Adviser academies are reporting record intakes and summer spikes as the government desperately moves to protect the jobs market from the impact of the coronavirus crisis.
Amid the confusion of the unfolding pandemic earlier this year the Association of Employment and Learning Providers rang alarm bells over a “crash” in new apprenticeship starts, with the advice industry itself shifting its training online to navigate the disruption of lockdown.
But despite initial concerns, the AELP last month went some way to praising a pledge by Boris Johnson to invest more in adult training in a bid to boost the job market in the current crisis and prepare workers for the post-coronavirus economy.
The prime minister promised a “radical” shake up to the post-18 education system, including making higher education loans more flexible in the hope of allowing adults and young people to space out study across their lifetimes.
It comes amid reports advisers are struggling to fill more experienced job vacancies, but are being inundated with application for trainee roles as school leavers struggle to settle in a jobs market struggling against the tide of the pandemic.
Similarly, at the Quilter Financial Adviser School, the advice giant has witnessed a significant shift in a different type of demographic joining its courses since the coronavirus outbreak.
In the cohort of students starting its programme in January, 22 per cent fitted the profile of graduates with a couple of years’ experience, recent graduates or those who had recently left school. In Quilter’s September cohort this had increased to 56 per cent of students.
Julian Hince (pictured), head of the Quilter Financial Adviser School, said the summer months had seen interest in the school spike.
He said: “Part of that was driven by two new initiatives we launched. In June we announced we made the training content for the first unit of the diploma for financial adviser programme free and in July we offered a virtual work experience programme for those looking to explore financial advice as a career option.”
But Mr Hince said funding could sometimes serve as a stumbling block.
He added: “Someone who wants to start studying with the Quilter Financial Adviser School must secure a sponsor or self-fund £7,500 to study the CeMAP & DipFA combined programme.
“While we’ve seen a jump in the number of advice firms who are putting graduates and school leavers on the programme, it has not kept up with the peaked interest, so unfortunately not all those who have expressed an interest have gone on to a course at this stage.”
Record intake
The Openwork Academy this year has seen a record intake of trainees. The next cohort of trainees set to join the academy this month will bring the total recruitment to more than 150 students this year, with the average candidate aged 35 years old.
This is despite recent research conducted by the national advice network, which found only one in five adults were planning on a career change at the moment.
Unsurprisingly Openwork warned the coronavirus crisis is serving as a significant obstacle to a career change, with more than half of the 1,032 people surveyed stating they were not in the market to switch careers and just one in 10 admitting the outbreak would not deter them from moving.
Claire Limon, director of learning and acquisition at Openwork, said: “The current economic uncertainty is definitely a deterrent to switching careers and people are understandably nervous about moving.
“But people remain open to the idea of a career change and the old approach of staying in one sector for your entire working life simply doesn’t apply any longer, with more of us willing to expand our skills.”
Yet again it was the funding cost of training and a potential loss of income that featured as a notable deterrent to switching careers, a worry that Ms Limon said required companies looking to hire career-changers to demonstrate their support.
She added: “At Openwork we believe all ages and backgrounds have the potential to make career changes and there is support available for anyone considering a new job in the expanding sector of financial advice as demand continues to increase.”
The need to replenish the UK’s adviser population has long been acknowledged in the face of an impending advice gap compounded by a generation approaching retirement within the industry.
Ian Lowes, managing director at Lowes Financial Management, recently launched his own adviser academy. The launch had been a long-term ambition for the company, Mr Lowes said, but until last year it had been “just something on a hopeful horizon”.
The academy is set to welcome students of “any age and background” with hopes to attract “high-calibre students with a passion for the financial services profession”.
Mr Lowes said: “The initial applicants for the academy are a mix of university leavers and individuals with experience in the industry already.
“For individuals wanting to move into the profession, having just one of the R0 exams can set them apart from others as it demonstrates a willingness to work hard and strive for self-improvement.
“Perhaps most importantly, having at least one relevant professional qualification on your CV demonstrates a genuine desire to achieve a position in the profession, rather than simply any job. The academy offers that.”
rachel.mortimer@ft.com
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