How advice firms can tackle gender imbalance

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How advice firms can tackle gender imbalance
Cheryl Ferris, adviser at Richmond Wealth

Speaking to FTAdviser, Ferris said value can be added to IFA businesses by hiring more women in adviser roles.

Pointing to the benefit of skills that are traditionally seen as more ‘feminine’, Ferris argued that the industry only stands to benefit from greater diversity.

It’s like when you go to the doctor, you might prefer a female doctor and you should have that choice. Cheryl Ferris, Richmond Wealth

“Advising clients is quite a personal relationship," she said. "You’re dealing with how to help them meet their goals in life as well as confronting the disruptions along the way.

"That could be someone sadly passing away, so you’re dealing with emotional issues and that’s definitely something where soft skills can help."

Ferris said that this is particularly important for small firms and can really help the firm's success. 

“It’s like when you go to the doctor,” she said. “You might prefer a female doctor and you should have that choice.”

Increasing diversity

At the crux of it, encouraging more women to go down the adviser role comes down to two main areas for Ferris, who made the move from paraplanner to adviser in 2021.

Firstly, visibility is key. 

Ferris pointed out that it can be difficult for female paraplanners to take the leap to adviser, particularly in small firms, as advisers are typically men:

“For example, in our firm I am the only female adviser so it can be hard for female paraplanners or admin staff to see themselves in that role,” she said.

On this front, Ferris said getting out and networking is vital. 

“It’s important for people in back office roles to get out and see more of the industry.

"If you’re in an office where there are only male advisers in the firm, it’s hard for you to see yourself in that role but when you go to networking events, like seminars and paraplanning workshops you can look around and see there are plenty of women in the room who are giving advice and they’re just as successful as the men around them."

Another thing she highlighted is that the providers are all very diverse these days.

"So there will be presentations from providers and quite often it’s women doing these presentations as well as men so this can be quite inspirational and help you to see yourself more in that role,” she added.

The second area is the entry-path and making it more accessible.

Ferris cited the ability to do the exams at home and at flexible times as a real benefit, particularly for women who have children and might already be working full time. 

Being given the opportunity to gain on the job experience made the transition from paraplanner to adviser much smoother for Ferris.

She stated that it would be harder for somebody who didn’t get that face-to-face time with clients and then was suddenly expected to lead a client meeting instead of being eased in.

Easing in

Last month, research published by Quilter found that female paraplanners are much less likely to become advisers than their male counterparts, despite most having, or in the process of getting, adviser qualifications. 

The research from Quilter also showed that only 6 per cent of female paraplanners said they would like to go on to become a financial adviser, compared to 41 per cent of men. 

In Ferris’ view, this comes down to the firm you are with. 

“I started out in a back office role but my employer has always been quite happy for me to be almost like a trainee adviser. So I’ve been getting on the job experience and interacting with clients for years. Some paraplanners don’t get that and having that interaction is how you can see if it is for you or not,” she said. 

Another stand out finding from the Quilter research was that some women surveyed felt that moving to an adviser role required strong sales skills and this was something they were not comfortable with. 

This was something that crossed Ferris’ mind before becoming an adviser who said getting clients in the door can sometimes come down to sales experience, but argued that advice should not be a sales industry.

“It’s not a sales role. We’re here to have the clients’ best interests at heart and help them with their finances at all stages through their life.”

In May, Ferris received an award from the Chartered Insurance Institute of Northern Ireland for being the highest scoring candidate to complete the CII diploma in 2021. 

Prior to this, Ferris had been in the industry for almost eight years and had completed a number of the exams early on before stopping. It was only when the pandemic hit that she made the decision to continue with her studies towards becoming a chartered adviser. 

Data from the Personal Finance Society has previously shown that of the 7,578 chartered financial planners in the UK, 1,638 were women - only 22 per cent.

jane.matthews@ft.com