Mortgage and wealth network New Leaf has reported a rise in the number of brokers seeking to become independent financial advisers.
New Leaf Distribution managing director, Daniel Hobbs, said that, since Covid, the firm has seen a “big increase” in the number of mortgage advisers actively pursuing a license in wealth at its network.
Hobbs argued this was a positive development as “becoming an IFA adds value to your business, giving you a repeatable income stream that can also provide you a real retirement plan on exit”.
“This approach can also safeguard your business in downturns in the market,” he added.
Hobbs also pointed out that IFAs enjoy a “different client relationship” which is less transactional and “more akin to being a coach”, which some find less stressful.
“The qualifications to become an IFA have also become more flexible, which means a mortgage adviser shouldn’t be put off with the studies as you can take the exams at your own pace,” he added.
Mint Mortgages and Protection IFA, David Stirling, described this as a “simple case of business diversification” rather than “spreading yourself too thin”.
Stirling also discussed his own experience, stating: “Having been a mortgage broker since 2006, I have seen the effect of a property crash and then the recovery into the further turbulence we are seeing now.
“I made the decision to up my game and go holistic during Covid as this seemed a good time to attain the diploma, but also to steel up my business for the future by offering full IFA services.
“With more interesting and involved client relationships rather than the cold transactional mortgage meetings, there is much more job satisfaction for me.
“All the while I am building up a long-term business that should hopefully be recession proof for the future.”
A similar story was shared by Finance Energy Limited adviser, Mark Andrews, who said: “I joined the financial services sector at the beginning of the pandemic and immediately decided that I needed to become an IFA to do the best I could on behalf of my clients.
“I may have thought differently had I been around before that but, in today’s world, I think it's essential.
“Clients deserve a full holistic service and while I appreciate that you can have referral networks in place, I like to look after my own clients and maintain a consistent quality of service.
“There are of course benefits of having a more diverse revenue stream for the business but, first and foremost, it is about delivering a more rounded and holistic client experience.”
Additionally, R3 Mortgages director, Riz Malik, discussed the benefits of becoming an IFA, saying: “Having made the transition myself, I think there are many advantages to being able to give your clients holistic financial advice.
“We can talk to our clients about many different areas of financial planning while still having a deep understanding of one of the major asset classes, property.
