Becoming a financial adviser

[Jester]

Hi

I have been working for a good few years now as pensions consultant for a largish organisation, I have been toying with idea of providing my own advice and the current climate has focussed my mind a bit more and am keen to expand options for myself if the worse comes to the worst. I think there is a continuing need for quality advice to members of all schemes who seem endlessly confused over pensions!

I am qualified (IIPM) and am undergoing CPD up to the standard required by the regulator. If I was to establish myself as a financial advisor specialising in pensions advice for individuals and small employers, what do I need to do? I am aware of the need to get authorised, advertise services etc. Apart from some impediments in my own contract, I'd like to investigate further, so my main questions are:

Is the authorisation process difficult/onerous/costly?
Do I need to set up a limited company or would sole trader/partnership be OK?
What do I need to do to get agencies to be able to sell PRSAs etc, for example is the authorisation sufficient?
Do I need to get professional indemnity insurance, if so how much could I expect to pay?

I have done a good bit of research, but am a bit opaque on the costs involved and the authorisation process.

Apoloigies if I posted in the wrong forum, but this was the closest one to the area I wish to advise in.

 

[StevieC]

Its probably not the best economic enviroment to start out on your own but if you want further information to keep your options open, giving a call to the professional bodies for brokers, the IBA or PIBA, should clarify most of your points. Google either of the above and you'll get their contact details. Also bear in mind your pensions qualification aside, you will want to look into doing the QFA exams.

Best of luck

Stephen

 

[North Star]

Hi Jester I went through the same process one year ago. I found PIBA's group P.I scheme to be good value , make sure you dont activate the policy until you are authorised and ready to go. My Authorised Adviser authorisation process took about 5 months, so be prepared for that. The Financial Regulator looked for references from previous employer so in my case I left my job before submitting the application. If you do the same be prepared for that 5-6 months gap. Apart from that not a costly process. It is reasonably involved as it should be.
StevieC is obviously correct on the economic position, but I agree with you - in tough times people need and are prepared to ask for advice. Good luck with it.