Earning potential 'huge' motivation among advice trainees

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Earning potential 'huge' motivation among advice trainees
Credit: Chris Radburn/PA

This year’s 5.5mn GCSE students will join the thousands of students who received their A-level results last week as they decide what to do with their futures. 

If subject popularity is anything to go by, a career in finance may be a good fit for many of this year’s school leavers, with mathematics remaining the most popular subject for A-level students this year - accounting for 11.3 per cent of all entries. 

But even if maths is not a student’s strong point, a successful career in financial advice or planning is possible according to the head of Quilter Financial Adviser School, Julian Hince.

“There is a space for those that enjoy the technical side of things and those who want to work closely with people and help them reach their financial goals,” Hince said.

“I think a lot of people when starting out can be put off by some of the technical sides of the subject matter or feel that the career is too heavily to do with maths. This is not the case and in fact the soft skills required to be a financial adviser can be as important if not more so than some of the technical requirements."

“For some people knowing this might mean that they are more likely to pursue a career in advice in the first place or keep going when the financial advice diploma gets more complicated,” Hince said.

In Hince’s view, a career in financial advice can be a great opportunity for school-leavers as it can have a high earning potential with the opportunity for individuals to set their own hours and achieve a healthy work life balance. 

Make sure that any potential employer who offers the opportunity to enter an academy or training programme gives you the opportunity to complete actual industry exams.Stephanie McClarence, Continuum

Debt burden of university

Others in the industry pointed out that a university degree is not an absolute necessity either.

Official statistics from the House of Commons Library suggest that the average student will graduate with £45,800 of debt, including student loans.

While research by the Association of Investment Companies, released last week showed that two-fifths (40 per cent) of students with no plans to go to university identified not wanting to get into debt as one of the reasons, while 36 per cent said tuition fees were too high.

For those interested in a career as a mortgage broker, while it is best to have some finance experience “like a few years in banking or a degree in something finance related” it is not a requirement, according to Chris Sykes, technical director at the independent mortgage broker, Private Finance.

“We have many advisers without degrees for example. Any employers that offer a trainee or academy programme would be a good bet, training you on the job over the first couple of years until you are ready to be an adviser yourself.”

“In order to secure a role you would obviously want to do a fair bit of research in regards to what is involved with the role and the whole property purchase process,” Sykes added.

Sykes also agreed that earning potential was a huge motivating factor for a career in advice. 

“There are not many careers where you can progress from the average salary to what would definitely be considered an above average salary more similar to other professionals (accountants, solicitors, higher level doctors, etc.) within the first 5 years of your career,” he said.

But while the benefits are good as a mortgage broker, it is not easy sailing all of the time. 

“If you enjoy working with numbers then it is a fantastic option as a career. Every day is different because every client is different and there are many aspects to the role like getting to know your clients and building a long term relationship with them,” Skyes said.

But he pointed out that he wished he knew about the long hours required before embarking as a career.

“You work as much as you want to earn and you have to be hungry if you want to excel in the field, so it isn’t unusual to have 60 plus hour weeks. It is a full on job so isn’t for the faint hearted. 

“A client's dreams are in your hands and although rare, we’ve all had clients shouting at us or crying down the phone to us. Sometimes people don’t want to accept the facts or are about to lose a property with no way out of it so emotions can fly,” Sykes said. 

Sykes's number one tip for any young person starting out is to “pre-load the effort”. 

“Work as hard as you can while you are young with the hope that it pays dividends in the long term.”

Clear pathway

Another benefit of a career in finance is that it has a clear progression pathway according to Oakmere Wealth Management’s managing director and financial planner, Carla Brown.

Brown said: “The best way is to start from the ground up and work in a practice to get a feel for what the job entails. Shadow an existing planner and see how they do the job, then perhaps look at an apprenticeship or maybe a degree in financial planning.

"Hands on experience is the best way to see if the job really interests you and a good employer will support you through your professional development."

Brown also pointed out that a career in financial planning is predominantly about people.

“You can choose to work in a particular niche if you have a passion for something, but it allows you to work with a real variety of people and really make a difference to people’s lives,” she said.

Likewise, business adviser and founder of Trachet, Claire Trachet agreed that people are key, especially when starting out. 

Trachet encouraged anyone considering a career in finance to reach out to people on LinkedIn and show keeness to speak to them for 15 minutes.

“Never be shy to reach out and be open about seeking help or mentoring. People are willing to help you,” she said. 

Continuum chartered financial adviser Stephanie McClarence pointed out that while there are plenty of academies and training programmes on offer for those considering a career in financial advice, it is a good idea for individuals to look into the exams and do their own research. 

“The best training programmes can be competitive so if you want to put yourself ahead of the curve look into taking one or two financial services exams off your own back, especially if you want to be an adviser. 

“This will show the training programmes and potential employers that you are committed and that you’re keen to get started,” McClarence said.

“Make sure that any potential employer who offers the opportunity to enter an academy or training programme gives you the opportunity to complete actual industry exams. Some have started offering their own version of industry exams which won’t help you if you choose to move on,” she added. 

“It sounds really cliché, but as a financial adviser you are literally helping people achieve their dreams. Whether that’s retiring early, or protecting their families, there’s so much you can do to help improve people’s lives and reduce their stress that they may not even consider.”

Kleinwort Hanbros’s director of senior wealth planner, Nji Lorimer agreed that helping clients meet their financial goals is a core appeal of the industry and described client meetings as “the most interesting part of the job”.

Lorimer also pointed out that the pace of change in the industry is exciting. 

“When I joined financial services in 2008 we still used paper files and there was very little diversity, I certainly stood out. Now technology is revolutionising the level of service we can provide to our clients and diversity and inclusion is a core part of the culture at most firms.”

“Whilst I joined after graduating from university, some of the best advisers I know are school leavers without degrees. There is no right way to approach it.

“The best way to enter the industry is with an open mind and a willingness to alter any preconceptions about what you think it’s going to be like. I have seen lots of interns over the years whether school leavers or university graduates and the best ones are those who can be flexible in their way of thinking.”

jane.matthews@ft.com