An ideal breeding ground
We are already seeing a growing trend – which we absolutely anticipate more of throughout 2024-25 – of firms who have acquired smaller businesses and who are then recruiting for servicing advisers to look after those clients.
As this trend evolves, I believe we will see more firms growing their trainee advisers by segmenting the advice needs of their clients and giving the trainee adviser the clients with less complex advice needs.
With the advice-guidance boundary review, if we can implement those boundaries, this would be an ideal breeding ground for trainee financial advisers to start their training offering guidance only and working up towards the advice-giving roles, which we all know we are in great need of growing.
We can look at growing the industry by bringing in graduates or second careerists who want a career in professional services and they can go through their diploma (and beyond) while helping clients who do not need full regulated advice but want that human support and guidance.
Technology is supporting the industry more and more and will really assist the advisers in becoming more efficient and releasing the burden for them from doing the tasks they generally do not love and spending more time with clients.
We already see firms specialising in key areas, for example advice for sports professionals, teaching, healthcare, and with the advice-guidance boundary review we could see much more of that, enabling individuals to niche in an area they feel a genuine affinity to.
We are seeing more and more the entrance of the likes of Ontario Teachers' Pension Plan, pension plans who have bought into investment management and advice businesses, and I wonder how that will pan out alongside the new guidance post-review for growth in the UK advice space.
Clear guidelines needed
What I would like to see from the review is clear guidelines on the three key areas put in place to enable advice firms to build and train their teams accordingly.
We work closely with business owners using profiling tools and hands-on support in structuring their strategy.
This might be for growth for firms on that trajectory, or building to maximise sale price. Or this might simply be for more effective and efficient working practices to alleviate pressure on owner-managed businesses or businesses simply wanting that assistance in navigating new legislations and policies as they get introduced (for example the advice-guidance review).
Regardless, we understand that the pressure on business owners and leaders is very real as they work around the ever-changing guidance and legislations.
