Self employed financial adviser - Is now a good time?

Its a given that the economy although experiencing some green shoots of recovery, hasn't reached the levels of stability that we achieved 2 years ago. So, taking into consideration, the instability and the uncertainty with regards when exactly full recovery will ensue, is taking the leap of faith and becoming a self employed financial adviser a viable option?

What we at XL Recruitment are seeing in the UK financial services market is that financial advisers who have historically maintained quite good income levels are now leaning towards employed opportunities and positions that offer the stability of a monthly basic salary. Bancassurance financial advisers are one such role that is becoming a more sought after position. Never the less, the self employed IFA position is one that offers a fantastic longer term opportunity.

For many of the AR's(appointed reps) who have established client banks and a good business model from which to work, the economic situation hasn't drastically altered their position. The Independent financial adviser in some respects is in a unique position in that their business is not perhaps as reliant on consistently generating new business as in other industries. Recurring or trail income and a client bank built up over the long term offers a financially stable footing for the IFA from which to operate, lessening the need for continual new business.

As an Independent financial adviser working on a self employed basis, as long as there is a consistent structure in place and a support framework leading into RDR that affords a certain level of assistance with qualification, compliance, TCF, etc there should be no reason why, even throughout the current economic conditions, a stable business cannot be built. There are varying degrees of self employment and we at XL Recruitment would certainly suggest that as an adviser considering this option, at least initially, the options looked at should be ones that offer a good level of support in terms of lead generation and back office support. There are many self employed financial adviser roles out there that offer the earth and supply very little so it does pay to research thoroughly but some can pretty much do what they say on the tin. These are the self employed IFA roles to look at.

So, is self employment a good option for an IFA at the moment? As long as the company can offer a sound framework to work within leading into 2012 and the implementation of RDR review and provide a good level of support whilst getting the business off the ground, yes, it is a good option. Many now pay a draw or salary guaranteed against further commissions so financially there isn't an issue and once the business is up and running as long as the IFA is proactive in terms of generating new business and establishing a presence in their locale amongst potential clients, there shouldn't be any problems. in fact, the business should be well placed to do thrive once the economy picks up.