Economics will solve adviser supply issue

Paul Cullen Centrepoint FASEA adviser numbers

16 August 2021
| By Jassmyn |
image
image
expand image

Economics will eventually solve the adviser supply issue, but the issue will not solve itself quickly, according to Centrepoint Alliance.

Centrepoint Alliance advice group executive, Paul Cullen, said the adviser supply issue would take time until financial advice became a profession as that would attract people who want to make a career out of it.

“The economics will be there so ultimately the market will respond to that. There will be more people that at advice as being a profession and see it as a career that to aspire to,” he said.

“But in the short run, it is difficult because there aren’t that many graduates coming out who think that financial advice is the career for them.”

Cullen said there were still advisers “spilling” out of superannuation funds, and banks who were looking for roles and that his firm tried to place those people in their practices.

“That's still a source but once that dries up it will be incumbent on everybody that's left to try and attract, and promote advice as a career,” he said.

“Because in the absence of that is just not going to be that many entering. The UK went through that cycle and that cycle is playing out here now.

“But economics has got a great way of solving things – a free market where people can make a good living, and make a big difference to clients. It's a profession and eventually the economics will solve the supplies issue.”

Cullen noted that there would be lag as even if people today were interested in getting into the industry they would need to complete a relevant degree, sit the Financial Adviser Standards and Ethics Authority (FASEA) exam, and then go through the professional year.

“You've got to get the EQ stuff right, as well as the IQ stuff. And that's just working in a practice and being coached and mentored by a good adviser to be able to deal with clients and do all sorts of work that goes around an office. And so, there's a lag,” he said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

4 days ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 3 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

2 days 22 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 1 hour ago