Speaking to ifa, Caboodle Financial Services managing director Peita Diamantidis said the industry, in its quest to onboard qualified talent, has overlooked the people who work in lower-level roles such as support staff.
The industry needs to increase its focus on targeting support staff, who already possess the crucial soft skills and client relationships, to become advice qualified, Ms Diamantidis said.
“Support staff are already a part of the industry, already have relationships with adviser’s clients and already possess the soft skills which no degree can really teach,” she said.
“None of our conferences, facilities or general industry discourse caters to this area of the market, which is a huge missed opportunity.”
According to the Hays Quarterly Report for April-June 2017, the demand for qualified financial advisers remains strong.
“A growing number of remediation projects is fuelling demand for technically strong paraplanners and advisers,” the Hays report stated.
“There is increased demand and a shortage of strong paraplanners and senior financial planners with a degree and ADFP or CFP.”
Members of the industry have voiced concern over the current shortage of qualified talent as well as fears over how many advisers are going to leave the industry following the implementation of higher professional standards in a few years.
Financial adviser Melinda Houghton of Houghton Strategic Solutions shared a concern for what this will mean for consumers.
“There is a shortage of financial planners and paraplanners of all types – I have been looking for someone for a long time now and there’s not even diploma or advanced diploma applicants out there. This is a huge problem for our industry going forward, and worse for consumers,” Ms Houghton commented on the ifa website.
“We need to create specific pathways for support staff to become advisers,” Ms Diamantidis said.
Reading the comments it’s obvious the problem is over regulation and red tape. Our lack of self regulation, leaving our destiny in the fate of dealer groups, the FPA and fund managers is really coming back to kick us in the butt. Single Lone advisers have little impact on Government Policy and this is where the FPA is to blame and have let us down. They have not represented advisers but only advanced their own position with negotiations with Government and their association with their puppet masters via kickbacks from their professional partner program.
I am getting a lot of applicants approaching our practice who have been advisers, and now want to be practice managers, or back office support. I am not getting any applicants to be advisers. There are exceptions to everything, but most support staff do not want the responsibility, paperwork, risk and frustration, when they still get to interact with our clients and see the effects and outcomes of what we do (the fun part) without the hardest parts (compliance, risk of being sued, responsibilty).
The question needs to be asked — is it an attractive career given the qualifications required, forced restrictions on earning ability and compliance regime which exists? My personal opinion is no and I have told at least five people aged in their early 20’s that they should take up alternative careers. I’m stuck and will work through it but I see values of businesses dropping in the future.
Agree. Unfortunately the industry has become fixated on qualification over the ability to do the job. As such this will see a lot of good advisers leave the industry over the next few years.
Very few support staff exist who have, or will have the necessary education requirements going forward.
Don’t necessarily agree with this. Personal experience suggests that recruitment agencies are filtering applicants by qual’s not skills. Banks don’t want anyone unless ADFP or CFP. Independents somewhat similar. I completed DFP in ’96 way before ADFP existed, yet it covered similar content. Hold SMSF/Direct Eq/Gearing&Margin lending accred. I can’t get an interview with 20+ years exp, 10yrs running my own practice and building from scratch. Had time in management positions and hold an MBA. I am waiting to see what bridging courses are required to get to degree min, but in the meantime nobody wants to take someone on ‘without quals’.
What person who is not needing the money would subject themselves to this regime of compliance and education? It is no wonder advisers, good advisers will turn their backs on this industry. All because the FPA needs to forceably sell courses and memberships to sustain their high paid executives and staff via nazi tactics.
The industry will slowly die if cost are not reigned in severely and one of the biggest cost is compliance and the stealth tactics of membership groups like the FPA.
Wake up people.
The feedback I get from support staff is “I would not want to do your job”. I don’t see any of the support staff here aspiring to be advisers. None of them are doing DFP or Bachelor of FP , they are studying for other careers. Disturbing signs – yes indeed. Can I blame them? No. All they can see is compliance, SOAs, ROAs, FDSs, Opt-ins, and us checking them. Seems to override the good parts of the job. They clearly want something more fulfilling.
Absolutely agree with Gerry.
Compliance has been taken over our advice industry.