The other SJP: How advisers can help with diversity and inclusion

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The other SJP: How advisers can help with diversity and inclusion
Photo: Andrea Piacquadio via Pexels

The need for new blood in the financial advice industry is clear. But where will the next generation of talent come from?

And will these newcomers be able to connect with the growing numbers of wealthy millennials and Generation Z clients-in-the-making, and reflect their experiences?

At the moment, there are some obvious gaps. Randstad’s ‘Paying Attention’ report in 2018 revealed only one in 10 management jobs in the UK are held by members of the black, Asian and ethnic minority community. 

Within financial services, the numbers are even lower, something the regulator noted in 2016 as well as vowing to set an example itself.

That year the Financial Conduct Authority set a target of having 8 per cent of senior employees identifying as Black, Asian or other ethnic minority by 2020, and 13 per cent by 2025 .

But as of March 2017 representation levels FCA’s senior leadership team stood at just 2 per cent - down from 3 per cent in 2016. While this percentage is on the rise again, there is still more to be done across the board. 

Similarly, Black and minority ethnic lawyers make up approximately 21 per cent of the total qualified lawyer population. Yet only around 5 per cent of qualified solicitors in the UK are of Black heritage, as listed in the 2020 diversity statistics and findings by the Solicitors Regulatory Authority.

We want to be able to give people as many opportunities as possible. -- Samuel Clague

If one looks at the make-up of Britain in 2021 there is a far greater diversity among Britons, and the professional services that serve people ought to reflect the nationhood of the UK better. 

Part of this is in providing routes into the professional services industry that avoid the traditional old boys' networks and instead focus on candidates who might otherwise not have had a way in. And from advisers' perspective, the opportunities to help do not stop there.

Wednesday at Five

Law graduate Samuel Clague founded the Stephen James Partnership, the UK's only Black-owned legal recruitment firm.

Initially SJP was set up to help graduates find work in the legal sector, but has later broadened out into financial services recruitment. 

"In the past couple of years I have tried to do more for the Black community", he said, "giving people an opportunity and access into the industry."

He started to offer free drop-in sessions for those wanting to explore a career in law or financial services, handing out his personal mobile phone for calls between 5pm and 6pm on a Wednesday, earning the nickname the 'Wednesday at Five Club'.

But the sheer volume of people approaching Clague gave him pause for thought. "I wanted to give people CV advice or interview help, but some of the feedback was that people from the Black community were struggling to get into law, into financial services - struggling to get a foot in the door.

"People didn't have a network of people they could lean on, or go to for help."

Imagine turning up to a huge international organisation and thinking 'I look and sound different to lots of people here, and I don't have an expensive suit and I've had to borrow clothes to come here'. -- Samuel Clague

This is when he got the idea of creating the BlackInternsMatter campaign, a way to engage with law and other firms to provide opportunities to Black students and graduates to get internships.

"The initial response was overwhelmingly positive". 

Within this, he has created different elements, such as the Access Programme. This is designed for people from low-income backgrounds, from state schools and who have no network. "People who need the help the most", Clague says. 

As part of this, BlackInternsMatter will help with interviews, finding intern placements, as well as using the financial hardship fund to help provide them with technology needed to do their work, providing money for food and travel, and even buying them business attire. 

"These things I have just mentioned have often been stumbling blocks for people. Imagine turning up to a huge international organisation and thinking 'I look and sound different to lots of people here, and I don't have an expensive suit and I've had to borrow clothes to come here'."

While lockdown has pushed back some of Clague's plans, he is confident that the programme can place more than 1,000 Black interns by 2021.

Ongoing plans

But there are many ways that advice companies can help boost diversity in financial services, says Clague, and this does not necessariIy mean taking on apprentices and interns if they are unable to do so.

Advisers can help by supporting in other practical and financial ways - providing advice to help candidates brush up their CVs, or lending their time to do interview practice, or donating to the hardship fund. 

"We want to be able to give people as many opportunities as possible", Clague says, adding: "Whatever that help looks like, it is going to be a 'yes' from us.

"We do have a pot set aside for financial hardship, so if firms cannot take apprentices on but want to help people pursue a career in financial services, that is great.

"If they want to provide their time and become mentors, that is also fantastic."

Clague has also hailed the #10000BlackInterns campaign, which was launched in October 2020 and backed by major City firms, the Association of British Insurers and former prime minister David Cameron.

It hopes to provide 10,000 paid, meaningful opportunities to young, university-educated black people across a range of sectors.

Corporate names, including PWC, Linklaters and Zurich, have already signed up to the initiative, while Credit Suisse pledged to take at least 15 interns across various departments.

Clague welcomes this campaign. "I am hugely for this; they have done a fantastic job so far and it is amazing to see.

"Where ours is different, our starting point was in law, and the candidates are typically coming from this background.

"For our non-law firms, we see our campaign feeding into the winter/summer placement schemes in financial services firms."

Apprenticeship opportunities

His comments come as financial services companies marked National Apprenticeships Week (February 8 to 12) by showcasing their work to help bring more fresh blood into the industry. 

In particular, the Chartered Insurance Institute announced plans to improve the diversity of the financial advice profession by introducing a new diversity and inclusion requirement for employers who use the Aspire apprenticeship scheme.

At the time, Manuel Thompson-Oloko, early careers manager at the CII, said: “Broadening access to opportunities for historically disadvantaged social groups is a priority for not only employers but for the whole of society.”

Kleinwort Hambros has been running apprenticeship programmes to help make financial services more diverse and inclusive. 

Elena Orsini, head of HR at Kleinwort Hambros, cites "numerous initiatives including our apprenticeship scheme and internship programme, and [a] our knowledgeable team of employees who are keen to share their expertise".

"By providing young people with training and support to get them started on their careers, we are making the sector more accessible and ensuring the industry is future-fit.

“This is a hugely exciting opportunity for Kleinwort Hambros to enrich our diverse community of talented employees.”

In recognition of the change being brought to financial services, The FTAdviser Diversity In Finance Awards 2021 will soon be open for submissions (in March), from individuals and from companies who can demonstrate they have gone the extra mile in 2020 to improve diversity and inclusion and make their businesses better for clients, staff and the wider community.

For more information on the categories visit: FTAdviser Diversity In Finance Awards 2021.

simoney.kyriakou@ft.com