This page is designed to answer some of the most common questions about Independent Financial Advisers. From the pros and cons of being an IFA to how much money you could expect to make if you decided to become one. Suppose you do decide to take your career path from Financial Adviser to the independent level. In that case, you should consider doing so with the help and support of Truly Independent. To find out more, you can book a discovery session here

What is an Independent Financial Adviser?

An independent financial adviser often referred to as an IFA, is an adviser that can provide financial advice that is free of any restrictions in the market. They can consider and recommend all types of retail investment products to meet the client’s needs and objectives. IFAs can consider solutions from any provider firm across the whole market, which means their advice is completely unbiased. While the products they recommend may still have charges from the product provider, these can be reduced depending on the charging basis agreed with by the IFA. Independent Financial Advisers are paid by fees charged to their clients for their services. Such fees are always agreed upon with the client from the outset. Offering an initial meeting free of charge is a common practice applied by IFAs. This gives the client a no-obligation opportunity to decide if the financial planning proposal is the right fit for them.

How do you become an independent financial adviser?

To become an independent financial adviser, you will need to hold a Statement of Professional Standing (SPS) along with a recognised financial adviser qualification, approved by the Financial Conduct Authority. Specifically, at Truly Independent, we look for Level 4 qualified Advisers (DipPFS via the CII or an equivalent). On top of the strict qualifications needed to become an Independent Financial Adviser, there is also a specific skill that we look for. We require our advisers to be experienced, IT literate, and regulated for at least two years in an advisory role. For more information on what we look for from our advisers, click here.

How much does an independent financial adviser earn?

The salary of an IFA can vary greatly, ranging from £25,000 to over £100,000 per annum. Top individuals can earn more than £400,000 per annum. This solely depends on the adviser’s activity, the client demographic they advise, and the ability to provide a long-term quality service. IFAs at Truly Independent can retain up to  95% of their gross income dependent on their total production level and if they meet the firm’s high standards. We encourage our IFAs to earn more money, have more time, and do so with less stress. We pay our advisers twice a week based upon business completed. The more you write, the more you receive. The happier you are, the more productive and successful you are. . To discover how much you could earn at  Truly Independent. Enter your production levels into our retention calculator by clicking here.

Pros and Cons of being an IFA?

Greater work satisfaction

As an IFA, you can provide your clients unbiased advice with no restrictions. This means that you know you have given them the best possible advice for their situation. Not only is this rewarding for the adviser on a job satisfaction level, but it is rewarding financially too, as it is proven that a person who is happy in their work will earn 12% more.

Unlimited earning potential

As an IFA at Truly Independent, you are in control of your earning potential. The average adviser at Truly earns more than £100,000 a year; however, this is uncapped, so there is potential to make even more. On top of the tremendous earning potential, lower overheads also leave more room for profit.

Work schedule flexibility

It is not always the case that IFAs are employed. Truly Independent IFA’s are self-employed, which enables them to work the hours they want to work. Additionally, once an adviser has an established client base, they have the advantage of scheduling meetings around their personal calendars. Thus, over time, they will have the opportunity to work less than a whole 40 hour week if they desire to do so.

Start-up costs are low

Starting out as an IFA is a relatively low-cost business venture. Of course, there are the usual start-up fees for licensing as well as other regulatory costs. However, this is small compared to many other types of businesses. This is because you will not need to pay for office space as working from home is a very viable option.

Compliance requirements

As a financial adviser, you must be licensed to provide or sell products to your clients. Keeping up with the regulatory requirements helps protect clients from malpractice; however, this can be a time-consuming endeavor for the financial adviser. Fortunately, here at Truly Independent, our in-house compliance and action team will be here to support you every step of the way.

Requires prospecting

Acquiring a strong client base is the most challenging part of becoming an IFA. Doing so requires an effective marketing plan put in place and time set aside to prospect for work. This is where Truly Independent come in however, as our in house marketing team will do the marketing for you allowing you to focus on what you do best, giving fantastic financial advice.

Difference between a Financial Adviser and Independent Financial Adviser

An independent financial adviser can offer completely unrestricted advice to their clients. They can research the entire market and suggest the best product that meets the client’s needs. Having such a wide variety of products to recommend their clients is of great benefit to the client. They will receive the best options available to them; however, having the entire market to choose from can be time-consuming for the IFA. On the contrary, a restricted financial adviser has a limited number of products to recommend to their clients, which is more efficient, however not always the best option for the client. A restricted financial adviser is obligated to clarify to the client if they are restricted or not and if the products they can suggest are not suitable for your needs.

Contact details

01228 587 588
Atlantic House, Parkhouse, Carlisle, Cumbria, CA3 0LJ

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