New education standards leave advisers in short supply
Financial advisers and career paraplanners are in short supply thanks to the lift in the industry’s education standards according to Hays.
The recruitment firm’s latest quarterly report, covering October to December 2017, found with remediation programs offering high daily rates, and the opportunity to try something new in advice, there was a shortage of suitable financial advice candidates.
Career paraplanners were also in short supply as most paraplanner roles were used as a stepping stone into an adviser position.
“The tenure is typically two to four years and paraplanners rarely move between these roles. In addition, remediation projects are attracting good paraplanners to be trained into the remediation case manager role, further adding to the supply shortage,” the report said.
Advisers and paraplanners with a Certified Financial Planner (CFP) qualification were also in high demand.
Hays attributed this to the fact that it took time to achieve, and employers wanting to get ahead of the game in terms of the industry’s new education requirements.
“They also want the most technically strong advisers delivering advice to their customers,” the report said.
Hays Australia and New Zealand managing director, Nick Deligiannis, said there were several factors behind the growing demand in professional and business services.
“Rapid technological change, a need for strategic, technical and financial advice, a move to get closer to customers through the use of data and a desire from customers for full end-to-end services are all behind this trend,” he said.
“Cost-saving is another factor, with businesses looking for advice or services from those who are experts in the exact area where assistance is required. This is leading to the emergence of more specialised professional and business services companies who in turn require highly-skilled staff to deliver the necessary services and retain customers.”
Recommended for you
Financial Services Minister, Stephen Jones, has assured the cost and time to enter the financial advice profession will soon be halved, as shadow treasurer Angus Taylor pledges to reach 30,000 advisers.
The positive results of the latest financial adviser exam have helped the advice profession reach 15,600 yet again, according to Wealth Data analysis.
Financial advice firms have told Adviser Ratings they are planning to increase their compliance spend by almost a third, including on enhancements to their cyber security which ASIC has identified as an enforcement priority.
The digital advice platform is officially launching into the financial advice sector, offering up its services to practices as a means of engaging with the next generation of clients.
