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New to Contracting? Our Guide........
If you have not contracted before, but interested in starting a new career in financial services contracting then read our guide below:
What is a Financial Services Contractor?
A skilled professional person who provides a service to a client, normally a large bank or financial institution, on a contract basis.
How much experience and skills do I need to become a contractor?
There is a perception by some that to become a contractor you need to be very highly skilled and experienced. This is not always the case, as companies hire contractors for a wide range of different projects, and use people with entry level experience and skills as well as those that operate at a higher level.
What areas does a Financial Services Contractor cover?
This is generally a broad area, including Wealth Management/Financial Advice, Wholesale and Retail Banking, Project/Programme Management, IT, Legal, Compliance, etc. Although IFSCA is based in London, it is an international organisation so covers contractors globally.
How much can I earn?
Most contractors earn in excess of 50,000 GBP (60,000 Euros) per annum, but this varies depending on which area of Financial Services you specialise, some experienced contractors earn in excess of 100,000 GBP.
There can be significant tax advantages to contracting compared to an employed position. For a contractors earning 50,000 GBP per annum and administering tax affairs efficiently, the person could need to earn an equivalent of 60,000 GBP in a permanent position just to match the contracting position. This calculation is a approximate and varies on countries tax regime, you should consult a tax expert for more information.
How is the estimated 50,000 GBP per annum income calculated?
This is based on the lower end of contractor rates and includes holiday or downtime (downtime is time off between a contract). Many contractors earn in excess of this and further benefit from favourable tax advantages.
What is required to become a contractor?
This varies depending on what position you apply for. Generally, the most difficult contract to attain is the first one. Once you have completed your first contract hiring firms and recruiters will find your skills more attractive.
How can I attain my first contract?
We recommend that you become a member of IFSCA, by doing so, you will have unlimited access to our latest contract opportunities. From monitoring these you are likely to see a contract which you feel you have the ability to fulfil, and details of whom to apply to for the contract are available in the member only area. We recommend that you apply for as many contracts that you think you may have the skills for before attaining your first.
You do not need to incur any costs, set up any insurance or a limited company prior to attaining your first contract.
What do I require to apply?
You will need an up to date CV. For each contract you apply for, you should make your CV as relevant to the role as possible, and you should be as specific to your experience as possible, ensuring that you detail any professional qualifications.
Do I need to set up a limited company?
You do not need to set up a limited company. Many contractors use an umbrella company, which gives valuable tax advantages but means you do not need to be bothered with organising a company. You will find that your input is minimal and the payment operates in a similar way to employed pay. For more details contact us an enquiries@ifsca.org.
Why is the demand for Financial Services Contractors so high?
The demand for Financial Services Contractors is a result of increased regulation
and this is a on-
What job security does a contractor have?
A contractor can expect to have a few weeks per annum of ‘downtime’ per year. This is time between contracts as dates do not always tie up. A contractor is generally paid more than equivalent in a permanent position and able to keep some funds in the bank to take account of these periods.
If you are not comfortable with the contractor route, you could opt to take a permanent position. However, the earnings are less.
It is our view, nowadays companies worldwide are very quick to hire and fire, so the security of a permanent position is no longer the same as it was many years ago. It is accepted than generally contracting does not quite have the same security as a permanent position but the generally higher earnings normally more than offsets any downtime you may have and reduce the financial risk to you.
Can I contract in another country?
Providing you are skilled for the position and satisfy the host countries requirements you are able to contract overseas. This suits many contractors especially those who want to work overseas but do not intend to stay permanently in the country. Of course this is subject to the relevant permissions. If you are considering this please contact us for more information at enquiries@ifsca.org.
What if I have no Previous Financial Services Experience?
Many successful contractors will have some experience within Financial Services or related areas. If you are totally new to Financial Services IFSCA can offer to you training packages so that you can obtain the necessary skills to start a new career. Please contact enquiries@ifsca.org for more details.