Post-RDR financial advice industry needs fresh blood for sustainable future
15 October 2014
The financial advice industry needs to do more to recruit young new talent and create a sustainable future for the profession, say industry experts in a new APFA report.
The report, sponsored by Scottish Life and published as part of a series ahead of APFA’s 15th anniversary, brings together insight from experts across financial services to chart the possible future of the profession. It suggests that, as experienced advisers retire, the future cost of advice may rise without further efforts to ensure new advisers are in place and prepared to take up the slack.
The report highlights the profession’s lack of entry points and clearly-defined career path as barriers to attracting new advisers, but points to the increased professionalisation post-RDR as an opportunity to establish a framework for career development.
Chris Hannant, Director General of APFA, said:
“Financial advice is becoming increasingly professionalised post-RDR. This is good for consumers and good for advisers as we seek to help people make the best choices and generate optimal outcomes.
“Policy-makers are looking to advisers to help with the implementation of big shifts in policy. It’s important that advice is plentiful, well-qualified and available at a price that makes it accessible.
“For their part, consumers are now looking to financial advisers to aid their decision-making on a far wider range of issues, making it all the more important to think about a professionally-recognised career path that can help the advisers continue to meet their consumer’s needs over the next 10, 15 or 20 years.”
The report calls for the profession to focus on providing adequate training for specific roles, in addition to the formal qualifications needed post-RDR. The industry also needs to make better use of government funding for training, such as that available under the ‘Trailblazer’ programme.
Fiona Tait, Business Development Manager, Scottish Life, said:
“The implementation of the RDR has shaken up the way in which advisers sell their services and interact with their customers. Over the next few years this development is likely to continue; the changes in the pension market alone mean consumers will be making harder and more crucial decisions than ever before.
“It’s important that, like its customers, the financial advice industry takes the proper steps when planning for the future.”
The full report is available here.
ENDS
