No matter the size of the firm, their financial advisers all need to meet certain requirements before going in front of clients.
As Fiona Treadwell, talent and development business partner at Mattioli Woods, notes it is not just the need to be qualified to the correct level, it is also a requirement to ensure any advisers and paraplanners in a firm are on top of the latest regulatory changes.
“Training is essential. Our world moves so fast - legislation is ever evolving, regimes often short-term,” she says.
“Therefore it is essential that advisers are given the best tools to stay up-to-date and be at the cutting edge of legislative change.”
Game changer
Recruiting and retaining a highly qualified workforce can be a challenge, although the introduction of the apprenticeship scheme has gone some way to helping.
In November 2016 the Department for Education approved the financial advice apprenticeship after an application led by the Personal Finance Society.
Prior to the launch of the government’s apprenticeship scheme, this was one of the biggest issues in the industry. This was particularly the case for smaller firms, which can lack resources to offer training.Darren SmithThe scheme offers employers up to £9,600 in financial assistance towards the training of a financial adviser.
Darren Smith, head of Old Mutual Wealth’s Financial Adviser School, acknowledges: “Prior to the launch of the government’s apprenticeship scheme, this was one of the biggest issues in the industry. This was particularly the case for smaller firms, which can lack resources to offer training.
“Having someone come on as an apprentice gives them a formal structure and a lot of engagement.”
He calls the structured apprenticeship scheme a “game changer” for the industry.
Richard Freeman, chief distribution officer at Old Mutual Wealth, continues: “Many Intrinsic firms have contracts which encourage their staff to develop careers within the business.
“Several of our firms are also hoping to benefit from the government’s new apprenticeship model, which will make it more cost effective for them to offer roles that can then develop into more senior positions, such as paraplanners, leading on to financial planners and even partners in the business.”
He agrees: “Smaller firms have to manage their budgets with care and the apprenticeship model gives them the opportunity to attract and develop new talent.”
Knowledge sharing
Training and retention can provide opportunities for both those who are new to the financial advice space or who have recently joined a business, and more senior figures in a firm the chance to form a relationship.
Cath McVey, HR director at Ascot Lloyd, explains: “Our approach to training the younger generation is slightly different. Those entering the job market want to learn from leaders. They are confident and want to be listened to – they are technically competent and require feedback.
“As a result, at the early stages they receive support from senior mentors and then from coaches who continue their personal development.”
Ms Treadwell points out training can be useful not just for those coming in at entry level but also for advisers.
“We engender a real learning and sharing knowledge culture, helped by the fact many of our advisers have come up through the organisation and have themselves had the benefit of others sharing knowledge with them during their training,” she explains.
“We acknowledge that our advisers need to prove they are equipped to deliver outstanding technical knowledge, so we believe in funding professional qualifications all the way to chartered status.”
The best route in terms of making sure the professionalism of the industry is maintained isn’t just about setting exams, which obviously play a massive part in terms of identifying and evidencing your qualifications.Marie CalvinOngoing training can also be a useful tool to ensure advisers of all ages stay engaged and remain within the industry and in addition it helps maintain certain industry standards.
Resources at your fingertips
Technological advances have helped make ongoing training easier, with the ability now to use online learning resources and to access those more flexibly from smartphones and tablets.
Marie Calvin, national academy manager at 1825, the advice arm of Standard Life, says one of the considerations for the industry as it offers ongoing training to advisers and planners is to make sure it is tailored.
“I think there’s such a vast amount of resources available to financial planners and those in supporting roles to financial planners. I think the key thing is individuals really deciding what works for them,” she suggests.
This means not all training takes place face-to-face in a meeting room.
“I think the best route forward in terms of making sure the professionalism of the industry is maintained isn’t just about setting exams, which obviously play a massive part in terms of identifying and evidencing your qualifications,” she insists.
“But ongoing continuous professional development is just as important and that’s really important for us to make sure there’s a range of different methods for people to get access to that information, to keep going with that, even once they’ve reached the level of mandatory qualifications required.”
She explains how this works in practice, with each regional team assigned a “dedicated development manager”.
“The regional advice managers if they were out on appointments with financial planners would then identify if any skills programmes would be required,” Ms Calvin adds.
“Similarly the paraplanning team they would be looking at whether any technical upskill or analysis work would be useful. The key thing is no one training function necessarily looks the same.”
Maintaining standards
Tailored training programmes are becoming preferable, with many of the larger adviser firms keen to get this message across.
This can help advisers brush up on their knowledge in one particular area or keep abreast of more industry-wide themes.
Danny Cox, head of communications at Hargreaves Lansdown, explains: “Hargreaves Lansdown financial advisers have comprehensive personal development plans aimed at keeping them up to date with the markets and technical knowledge, as well as developing their skills and experience in new areas.”
Whatever the aim of the training, there are times when only face-to-face training is appropriate though, as Ms McVey says.
“We are investing heavily in the professional training of our staff and fully support advisers towards chartered status. Our training and competence department carries out one to one reviews with our advisers and provides competency training where necessary.”
The financial advice industry has enjoyed a good reputation. So upping the standards required for those to offer advice will only help strengthen and improve the perception of the industry, and may even encourage more people to trust it with their savings and investments.
eleanor.duncan@ft.com
