A recruitment firm has noted financial advisory clients are increasingly conscious and concerned about the dealer group or licensee to which their planner belongs in the wake of the disagreeable industry practices of some organisations uncovered by the financial services royal commission.
“Principal advisers and owners of small practices have explained that their clients now ask who licenses the firm and which products they are able to recommend,” recruitment specialist Hays said in its January to June 2020 jobs report.
As a result, the employment agency said smaller wealth management firms are avoiding associations with the banks and larger dealer groups, with many of them changing licensees.
The report also highlighted the effect the royal commission is continuing to have on adviser numbers at all levels.
“Senior advisers who lack the capability or the willingness to undertake further study are leaving the industry as they accept the fact that they must exit by 2024,” Hays said.
“We are also now seeing less experienced financial advisers leave the industry in favour of other financial services roles, such as business development manager, practice development manager, remediation case manager and investment adviser.”
The agency pointed out a similar phenomenon is being experienced in the paraplanning space.
“Following the banking royal commission, compliance remediation roles continue to be created. These are jobs that paraplanners like to move into, which has further added to the existing paraplanner shortage,” the report said.
Due to a shortage of individuals to fill vacant financial planning and paraplanning roles, Hays has observed an associated demand for higher salaries in the sector.
“Skilled professionals at all levels within wealth management are asking for a salary increase of between $10,000 and $40,000,” it said.
“Technical candidates are asking for a pay raise in response to higher expectations and workloads placed on them, while advises are doing so in response to restructured bonus components.”