Financial planner salaries expected to rise 23%

Data shows that despite salaries are expected to be flat across the board in 2021, financial planners are expected to buck that trend with those who have one to five years of experience predicted to see a 23% rise.

The annual Robert Walters Salary Survey, which tracked trends and sentiments in the Australian job market, showed confidence in the opportunities on offer in the industry were also high with 65% of those surveyed indicating they felt confident about their job prospects this year.

There was also 25% of businesses in the wealth management space that indicated they would give pay rises this year, with 33% of professionals in the industry expecting a pay rise in 2021.

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Across the banking and financial services industry in general – the most sought after individuals in 2021 were risk and compliance professionals, credit and lending professionals, and investment analysts and specialists.

Remuneration was also identified as not being the key driver of worker satisfaction, as the ongoing impact of the COVID-19 pandemic and stay-at-home directives had seen professionals instead turn to job security, workplace culture and their colleagues as the main source of their job satisfaction.

Overall, 85% of professionals surveyed indicated they want their current flexible working arrangements to continue, which included 43% who want to continue working remotely full-time.

However, business leaders said they were focused on getting employees back to the office, which they viewed as having a critical role to play in restarting the economy and 60% said productivity was the driver for them not wanting to continue with flexible working arrangements.

Almost half (49%) of those surveyed who were unemployed said it was due to a COVID-19 related redundancy, while 32% of businesses said they would continue their hiring and headcount freezes into 2021, and 25% would likely make redundancies.

James Nicholson, Robert Walters ANZ managing director, said 2021 was going to see a resetting of the employment landscape.

“Job seekers are confident of their job prospects for the year ahead and are emboldened by the flexibility gains made in 2021,” Nicholson said.

“However, employers are working to get their teams back to the office and remain cautious on the long-term recovery of the economy.

“How this re-balancing of the working environment and bridging of the expectation gap is managed now, has the potential to dictate the future of the workplace for decades to come.

“We expect salaries will remain relatively flat in the year ahead – even in those industries experiencing the most demand; and a third of businesses have indicated they will be continuing with headcount freezes in the short-term.”

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Reading between the lines, I think there are plenty of relatively well paid jobs for young financial advisers who are willing to sell their soul and take the pieces of silver on offer for "remediation" programs. But "remediation" is a PR stunt by the big banks, funded from their marketing budgets.

That money will quickly dry up, the "remediation" teams will be wound down, and those young advisers will struggle to get jobs as real financial advisers given their lack of real world experience and their penchant for persecuting others. They will all be clamouring for jobs at ASIC and AFCA, where those qualities are valued.

100% agreed...all of those taking the big bucks now will struggle to find roles when the river of gold from the banks/AMP ends...

I'm not so sure you are right there. I know of a few advisers who have recently left remediation programs and have re-started as financial planners. They are contacted those that they remediated knowing that many still need an adviser. They got a good relationship with them, the clients trust them. Expect more of this as remediation programs start winding down.

Excuse me, they have contacted clients that they have remediated and are signing them up as clients when they leave the compliance remediation roles? Really? Isnt that called bottom feeding, and isnt it also a massive privacy breach? Talk about a dog eat dog world, woof woof to them !

They build a relationship with the client during the remediation process, just happen to mention they are looking to start back up as a financial planner shortly and would they like a call, I can't see a privacy issue or how it's bottom-feeding. Some of these clients are currently between planners, a few are not happy with their current planner.

How do they build a relationship with the client? I thought the cardinal rule of remediation was to NEVER communicate with the client to find out if they actually received the service, or if they have been disadvantaged in any way.

Advisers are presumed guilty unless they have irrefutable documentary evidence on file from up to 10 years ago that the service was provided. This "lookback" witch hunt culture is one of the main drivers of excessive compliance conservatism, and ultimately of greater advice complexity and cost.

Your "cardinal rule" is at best extremely optimistic. Of course those who work on remediation programs speak with the clients. They have the basic questions like, "In 2018 you paid johnny financial planner $7k in fees, primarily from commission in your super fund and life insurance policies, can you remember receiving and services from johnny financial planner that year?" And the client goes, "No". And the remediation person (soon to be financial planner) goes, "I couldn't find any information that you received any service either. If I was your financial planner, I'd probably charge a set fee of $3.3k a year and ensure that you received an annual review. I'm actually thinking about heading back into financial planning in a few months, you don't mind if I give you a call to review your needs then do you?" Client goes, "That'd be great!" Remediation program person (soon to be financial planner) goes "I'll call you in a few months, but in the interim, expect a deposit into your bank account of $30k I'll organise covering the fees you paid to johnny financial planner from 1 July 2013 till when they were turned off." Client goes, "That's great, thank you.". Fish in a barrel!

This behaviour is clearly a massive breach of the Privacy Act and FASEA Code, and probably the anti-hawking regulations as well. If you are an adviser yourself, and know of other advisers doing this, you have an obligation under FASEA Standard 12 to report them.

There's no breach in privacy or the FASEA code. If they build a good relationship with a client during the remediation program and that client wants to follow them and have them be there adviser, at a date in the not to distance future, that's no issue.

Totally agree, breach of privacy!!!

I might start calling all my clients from 15 years ago when I was employed planner prior to starting my business if this is allowed

Can't see an issue if you contacted them. If they think you can add value, I'm sure they'll go with you.

Well, that's one view. Here's another:
1. Most Bankers who have had experience in Credit Management are much better Lenders than their peers who have not. They write far fewer fewer bad loans. So these remediation people are likely to be very conservative Advisers in the future and that's not a bad thing.
2. Only qualified persons can make new Advisers by supervising their PY. So some of these ex Remediation people who are qualified are very likely to be the trainers of most new Advisers over the next few years - like it or not. Small suburban firms will struggle with PY for Provisional Relevant Providers and indeed succession. So medium / large sized groups will want ex Remediation people.
NB, roughly half of all the "Remediation" people I know are not qualified anyway. So after that job, the advice profession is probably not for them.

"the most sought after individuals in 2021 were risk and compliance professionals.." I think this is a sad statement about the state of the industry.

"the most sought after individuals in 2021 were risk and compliance professionals, credit and lending professionals, and investment analysts and specialists." I don't see financial planner amongst this list. You might need to adjust your topic.
Not any client facing advice roles there for planners.
Being self employed i will be happy to be in business in 12 months and ecstatic to get a 25% pay rise.

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