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.

When will the banking market return?

With today's(29th April 2009) recent surge in first quarter profits posted by Santander and the Abbey Bank in particular, are we starting to see the first green shoots of recovery in the banking environment and therefore the financial services recruitment industry? I am no economist and can only give a recruiters view on the situation but recent events do seem to indicate that we are perhaps starting to see a small increase in profits generated by financial services organisations, which should theoretically bring with it an increase in the amount of recruitment undertaken by the banking industry.

The stock market experienced a small rise on the back of the banking markets better than forecasted pre tax profits and this indicates a small but significant recovery. Of course, with the UK economy still in the mire of a supposedly full scale depression it could be a long time yet before we start seeing any upturn in the financial services recruitment market but it does however bode well for the latter part of 2009, despite the government telling us that 900,000 people will lose their jobs this year.

The recent increases in first quarter profits aren't quite across the board as yet and the mortgage market in general is still depressed but increased profits must mean increased consumer confidence and a slight easing on the restrictions in lending policy, which in turn will bring a need for an increase in financial advisory and mortgage advisory staff. Is quantitative easing beginning to take effect? Who knows, but after a year of headcounts and financial advisory positions being severely restricted any amount of recovery, however small, would be most welcome.

Working in the UK financial services recruitment industry, reliance on the 'big four' high street banks for financial services roles and the resulting lack of opportunity has brought about a heavy downturn in profitability. This has been offset by increased business development and marketing in order to generate alternative business from IFA organisations, Accountancy practices and assurance providers which has to a degree worked. However, the staple of most financial services recruiters is the banking environment and the financial advisory opportunities they bring, the holy grail of the PSL still being the aim, however,what good being on a PSL does if the jobs just aren't there, I don't know?

Speaking from experience, we have seen a small increase in jobs from the financial adviser or wealth management arms of the High Street banks very recently, resembling a small chink of light in the economic gloom. Hopefully it will increase and continue into the latter part of the year. And, if it manages to get back to resembling anything like it did last year in terms of the number of opportunities, both I and XL Recruitment will be happy bunnies!