training to be an IFA

[wink1970]

DH would like to re-train, to be an IFA - which I support - but we're struggling to find out how to get started other than through a bank.

Does anyone know anything about this?

What does he do now?

I have worked in a number of IFA businesses over the years - not banks or large financial institutions but small businesses (don't currently though). Young people I know have worked their way up from admin roles through paraplanner (technical expert, writes reports but doesn't see clients) through to IFA, doing the exams as they go along. One man I know (now about 28) is fully qualified and has recently become a director of an IFA firm - he was once the admin boy who I had to tell off for constantly being late to work (makes me feel old!)

I have not personally come across someone who has joined a practice as a trainee IFA - it would be a risk to a small business I guess, as they wouldn't be paying their way for quite a while & most businesses need IFAs to be bringing in fees.

I think probably doing it through a larger institution might be one solution - they are more likely to be able to absorb training costs. However, I don't think many banks are offering much in the way of IFA type services, as they are no longer very lucrative apart from for super wealthy clients. It may be easier to get a support or related role, get some financial services experience (I'm assuming he has none, forgive me if I'm wrong), get networking and find a role through word of mouth.

Not sure that was helpful, but I can try and answer any questions you might have.

Thank you both. DH is a sales director in a design-led industry, so totally different. He's 50 and it's born from a recent note from our own IFA who is due to retire in about 5 years: DH wondered about approaching him to buy the business, working alongside him as he earns out and then going it alone. We haven't put this to the IFA yet, so it may be pie in the sky, but we're also open to him just starting up on his own somehow (so as you gather we're at planning stage).

DH has always wanted his own business again; he was self-employed for many years in his 20s, has lots of b2c sales experience and understands the market. I am a high earner and could easily support us both whilst he re-trains and it would potentially give a lifestyle change as it would mean moving back to his hometown, which we always intended to do when he retires (I can work from anywhere).

are we nuts?

The obvious person to ask is your IFA!
My dad did the qualifications to be a financial planner and he found the exams v tough (as a highly numerate graduate)

hi Chiara, yes that would make sense, but we're trying to scope out the idea here first without getting anyone excited. How long did your dad take to do all his exams? It seems to be around 2 years? (that's fine, we can fund that training period)

I've worked in loads of different firms. Some did take on trainees but the pay was very low.

And sometimes they just didn't get much training!

Quite a lot of exams to do.

The banks used to train people up but they don't so much any more and if didn't used to be such a nice environment.

If money isn't an issue I do think doing some kind of role in an IFA practice to get experience & work through exams might be the best way.

Working with the retiring IFA for a number of years first would be ideal, if he goes for it.

I'm mid career change to financial planner. I've done exams in my own time whilst getting work experience. My firm do take trainees (though they tend to take graduates) - even after the exams you need to get signed off by a more experienced planner (the regulated diploma is just the first step). There is a shortage of paraplanners though, so I'd recommend doing that for a bit - that's how trainees start in our firm. Then they do exams/finish them off whilst working. The exams for the diploma in some ways are easier (especially R06) when you are working and having experience.

And I've done R01-R05 in about 7 months. I'm taking a break before doing R06 in the spring I think.

IFA practices sell for healthy sums, so you need to make sure you can finance a drop in wages for a few years whilst he trains himself up, and then pay the outgoing IFA for his practice. Also, if the IFA is plodding away happily on his own, why would he want to take on & pay your OH as a trainee for a few years? There's no shortage of other qualified IFAs and bigger firms of financial advisors who'd buy the business once your IFA decides to retire and sell up.