Doors closing for BDMs as industry realigns
A number of business development managers (BDMs) who have been made redundant by financial services institutions are struggling to find their way back into the industry.
Pinnacle Practice director Anne Fuchs said many of the roles that have been made redundant will "probably never exist again" under the Future of Financial Advice regulatory environment.
She said a cursory search of the professional social media network LinkedIn reveals the extent of the problem.
"[Their LinkedIn profiles] have these separate titles like 'Enthusiastic financial services professional eagerly looking for next opportunity'. You can see their desperation, and your heart goes out to them," Fuchs said.
She predicted that advisers would be doing less and less portfolio construction for the 'scaled advice' client segment, "so there'll be less need to catch up with your local fund manager BDM".
High-net-worth clients, on the other hand, are demanding direct equities and individually managed accounts, "so managed funds are a bit passé for those people", Fuchs added - again, reducing the need for BDMs.
Association of Financial Advisers chief executive Richard Klipin said that as the industry realigns itself, there are some areas that will grow and others that will shrink.
He gave an example of a BDM he spoke to who recently accepted a redundancy from one of the major institutions after 25 years in the industry.
"He's played all the golf he wants to play. It's 12 months later and it's hard to get back in … If you're already out of the system, how do you get back in? How do you package your skillset so you can happily thrive in whatever your new role is?" Klipin asked.
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