Wealth Management Market Update

Wealth Management Market Update

Industry Landscape:

  • The end of 2018 saw a large increase in the number of advisers joining licensees, as they attempted to beat the FASEA education requirement deadline that applies to new advisers joining the industry from January 1st this year. The increase saw more than half of the entire years’ worth of new adviser authorisations come in during the last few months of the year. While over 8,500 new advisers jumped on board in 2018, nearly 40% were registered in December.
  • HUB24 revealed details of its new offering for advisers. Since 31st December 2015, the platform has grown from $2.4 billion in FUA on platform to now over $10 billion. During the same three-year period, the number of advisers using the platform has increased from 556 to almost 1,500.
  • FASEA meets advisers halfway on degrees. The most important update is that for advisers with non-relevant degrees, shortcuts are now available if that degree involved 4 to 7 courses in one or more of the designated fields of study, meaning financial planning, investment, accounting, tax, finance, business or commercial law. Of the eight courses required to attain a graduate diploma – each requiring 120 hours of study – advisers who satisfy the criteria will receive credit for two courses.
  • FASEA also recently published its foreign qualification standard policy that includes a two-step assessment process for new advisers. The process will entail (1) an assessment by a Department of Education and Training and (2) an assessment by FASEA as to the equivalence of the foreign qualification to a degree or qualification approved under FPS001 Education Pathways Policy. FASEA said it will then determine the requirements for the new entrant or existing adviser. (For anyone that may have studied overseas, our advice is to get your qualifications assessed ASAP, the feedback we have received is assessments are taking quite a while and most businesses will now not hire or even interview without FASEA recognised qualifications being confirmed upfront).
  • Angus Woods (Managing Director at Adviser Ratings) recently published a very interesting article on dealer groups that had been reducing advisers’ numbers. Angus issued – Looking back on the last 12 months, despite a net gain across the industry of +11% in 2018 due to the FASEA deadline (as stated above). Some licensees, such as BT Financial Group have made a concerted effort to consolidate advisers among its 3 licensees, BT, Securitor and Magnitude. Adviser Ratings did not include the wind ups in the last year (such as CPA Australia and Dover).
  • NAB stated that the sale of its MLC wealth management businesses may be pushed back until 2020 following the Hayne royal commission final report and the resignations of its CEO and chairman.

 

Recent Changes to Senior Leadership:

  • Adam Youkhana, previously with YBR has joined Clime as GM Wealth and Distribution.
  • Brian Benari retired as Managing Director and CEO of Challenger with incoming CEO Richard Howes.
  • Michael Spurr, appointed as CEO of Count, replacing Ed Box.
  • Sonya Choi La Rosa recently joined Paragem as General Manager Operations.
  • Narelle Wooden appointed general Counsel & Secretary at CountPlus.
  • Lisa Chambers appointed General Manager, Advice Monitoring at NAB.
  • Interesting few months at IOOF with CEO Chris Keleher and Chair George Venardos stepping down following the prudential regulator’s announcement to take legal action last December.
    However, it is business as usual for the group with long term leader Renato Mota stepping in as acting CEO. Darren Whereat who was appointed in August last year to the newly created role of General Manager Advice has stepped up as acting General Manager Wealth Management. Other changes at IOOF include Helen Blackford to CEO M3 and Geoff Kellett CEO of FSP.


A Recruiters market insight:

  • With a number of advisers openly stating that they will look to exit the industry over the coming few years, there will be a high demand for experienced, well-educated and compliant individuals. There is already a noticeable increase in senior advice salaries across the board and this looks likely to continue due to that demand.
  • There is still high demand for candidates to work within advice remediation, from junior, case assessors and senior leadership roles.
  • A new online fact find, Telescope, is launching soon. With just four screens and no long, arduous forms, Telescope can be filled out by clients before you meet with them, so you can get a sneak peek into their thinking, their family and their financial resources, and then have a shorter, more productive meeting as a result. Telescope is currently pre-beta. Founders, Sarah Penn and Alese Watson, say that there are only 20 places in the beta program and most are already filled.
    If you’d like to be considered, check out telescope.solutions.
  • Outsourced Paraplanning continues to be a popular option for our clients from Banks through to Boutiques. Clients use outsourcing providers to help them through particularly busy ‘peak’ periods to supplement inhouse support while others run a 100% outsourced model. This could be in part due to the increase in paraplanning salaries and shortage of talent on the market, which can make outsourcing cost effective.  We have received very good feedback on a number of operations including CPC Group. If you are in need of their support, please contact Rozetta Keatley at CPC – cpcgroup.com.au
  • The FPA Sydney Chapter Committee have organised a Breakfast event on 14 March 2019 available to members and non-members. The panel session will be addressing the real concerns many financial planners have around the legislative landscape and how to adapt their businesses following the Royal Commission around Fee for no Service. There is an impressive line-up on the panel:

 

Remuneration: What’s happening with salaries?

  • State General Manager – Industry Fund/Banks/Large Licensee (dependent on size of team) – salary range 250k – 350k base + super + bonus
  • State General / Regional Manager – Small/Mid-Size Licensee – salary range 220k – 280k + super + bonus
  • Regional Manager – Industry Fund/Banks – 5+yrs experience, salary range $180k – $230k base + super + bonus
  • Regional Manager – Industry Fund/Banks – 3-5yrs experience, salary range $150k – $190k base + super + bonus
  • Regional Manager – Industry Fund/Banks – 1-3yrs experience, salary range $120k – $150k base + super + bonus
  • Financial Planning/Practice Manager – 5+yrs experience, salary range $150k – $220k base + super + bonus
  • Financial Planning/Practice Manager – 1-5yrs experience, salary range $120k – $185k base + super + bonus
  • Practice Development Manager – 5+yrs experience, salary range $180k – $210k base + super + bonus
  • Practice Development Manager – 3-5yrs experience, salary range $140k – $180k base + super + bonus
  • Practice Development Manager – 1-3yrs experience, salary range $110k – $140k base + super + bonus
  • Senior Financial Planner with CFP – 5-10+yrs experience, salary range $130k -$220k base + super + bonus
  • Financial Planner – 4-5yrs experience, salary range $120k – $150k base + super + bonus
  • Financial Planner – 2-4yrs experience, salary range $70k – $120k base + super + bonus
  • Junior Financial Planner – 1–2yrs experience, salary range $60k – $85k base + super + bonus
  • Senior Paraplanner – 3–5+yrs experience, salary range $85k – $120k base + super
  • Paraplanner – 1-3yrs experience, salary range $60k – $85k base + super
  • Senior Compliance Manager – 5+yrs experience, salary range $180k – $240k base + super
  • Compliance Manager/Specialist – 3-5yrs experience, salary range $140k – $180k base + super
  • Compliance Manager/Specialist – 1-3yrs experience, salary range $100k – 140k + super
  • Review/Compliance/Case Manager – 5+yrs experience, salary range $160k – $180k base + super + bonus
  • Review/Compliance/Case Manager – 3-5yrs experience, salary range $130k – $150k base + super + bonus
  • Review/Compliance/Case Manager – 2-3yrs experience, salary range $90k – $120k base + super + bonus
  • Review/Compliance/Case Manager graduates, salary range $60k – $80k base + super + bonus
  • Client Service Manager/Associate Adviser – 3–5+yrs experience, salary range $75k – $100k base + super
  • Client Service Manager/Associate Adviser – 1–2yrs experience, salary range $55k – $75k base + super

 

Are you planning to recruit?

Getting on the front-foot early and liaising with a recruitment expert has never been more important due to the competitiveness of the current market. If you are looking, or planning to recruit in the near future, or are just looking for some industry advice please feel free to call Chris Gordon directly on 02 9240 6300 anytime.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>