Sustaining the planning boom is the key to a strong future
Our lead in this edition of Money Management paints a bleak picture for dealer groups looking to hang on to their top producers or boost-ing their planner numbers to meet the booming demand for financial advice.
Our lead in this edition of Money Management paints a bleak picture for dealer groups looking to hang on to their top producers or boost-ing their planner numbers to meet the booming demand for financial advice.
On the other hand, it paints a pretty picture for financial planners looking to get the very best from their dealers or looking to squeeze a few extra dollars from dealer principals.
But whatever side of the fence you sit on, it is becoming increas-ingly obvious that financial planning has finally become one of hot-test jobs on the market.
Accountants, stock brokers and banks are all looking to build their financial planning armoury to meet the projected boom in demand for advice as the boomers move through into retirement. On top of these bidders are a host of new specialist planning groups who are looking to get big quickly. Take the fledgling Money Matters group or Profes-sional Investment Services for example. And some of these bidders have deep pockets.
While studies by recruitment firms operating in the industry suggest there has been little upward pressure on wage levels to date, it is only a matter of time before the boom in financial planning jobs pushes up the amount it costs to hire the best.
It may get to a point where the most pivotal players in a dealer group are offered the same sort of golden handcuff arrangements we are seeing with fund managers such as BT.
The early indications are already there. Some dealer groups have set up their own in-house poaching operations to lure the cream of the industry to their businesses, while others are reviewing the amount they charge advisers to be part of the banner group and the services they offer to keep their advisers happy.
As word spreads of the opportunities in financial planning, a growing pot of talent from outside the financial planning industry has begun to flood into the profession.
However, anecdotal evidence suggests few young people are entering the industry. Some argue that the primary demand for financial advice is from people over 40 and those people don't want advice from some-one fresh out of university.
Probably more pertinent is the argument that the industry needs to attract the best graduates if we are remain healthy.
And this is not to say these graduates should be sentenced to endless years as assistant planners or paraplanners but should be nurtured to the front line of financial planning.
Only then will we have a sustainable as well as booming financial planning indus-try.
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