'We need accelerator initiatives where there is under-representation'

The independent financial adviser at Continuum says the space will evolve naturally as client bases diversify, but warns it requires "accelerator initiatives" where evidence suggests there is under-representation disproportionate to the increasing diversity in the population.

She says the benefits of a diversified workforce are clear: people with different experiences can approach challenges differently and perhaps even show greater empathy and understanding to the issues clients are facing. 

In a Q&A with FTAdviser Pabial explains why diversity is still lacking in financial advice and why small firms are part of the problem.

Make financial advice aspirational and people will come, women and diverse groups included.  

FTA: Does financial advice have a diversity problem? 

SP: There is a lack of representation of women and minority groups including the following:

• Diversity in thoughts, experience and personality.
• Age diversity.
• Socioeconomic diversity.

In recent years the industry has focused on gender diversity, and progress has been made, but there is some way to go to be an inclusive industry for all.

To a certain extent, the advisers are driven by the audience they serve. Historically, the majority of clients were white, male, and looked to be advised by like-minded individuals that reflected their profile. 

As client bases become more diverse, the advisers who serve them will naturally become more diverse. However, the advice market requires accelerator initiatives where evidence suggests there is under-representation disproportionate to the increasing diversity in the population. 

The advice market also needs to ask if it is wholly able to meet the needs of some diverse groups, particularly in relation to certain religious beliefs and priorities. This could potentially preclude these groups seeking out financial advice as they perceive it is not appropriate for them.

FTA: How would advisers and clients benefit from greater diversity in the industry?

SP: People from different backgrounds and experiences can approach challenges differently. It could be argued that there is also greater empathy and understanding should the adviser have direct experience or exposure through their community to the issues faced by the client. 

Financial services play a critical role in changing people’s lives and it's important that it is managed by individuals who have a diverse range of experiences and perspectives.

An inclusive workforce can bring multiple benefits to the financial services industry, such as improved reputation, better employee satisfaction and client experience.

FTA: How can we get more people from diverse backgrounds interested in financial advice?

SP: Opening doors for them to explore the opportunities we have to offer.

Financial planning communities such as NextGen Planners, which I am a member of, can also help. NextGen Planners strives for inclusion and shares best practices throughout our profession and as an industry as a whole. They offer training, development, and a safe space to ask questions in a supportive environment. 

There are unconscious biases that lead to recruitment decisions.

Apprenticeship and graduate programmes can also directly address age diversity and should be sensitive to socio-economic and thought/experience/personality diversity as part of the recruitment process.

More widely the industry needs to continue to reposition itself as a professional service to attract those who otherwise head for professions such as accountancy – an industry that has had some success in delivering gender equality and diversity.

FTA: Would you say there is still hidden bias in adviser recruiting?

SP: There are unconscious biases that lead to recruitment decisions. Businesses are run by individuals who tend to be biased towards those who are like them or have shared similar experiences. 

The predominance of smaller companies in financial advice, ie those traditionally without robust recruitment strategies that embrace and challenge gender and diversity issues, ensures unconscious bias persists.

FTA: What about females, how can we get more females into the industry?

SP: We can help by creating a culture of inclusion and support, where women are encouraged to speak up, share their ideas and feel valued and respected. 

Flexible working in our industry was not really an option before Covid. It does feel as though flexible working has now been embraced by our industry and clients, giving us a lot more flexibility in what our working days can look like. 

The technological changes now mean we can deliver training and development sessions over Teams or Zoom. We have now removed the barrier that training/support was only available if you were in the right location and in person. 

FTA: Which segment of the industry is more successful in diversifying its workforce, smaller or larger firms?

SP: Larger firms. They naturally have more resources and initiatives in place to help improve representation in the workplace.

FTA: What would be the most effective measure to get more people from diverse backgrounds into financial advice?

SP: I think initiatives like the Change Festival by the CISI and NextGen Planners. Events like these do open the doors for everyone to come along, share ideas and explore the opportunities our industry has to offer. 

Mentoring programmes can also help to promote the career development of under-represented groups and ensure that diverse employees are given the same opportunities for advancement.

On top of this, a push by the financial advice industry to position itself as a professional service akin to accountancy and law. Those associated industries have had some success in addressing diversity and gender equality – make financial advice aspirational and people will come, women and diverse groups included.  

At Continuum we have built a business on the collaboration of ideas and best practices, with a huge central training programme to help people of all backgrounds grow their financial advice business. We also have a very supportive environment with initiatives such as our wellbeing programme for both advisers and clients.

As a result of our open culture and these factors, we have noticed a steady stream of younger generation advisers and back-office staff applying to join the partnership from a wide range of backgrounds.

carmen.reichman@ft.com