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Dealer groups must adopt programs that encourage practices to employ junior financial planners, according to e-Jobs Recruitment Specialists director Trevor Punnett.
Junior financial planners still find it tough to enter the industry, and therefore all dealer groups should offer support programs that encourage practice principals to take on junior planners, Punnett said.
Punnett pointed to younger planners who, while holding advanced qualifications, were struggling to gain industry experience.
But Association of Financial Advisers (AFA) chief executive Richard Klipin said he believed there were many “forward looking” practices recruiting and mentoring junior advisers.
The AFA runs a program that assigns mentors to new advisers. This is in addition to its GenXt program that it says bridges the gap between the current and next generation.
“When you put a very enthusiastic, well credentialed [junior] adviser with a more experienced person you often get a very good transfer of knowledge, a lot of energy and a lot of pushing of the boundaries by both parties.”
Synchron is one dealer group targeting junior advisers. Of 40 new representatives added this year, about 25 are under the age of 40, Synchron director Don Trapnell said.
AMP is also focused on hiring junior planners. AMP director, financial planning advice and solutions, Steve Helmich, said AMP employed junior planners either as part of a succession plan or to start their own practices down the track.
But there remain dealer groups that do not employ junior advisers. Westpac and St George head of financial planning Mark Spiers said as part of a strategic plan to focus predominantly on financial advice for pre and post-retirees, its planners are expected to have significant experience, technical knowledge and sufficient seniority.
The Financial Planning Association (FPA) recently recommended that all newly qualified financial planners undertake at least one year of full-time supervised work in client-facing roles before being qualified as a financial adviser.
FPA chief executive Jo-Anne Bloch said: “You might have a degree in financial planning … but if you haven’t got the experience, then are you ready to face clients?”
