Self-employed financial advisor

[Mark81s]

I’m looking to take a new direction and was hoping some people on here had treaded the same path or near to it.

Becoming a self employed financial advisor.

I have been looking at the CISI/CII Level 4 Dipolma’s. Looking at past papers it looks to be within my ability.

I have been very interested in investing for nearly 20 years and find it all very interesting. Aside from the required qualifications I believe I have enough knowledge to provide a good service to people looking at drawing down on investments, how to invest inheritances, saving for retirement. finding the best all round products taking into account client attitude to risk, awareness of product fees etc.

Initially I would push for business based on an hourly rate, opposed to the AUM model. I believe that once explained concisely that people would see the advantages to this service.

I know some people would say jumping into the self employed game is a big jump without a client list. But I have been self employed my whole working life and being employed will never be for me.

If I stop my existing work I can sustainably draw an income from a buy to let and my stock market investments of around £14,000pa. This should help me out considerably in the first year or two.


The regulatory side of things seems to be a huge drag on resources. Are there many nucleus companies out there that sort all this out for you? Can anyone recommend a few as a starting point? Any other general remarks?


Many thanks. DM’s welcome

 

[tony84]

Get your exams under your belt and then you can look at how to get up and running.

As far as I am aware, you can not get commission any more for financial advice aside from insurance (I could be wrong on that though).

You would need to find a firm or network to take you on, you can then work towards CAS (competent adviser status). Financial advice is not really my bag so I am not the most experienced on this front, but there are some overlaps.

Forget what you know, you need to be able to justify your advice and document everything.

 

[Frank the Insurance guy]

One of the biggest issues for you is the regulation. Getting direct FCA authorisation is a long and tiresome process, taking at least 6 to 12 months!

I would suggest you look at being an Appointed Representative. There are plenty of authorised firms (principal firms) out there that are looking for new ARs. The benefit being that they look after compliance and regulation, give you access to relevant markets, leaving you to concentrate on building the business and looking after clients.

I would suggest engaging with a principal firm at an early stage as they are likely to offer advice and support on getting the business off the ground.

Good luck.