Advice: Quarterly Market Update – Q1 2016

Advice: Quarterly Market Update – Q1 2016

Chris Gordon sends a Wealth Management Market update to his clients every quarter.  This is the update he released on 1 April 2016.

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Industry Landscape  

  • Where do we start!? Maybe with the Big 4. The biggest news coming from the Banks this quarter was the changes at ANZ and NAB. ANZ Financial Planning will transition into the retail distribution division, with a focus to grow its Insurance, Super and Investments business and will be known as Australia Wealth, headed by Alexis George, who is currently the Managing Director of Insurance.
  • NAB Private Bank is moving to a pure Banking model and will leave the Advice side of the business to JBWere. NAB (now the sole owner of JBWere) are predicting the move will ensure their clients are serviced correctly within their specialised areas. A team of approximately 65 Wealth Advisers transferred from NAB to JBWere.
  • The Digital Advice space still seems to be topic of discussion. The sheer aim of most businesses releasing these models are to offer pre-advice or a financial planning introduction, providing a low cost tailored option while improving their customers/members access and experience to financial advice.
  • Macquarie recently launched an online platform called OwnersAdvisory which was developed to capture the 80% of Australians without a financial plan and the growing number of DIY investors who want to manage their own investments.
  • Education standards. Most financial planning groups have now enforced the higher education. AMP have recently stated that two-thirds of its current advisers do not meet the government’s proposed higher education requirements and StatePlus (previously known as SSFS) currently has just over half of their 160 advisers being CFP qualified. Moving forward a degree and ADFP as a minimum are a must have for most, with CFP being highly preferred. We recently spoke to the Financial Observer in a bit more detail on this – was a concern that a number of advisers would leave the industry because of this but that does not seem to be the case at the moment with most agreeing and currently studying to reach the higher benchmark.
  • The education standards are not just for Financial Advisers, with most industry leaders also requiring Paraplanners to complete ADFP by the end of 2016, and will be a minimal requirement for Senior Paraplanners moving forward.

Changes to senior leadership:

  • Tim Steele – new General Manager at NAB Financial Planning
  • Matt Lawler – new CEO Wealth Management at YBR
  • Andrea McElhinney – new Investment Director at AMP Capital
  • Marcus O’Sullivan – new Head of Advice at Affinia
  • Steve Helmich – new Chairman at Affinia Board
  • Sue Houghton – new General Manager of Insurance at BT
  • Rob McCann – departing – General Manager at Infocus and co-founder of Patron
  • Joyce Phillips – departing – Group Executive, Wealth at ANZ

Hot spots – type of product or level/seniority or specific skill set:

  • Senior Financial Advisers with a prerequisite for CFP or minimum ADFP and degree qualified.
  • Female Financial Planning and Advice Managers.
  • Phone based Advisers providing scaled advice on Insurance, Investments and Super.
  • Advice Review/Audit/Investigations. Businesses/Banks continue to grow there numbers gradually and still seems to be a common trend for the foreseeable future.
  • Xplan – platform developers, configurators, helpdesk and trainers. A lot of businesses taking on candidates with the scope to upskill due to the candidate shortage.
  • Paraplanners, more businesses continue to outsource due to the paraplanning candidate shortage.

Projections for the next 6 months?

  • Continuation of education standards is still the main aspect with the majority of Adviser roles from Banks through to IFAs needing a pathway to gaining CFP.
  • Further demand for Advice review employees with Paraplanners, Associates and Advisers making up the numbers due to the high volume of roles compared to shortage of experienced Compliance candidates.
  • Pressure on salary for all ‘hot spot’ roles, especially the Xplan rollouts and continuation of Compliance/Review staff.
  • FinTech/RoboAdvice initiatives and launches complementing traditional face to face models
  • Phone based models continuing to grow

Remuneration: what’s happening with salaries?

  • Financial Planning Manager with 5+yrs experience, salary range $150k – $220k base + super + bonus
  • Financial Planning Manager with 2 – 5yrs experience, salary range $120k – $180k base + super + bonus
  • Practice Development Manager with 3+yrs experience, salary range $140k – $180k base + super + bonus
  • Senior Financial Planner with CFP and 5-7+yrs experience, average salary range $120k -$160k base + super + bonus
  • Financial Planner with 2-4yrs experience, salary range $70k – $100k base + super + bonus
  • Junior Financial Planner with 1 – 2yrs experience, salary range $60k – $80k base + super + bonus
  • Senior Paraplanner with 3 – 5yrs experience, salary range $80k – $100k base + super
  • Paraplanner with 1 – 3yrs experience, salary range $60k – $85k + super
  • Review/Compliance/Case Manager with 5+yrs industry experience, salary range $100k – $160k base + super + bonus
  • Review/Compliance/Case Manager with 2 – 5yrs industry experience, salary range $80k – $130k base + super + bonus
  • Review/Compliance/Case Manager graduates, salary range $60k – $75k base + super + bonus
  • Client Service Manager with 3 – 5yrs experience, salary range $60k – $80k base + super
  • Client Service Manager with 1 – 2yrs experience, salary range $55k – $70k base + super

For more information contact Chris Gordon (NSW, ACT, QLD, NT) or Tom Brown (VIC, SA, TAS, WA)

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