FTA: What are the biggest challenges recruiters and employers are facing at the moment?
RF: There is a distinct talent shortage and an ageing population of financial advisers and an estimated 15,000 (three-fifths of the industry) set to retire over the next 10 years.
We are not, as an industry, replacing this scheduled reduction by encouraging enough new talent to enter the industry.
Combined with this the salaries for experienced, competent, well-qualified advisers is going up and up and this is making it difficult for smaller businesses to continue to compete.
Because of the talent shortages when advisers are securing job offers with salary increases, employers are counter offering massively as they know the cost of replacing that adviser and the cost of being without them while they replace.
This is bumping salaries up even more and making it more difficult for both recruiters and employers to get people 'over the line'.
FTA: Looking back, do you think the RDR was a good thing?
RF: Yes it was as it protects the consumer. The fees have to be transparent and with the introduction of ongoing advice fees the service and the attention these consumers receive is far better than it was previously.
Hindsight is always such a marvellous thing and with that we can look back now at the issues this has caused the industry, but for the consumer, it was a good move.
FTA: Are there any elements you would have designed differently?
RF: Yes, to have reduced the out-flux of advisers who did not want to obtain level 4, and to provide a different route for 55-year-old plus advisers to continue.
There could have been a better protection of bancassurance, the 2008 crash was the beginning of the end and the advent of RDR virtually killed off bancassurance, leaving a massive advice gap for the mass marketplace.
carmen.reichman@ft.com
