By Ahmed Bawa, CEO of Rosemount Financial Solutions (IFA)
Financial advice is not a young industry. Data from the Financial Conduct Authority released a couple of years ago, following a Freedom of Information request, found that just 6% of advisers were aged under 30. By contrast more than one in three were aged between 50 and 59.
There is a pressing need to address this imbalance too, since many older advisers are actively looking towards the exit. A study from Investec earlier this year suggested that around half of advisers are looking to retire within the next five years.
It’s already debatable whether we have sufficient numbers of advisers in place to guide clients with their financial decisions, from investments to protection needs, but the fact that adviser ranks could take a further hit by the older cohort moving into retirement will create additional problems.
If, as an industry, we are going to support the ongoing needs of our clients then it’s evident that we need to bring fresh blood into financial advice.
Addressing the image problem
The first question that needs to be addressed is why greater numbers of school leavers and graduates do not look towards financial advice as a potential career. Is it that they are less attracted to the industry? Or do they not even know about it as an option?
Speak to advisers and most will say it was a job they fell into, so how can we improve the image of financial advice and make sure that it’s something younger people are actively pursuing?
After all, we all know that financial advice is a fantastic career. Advisers have the chance to build their own business, really take control of their own destiny. Couple that with the ability to be flexible over working hours, to try to find a better work-life balance, the variety of the work and the opportunity to secure a lucrative income, and it’s obvious this should be a career that appeals to greater numbers of people.
A different way of doing things
Bringing fresh blood into the industry isn’t just important because of the swathes of older advisers approaching retirement, and who will need replacing.
No, young advisers are desirable because they can help push the industry to be more innovative.
Financial services has become more forward-thinking in recent years, with the greater adoption and integration of technology, but that is really only the start. By bringing in new talent, we can ensure that fresh approaches and perspectives are given the opportunity to help the way that we advise develop.
Let’s be honest, advice firms are far more likely to be able to capitalise on social media and other emerging ways of working with the next generation of clients if they have younger staff not only on their books, but who feel valued enough to come forward with their own ideas and suggestions.
How we are doing it at Rosemount
At Rosemount, we are taking a proactive approach to bringing fresh talent into financial advice, looking for ways to get them into the door to begin with.
A good example of this is our internship programme, through which we have partnered with a host of universities so that we are listed as offering opportunities to students looking for a one-year work placement as part of their studies.
The programme started last year with one intern, and we have two working with Rosemount this year. These aren’t internships where they are tasked with making the tea, or sitting bored in meetings either – we give them hands-on experience in all areas of the business, from compliance and case checking to risk management and feeding back to advisers.
It’s only by getting a real taste for what this career can offer that we can attract the next generation of advisers, and the fresh ideas and perspectives they bring with them.
Breeding excitement
Both of our current interns are economics students. Joshua Wright had heard about Rosemount, and financial advice more generally, through his older brother who worked for one of Rosemount’s Appointed Representatives.
He told us that while his friends are doing a lot of admin in their placements, he was given responsibility straight away, with support whenever needed, which has helped build his confidence.
His fellow intern, Ewan MacBride, worked with a financial services business in his Year 11 work experience. He has also enjoyed the fact that the programme has provided exposure to different aspects of the business and how it operates as a whole.
I’m thrilled that Rosemount is becoming known for the quality of our internship programme, and it’s something we are committed to continuing. There’s such a benefit to us as a business, as well as the industry as a whole, through having young, enthusiastic people as part of the team.
I hope that as more students come through, and take positions in financial advice, that they can then become advocates for the career for the next crop of youngsters.
But as an industry, we need to raise our game in promoting financial advice as a career to young people. It’s not enough to simply raise awareness of advice as a job; we also must ensure there are clear pathways for the advisers of the future to join our ranks.
