words "Stressed" and "Confused" was only trying to add a little humour into the equation - Perhaps too much humour for some people!!!!