Quarterly Advice Industry Landscape report October 2019

Quarterly Advice Industry Landscape report October 2019

Chris Gordon, leader of our Advice recruitment team, has shared with us his latest quarterly Advice Industry Landscape report…

The government announced an extension to the deadline for advisers to complete the FASEA exam as well as meet FASEA’s qualification requirements. Under the new requirements, advisers who were registered on the Financial Adviser Register prior to 1st January 2019 must:

  • Complete the FASEA-approved exam by the end of 2021 (one additional year); and
  • Meet FASEA’s qualification requirements by the end of 2025 (two additional years)
  • The changes will not apply to new advisers registered after 1 January 2019.

We have recently taken an expanded look at the hiring changes in the advice sector on the back of the Royal Commission and have noticed some considerable changes, especially with advisers and remediation based roles.

My feedback/update is as follows:

  • There are less financial advisers in permanent positions than when I first started recruiting in the remediation space 3-4 years ago.
  • We’re seeing more and more financial planners leaving traditional advice positions to move into remediation. Which, looking back over the last 3-4 years of hiring, is highly irregular for permanent staff to actively pursue contract roles but it indeed says much of the extent of the remediation situation.
  • There is a different mindset as people are willing to move out of permanent roles to contract remediation roles in the short to medium term. A primary reason for this is the negative consumer consensus of the industry and the dipping confidence within the industry.
  • Case managers or case assessors who are required to research a company’s advisers files to identify any wrongdoing are in significant demand.
  • We anticipate Remediation roles are going to be around for another 3-5 years as financial institutions resolve their customer base.”

 

ASIC is heavily focused on the dispute resolution process of advice firms and proposed new standards about how they handle complaints, including new compulsory reporting to make firms’ complaints-handling performance transparent. Most larger advice business ie banks, superfunds are required to have an IDR system that meets ASIC’s standards. Internal Dispute Resolution (IDR) and External Dispute Resolution (EDR) positions are currently in high demand. IDR is the first step in the complaints-handling process

 

The industry reforms that continue to disrupt the industry are having a detrimental effect on an advisor’s wellbeing.

Escalating education requirements and tumbling values of some businesses have affected the lives of practitioners, both mentally and financially. The FPA has a free, confidential support program for CFP professionals, AFP and Associate members – https://fpa.com.au/membership/member-benefits-program/. In the June quarter alone, 1,750 advisers left the industry, leaving 25,470 advisers across Australia.

This was a 6.4 per cent decline in total adviser numbers for the quarter and is in line with the continuing fragmentation of the industry.

 

Recent Changes to Senior Leadership:

  • Susie Peterson, previously with BT has joined Mercer as Financial Advice Leader.
  • Michael Wright, previously with BT has joined Xplore Wealth as CEO.
  • Anne Hamieh, previously with Vanguard has joined Xplore Wealth as Head of Distribution.

 

A recruiter’s market insight:

  • There is currently a high demand for experienced, well-educated and compliant advice individuals that have access to client books. Also, remediation case assessors and IDR staff are highly sought after.
  • There has been quite a lot of publicity recently around industry salary levels. With certain roles ie. senior adviser and remediation positions salary levels continue to rise due to the demand. Please see below a full industry salary guide.
  • Outsourced Paraplanning continues to be a very popular option for many of our clients. This is partly due to the increase in paraplanning salaries and a 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 – www.cpcgroup.com.au

 

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 $185k – $230k base + super + bonus
  • Financial Planning/Practice Manager – 3-5yrs experience, salary range $165k – $185k base + super + bonus
  • Financial Planning/Practice Manager – 1-3yrs experience, salary range $120k – $160k 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
  • Private Client Adviser – 5-10+yrs experience, salary range $150k – $220k base + super + bonus
  • Senior Financial Planner with CFP – 5-10+yrs experience, salary range $120k -$160k 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 me directly anytime.

M +61 451 129 269

P +61 2 9240 6300

E Chris.Gordon@profusiongroup.com