Financial Advice - Sales or Not?

There's an interesting perception in the financial services industry that its only the IFA working on a truly 'whole of market basis who works on an advisory rather than sales basis.  I personally don't subscribe to that belief and I'll tell you why.

Despite the IFA working on a 'whole of market' basis, how many of them are targeted?  Thats right, the T word. Whether employed or self employed most IFA or advisory jobs that require the effective 'sale' of a product to a consumer are targeted.  If you're working on an employed basis there are often salary validations to be achieved, no employer in the advisory environment gives money away! And if self employed, unless the IFA has a huge amount of funds under management and has enough trail commission built up to pay the mortgage and take at least two holidays to Dubai in a year, they will have to set themselves some personal targets, even if just to survive. How do financial advisers and IFA's make any money? They gain commission or a fee on the provision of a particular product from a particular provider to a consumer - a sale! They are selling products are they not?

If there are targets in a role then there are quite often sales that have to be made in order to achieve those targets.  When the IFA goes to see a client, yes of course they go with the idea that they will provide the best advice to a client but they are still effectively selling the features and benefits of a particular financial product and what is a fact find if not a sales process?  What are you doing in a fact find?  Yes, thats right, you're are building a rapport, probing for information you can later use to disturb the client and generate a need for a product and closing the deal by securing a commitment to do the business - a sale by any other name.

So, is it any better to see an IFA than it is to see a financial adviser from a bank or perhaps a multi tied organization?  In terms of the sales focus I doubt it. Yes, they may be able to offer a wider range of financial products and therefore be able to offer something more closely fitting your particular requirements but don't be blinded by the holier than thou attitude, financial advice is primarily a sales focused process, whether IFA or not!

England, Summer and the Financial Services Industry?

We are back people!  After taking a brief vacation from the blog in order to crack on and get some actual financial services recruitment work done, we are back and fully committed to keeping the IFA and Financial advisory world up to date with what's happening in the heady world of financial services recruitment. Actually we were really watching the World Cup but England's sad demise means we now have the time to work on the blog!

Its been a busy couple of months with a real pick up in the economy beginning to become visible.  Early 2009 there were a hugely limited amount of jobs particularly in the banking sector and if you were a financial adviser looking for a role in bancassurance, well, you had more chance of meeting an honest recruiter! Irony, I like it! Of course, I'm joking about the honesty of recruiters, there are some of us out there but in terms of the job prospects within financial services last year, they were minimal to say the least. There are still certain limiting factors within the recruitment of financial advisers and IFA's with organizations still having strict criteria and they all have the boxes that most definitely need ticking, however, there is light at the end of the tunnel and a movement towards pre 2009 levels.  Whether RDR kills that off is for another day but for now, lets just bask in the warm glow of increased profit sheets and more placements.

The economy isn't such that you can easily get into the FS industry as a new entrant just yet.  The blue chip financial institutions in particular are still looking for the 'top quartile performer' with competent status and a record of achieving or exceeding sales targets which of course means that it it is still very results orientated out there but it's something and it is definitely better than it was last year when there just weren't the jobs at all. Unfortunately this also means that the smaller regional IFA's and smaller financial organizations are also looking for financial advisers and IFA's that can hit the ground running but for those who want to look, whereas last year there was very little, this year the opportunities are there to be looked at!

We have yet to see how the budget and the recent shift in policy towards replacing public sector jobs with private sector will effect both the recruitment industry and the financial services industry and my thoughts are that you will begin to see more people beginning to look at the FS industry as a viable career choice, despite the regulation and the level of qualifications required.  this gain can only be a good thing.  So lets look ahead with renewed hope, at least for a while and lets make hay, while the sun shines!  A summer reference, good one!

An Action Plan for IFA's - How To Generate New Business

For those of you working as a financial adviser or IFA in the current economic marketplace, next to the potential ramifications of RDR and the potential impact of TCF, what would be considered one of the most important characteristics of the IFA role and most important in ensuring that your business is moving forward and functioning as it should, in a profitable manner? Thats right, it's the generation of new business.

Comercially astute IFA's and financial advisers have simply come to realise that throughout the economic turmoil, the generation of new business, along with the strengthening of existing business relationships, is key to their survival as a profitable and going concern. Winning new work for most has become an absolute commercial priority, 'the' number one concern. However, if there is no effective business development strategy in place, how can one be expected, as an IFA to generate new business, keep the business you have and move forward as an organisation?

Seminar presentation is perhaps the one way, that an IFA, a Wealth Manager or financial adviser can generate large numbers of clients on a fairly regular basis. The majority of IFA's rely primarily on referral business for their new business generation either from existing clients or professional connections but it is absolutely imperative now that a robust business generation plan is thought out and put into effect. The securing of new business via seminars or group presentation can be highly cost effective and very profitable if done correctly and is most defintely a viable method of new business generation.  There have been reports, according to the IFA Life social networking forum, that there are financial advisers out there that have increased their business by as much as five or even ten times using seminar presentation. If that isn't an incentive to get out there and start marketing yourself and your business, then I don't know what is!

Financial qualification - Brand Financial Training

RDR and 2012, words to strike fear into the heart of any qualification shy IFA or financial adviser.  Those financial advisers and IFA's without their advanced or diploma qualifications need to ensure that those exams are secured by then, its either that or the loss of status as a whole of market, fully qualified IFA, so what choice is there?  For those financial advisers out there worried about taking their advanced financial qualifications pre RDR, there are a number of organizations offering to provide financial training, hopefully ensuring a first time pass. CII qualifications are not the cheapest exams to sit and being run in only April and October makes it difficult to fit them in timing wise, especially as like most financial advisers and IFA's you should be trying to make money!  There simply isn't the time, nor usually the cash spare, to fail them.

One such organization is Brand Financial Training.  Run by Catriona Brand, this organization comes highly recommended by those financial advisers and IFA's in the know.  Many of the financial professionals we come across at XL-Recruitment in our role as financial services recruiters, have used Brand Financial Training to assist with their training and mock papers prior to taking the advanced financial qualifications, particularly the J0 papers.  The overriding feature of all of their comments is that Brand Financial is helpful, always there to assist and help with any queries and is also great value for money.  What more can the discerning IFA want when choosing which training provider to use?

The company themselves provide training and mock exam papers on almost the full gamut of financial qualifications from CF1 to CF6 and from J01 to J07 and also include the FA1 and FA2 papers.  And thats not all they provide, as well as the above you also have workbooks, personal coaching and tuition, online training programs and audio master class's, a great way to vary your study methods. Brand Financial Training also offer training for both individuals and business's as a whole, something that differs from a lot of companies offering similar training courses.  Another good part to the Brand Financial experience is the RISK FREE, 14 day money back guarantee.  They are that confident that you will be satisfied with your purchase that they offer you the money back if you are not.  All in all Brand Financial Training and Catriona Brand have provided the financial services industry with a great product.  Financial training and exam study assistance that come with a high level of customer service and that personal touch that is often missing from many organizations in the FS industry.  Check them out by clicking on their logo on the right side of the page - you'll be pleasantly surprised!

Cheap Recruitment - a false economy?

In the begininng of 2010, a major talking point will be the cutting back of costs and the minimization of any extraneous expenditure that isn't absolutely required. 2009 was a tough year for us all and especially those of us working in financial services. For many companies, the start of the year and the uplift in the economy will prompt a rethink on their recruitment strategies and how much they are paying overall for securing their advisory staff.


With regards to recruitment in the financial services industry there are two distinctly different schools of thought. The first and often thought of, wrongly, as the cheapest method, is the low cost, high volume method employed by many recruitment agencies and prospective financial services employers. Involving the sourcing and production of large numbers of CV's by agents, that are then pushed forward to the prospective employers, in the hope that at least some of them will stick, this method although cheap is not actually the most cost effective, professional or time efficient.

The second method is the employment of a financial services recruitment company that practice a low volume, high quality submittal process. Although these organisations will often charge a very small percentage more at the outset for any aplicant employed, it is quite often the quality of the work done in qualifying and pre-screening to ensure that the candidate is of the absolute right calibre for the role, that eventually demonstrates the overall cost effectiveness of this process comparitively to the 1st method.

The process itself if done correctly, saves the potential employer money in man hours spent sifting through CV's and interviewing candidates in order to qualify them as, of the right calibre for the role, and time in interviewing the candidates face to face, not to mention less training costs. Many proponents of the high volume low cost method of recruitment are often faced with the tasks of sifting through large numbers of poor quality CV's and of interviewing potential candidates up to 3 or 4 times in order to ensure they are the right fit whereas with the 2nd, low volume method, the employer will be sent one or two CV's that have already been qualified by the agent to make sure they are the right fit. This saves the employer the time of having to screen the applicant themselves and also the interview process can often be cut down to just two interviews, a face to face and a competency assesment because the potential employer can be safe in the knowledge that the candidate will be of the right calibre and will be able to hit the ground running, needing less training and less money spent on the training itself.

Another facet often offered by the recruitment specialist operating the 2nd method is the clawback schedule. A system whereby if the financial adviser were to leave employment over the first 6 mths employed, the employer can claim a percentage of their recruitment fee back on a sliding scale. Beginning with 80% paid back if the employee leaves within the 1st month employed, 60% in the 2nd, 40% in the 3rd and 4th months and 20% in the 5th and 6th months employed.

Proponents of the high volume, low quality method of recruitment will often have no clawback so if the employer pays, as an example, £1000 for a financial adviser, if that employee leaves within 2 months, the employer has lost that £1000 and will have to go through the whole process again. With the method employed by recruitment companies such as ourselves, although slightly more expensive at the outset, that employer would recieve 60% of any fee back. Using £2000 as an example they would receive £1200 back therefore saving £200 instantly. Its not until months 3 and 4 that the employer woud face any real expenditure.

So, the upshot is, take a litle time to think about your recruitment process. We all had a tough year in 2009 and we can all do with saving time and money. Sometimes it pays to go with the agency that seem to be charging a little bit more at the outset. Quite often the quality offered by that agency will far outweigh the time, effort and cost expended in using, on face value, a cheaper agency.

New Year - Financial Focus for 2010

For many of us in the financial services recruitment arena, we look upon the beginning of 2010 with trepidation.  How many of us are still suffering the after effects of last years meltdown? Many of the financial organisations shed staff like it was going out of fashion and consequently, come the end of 2009, there was little need for recruitment of new IFA's or new financial advisory staff, meaning that substantial numbers of our poorly placed or less professional competetitors went to the wall. Not a bad thing,  somewhat like a case of nature ensuring that only the strong survive. There is reason to look upon 2010 with a little less forbodeing than we naturally are however, as the financial markets stabilise and financial recruitment picks up - if only by a small percentage!

This year should be for many of us within financial services recruitment, the herald of good things to come.  As above, professional service standards have been lifted to the nth degree and those companies without the best standards of both client and candidate care have not and will not survive as both clients and candidates alike begin to realise that there are financial services recruiters out there that are a cut above the rest and choose to work with organisations that can provide a highly professional and courteous service. Skills have been rediscovered and new skills honed and polished over the last year that have ensured the survival of the best financial services recruiters and because of that, financial advisory organisations and IFA employers are now  provided with a higher level of service and a better client experience than they ever were. Companies within financial services recruitment have realised that the two key components for their success, clients and candidates, need to be treated as the highly important aspects that they are.

2010 holds new promise and should for the financial services recruiter be a good year.  We are seeing growth in the economy, however small, and the resulting uplift in the recruitment of financial advisory and IFA staff will see a rewarding and profitable year, most definitely compared to 2009.  It can't get any worse, can it!  So, lets jump into 2010 with renewed hope and vigour and lets all ensure that this year, 2010 is the year we all hope it can be!

Xmas - traditionally a time to slow down or a time to get going?

With Christmas looming up on us as quickly as ever, it got me thinking about the effects the holiday period has on us personally and professionally and on all our business's as a whole, whether working as an IFA, a financial adviser, a mortgage adviser or a recruitment consultant. Of course, there is all the jollyness, brevity and 'good will to all men' normally associated with the festive season, usually fueled by too many hot toddies and holiday beverages brought by colleagues who don't speak to you throughout the rest of the year, but there is also the perceived notion that Xmas is a time when it all slows down.  Is that, or should that, be the case though?

Seriously, what is about Xmas that makes the majority of us go mad at about this time of year.  We start winding down at about the 10th December, we forget that to get ahead in the New year we should be pushing right up until the final whistle, as it were and instead we go all misty eyed at the Christnas Lights in our respective towns, following some old adage that 'nobody wants to do business at Xmas anyway'  Now this isn't my bahh humbug moment although many will perceive it as such, its simply a realisation that despite the fact that many of us do sit back, eat too may mince pies, indulge in Secret Santa, and make fools of ourselves at the Xmas party, we could still get ahead of the game, if there was a little bit of forethought.

As a financial adviser, an IFA, etc, I'm sure its probably different.  Timing isn't as crucial for someone looking to invest, or start a pension as it is for someone looking to fill a financial advisory role.  In the financial services recruitment industry, January is the time when the financial organisations want more staff, to get a flyer into the New Year, so what do many of us do, we go AWOL. Although we are physically sat at our desks, the activity level is probably at about 50% of what it is in September. What we need to do, is crack on, get those calls done, contact those candidates, check out what your clients are doing - who has new roles coming up in January and start working on those now, not actually in January. We can all still enjoy the Xmas period without grinding our business to a halt.  Keep the activity level high for as late as you can pre Xmas and I can guarantee, you won't have a hangover come New Year when looking at your pipeline!

IFA's and the Internet - where's it going?

There has been a big hoo- ha about the use of social media and the internet for IFA's and financial advisers over the last year - so much so that we are often asked as to whether or not we see any benefit in it.  Now, working in a recruitment agency specialising in financial services recruitment you wouldn't have thought that we would have the answer to that question but aha, hold on - we have to use the same media as financial advisers and IFA's, yet we are targeting a much smaller market.  So yes, we do have a very good idea as to what is effective, whats worth using and what isn't.

In terms of marketing oneself, starting a blog such as this can be a good way for the financial adviser or the IFA targeting the consumer looking for financial planning advice to get good exposure to a web savvy audience.  It doesn't take much to get onto blogger or wordpress, write about what you are experienced in and target the consumer you want as clients.  Ping as many search engines as you can, update with regular posts and get your blog onto Technorati, Digg, and so on. Technorati use some sort of claim system where you have to claim your blog by posting some weird, alien like code such as YPFD9ZHKE6XF or something along those lines but some of the others are simple and much easier to use.  Blogs are a good way to get clients interacting by the use of comments box's, it also makes sure they remain on your site for longer, which will give you more chance to secure them as potential clients.

Social Networking, the waster of untold man hours and the pariah of many an employer is here to stay and that means as a financial organisation, a one man IFA practice or whatever, you have to be using it. Facebook, Twitter, FriendFeed, Tumblr, Plurk, there are many and they alll attract different demographics so its a good idea to look into what type of audience are using them before advertising your practice or financial advisory services on them.  Phillip Calvert of IFA life is a great exponent of the social networking phenomenen and his IFA Life website is a great place to start when looking for information on what to do as a financial adviser or IFA.  They also run regular webinars and seminars on the subject.

Longer term, eventually, we will have financial advice being offered over the internet.  Of course, it will take huge amounts of scrutiny and it will be very heavily regulated but that is, most definitely, the way we are moving.  If, as an IFA or financial adviser you aren't web and social media savvy by the time that comes around, then you will be left behind. With the advent of Web cam's, skype, etc, etc, its only a short step to over the net financial advice so get ready people, the future is coming, and its nearer than you think!

Mortgage - the dual pricing effect

Dual Pricing - what effect is it having on the mortgage market from a consumers perspective and what effect is it having from the mortgage brokers viewpoint? To give you an indication as to what dual pricing is we'll take a look at the dictionary definition which states that 'dual pricing is the selling of identical products in different markets at different prices.  In effect, in laymans terms, what the banks and lenders are doing is offering their most competitive products direct to the consumer themselves therefore negating the need to use intermediaries and mortgage brokers.

From the consumers perpective what do they do? They pick up their mortgage calculator, work out what repayments they can afford, go along to their bank, have that amount reinforced and bingo, if they meet the criteria they are given the mortgage.  Is this an advised mortgage though? Has the consumer thoroughly had their financial situation looked at by a skilled mortgage broker, or have they simply been offered the cheapest but perhaps not the best deal?  At a time when financial advice is needed the most, in the midst of an economic crisis, the consumer is not being provided the best truly 'independent' advice that can be offered.  The likelihood is that they will be 'sold to' by a bank adviser/salesperson rather than provided financial advice. The other likelihood is that they will also be 'sold' protection products that they don't need to achieve some target somewhere. Of course, there is the benefit of being provided a cheaper mortgage deal and to be brutally honest, although its not part of TCF, thats pretty much all the majority of consumers care about in the current economic situation.

Almost 70% of all mortgage business was introduced prior to the credit crunch and the introduction of dual pricing, so for the lenders to bite the hand that feeds them as it were, by negating the need for intermediaries and mortgage brokers throughout the difficult period was, silly, to say the least. Of course, the lenders were swift in stating that dual pricing wasn't a conspiracy however, most mortgage brokers will certainly remember which banks and lenders stood by them. The question to be asked is why the lenders would offer the same mortgage products through mortgage brokers if they are so poorly priced in comparison to the same product provided by them? Is it simply greed?

From the perspective of the mortgage broker, dual pricing, although in its 2nd year now, and expected to be a stealthy killer of the mortgage broker and the industry as a whole, has not yet destroyed the market as expected.  Many of the mortgage brokers we speak to have simply moved towards offering a more rounded financial advice offering, covering investments and pensions as well and the consumer appears in most cases to be responding. Although, to survive, many brokers are now providing a fee based mortgage service, it hasn't been to the absolute detriment of the mortgage industry, suprisingly. Every mortgage broker and intermediary has an opinion as to the validity of dual pricing and of course, it doesn't champion TCF in any way, shape or form but what the consumer has to weigh up is whether the lack of advice can be justified for a cheaper mortgage and for many, the reality is - it does.

Economic green shoots - a recruiters view

Everyone working in financial services whether they are a financial adviser, an IFA, a mortgage adviser or whatever, they all have their own opinion as to whether we are really seeing a sustained uplift in not just the UK but the worlds economy. So are we? Have we gone through the worst of it now or is this just the small respite in the tornado of economic catastrophe?

I always say this, but working as a recruitment specialist within the financial services market gives us a unique insight and an all round perspective into how the market is faring overall.  Because we are reliant on the provision of a service to financial services organisations for our income and that service is adversely affected by the lessened need for recruitment, we, as companies suffer, due to the cuts in staffing and redundancies.  Who is going to take staff on in the middle of an economic crisis? Certainly not the industry hardest hit!   Perhaps as much as any financial adviser or IFA, financial services recruiters have been affected by the turbulent economic situation to the detriment of many good recruitment organisations, so much so that I wouldn't be surprised to find out if a large number had gone to the wall. However, working close to the coal face but not actually at it, affords us a very good view of the economic picture.

Financial advisers and IFA's we speak to have recently begun to notice a change, a surge in the market, a confidence returning to the consumer, particularly in the investment market. This can only be a good thing. We as recruiters working with the financial services industry have also noticed an uplift in the number of mortgage advisory roles on offer, comparitively to six months previous. Six months ago, we would have been lucky to have three mortgage adviser roles on our books, down the line we have noticed a huge lift in the numbers of banks and other operators requiring mortgage advisers.  A simplistic view I know, but is it because money is being moved, consumers are borrowing again?  I can see no other reason although I am sure someone will correct me.

The upshot is however, the requirement for more mortgage advisers is one of the key indicators that the market is really, finally picking up.  So lets nurture these green shoots and watch them grow back into economic saplings - but maybe with thicker roots this time and not grown in quicksand eh?

IFA's as football teams - is there a correlation?

I was wondering the other day just for a bit of fun, recruiters do have fun you know, if I could come up with any sort of correlation between financial advisers or more specifically IFA's, and Premier league football teams. In between the hours spent in the noble position of assisting people making excellent financial services career decisions I actually came up with, what we at XL-Recruitment thought, were some rather comical ones. Now, the definitions were that there had to be some sort of direct comparison and that it was the top four teams in the Premier league that they had to represent.Well, five including mine!

So we started with the A - The Arsenal of IFA's. The Arsenal IFA is cosmopolitan, probably a city gent and most definitely the most sharply dressed, suave and sophisticated in his firm. His swift and decisive advice although well executed, has often been known to flirt with monetary gain without really making the knockout blow and delivering the result required. Verdict - pretty but doesn't really get the job done!

The Liverpool IFA - The IFA representing Liverpool is a fanatically detailed financial adviser, technically proficient and stable but often labelled conservative and dour, defensive even. Primarily risk averse, he/she will build a usually solid investment portfolio that will immediately collapse if one or two funds go missing for a short period. Verdict - Conservative and perpetually jealous of the neighbouring firm.

The Manchester Utd of Financial Advisers or IFA's is a big swaggering giant of an IFA, arrogant and sure of his/her own ability. The Manchester Utd adviser has a cosmopolitan flavour with a gritty northern foundation, they will be suave with a steely determination to win and they are ultra competetive. They will quite often get down and dirty in order to get ahead, have a flagrant disregard for authority and you can guarantee, they will be the adviser in the firm doing the mega sized pensions transfer cases. Verdict - Champion in his/her own lifetime, arrogant to the nth degree but unfortunately, bloody good at what they do!

The Chelsea IFA - The Chelsea IFA or financial adviser is a returnee to the financial services fold. Probably a financial adviser that was once 'top of the class' although he/she might have that jaded, hangdog look of the 'almost but never quite got there'. An IFA that builds functional, yet fluid investment portfolios, they work with solid foundations and are usually always lucky enough to get the result, even if it is in the last minute. Verdict - sturdy performer, works well within a system but not so well on their own.

Now, as a Tottenham supporter myself I absolutely have to include my team. So, here we go: The Tottenham IFA is an IFA or financial adviser who harks back to the glory, glory era when they worked in 'tied' home service and their slick moves could bamboozle the punters and the opposition alike ensuring that they quite often topped the tables and won awards. Nowadays, they are bitter, often reminded by bigger and better neighbours of what used to be. An inability to plough funds into their practice at the right time and keep up with the industry has meant that the Tottenham IFA has had to watch as the rest of the world have caught up and even passed him/her by. Verdict: Bitter and constantly tells anyone who will listen how good they used to be.

If any of you professional financial advisers or IFA's out there want to include your teams or your comparisons, please feel free to add comments, it would be a welcome addition to just me writing and it would be funny I'm sure to see some of them like Bolton or West Ham, so come on, get those comments in.

Financial services, unattractive - whatever next?

There was a frightening story coming from The Recruiter last week highlighting how the credit crunch and failing economy have affected the financial services industry. It also mentions how the financial sector as a whole has become less attractive as a career choice for professionals over the last year, something we at XL-Recruitment and certainly on this blog,have harped on about on numerous occasions.

It seems that, according to Universum UK, financial advisory, IFA, banking and financial organisations in general have seen a reduction in the numbers of professionals applying for their positions, well, all except the Bank of England of course, they still stand at 23rd in the all time list of favourable career choices. Well, those Million pound bonus's are kind of attractive aren't they?

Funnily enough though, students were asked the same survey questions and results demonstrated that banks, auditing firms and management consultants were still deemed to be good career choices. Not a mention of the financial adviser, IFA or Broker consultants roles that are the majority of the financial recruitment sectors bread and butter!

Also, surprise, surprise here but career and job security have come out top on the 'what to consider when choosing where to work' scenario. Of course, its going to come out on top, we're in a recession people. You would have thought that the 2.5 million unemployed might have cemented that idea. In any case, job security came out on top as 'the consideration most likely to affect job choice' in 55.9% of cases.

It appears that the new consideration for companies within financial services is that, more and more employees are staying with the same company. However, with the job layoffs and cost-cutting initiatives, employee engagement is low. When the economy picks up, these employees will be looking for new opportunities and employers will be faced with a challenge: how to deal with rising attrition rates and at the same time meet new market demands. Companies cannot afford to neglect their employer brands.

The Government and the financial services industry - pah, they haven't got a clue!

This video, shown live on Sky News and featuring financial adviser, Jonathan Davies, a year ago, when the economy was at its worst,we at XL-recruitment believe, highlights the governments inability to understand the financial services industry as a whole and not just the housing market. Longer term their lack of understanding could potentially have a detrimental effect on the financial services industry as a whole and I think many financial advisers and IFA's are watching with interest how the next few years within the industry as a whole, pans out.

Financial advisers across the UK and particularly in the mortgage industry, have often informed us at XL-Recruitment over the last year, that the mortgage market has died a death. Sub Prime lending is no more - not a bad thing - couples with limited funds and very little expendable income, overreaching themselves with 100% mortgages and property with overinflated values can't be good for the economy as a whole!

Can the green shoots of recovery we are now experiencing - and we are - be attributed to the governments and Bank of England quantitive easing or is it just natural organic growth? For us in the financial services recruitment industry, any growth whether forced or not is fantastic, especially after a year of reduced fee income and business development. The more of it we see, the happier we become, as I am sure, are most, if not all the financial advisers, IFA's and mortgage advisers who have struggled to maintain enough of an income level to survive, let alone prosper.

So come on Mr Brown, get a grip, why not put some measures in place that might actually work and give us a sustained uplift and not a yo-yo recovery.

I don't need to interview, I'm a financial adviser

For those of us working in financial services recruitment, we all have our own pet hates.  I  personally, as a recruiter specializing in financial advisory or IFA roles have quite a few but then thats me. I'm joking of course but the main one absolutely has to be, candidates that haven't fully prepared for the interview they are going for. Now, the fact that I have a few pet hates doesn't automatically make me a grumpy old man, it just means that I have a lower tolerance threshold than is probably required!


How many of you financial services recruiters have contacted a candidate, whether from job board, database or even client referral, sold them a financial advisory position that would be absolutely ideal on paper, thoughtfully prepared them and told them everything you know about the company..............only to have them not look at the website or the job spec you've sent and when they get to interview, absolutely forget everything you've previously told them about the job that will most probably improve their economic situation immeasurably? Clearly this problem isn't limited to financial services recruitment, I've even done it myself, a long time ago mind - I think it was going for my first interview.  It is however exhibited by candidates who believe themselves above needing to research and prepare.  Yes, you know the ones, the guys and gals who think they're too good for the role they are going for - forgetting that there are 2.5 million unemployed out there and that there will also be 15 other candidates going for the same job they are. The ones that absolutely know they are going to get the job anyway, whoever else goes for it.


Now, we all know that in the real world of financial services, this doesn't happen.  No financial adviser or IFA is going to walk into any job in a bank or national IFA firm. All it takes is a bit of humility, a realization that perhaps someone else, the professional, does know best.  Take a little time out to look at a website, research the company you're interviewing for, get your figures together, run through the interview in your head the night before.  Its not that hard and it doesn't take hours but the work any financial adviser or IFA puts in to pre-interview prep pays huge dividends at the actual interview.  90% of people don't prepare for interview so it should come as no surprise to see that the 10% who do, even if less skilled, will often be the ones that progress to 2nd stage or even quite often, get the job.


If you're a financial adviser, an IFA or a mortgage broker, take a bit of time, prepare for interview and you will see the results, I guarantee it.  Take it from a grumpy recruiter who could do, quite honestly, with earning a few more fees from the interviews he's setting up! Rant over!!

CV Writing for financial advisers

As a recruitment specialist working in the financial services industry I am often asked to write the best CV I can for a financial adviser or IFA applying for their perfect role but what is the best way to write a Cv and what should it contain.  The financial services industry and particularly financial advisory organizations or IFA's, are looking for a definitive type of applicant and it's my job, ultimately, to present that candidate in the best light, in order to secure the financial adviser or IFA a 1st stage job interview. The Cv is a concise advertisement of yourself that should create interest for a potential employer and motivate them to want to interview you above anyone else.  

So, what does the modern financial advisory organization want in their IFA or financial adviser? Probably better to start telling you what they are not looking for first.  They are not looking for anyone who has lacked commitment in previous roles - so if you've flitted about from job to job throughout the last four or five years - you had better find a ready excuse to explain it! The financial services organization today is not looking for anyone who has defined targets in previous roles to be too difficult - too difficult, too difficult? By whose standards? The modern financial adviser or IFA type role is  very sales focused, as covered in previous posts,  Salesman, IFA or Financial Adviser?  so for a financial advisory professional to deem targets as unachievable, it indicates to the potential employer that the candidate lacks application and the desire to achieve.  The potential financial services employers also don't want inexperienced, under-qualified individuals that won't hit the ground running although this is currently defined by economic circumstance and as the market picks up and the economy performs better, we will see more leeway on this standard.

Now we have an idea as to what the potential employer in the financial services industry is looking for, how do we put it down as clearly and as attractively as possible.  A good Cv should always be easy to read and it should always have the most important functions close to the top of the page.  Start with your address details obviously but the first thing written should be a short, concise profile of yourself putting yourself in a highly desirable light for the role applied.  Sometimes this is called a career statement.  The next thing should be a bullet pointed list of key achievements, awards, etc.  Again this shows that you have excelled in previous roles and demonstrates you as someone who takes pride in achievement. for the financial adviser or IFA it is vital that they show they have the previous sales performance to excel with the potential employer reading the Cv.
The next thing on the financial services CV should be your past employment history, written in chronological order and showing any achievements, what your job entailed and the key competencies and experience gained.  The last thing on any CV is always personal information followed by referees.

A good financial services Cv should also never be more than two A4 sides long.  That is it! Much longer and it runs the risk of becoming tedious and will probably be repetitive.  Any shorter and it also runs the risk of looking like you don't have enough experience for the role or not enough employment history.  Financial advisory organizations, IFA's or accountants, because they work within the financial services industry are very much more strict with their procedures, references, etc, so it is important that the correct information is also put on the CV.  Lies or embellishment could always be found out at a later stage.  Working in financial services recruitment, I have become used to the need for exact CV's with exact career history and details, financial services is an industry that always checks.

If you need any Cv polishing or assistance with writing a CV - contact XL-Recruitment - financial services recruitment specialists, on 01278 429000 and ask to speak to one of the consultants.  This is just one of the value added services provided by XL.
                      

Salesman, IFA or Financial Adviser?

How strong is the sales aspect of an IFA or financial advisers role?  What percentage of the IFA or financial advisers role is taken up by actually selling financial products rather than financial planning?  These are both important questions that should be asked by new entrants into the financial services industry, particularly those looking to become financial advisers or IFA's.

For those professionals or graduates out there that are considering a career in financial services, the most likely route into the financial services industry is through a banking organisation.  Recruitment througout the financial services industry and certainly more so within bancassurance, is heavily focused on face to face sales skills and targeting of the financial advisory staff. Unfortunately, the financial services industry as a whole doesn't have an exceptional graduate intake like those of the merchant banking industry or the public sector, nor does it seem particularly interested in creating one.  This means that the preeminent route into the financial services industry and regulated sales is that of the banks.

Now, with the onset of RDR and the increasing transparency of the industry, the heavily sales focused financial advisory service provided by the banks retail arms doesn't sit particularly well with the cry for truely independent and unbiased financial advice.  Banks, when offering financial advice, by their very nature are biased towards offering their own products, they have to be.  Therefore, it stands to reason that the advice offered is perhaps tainted by a need for the financial adviser to acheive targets.  Of course, most if not all of the UK banking industry offer independent or IFA arms although they tend to be aimed at catering for the affluent. It is also however, very difficult for a newly qualified financial adviser or graduate/trainee to be offered a position within one of these segments.

What has to be realised for those seeking a career in financial services/regulated sales as a financial adviser or IFA is that there is a sales aspect to the role and most if not all positions will be targeted to a lesser or greater degree. How much of  a sales aspect the newly qualified financial adviser can accept is down to personal feelings.  Some will revel in the targeted environment and thrive on the peer recogntion it engenders, others will prefer the independent route, where perhaps the focus, although still sales orientated, leans more towards the financial advisory aspect and the nature of the financial planning advice proferred.  Each have their own benefits and pitfalls and its really horses for courses.  In my humble opionion the financial advisory industry as a whole is a sales industry first and foremost, the advice, whilst learning your trade as an IFA or financial adviser, comes second.

Polarisation - what effect would it have on the financial adviser recruitment industry?

Depolarisation - the rule that gave rise to the prominence of the Independent financial adviser or IFA has recently come under close scrutiny following the publishing of the Retail distribution review, the guidelines laid down by the FSA for the future of the financial services industry. For the layman, depolarisation legislation gave rise to the term 'independent' financial adviser by drawing a clear line between the differences in those who could offer truely independent advice and those who were working for companies offering their own financial products. Depolarisation also created a third type of financial adviser, the multi tied option. This basically means that the multi tied financial adviser, although not truly an IFA, can provide financial advice on a number of products from various providers, therefore offering a choice of sorts to those requiring financial planning advice.

Are we moving back towards a polarised financial services market and what differences will it make to the IFA and financial adviser of today and more importantly for those of us in the financial services recruitment market, the financial services industry ? Consumer protection was of course a huge motivating factor in the introduction of depolorisation legislation yet many recent studies have shown that consumers are not entirely concerned whether or not their financial adviser is truly independent or not and are more concerned that the products provided are the right financial products for them, with the right image and the right reputation. So, does this mean that consumers are apathetic towards financial planning?  I wouldn't have thought so but I would have expected the recent turmoil in the economic climate to have the effect of making consumers consider their choices more than they perhaps did previously although so far, studies have shown that isn't the case.

It is unsure as to what effect polarisation would have on the financial services recruitment industry and from the consumers perspective it seems to make little difference.  Multi tied advisers would simply have to become truely 'independent' financial advisers offering a choice from the entire market or 'tied' financial planners providing products from one provider, a salesperson in effect.  There shouldn't be a detrimental effect in the amount of roles available although in the short term, as companies within the financial services industry adapt there could be a small drop in the numbers of IFA's, financial advisers and therefore administrators and paraplanners required.  An equilibrium should however manifest itself within the medium term.  My opinion would be that short term it may have a relatively small effect but longer term, the financial services recruitment agencies would survive - we just wouldn't be working for multi tied organisations anymore. Simple really!

Financial Services Recruitment Standards

Having taken a close look at the financial services recruitment industry over the last year, we at XL Recruitment have come to the conclusion that the downturn in the economic climate has been detrimental to the financial services recruitment industry not only in terms of revenue but also in terms of the lowering of standards that were once thought of as a given. High standards of client and candidate servicing are the bedrock of the recruitment industry and are what makes a successful financial services recruitment agency. Its a people business and therefore 'the people' must be treated with the utmost respect. Do unto others as you would have them do unto you!

The highly competitive nature of the financial services recruitment industry means that often IFA and Financial Adviser candidates are treated as no better than cattle or pieces of meat to be traded on the financial services market without their prior knowledge or say so. A practice we are finding more and more prevalent as the Financial Services market contracts.

The biggest cause we can see, of issues, is the use of Job Boards such as Monster, REED or Total in the search for IFA and Financial Adviser jobs. Candidates will quite often apply for IFA and financial adviser vacancies advertised on these boards and will then also be contacted by recruiters sourcing or doing daily searches. Many times, these candidates will be swamped with over 20 financial services recruiters calling them, with most offering the same vacancies. What some unscrupulous recruiters are now doing is submitting candidates to IFA or financial adviser vacancies without their prior knowledge and without discussing it with the candidate first. The vacancy might not even be one the potential candidate would look at - it doesn't matter, to stop anyone else putting that candidate forward - the unscrupulous financial services recruiter will submit them anyway - on the off chance that the company will offer an interview. Its at that point that the candidate will be contacted with something along the lines of "We've got a great opportunity here and you'll never guess what but we just happen to have an interview slot for you on..............."

It works because for an IFA or Financial Adviser out of work, its very hard to turn down a guaranteed interview. Of course, this can and often does give rise to cross over and agencies arguing over ownership of the candidate. To give the uninitiated a look into the world of financial services recruitment, the rule of thumb is that the first agency to submit a candidate to a job with a specific organisation takes ownership of that candidate, with that company only and for a period of six months. Its often exasperating to do all the work properly, as XL-Recruitment always do - speak to the candidate and describe the opportunities we have, gain agreement for submittal, submit the candidate to the company and job involved, only to find out that someone has put the candidate forward to the same IFA or financial adviser role without even speaking to them.

It doesn't help the candidate in any way - a) because they haven't spoken to or began to build a working relationship with the agent that's submitted then, b) the agent will have no idea as to what the candidate is looking for or whether they are a good fit to the role and c) the job simply has not been done to the standard it should have been. In the most extreme cases this can even result in the candidate not being interviewed. What financial services company out there will want to interview a candidate and potentially pay a fee for someone who is being squabbled over by two agents from different financial services recruitment companies?

In all honesty, the economic climate has only intensified the competitive nature of the industry, however, the people suffering most from the recruiters who 'don't do it right' are the candidates and this needs to change. Remember, client and candidate servicing are the keys to a strong business so be one of the recruiters that are 'doing it right'

Self employed financial adviser - Is now a good time?

Its a given that the economy although experiencing some green shoots of recovery, hasn't reached the levels of stability that we achieved 2 years ago. So, taking into consideration, the instability and the uncertainty with regards when exactly full recovery will ensue, is taking the leap of faith and becoming a self employed financial adviser a viable option?

What we at XL Recruitment are seeing in the UK financial services market is that financial advisers who have historically maintained quite good income levels are now leaning towards employed opportunities and positions that offer the stability of a monthly basic salary. Bancassurance financial advisers are one such role that is becoming a more sought after position. Never the less, the self employed IFA position is one that offers a fantastic longer term opportunity.

For many of the AR's(appointed reps) who have established client banks and a good business model from which to work, the economic situation hasn't drastically altered their position. The Independent financial adviser in some respects is in a unique position in that their business is not perhaps as reliant on consistently generating new business as in other industries. Recurring or trail income and a client bank built up over the long term offers a financially stable footing for the IFA from which to operate, lessening the need for continual new business.

As an Independent financial adviser working on a self employed basis, as long as there is a consistent structure in place and a support framework leading into RDR that affords a certain level of assistance with qualification, compliance, TCF, etc there should be no reason why, even throughout the current economic conditions, a stable business cannot be built. There are varying degrees of self employment and we at XL Recruitment would certainly suggest that as an adviser considering this option, at least initially, the options looked at should be ones that offer a good level of support in terms of lead generation and back office support. There are many self employed financial adviser roles out there that offer the earth and supply very little so it does pay to research thoroughly but some can pretty much do what they say on the tin. These are the self employed IFA roles to look at.

So, is self employment a good option for an IFA at the moment? As long as the company can offer a sound framework to work within leading into 2012 and the implementation of RDR review and provide a good level of support whilst getting the business off the ground, yes, it is a good option. Many now pay a draw or salary guaranteed against further commissions so financially there isn't an issue and once the business is up and running as long as the IFA is proactive in terms of generating new business and establishing a presence in their locale amongst potential clients, there shouldn't be any problems. in fact, the business should be well placed to do thrive once the economy picks up.

The Recruiter - Friend or Foe?

The Recruiter in financial services is a much maligned and often misunderstood role. Financial adviser candidates who have placed their cv's on job boards, due to current economic conditions, are saturated with calls from financial services headhunters hawking their positions, candidates that have been actively headhunted regard the financial services recruiter as a nuisance, a conversation that is best avoided, potential employers regard the rectuiter, again as a pest, a necessary evil when there is a lack of quality financial adviser candidates in the market but one to be tolerated and kept at arms length for most of the time.

The financial services recruiter plays an important part in the employment market and takes a lot of the strain from employers and employees alike. Yes they have to actively headhunt potential candidates for clients that want succesful people - who by the way tend to be entirely happy in the job they are already doing - and yes they do approach the potential employer with a view to exposing them to the usually pre qualified candidates on their books. Thats what a financial services recruiter does - proactively matches candidate to job and employer to potential employee.

If there weren't any recruiters where would companies such as Lloyds bank, HSBC and Wesleyan be? The likelihood of them finding the right number and calibre of financial adviser or IFA from the local newspaper is minute, the adverts just wouldn't get the exposure. The larger blue chip financial services employers make easy bedfellows for the financial services recruiter - they are highly aware of the value of a good recruiter and will strive to offer enhanced opportunity to those financial services recruiters they trust, hence the existence of the Preferred Supplier List or PSL which gives the recruiters who provide the best results, the opportunity to work on jobs exclusively.

It most defintely tends to be the smaller companies that have an issue with the use of a financial services recruiter. For some it will be purely monetary concerns - a good recruiter can charge up to £10,000 for a highly qualified financial adviser or IFA - and for some it will simply be the principle - why should they use a financial services recruiter when they can do the job themselves?

Lately, we have seen a number of the smaller IFA organisations, accountancy practices and generally smaller concerns realising that the financial services recruiter is perhaps of more value than at firdst thought. Companies that have been historically loathe to use a financial services recruiter, are now understanding that most offer a cost effective, professional service that will often match an employer with the right candidate within one or two potential candidates, saving man hours, advertising budget, time and money.

So the Recruiter, is he friend or foe? looking at what the good financial services recruiter can offer, I would be inclined to say friend but then of course I would say that - I am one!