She praises her own network – HLP – for the support they have offered to date, including detailed explanations of the consequences of taking the furlough option.
She says other advisers should look to their network for further guidance if they are in any doubt about whether the scheme could work for them.
“Our network has been excellent,” she adds. “They outlined what you need to consider on whether it makes sense to furlough yourself.”
Taking the leap
For those advisers for whom the furlough option does appeal, plans will need to be made to advise clients and update company communications and websites to advise of the absence, or closure if the company has just one employee.
“As noted above, they won’t be allowed to do any work during furlough leave and this will include having contact with clients for marketing/business development purposes,” explains Ms Woolf.
“They will need to make contact with clients to let them know about the situation before they go on leave and let them know when they plan to return.”
Andrew Brookes, senior tax manager at accountancy firm Menzies agrees, saying that these client interactions can even act to stimulate new business enquiries when the adviser returns to work.
He says: “Communication is essential and financial advisers should aim to speak to all of their clients before taking a decision to self-furlough.
"By speaking to clients in good time, they will have the opportunity to ask questions and make changes, which could trigger a requirement for your services.”
Mr Brookes notes that furloughing does not necessarily mean an end to client communications for a block period, however.
The government scheme does allow advisers to break up their leave, return to work and then go back on furlough at a later date.
He adds: “Once furloughed, individuals can’t respond to client emails or otherwise stay in touch with clients.
"However, it is possible to self-furlough for the minimum qualifying period of three weeks, then re-start for a temporary period in order to update clients and respond to their enquiries, before self-furloughing for another three-week period.
“If the CJRS is extended by the government, owner director financial advisers could continue in this way indefinitely. This would enable them to keep their businesses going, safe in the knowledge that if a significant amount of new work comes in, they could break their furlough and return at any point.”
Taking this option, of course, reduces the risk that clients will look elsewhere for their advice during the period that their regular Ifa is out of action.
