Degree-qualified planners in demand but scarce
Qualified and experienced financial planners with tertiary qualifications are preferred by the Big four banks and small-to-medium (SME) financial planning firms but there is a shortage of such candidates, according to a report.
The Hays Quarterly Report said employers in financial planning firms were instead promoting degree qualified employees, from paraplanners or client services officers to financial planners, under fast track training plans.
As a consequence, there was now a shortage of experienced paraplanners and client services candidates.
"Candidates without the necessary educational standards are actively pursuing further education," the report said.
The trends came amid an increasing push from SME financial planning firms and the Big four to increase their market share in wealth management.
On the other side of the coin, financial planners were well aware of the skills shortage for qualified planners and were very particular about the kinds of roles they would accept.
"They often view banks as less attractive than SMEs that can offer a more competitive salary and more flexible employment options," the Hays report said.
"Candidates are looking for competitive offers and businesses that are willing to offer a package tailored to their requirements."
Hays also said employers were adjusting to the skills shortage by employing candidates in temporary roles while they were between permanent roles.
Given this trend, the demand for financial planners with a degree, an Advanced Diploma in Financial Planning, and preferably a Certified Financial Planning qualification remained high, and would continue to remain high.
However, while experienced financial planners and advisers were in demand by local firms, candidates did not tend to move between companies, which further limited the supply of available candidates for vacant positions.
AUTHOR
Malavika Santhebennur
Recommended for you
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
