Relationship building skills now top of mind

The possession of better than average educational qualifications has become critical for ambitious financial planners in the new Financial Services Reform (FSR) generated employment market, but a bit of old-fashioned sales skill is still highly regarded.

While both employers and recruitment consultants say DFP 1-4 is now a bare minimum and that the certified financial planner (CFP) qualification is beneficial, they also concede that the ability to recruit and retain clients is also crucial.

The reality confronting financial planners is that the major banks and institutionally-owned dealer groups like AMP are continuing to set the trend in terms of recruitment and educational standards.

Commonwealth Bank of Australia’s (CBA) executive general manger for investment and insurance services Brett Himbury makes clear that DFP 1-4 is definitely a minimum. However, he says the bank tends to recruit on the basis of different educational requirements for different segments of the market.

“Perhaps more important from our point of view is a willingness to continually learn,” Himbury says. “It’s an attitudinal thing and if people have a capability for continuous learning then that is something which we regard highly,” he says.

On the question of whether sales ability remains a crucial weapon in the financial planner’s arsenal, Himbury points to the manner in which the Financial Services Reform Act (FSRA) has changed the sector and the need for planners to service the consumer.

“I like to think interpersonal skills are something that are highly desirable, where planners have to have the ability to impart information to clients,” he says.

“Now, some people may choose to call that sales, but I prefer to refer to it as the possession of interpersonal skills.”

Himbury’s analysis is acknowledged in part by recruitment consultants who say while better than average qualifications can place a planner in the upper salary ranks, it is a proven track-record in terms of recruiting and retaining clients that is likely to generate a six-figure income.

IntegraTecgeneral manager John Prowse agrees with Himbury that while educational standards are important, relationship-building skills are crucial over the long haul.

Prowse says that while DFP1-4 may now be regarded as a minimum, it does represent a huge advance on the previous regime where people could almost literally be truck drivers on a Friday and financial planners the following Monday.

He says that where the new FSR regime has altered the status of commissions, remuneration has become a key issue.

“People are looking at a different set of skills now when recruiting people, they’re looking for relationship-building skills, not sales skills. Skills that will enable them to provide service over longer periods and build business annuity income over time.

“The emphasis has moved away from heavy closing and prospecting skills, to building long-term relationships in order to get a bigger share of the wallet.”