How to become an IFA

ThomasJames_2

I have had my CeMAP and been a whole of market mortgage adviser since 2006 and am looking into getting my investment qualifications. As I have done CeMAP1 already, the neatural course would be to take the further CeFA paper, but are you saying that next year this is going to be no good? Would it be better to do the CII's exams instead? ( As I believe having done CeMAP 1,2,3, I don't need to do CFP 1 or 6........)

dunstonh

but are you saying that next year this is going to be no good?

depends. If you are going to be a sales rep then you the CEFA or CII exams to certificate are fine. If you want to be an IFA, then the FSA have proposed that higher qualifications will be required and the current indications is the CII diploma level. The final announcement is in October to commence in 2009.

Would it be better to do the CII's exams instead? ( As I believe having done CeMAP 1,2,3, I don't need to do CFP 1 or 6........)

I dont know the CeFA ones very well. Only a small minority of people sit those versions. AFAIA, if you have the Cemap you still need to sit CF1-5 with the CII. If the CEFA papers have a mortgage version then you probably wont have to sit that but you should check,

ThomasJames_2

dunstonh wrote: »

depends. If you are going to be a sales rep then you the CEFA or CII exams to certificate are fine. If you want to be an IFA, then the FSA have proposed that higher qualifications will be required and the current indications is the CII diploma level. The final announcement is in October to commence in 2009.



I dont know the CeFA ones very well. Only a small minority of people sit those versions. AFAIA, if you have the Cemap you still need to sit CF1-5 with the CII. If the CEFA papers have a mortgage version then you probably wont have to sit that but you should check,

From what i was told CeMAP 1 is enough to not have to do CF1. CF6 is the mortgage paper, which you don't have to do either.

homer_j_3

I am just reading the CF2 study text at the moment. I am just in the middle of inflationary effects on various investments - how exciting eh!

You may have been told something incorrect Thomas and Dunston has openly admitted that he is not 100% certain so the best thing to do would be to contact the CII and ask. I have my FPC's but need to refresh and its a 6-7yrs since i did anything with them so I am now realising its more of a overhaul.

ThomasJames_2

homer_j wrote: »

I am just reading the CF2 study text at the moment. I am just in the middle of inflationary effects on various investments - how exciting eh!

You may have been told something incorrect Thomas and Dunston has openly admitted that he is not 100% certain so the best thing to do would be to contact the CII and ask. I have my FPC's but need to refresh and its a 6-7yrs since i did anything with them so I am now realising its more of a overhaul.

Just spoken to the CII, and I will need to do CF2, 3,4,5 , and they will want me to send them the original copy of my CeMAP certificate.

Still a bit confused as to which will be better? CeFA or CII ?

homer_j_3

CII in my opinion as they offer (again in my opinion) better options going forward, however, if it allows you to do the job at the end of the day, I guess it doesn't really matter which one you do as long as you are happy with the content and can pass the exams.

dunstonh

CII in my opinion. Over 90% of advisers out there sit the CII versions. Plus, the higher level exams are only currently offered by the CII so you may as well get used to the way they do things.

Graeme7777

Hi,

If one passes all of the compulsory study modules before looking for a trainee position, what sort of starting salary can one expect (in the south east)? And is there like to be a bonus on top of that?

Thanks!

dunstonh

mortgages maybe around 10-15k. 15-20k for salesforce employee. nil basic if self employed typically. Salary is often based on the assumption you will hit targets.

Rifleman

Sorry it's a late reply but I've only just noticed the thread.

I initially did my CeMAP and gave mortgage advice for 3 years (full advice and recommendation). The reason that I then took the CeFA exams and not CFP is that as I was already registered with the ifs and it seemed sensible to continue on that route. Employers by the way will not usually be at all fussed about which qualification you hold.

CeFA is the newer exam, FPC/CFP the old, so there'll always probably be a bit of a preference from older advisors for the older route, however CeFA is not a lesser qualification. They're both level 3 certificates. As for needing a diploma for RDR, it's been 2 years since the FSA launched the RDR and they've only just bought in the terms of reference! If however you do need a diploma/ further exam in the future you can be sure that the ifs will launch one, they are after all an educational body. As it stands at the moment though the FSA is only suggesting a further qualification to level 4, there's no mention at all of diplomas in the terms of reference.

What I will say is that if you do decide to get qualified then you should register with the ifs or CII, get the material sent out to you, and study when you're off duty, bored and fed up with sunbathing. 6 - 8 months is plenty of time to prepare yourself for the exams. Also do CeMAP & CeFA, not just one or the other as it will give you more scope and make you more attractive to employers. I'd also say that the best route for studying would be to do CeFA 1&2, then CeFA 3,4&5 or CeMAP 2&3. The reason for this is that you'll find CeFA 2 a hell of a lot easier streight after CeFA 1, whereas CeMAP 2 has nothing to do with CeMAP 1. (Remember CeMAP 1 & CeFA 1 are the same exam).

As for income. Mortgage advisor - £50- £60k ish if you work for a good sized company and you're good at your job. This is the route i'd advise, as you will need to aquire sales skills, working knowledge, and industry experience. Believe me, that job will definately get you those. Prepare for a shock when you initially start working with the general public! You could then move on to a company or bank as a financial advisor.

Hope this helps.