UK financial advice sector urgently needs new blood
The comments from Mike Coady, managing director of deVere United Kingdom, part of deVere Group, come as the firm reports that demand is soaring for financial advice.
Coady explains, “Demand for professional independent whole-of-market financial advice continues to skyrocket with no sign of slowing down.
“The strong demand is, amongst other factors, being fuelled by the recently introduced landmark pension reforms, which have given individuals new freedoms and controls over their retirement incomes the fact that financial education is increasingly being offered in workplaces and schools and because since the 2008 crash, people have become more aware of the importance of sound financial advice.”
He continues, “Whilst it is unquestionably positive that ever more people are seeking professional advice to help secure their financial futures, it appears that demand is beginning to exceed supply of independent advisers.
“This is largely due to many advisers exiting the advice market, or opting for a & lsquo;restricted advice’ business model, since the introduction of the Retail Distribution Review (RDR).
“Whilst RDR has driven up industry standards, qualifications and transparency, it has left the number of independent advisers significantly reduced.
“There is also an ageing adviser population, with considerable numbers retiring from the profession each year.
“With this in mind - and because it takes a considerable amount of time and money to fully and appropriately train independent financial advisers - the sector needs to attract new, young talent sooner rather than later.
“A failure to bring new blood into the industry, will leave consumers with a smaller pool of advisers - and, inevitably, this could result in financial advice become the exclusive domain of only the super wealthy.”
He adds, “Collectively, as an industry, we need to do something now before adviser numbers significantly fall over the next decade.
“We need to extol the virtues of the rewarding career to be had with the dynamic and growing financial advisory sector to the next generation of talented advisers.”
To try and address this burgeoning issue, Coady confirms that deVere United Kingdom is aiming to take on more graduates from deVere’s UK Graduate Programme this year than ever before.
He explains, “Progressive and well-established schemes such as deVere’s Graduate Programme, which puts grads on the fast track to career success, are helping to address the supply issue facing our sector.
“Highlighting our commitment to encouraging and supporting young people, last month 10 graduates joined us at deVere United Kingdom.
“Like all graduates who join the deVere programme around the world, they will receive unrivalled hands-on experience with high-net-worth clients, extensive one-to-one mentoring from some of the most senior and qualified consultants in the organisation, and formal industry qualifications.”