The past year has seen huge changes in politics, economics and regulation, but one of the greatest issues has been to do with recruitment, according to the Chartered Institute for Securities & Investment.
Speaking to FTAdviser, Chris Morris, head of financial planning policy & engagement at the CISI described 2022 as “a year like no other”.
At the start of the year the world began to move out of the Covid-19 pandemic with restrictions easing and ‘normal’ life starting to resume, he explained.
“What followed created a year that will be remembered for all the wrong reasons – firstly the appalling war in Ukraine which in addition to the terrible loss of life has contributed to a huge spike in energy and food prices, a 40-year high level of inflation and the UK heading rapidly into a recession.
“Change has been a common theme in 2022 with the sad passing of Queen Elizabeth II, as well as a huge amount of change within British politics.”
Morris explained that this backdrop of events has left the British public “facing a devastating cost-of-living crisis”, and arguably the need for financial planning and guidance on household finances has never been greater.
“Financial planning firms have always been at, or close to, client capacity and this trend accelerated throughout 2022,” he said.
“Economic uncertainty has contributed to firms spending more time with their clients and increasing the communication that they have with them.”
One challenge in particular that Morris highlighted was “attracting and retaining talent to firms.”
He said: “With the average adviser age in the UK being close to 60 the need to attract younger people to the profession is more important than ever."
Likewise, Sally Plant, head of financial planning at CISI, said: "One of the greatest issues facing firms is recruitment and we are now working with over 25 universities.
"All will be offered financial planning bootcamps in 2023, including regional, in-person careers events, with speed networking and visits from CISI members to learn exactly what financial planning is."
This comes after the CISI and NextGen Planners launched a scholarship programme for new entrants to the financial planning profession in October.
The initial pilot saw 20 scholarships for the CISI Investment Advice Diploma and included the CISI Financial Planning and Advice unit.
Morris said the event invited a mix of students, newly qualified advisers and firms to showcase the financial planning profession and to facilitate introductions to firms who were actively recruiting.
“We were delighted that many students left the event enthused and are now considering a career in financial planning.”
Elsewhere, over the past year, firms have had increased workload from other areas, not least from the impact of the Financial Conduct Authority’s new consumer duty.
Describing it as “the biggest piece of regulation since RDR”, Morris said the new consumer duty has a wide remit and while firms were affected in different ways and to differing degrees, all firms were required to have their implementation plans in place by October 31 to be ready for it to take effect in July 2023.
There has also been the return to face-to-face meetings and events this year which have been welcomed after lots of online interactions over the last few years, he said.
“Despite the time efficiency of meeting online, face to face meetings have reminded us all of the value of in person collaboration and relationships with clients, colleague and peers.
“The future of financial planning conversation has continued. But the realisation that new technology presents an opportunity for aspirational firms who are looking to ‘scale up’ or be more efficient, is becoming more widespread.”
Morris explained that it is the personal skills that planners offer to their clients which brings the greatest value to these relationships, “so in many respects this is not a new theme for 2022 but nevertheless is a stark reminder of its importance”.
“To summarise, I feel that in most cases technology is being embraced by firms, and being considered as a way to evolve and adapt to future client needs,” he added.
Events ahead
Additionally, Plant explained that the CISI January to June 2023 events programme will be released later this month.
The delivery and format of learning will cover online and in person events with an increased focus on audience participation and the sharing of best practice.
“Having those takeaways post event which you can take back to the office and implement is often the measure of a successful event,” she said.
“I am particularly excited by our paraplanner conference on May 18 which, after three years of being online, will move to an in person dual location conference in London and Leeds."
sonia.rach@ft.com
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