Some of Australia’s largest remaining financial services groups are facing a looming degree deficit among financial advisers, according to an analysis conduced by HFS Consulting director, Colin Williams.
Williams has conducted an analysis of the current state of the financial advice industry utilising the Australian Securities and Investments Commission (ASIC) adviser register and has pointed to particular problems for AMP Financial Planning, Charter, GWM (MLC) and Synchron.
He said that all these firms had a low ratio of degree qualified advisers and that those with degrees had far less experience than those without a degree.
Williams said all this was happening amid the continuing exodus of older, experienced advisers from the industry.
According to the analysis while just over half of remaining financial advisers hold a degree, they are seriously lacking in experience when compared to those headed for the exit.
It found that among the self-employed peer grow of advisers 50.83% held a degree but that that their average years of experience stood at 11 compared to those without a degree who boasted an average 16 years’ experience.
“When looking at the total years of experience, advisers without a degree make up 58.97% of this total,” William’s analysis said. “This indicates that there will be continuous change in this sector, to allow degree qualified advisers to take up more responsibility as the older, non-degree advisers exit the market.”
Williams said that for the large financial planning groups with low numbers of degree-qualified advisers succession planning would become vital to long-term success.
His analysis suggested that there were 8,413 “resignations” from the industry in 2019 representing 30% of all adviser roles at the start of 2019.