Advisers remain in short supply: JSA

In its latest Occupations Shortage List (OSL), Jobs and Skills Australia (JSA) has retained its classification of financial investment advisers as being in shortage in 2024.

Financial investment adviser first entered the shortage list in 2023 and was among 66 occupations assessed as being in shortage that were not in shortage in 2022.

The news isn’t quite as bad everywhere, with Victoria being the only state or territory to not experience a shortage, according to JSA.

This is in line with the 2023 results, which also saw Victoria avoid inclusion in the shortage list, however as recently as 2022 almost every other state was classified as in shortage.

The OSL identifies which occupations are in shortage, which JSA said “can prompt governments, industry, and training organisations to shape policy to address this shortage”.

According to the body, a shortage exists “when employers are unable to fill or have considerable difficulty filling vacancies for an occupation, or significant specialised skill needs within that occupation, at current levels of remuneration and conditions of employment and in reasonably accessible locations”.

Essentially, there is greater demand for the service than businesses can currently meet with the staff they have or can find.

The shortage of advisers would come as little surprise to those within the profession, with the considerable exodus of advisers following the royal commission.

However, there has been a stabilisation in numbers, with the latest Wealth Data analysis showing the number remains around 15,500 – though this needs to grow to meet the demand for advice.

The government’s answer so far has been to expand the ability for super funds and other large institutions to provide advice through the proposed new class of advisers. This, however, is unlikely to curb the problem of advice firms struggling to hire financial advisers which is highlighted by the JSA’s inclusion of the occupation in its shortage list.

Meanwhile, the Financial Advice Association Australia (FAAA) has looked to an international pathway as a potential solution, signing an agreement with FPSB India, a subsidiary of the Financial Planning Standards Board (FPSB), to bolster Australia’s advice profession numbers and create unique opportunities for continuing professional development (CPD) across both countries.

The partnership will facilitate greater collaboration between the two countries, allowing for a “seamless transition” of each nation’s financial advisers as well as students wishing to relocate between the two countries.

The memorandum was signed between FPSB India chief executive Krishan Mishra and FAAA CEO Sarah Abood in the presence of FPSB CEO Dante De Gori and FAAA chair David Sharpe in São Paulo, Brazil, during FPSB’s 20th year celebrations.

Abood said this arrangement would help the Australian advice profession address the persistent challenge of growing its numbers.

“The declining number of financial advisers in Australia is a well-known and serious issue. We hope this agreement with FPSB India will lead to more advisers working with Australians to help them achieve their financial goals,” the FAAA CEO said.