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Setting up as an independent financial advisor

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  • 27-06-2012 11:58am
    #1
    Shannonsider
    Registered Users Posts: 301 ✭✭


    I am interested in setting up my own company as an independent financial advisor. I am currently working for a company (as a qualified accountant), and I am planning on doing the QFA exams.

    Does anyone know if that's all I need to get up and running? I am aware of the tax, CRO obligations but not sure of the Regulatory, professional indemnity insurance side.

    Any advice is greatly appreciated.


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    #2
    Rightadvice
    Registered Users Posts: 11 ✭Rightadvice


    Hi,

    You will also need to make an application to the central bank for the products you wish to advise clients on i.e. life/mortgages/investments.

    This process can take a while!! as they will do guarda checks on you & also look for references from previous employers. You will also need to provide them with a tax clearance cert. Once approved you will need to get professional indemnity insurance in place before they will issue your certs.

    Hope this helps, I went through process 3 years ago so if I can be of any further help let me know.

    Regards,

    Robert


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    #3
    Shannonsider
    Registered Users Posts: 301 ✭✭Shannonsider


    Thanks Rightadvice

    Do you get a licence from the Central Bank, is there an annual fee for this?

    Do you know anyone who provides PII? How much would this cost roughly?

    Have you set up your own business? How are you finding it?


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    #4
    Rightadvice
    Registered Users Posts: 11 ✭Rightadvice


    Hi,

    Yes you get the licence for the regulator (central bank). there is a fee to be paid each year (industry funding levy), this is calculated on your turnover, it should be around €145 for your first year.

    You will also need to pay into the investor compensation fund, which is around €250 p.a. (again I think this depends on your turnover). As far as I remember you dont pay these until the end of the first year.

    I use a co called Aiken for the PI, the premium again is calculated on turnover, products sold, amount of staff etc. It should be around the €600 mark for year 1, if I remember rightly.

    I set up my own business Right Advice Financial solutions ltd. in 2009 (www.rightadvice.ie). it's going ok for me but there is certainly not the amount of business there used to be due to the fact it's nearly impossible to get a mortgage these days.

    Best of luck with it!!

    Rober


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    #5
    smeharg
    Registered Users Posts: 300 ✭✭smeharg


    Shannonsider wrote: »
    Thanks Rightadvice

    Do you get a licence from the Central Bank, is there an annual fee for this?

    Do you know anyone who provides PII? How much would this cost roughly?

    Have you set up your own business? How are you finding it?

    You'll need to get a practicing certificate from your accountancy body and possibly investment business authorisation. This is an addition to the CB requirements.

    You'll also need to pay a levy to the Financial Services Ombudsman's Bureau.

    Check with your accountancy body about PU insurance. It probably has minimum requirements for cover etc and may have a list of approved insurers.


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