There are a lot of benefits to becoming an independent financial advisor. Not only can it be a lucrative career, but it is very rewarding. You are helping people with their finances and getting them the best deals on all kinds of financial products. However, it is not an easy ride to getting where you need to be. You have to invest in your development, build up a network of clients, and register with the Financial Services Authority. In today’s guide, we’re going to take a closer look at everything you need to become a successful, independent financial advisor.
Your first step towards becoming a financial advisor can be from anywhere. You might be able to get a job with a finance company – although this will be low grade if you have no qualifications. Some companies may even offer training opportunities if you show enough spark. There are a few courses that you can take on your behalf that will prepare you for your future training, too. A primary qualification in accounting, for example, will show you have the energy to handle figures. Click here for more information and some examples of where to get started.
Meeting the standards
To operate as an independent consultant, you will need to pass several qualifications. And, it’s going to cost you money. You are likely to need at least £2,000 to get through all the criteria you need to set up on your own. You will need the Certificate in Financial Planning for a start – and you’ll have to pass the course within six months. You also need a Diploma in Finance Planning. This is a new requirement that has come into force since the last financial crisis to ensure sound practice. This degree can take anything from 18 months to two years to complete – so it will take you a while to get your qualifications.
Register with the FSA
You will also have to register with the Financial Services Authority if you want to trade as an independent. Again, this will cost you money. Levies and fees for joining this and the Financial Ombudsman Service can run into the thousands. It is a necessity, though – so there’s no getting around it! There is also liability insurance to consider. If you are self-employed, you will be held responsible for every last bit of advice you give your customers. If their investment goes wrong, you may be liable, and without insurance, your business could sink without trace.
There are a lot of people out there that need financial advice – but persuading them to take it can be tricky. Your best bet is to build up a small network of clients and start advertising on the web and in local newspapers. You will need plenty of success stories to back up your claims. It might be worth talking to friends or family members and offering them help with their finances. When they have success, they will be able to back you up with robust testimonials.
Becoming an independent financial advisor isn’t easy – and you will have to jump through many hoops. But, with focus and determination, you can make your new career a successful one. Good luck!