Adviser promotions leading to paraplanner shortage
Small to medium-sized advice firms are promoting from within, depleting the number of experienced paraplanning candidates, says recruitment firm Hays.
According to the Hays Quarterly Report for July to September 2016, there is increased demand across the entire wealth market, with all business involved in wealth management, from small to medium-sized financial planning firms to the big four banks, wanting “to grow their market share in this profitable area”.
This means qualified and experienced financial planners are in great demand, but the shortage of candidates with relevant tertiary qualifications means firms are promoting from within, Hays said.
In turn, this is leaving a shortage of experienced paraplanning candidates.
“Candidates with tertiary qualifications are preferred; however, there is a shortage of such candidates,” Hays said in the report.
“To counteract the shortage of qualified and experienced financial planners with tertiary qualifications, employers are promoting degree-qualified paraplanners and client services officers.
“This is adding to the shortage of suitable candidates for paraplanning and client services roles.”
Hays noted that demand will remain high for financial planners, “given the increasing focus from SME financial planning firms through to the big four banks on growing their wealth market share”.
The firm further added that there is high demand from employers for financial planners with a degree and an Advanced Diploma in Financial Planning, preferably one with a Certified Financial Planner designation.
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