According to the latest Hays Jobs Report, advice businesses refrained from recruiting new advisers in the second half of 2018 as industry bodies finalised new qualification requirements.
Now that these requirements have been released, employers are ready to recruit advisers once more.
“Demand will naturally be focused on suitably qualified advisers who meet the new requirements. As the pool of such talent shrinks, salary pressure will become evident,” Hays said.
On the paraplanner front, Hays noted that additional compliance and remediation roles have been created as a result of the Hayne royal commission.
It said these are jobs that paraplanners typically move into, which has further added to the existing paraplanner skill shortage.
“Add an increase in financial planning roles, which naturally increases the need for paraplanners to offer technical support, and supply will fail to meet demand,” Hays said.
As advice has become a heavily scrutinised industry, Hays said candidates who have an employment history as a high-performing bank sales manager focused on numbers as opposed to their clients’ best interests are no longer considered for advice manager roles, and that employers will consider the risk too high.
Further, the first half of 2019 will see employers focus on permanent recruitment, according to Hays, saying the industry has gone through various projects to investigate concerns raised in the royal commission, while advisers are all on a path to increase their qualifications.
Now that the minimum qualification requirements have been clearly outlined, Hays predicted demand for advisers will increase in 2019.
Another major trend highlighted by Hays will be the continued movement of technically skilled wealth management professionals, such as paraplanners, into “lucrative compliance and remediation roles”.
“This candidate movement continues to create skills shortages, which in turn is leading to salary increases for paraplanners and the outsourcing of this function in smaller businesses to third party providers,” Hays said.
Another trend noted by Hays is the decline of rapid career progression within wealth management, with the typical career path slowing due to the decreasing number of clients using advisers.
“The conduct of large organisations has led to fewer people using advisers. Consequently, there is no longer a quick career path to follow,” it said.
“Given this, employers are no longer interested in candidates who seek rapid career progression. Those with a long-term history in administration or technical roles are instead sought so that advisers can focus on compliance and servicing their current client base.”
Kelly O’Dwyer needs a job…
Anyone?
Where are all the customers yachts?
Thanks for the laugh
All this has done is it’s going create an industry full of advisers who won’t be able to give real advice that is needed or that should be given. Every adviser will be completely focused on compliant advice, safe advice, advice that won’t result in being litigated against one day.
So anything outside the FPA, afa and any other panel of tut tutting Dudley do right hindsight hero’s safety first portfolio will be frowned at and the adviser sued.
Clients will just be getting boring safe returns and question why they would pay for your investment advice that is consistently underperforming and irrelevant.
Employers won’t be able to hire all these so called qualified advisers because your won’t be needed. Advisers will be double degree qualified, CFP endorsed and have hundreds of hours of compliance and legal training but no real experience or understanding of markets and the need to perform.
If your child or loved ones are considering this profession, stop them and steer them clear of this circus.
If your in it, retrain and get out. Save yourself the pain and suffering and get your life back.
Agree with you that compliance is/will become the overwhelming focus of advice provided. Disagree with you that an adviser’s value lies in some sort of extraordinary ability to understand markets and “perform”, by which I assume you mean – get a better than market rate of return for a client. Have already taken your advice and told my kids about 2 years ago not to think about becoming advisers. Which is sad because there is so much satisfaction that comes from the heart of what we do for and with clients. Unfortunately, this satisfaction is harder to come by as it is being buried under all the other requirements of the role.
Maybe that’s how it needs to be for a while Steven. See today’s article, and others just like it, on ASIC v Richard Gardner, Advanced Wealth. Until quite a lot of Advisers are gone if they have been found to have acted improperly, and their unqualified and morally bankrupt AFSL Management are sent packing along with them, things just won’t change.
Co-crates, the FASEA requirements apply to Licensed Financial Planners only – he was not a planner as he was not licensed. How on earth do you think FASEA will help with all the unlicensed advice going on out there? You make no sense at all.