Advisers need to get more involved in replenishing the industry

It’s no secret that the advice industry is bleeding. The pipeline for new advisers is thin, as previously acknowledged by then-financial services minister, Jane Hume.

And while the government is largely responsible for safeguarding the industry, something the upcoming Quality of Advice Review is expected to aid, advisers are being encouraged to buckle down and play their part in the much-needed advice replenishment.

Speaking to ifa, Sue Viskovic, managing director at Elixir Consulting, acknowledged the disinterest young professionals have shown the industry.

“I think there are several reasons for this,” Ms Viskovic said.

“One is historical – financial advice is a relatively new profession, compared to accounting and law, and so there is a lack of awareness of what the career actually entails. Those who have heard of financial advice may have only heard of it in a negative sense. Either through the public perception of advisers, compounded throughout the royal commission, or through the eyes of jaded advisers lamenting the increased level of paperwork, administration, and compliance burden.

“There’s likely also an element of the fact that if a young professional has had the opportunity to intern at an advice firm, they may not have experienced client meetings, and seen and felt the rush that advisers get when they see the positive impact they can have in their clients’ lives”.

In other words, their only experience of advice may be the copious amounts of “seemingly pointless” paperwork that they were required to administer, without understanding the context or purpose.

Ellie Fordham, a financial adviser at Verse Wealth, similarly put the disinterest down to a lack of knowledge of the industry.

“If I reflect on many of the great advisers I know, so many of them either fell into the industry, like me or changed careers with greater awareness of what advice is. During interactions with universities, I’ve heard many stories of students changing majors or adding financial planning as a second major when they become aware of what we do as advisers and learn more about our profession,” Ms Fordham told ifa.

As such, both Ms Viskovic and Ms Fordham are confident that advisers hold the key to attracting young professionals.

“Educating students and their educators about what a rewarding profession this is would go a long way,” Ms Viskovic said.

“It’s a unique role that blends both intellectual rigour with human compassion and a desire to help people. Helping people identify and live their best lives, through influencing their behaviours and decision making is incredibly meaningful and rewarding.

“If you have the pleasure of hosting an intern or work experience person, that can be great for your business, to have simple tasks completed by a low-cost team member – but please, take the opportunity to give them that dopamine hit that comes with seeing firsthand, the power and purpose of your profession. Once they see the incredibly valuable impact they can have on others, they’ll be hooked.”

Similarly, while acknowledging that advisers are juggling great, many hats, Ms Fordham encouraged her peers to get more proactive.

“If you do get the chance, reach out to your local university to see how you can assist them – be it speaking to high school students at open days looking to enrol, chatting to students about their career path post-study or guest lecturing a unit and getting the students really excited about their career path ahead. I’ve had the opportunity to do all three and it was an incredibly rewarding experience,” she explained.

Finally, Ms Viskovic noted, “our future advisers are closer than we think”.

“I know of many women who are currently working in the back office of advice firms as paraplanners and CSOs who are keen to step up and advance into an advice role, and just need the encouragement and support to do so,” Ms Viskovic said.