Advice on becoming a financial advisor?

[scrizzle]

Hi, I'm looking to take a course that possible allows me to become this in the future.

Im doing this for my own benefit whilst going college.

I want to learn about stocks, insurance, mortgages etc.

What the best way to go about doing a financial planning certificate?

Is it best to enroll with something such as cii.co.uk?

 

[Tunafish]

Do you actually want to be able to advise people on their finances in the future or are you mainly concerned with your own financial issues? You say it's for your own benefit so you could be better off learning yourself from various books etc. Obviously if you do want to advise others you will have to be qualified in some way I'm sure.

 

[Tunafish]

What are you studying in college btw? Does it tie in with finance in any way?

 

well methinks if a financial advisor were any good,why would he need clients.

Earl

 

[scrizzle]

What are you studying in college btw? Does it tie in with finance in any way?

Its something Ive had an interest in for a while. Trading stocks, investments etc. What I'm doing at college doesnt really tie with it [electronics and computing tech].

 

[Groovy Train]

Is anybody able to answer this question rather than questioning the motives?

I would also like to know what the steps are for a private indiviual to study to become an IFA...

Do you have to be affiliated to a firm?
How many exams are there to qualify?
How much would it cost?

I'm asking for a friend (long story) and have done a quick search on the net but not managed to come up with any straghtforward answers...

Thanks

 

[RED ARC]

I've been in the insurance/IFA sector for 20 years (only about a year as an actual IFA) and I'm afraid that like most professions there is an 'apprenticeship' to go through.

Most IFA's though self employed businessmen spend many years gaining the experience and qualifications to take on this role. Most initially work for insurers or banks learning the ropes. They then move into field sales often as a broker/IFA account manager. This gives them two important things - time/backing to take the relevent exams. Secondly they learn that they could probably do the job better than most IFA's that they work with. (Whether this is true is open to debate).

Couple of interesting points to add - the average age of IFA's in the UK is well over age 50 and increasing so the market definitely needs younger blood injecting.

To take the exams (and bear in mind I took mine 15 years or more ago when they were definitely easier) can take four or five years if you're working full time as well.

With reference to exams, as I understand the current situation to advise clients you'll need to take and pass the whole Financial Planning Certificate (FPC) a qualification run by the CII and if you want to advise on pensions the relevant pensions paper which is part of the Advanced (A)FPC.

AFPC and FPC are often required by employers looking at taking on advisers in the sector. You can then spend the rest of your life taking exams. For example I specialize on the healthcare side and took the general insurance equivalent of the AFPC called the Certificate of Insurance Practice which has two healthcare specialist papers and I also took the health and long term care AFPC paper. (I failed the pensions paper twice then gave up - it is a ***** of an exam !!!)

Hope this gives some insight

Phil

 

[Groovy Train]

Thanks for your reply Phil.

As mentioned this is not for myself, it is for a friend of mine who is retired and may be interested in studying and taking the exams NOT with a view to practising actively, hence my questions about costs and employment.

I appreciate that as a general rule, the more experienced the IFA the better qualified, but i think this would be undertaken more as a hobby maybe to prove something to himself.

Time is not necessarily an issue however format and costs probably are which is why i'm asking.

As you've recently qualified, can you suggest a budget on costs and also timescales and format of the exams... is this a feasible proposition? I'm guessing second hand tuition books can be purchased at a reasonable rate?

Thanks

(apologies to OP for hijacking the post!)

 

[lesliedocherty]

Groovy, you need to check the motives behind to give the right answer, more detail will give an answer more suited to his needs.

 

[Groovy Train]

I think the motives are for self fulfiment and to prove something to himself - nothing more sinister than that!

 

[Chris Ashdown]

The job is basically as a salesperson but under a fancy name

You just sell Insurance and Pensions to start with and possibly unit trusts, as such you will find that at the start you will go to people on apointments and sell them a package on which you get a small but re-occuring commision

 

[lesliedocherty]

No-one mentioned sinister, you seem to have picked this up wrong.

If its self fulfilment as opposed to giving people advice as a paid service then different rules apply.
Self fulfil needs no legal acreditation whereas giving paid financial advice requires it.

If he had given more info at the beginning then the relevant advice could have been given.

 

[Focused]

There are a number of sites worth looking at for learning material.

bpp.com
wizardlearning.com
cii.co.uk
ifslearning.ac.uk

A good source of information will obviously enhance knowledge but I like the observation currently doing the rounds - Knowledge is knowing that a tomato is a fruit but wisdom is knowing not to include one in the fruit bowl. It's like driving - you learn to drive after you've passed the test.

So far as qualifying as an IFA goes, expect a raising of the bar shortly. The FSA is looking at qualifications and a possible separation of "sales" and "advice", and quite rightly so. Some Advanced Financial Planning papers are likely to be a requirement for some advice processes.

I'm sorry that IFAs are seen by some as just sales people, but can understand why that is. There is a new breed of financial planner operating for fees and not commission and this might appeal to more people. Don't fall for "free advice" from a commission based IFA, you always pay one way or another.

Ian @ Focused Financial Planning

 

[Groovy Train]

I can't believe how difficult it is to get a straight answer out of you people!

 

I think the motives are for self fulfiment and to prove something to himself - nothing more sinister than that!

Psychologicaly thats a very ,very suspect motive particularly playing with other peoples money.

Earl

 

I can't believe how difficult it is to get a straight answer out of you people!

Well it may have something to do with financial advisors coming above lawyers in the popularity stakes.

Earl

 

[elaine@cheapaccounting]

I can't believe how difficult it is to get a straight answer out of you people!

What was the question again please

 

[Groovy Train]

I give up... you (collectively) obviously can't answer my question.
And by the way, earl, i can't see what you find so - if you're attempting irony then i think you've failed.... and if you're trying to be clever, then i'd just stick to the day job whatever that may be.

 

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[difenp]

Hello all. I would like to become a financial planner as first step into the financial sector. Unfortunately I made too many mistakes in life and at the age of 30 with no degree I decided to take this step. I am going to talk with a career adviser for a realistic view of my chances to get a first step into the industry for a small firm. I would like to receive from you an advice, since I hate to be a kind loser/dreamer that is still hanging to find his way, but sometime I believe it's important to face the reality as well.
Any advice it's very appreciated.