In a bid to reverse the rapid adviser exodus, Templeton Financial Services has crafted an innovative way to lure new entrants into the industry from a young age.
Speaking to the ifa, CEO Rob McCann said Templeton Financial Services plans to launch a program for high school students across a limited number of Sydney schools in a bid to encourage interest in financial planning.
“We have reached out to schools as well as the Financial Planning Association of Australia, who have been fantastic and given us ready-made presentations to help recruit the next generation of advisers starting from high school,” Mr McCann explained.
According to the financial services professional, ensuring high school students understand the value of financial planning, investments and risk is paramount to getting them interested in working in the financial services industry.
“We want to create opportunities for seniors at school level – to undertake work experience with our advisers and to explore other opportunities should they want part-time work during their study period,” Mr McCann said.
“The industry must take steps to get school-leavers interested in doing an approved university degree in financial services. All licensees need to become involved and work with the schools and, ultimately, the universities on placement opportunities following graduation,” he noted.
The adviser exodus has seen over 11,000 professionals depart the industry since 2018, taking the total number of advisers to just 17,000. But Mr McCann believes a further 2,000 to 3,000 experienced financial advisers will leave the industry by the end of this year.
And while the Labor government has promised to relax the university education standards for those with significant experience, Mr McCann is concerned about the next generation of advisers.
“Where will the next generation of advisers come from?
“I believe the new entrants education standards are fair. If we are ever going to become a profession, we need to embrace these standards while at the same time work towards addressing this important question,” he said.
And while some licensees have taken on the challenge of luring new entrants, in 2021, the number of new entrants entered on ASIC’s Financial Advice Register was below 300.
This, Mr McCann said, is a sure sign that things need to change.
He is also proposing the creation of a forum where advisers can collaborate and potentially draft solutions.
“We still have a lot of work to do as an industry to change the perception of financial planning in the country’s education system and to encourage potential new entrants into the industry. Schools and universities are just one of many avenues in which the industry can do this,” Mr McCann said.
“Our industry was strongest when we had many competent advisers servicing a growing need for advice. We have undertaken the necessary changes for the future viability of the industry.
“Now is the time to rebuild and urgently get fresh and motivated advisers into the industry.”
The comments here are prescient so far – valid and to the point. What good is it bring kids in if the stress, overwrought crushing compliance, insulting pay rate plus much more negativity are all still issues? I know Rob McCann from a few past lives and his heart is definitely in the right place, he’s a wonderful operator. However I think it better to fix the industry woes first so new entrants have something real, solid and with a future. Currently none of that exists and it would be grossly unfair and a dis-service to pull the wool over their eyes and bring them in to such a toxic industry until it is fixed.
Selling courses with no future, to young, hopeful, naïve kids is contemptuous
Not to mention unethical, misleading and deceptive…
Honestly….I’d be a plasterer…I can wear me thongs to work, work 5 hours, get paid twice as much… Or you can be a Financial Planner get a Masters Degree, and when you have a simple spelling mistake ASIC will drag your name through the media for issuing defective documents and inappropriate advice.
They’d laugh and say… [i]”hey some guy told me to buy bitcoin on Tik Tok in 16 seconds with a link and you want me to go into a career where you have to have 3-4 meetings, spend 3 days doing a 40 page document, do a risk profile, fill out of a form to put $1,000 into super for a co-contribution, plus you’re telling me I need to know about a PDS,FDS LOE, FSG the AML and Privacy whatever that all is, all done in order to keep you away from someone called A S I C”……can’t I just sell stuff on Tik Tok? [/i] ……and then they’ll say ” plus every 5 years they’ll come back and blame me for losing their savings on a stock market crash”…. “What a career, think I’ll be a Chippie and make $200K. “
So the Financial Planning Association of Australia, were fantastic by giving ready-made presentations to help recruit the next generation of advisers starting from high school? That’s all well and good but what an absolute shame the FPA did nothing of note to help keep the current generation of advisers in the profession and stood by watching whilst advisers were subject to reputational damage with many enduring mental health issues…
The theory of encouraging interest is fine, but they had better tell the truth about the reality rather than dressing it up as something it’s not.
Assisting people to achieve their financial goals is all very honourable and necessary, but not at the risk of going to gaol, losing your home, breaking up your family, losing your reputation and self confidence or self esteem, being fined huge amounts and being relentlessly targeted by Govt & a power hungry regulator who wants as many scalps as possible to justify their existence!
Let’s see how you upsell that one!!
The reason the profession can’t attract entrants is that it has been demonised by the likes of ASIC, union super, the Government, journalists etc. The FPA and AFA have failed in getting the message across that the financial planning profession plays an extremely important and valuable role for their clients. Add to this rules that make being a financial adviser a risky profession from ambulance chasing lawyers and a biased regulator who hates advisers, why would they want to enter this profession?
You mean manipulate. Would you bring your own children into the industry with the way it is?
lol, leading them into a trap! Maybe things will have changed once they become qualified and licensed.