If you are a newly qualified independent financial adviser in the UK, here are the tips and essentials you need to get started.
Becoming an independent financial adviser is a fantastic achievement. But as you already know, it is just the beginning. Qualifications, like the Level 4 Diploma for Financial Advisers (DipFA) and Competent Adviser Status (CAS) get your foot in the door, but establishing yourself in the financial advice sector can feel daunting. It does not have to be.
With the right guidance, you can build a solid foundation for a successful career right from the start. This article breaks down some essential first steps, considerations and tips for newly qualified financial advisers, so that you can hit the ground running.
Get Authorised
Before you can begin practising as an Independent Financial Adviser, you must obtain either Direct Authorisation (DA) or Authorised Representative (AR) status.
- Direct Authorisation (DA): This involves applying directly to the Financial Conduct Authority (FCA). The process can take up to 12 months, involves a fee, and requires you to manage compliance yourself.
- Authorised Representative (AR): Alternatively, you can join an Independent Financial Adviser network, like ValidPath. This route typically offers quicker approval, as the network handles most regulatory responsibilities on your behalf.
Your Career is Built on Trust – You Need to Earn It
Trust is the cornerstone of any adviser-client relationship. In the early days of your career, getting that trust is not always easy. After all, as a newly qualified adviser, you might not yet have an extensive portfolio or testimonials.
That is why it is vital to focus on communicating transparently (especially where money is involved), demonstrating your knowledge, and following through on your promises. Clear, honest discussions about your clients’ goals and your strategy for helping them achieve those goals will set the tone for long-term, trusting relationships. Then, you can begin leveraging your existing clients’ trust to win more clients through referrals.
Optimism is Great, Realism is Better
Managing client expectations is crucial, particularly when dealing with volatile markets and long-term financial goals. It is not uncommon for clients to come in with unrealistic expectations based on news headlines or hearsay.
It is your responsibility to guide them with sound advice, managing expectations around performance, risks, and timelines. When you are just starting out, it can be tempting to be overly optimistic with your clients. Do not undersell yourself, but ultimately keeping their expectations more grounded will serve you well in building a sustainable client base.
Do Not Find Your Niche, Develop It
Just as newly qualified IFAs often fall into the “optimism trap,” it can also be tempting early on in your career to try and offer everything to everyone. After all, a client is a client, right? Specialising in a niche, however, will be key to setting yourself apart.
Whether it is helping clients plan their retirements, ethical investments or estate planning, building expertise in a specific area will help you to stand out in a crowded market. Think about your interests, industry trends, and where there is a demand for specialist advice. You do not need to commit right away – this is not about finding a niche and plucking it out of thin air, it is about building a portfolio and checking in with yourself regularly to identify where your interests and abilities align, and where there are opportunities to develop your niche further.
Network, Network, Network
We have already mentioned the value of referrals from clients. Referrals from accountants, solicitors, and other professionals in your area, however, can also be a significant source of new business.
Building strong relationships with these individuals can establish a valuable referral network that keeps your pipeline full. Be proactive in reaching out to local professionals and engaging with their client base.
Qualification Is Not the End of Your Education
The world of finance evolves constantly, and as a financial adviser, you will need to stay updated on regulatory changes, market developments, and new products.
Regular professional development is not just about compliance (although we will get to that later). It is about maintaining your expertise to serve your clients better. Make sure you are setting time aside for continual learning and attending relevant industry events.
Technology is Your Friend
Leveraging the right technology can streamline your processes and improve client interactions. Tools for managing client portfolios, scheduling meetings and communicating updates efficiently are essential in today’s fast-paced, digital-first world. Ensuring you have a user-friendly website and maintaining an active online presence are also important factors in growing your practice.
Learn How to Market Yourself
As a newly qualified adviser, you may not yet have a wealth of word-of-mouth recommendations to rely on. Building a strong personal brand is key.
A solid online presence, complete with a well-optimised website, will help you reach potential clients. Offering free workshops or writing thought-leadership pieces for local or industry publications can establish you as a trusted voice in the financial planning world.
Learn more: Local Marketing for IFAs: Attracting Clients In Your Area
Compliance is Non-Negotiable
Compliance is the backbone of any financial advisory practice. From the Financial Conduct Authority’s (FCA) regulations to anti-money laundering requirements, staying compliant is critical.
Regularly review your processes to ensure you are following best practices, maintaining proper documentation, and reporting accurately. Remember – compliance is not a box-ticking exercise. It’s what protects both you and your clients from unnecessary risks.
Learn more: Independent Financial Adviser Compliance Checklist 2024
Join a Network
Starting out as a financial adviser can feel overwhelming. But with the right support, you do not have to do it alone. Becoming a member of ValidPath connects you with a network of Independent Financial Advisers (IFAs) and offers a suite of resources designed to help you succeed.
From marketing support to comprehensive compliance guidance, ValidPath is your partner in building a thriving practice. Whether you are navigating the complexities of client relations or staying on top of regulatory changes, we are here to help equip you with the integrated tech, tools and community to grow your career with confidence.
Join ValidPath, the network for Independent Financial Advisers
