How to become an IFA

If you want to pursue a career in finance, there are several routes you can take such as choosing to specialise in mortgages, pensions or a number of other financial issues that clients require professional help with. However, if you don’t want to pick just one field within finance to specialise in and would prefer to operate with the freedom to provide clients with impartial financial advice on a range of providers, working as an Independent Financial Adviser (IFA) could be the ideal job for you.

In this blog, we look at what an IFA is, how it differs from other roles within the world of finance, and how you can train to become an IFA with the DipFA qualification.

What is an IFA?

The primary duty of a financial adviser is to offer professional and informed guidance to clients on a range of different issues such as savings, retirement, mortgages, redundancy, inheritance, divorce and financial family planning. However, working as a financial adviser is possible in two different forms: operating as an independent financial adviser or as a restricted financial adviser.

You may think that the difference between these two types of roles seems complex, but it’s actually relatively simple. Restricted financial advisers are limited to solely providing products from the company they work for and are often offer advice on specific areas of finance. On the other hand, an IFA can offer a far more extensive range of options and provide support on a number of different fields within finance.

Different factors can play a part in your decision to work as a restricted or independent financial adviser, but it’s often affected by where you’re working. For example, employees of a bank or building society generally only advise on their employer’s. Your specific role might also restrict you to advising on mortgages, loans, savings or pensions. Operating as an independent financial adviser working on a freelance basis or within a law firm would be different to this, as you would be able to look at every option on the market without leaning towards a specific provider.

How do you become an IFA?

In order to become an IFA, you first need to complete a Level 4 Diploma for Financial Advisers (DipFA). This qualification is suitable for new entrants to the sector and doesn’t require any previous experience in Financial Services.

DipFA provides an excellent grounding in Financial Advice through 5 online Live Webinar modules and 1 self-paced coursework module. 

Our highly experienced training team delivers each DipFA Live Webinar module:

• Module 1 – Financial Services Regulation Ethics (FSRE): 8 x 3-hour tutorials over 4 days.
• Module 2 – Taxation: 4 x 3-hour tutorials over 2 days.
• Module 3 – Investment: 6 x 3-hour tutorials over 3 days.
• Module 4 – Protection: 4 x 3-hour tutorials over 2 days.
• Module 5 – Retirement Planning: 6 x 3-hour tutorials over 3 days.

Assessment for Module 1 is through a 2-hour exam including 50 multiple-choice questions and 3 case studies with 5 multiple-choice questions each.

Assessment for Modules 2-5 is through a 90-minute exam for each module. Each exam will have 40 multiple choice questions and 2 case studies with 5 multiple choice questions each.

After you’ve completed all of your assessments, you will also need to complete the e-learning coursework module. You will be assessed on the essay you write in response to a pre-released fact find.

After the DipFA

Upon completion of the DipFA qualification, you will be able to apply for a Statement of Professional Standing (SPS) from an approved body. The SPS is a requirement for working as an IFA, and after approval, you’ll be able to start your career by applying for roles in a law firm or choosing to work on a freelance basis.

If you’re ready to take the first step towards your new career as an IFA, you can book a DipFA course online through our Financial Services course pages. Our expert Student Support team is also available to help with any queries or provide assistance with planning your studies. You can contact them on Freephone 0808 208 0002 or by email at [email protected].