Your IndustryMar 2 2016

PFS secures 15 firms for adviser apprenticeship drive

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PFS secures 15 firms for adviser apprenticeship drive

A government-funded apprenticeship scheme for financial advisers is being discussed, which aims to attract new blood into the financial advice sector.

The project is sponsored by the Personal Finance Society but includes 15 employers of different sizes and business models.

The PFS will design the apprenticeship over the coming months and submit it for approval with the Department for Business Innovation and Skills, with a view of launching it in the summer.

The first meeting to design and develop the new apprenticeship was held last week, and was attended by a number of the key adviser groups.

There has never been a better time to choose professional advice as a career of first choice Keith Richards

Since 2011 approximately 4,000 advisers have left the industry, according to figures from the FCA.

Keith Richards, chief executive of the PFS, said: “We are aiming to launch the apprenticeship to the sector in July this year, when levels of government funding will also be confirmed.

“Demand for advice is clearly evident and likely to increase further with the desired drive back to a savings culture.

“There has never been a better time to choose professional advice as a career of first choice and the new apprenticeship will increase entry options in addition to the more established graduate and second career routes.”

According to figures from the FCA the number of financial advisers offering professional advice has fallen from around 26,000 in 2011 to 24,000 in 2014, prompting concerns about an advice gap. The fall has continued and as of 10 November 2015, FCA figures showed there were 22,557 financial advisers across the UK.

Meanwhile, the average financial adviser is aged 58, according to one study.

Apprenticeships which comply with the standards of the Skills Funding Agency are listed on its website and eligible for government funding.

A group of companies including SimplyBiz, Sesame Bankhall Group, Openwork and Sense have already clubbed together to create a paraplanning apprenticeship which is being funded by the government.

In addition to the PFS and Ifs University College, employers represented at the first meeting included Sense network, which will chair the employer group, Towry, Sesame Bankhall Group and Tenet.

Last year Sesame sold its Financial Adviser School to Intrinsic after closing its AR network several months earlier.

Marcus Bowsher, the PFS scheme’s project manager, said: “Having a collaborative, sector wide employer group to lead the development of the apprenticeship, means that it will have been designed by the sector, for the sector.

“Employers and potential apprentices can therefore look forward to a flexible and fit for purpose scheme when launched in the summer.”

Meanwhile, the Association of Mortgage Intermediaries is also working with networks to create an apprenticeship for brokers, Robert Sinclair has said.

He said: “A number of intermediary firms are working alongside us to offer apprenticeships for people coming into the sector.

“It has just come in now and people are signing up. We are waiting to see how many people are interested in taking it up. A couple of networks are a long way down the road on this.

“I am hopeful we will get eight or nine networks of a decent size involved in this.”

Adviser view

Martin Dodd, financial adviser with Wolverhampton-based Midlands Investment Agency, said: “I think a financial advice apprenticeship is an absolutely brilliant idea.

“The industry is sadly lacking in development of the next generation of financial advisers.”