Having started his own directly authorised IFA business at the age of 24, Alex Simpson, managing director at Harding Financial highlighted the key challenges he faced - many of which can still be applied today.
Speaking to FTAdviser as part of our Coffee Corner series, Simpson said trying to integrate advice as much as possible is one of the key challenges but also one of the best ways to provide advice.
So how did you first start out in the industry?
Simpson said he won an award at the age of 16 to be a market trader with the Securities Institute but had to go away, get a degree and come back.
“They said to get a degree in anything and at the time, there was a lot of money going to property developments so I thought I'll get a degree in architecture.
“I came out of university in 2009 in the credit crunch when there were no jobs and ended up going to work for my local IFA business.”
Simpson said he got all his qualifications and soon after, RDR was coming round the corner.
“I didn't like how [the firm] was doing things and I could see much better ways of being more transparent in charging fees. So I decided to approach the FCA and say, 'I want to have a directly authorised firm please'.
“I was 24 at the time and they said they were a little bit concerned about my level of experience and expertise. I said 'you are looking at bringing RDR to modernise the industry, to bring forward thinking people in the industry, and that’s exactly what I’m looking for'.”
Simpson became directly authorised on October 3, 2011 and has grown the business since then with five acquisitions.
What did exams did you take to qualify?
Simpson originally took the London Institute of Banking and Finance qualifications and became chartered.
“I was quite a young adviser and I needed to know my stuff so I became chartered under that quite quickly,” he said.
“Then people called that the Mickey Mouse Institute, because the Chartered Insurance Institute was more prestigious, and everyone else was doing the CII. So I did the CII and became chartered there.”
Given your experiences, what would you say are the biggest challenges facing new business owners today?
“It's being dynamic to the ever changing landscape,” he said. “I know regulations always change but now there is technology as well.
“You have to look at banks like Monzo - it's not about investing anymore, it’s not about the actual funds underneath the bonnet.
“It is services like robo-advice that are going to be here to stay.”
Simpson explained that his firm looks to do as much integrated advice as possible.
Over the past couple of years, the firm has started a payroll service where advisers can see what everyone's earning and identify high earners..
“We’ve got the employee benefits side of things, the company pension schemes, and then the private clients in it, integrating those things are showing value across services during the tax returns,” he said.
“I feel this is where businesses need to be because then you become really sticky when you're taking care of their finances, their family, their investments, their pensions and their tax.
