The three paths to planning
Richard Klipin
Young Australians seeking a career in financial planning are following three clear entry paths, according to the Association of Financial Advisers (AFA), which has witnessed the early stages of an emerging trend among prospective advisers.
The first entry path is the ‘salary employee option’ and describes practices that groom their new employees before offering up equity in the practice.
The second, ‘family succession option’, describes the path taken by practitioners who bring their adult children into the business, and the third ‘entrepreneur option’ is said to be the ultimate entry path for many young advisers, who adopt skills learnt during a period of mentoring to establish their own businesses.
AFA boss Richard Klipin said the trend became apparent when the AFA turned its focus towards GenXT and the need to foster younger adviser talent, which will be one focus for the rest of the decade.
“It really is time for industry participants to accelerate their plans given the growing rush to retirement of a large number of financial advisers over the coming decade. The AFA has developed its outreach to young advisers and new entrants to help meet the growing talent shortage,” he said.
The AFA has already seen a 30 per cent increase in its membership following the establishment of the National GenXT Council targeted at advisers under 40 years of age. And almost half of the 600 attendees at the AFA National Forum were in the under-40 group, 50 per cent of which were female.
Recommended for you
With the final tally for FY25 now confirmed, how many advisers left during the financial year and how does it compare to the previous year?
HUB24 has appointed Matt Willis from Vanguard as an executive general manager of platform growth to strengthen the platform’s relationships with industry stakeholders.
Investment manager Drummond Capital Partners has announced a raft of adviser-focused updates, including a practice growth division, relaunched manager research capabilities, and a passive model portfolio suite.
When it comes to M&A activity, the share of financial buyers such as private equity firms in Australia fell from 67 per cent to 12 per cent in the last financial year.
