55% of advisers are concerned or very concerned that the IFA sector is failing to recruit sufficient numbers of graduates and trainees into the industry, according to a new study amongst financial advisers by Investec Wealth & Investment.  

A paucity of young talent entering the sector emerges at a time when 36% of intermediaries that own all or part of their firm plans to semi-retire or retire fully in the next decade – potentially leaving a growing shortage of qualified advisers.  Of these, 14% are planning to recruit a successor from within their business to eventually take over.

The research captured IFA feedback on a number of potential measures to overcome the recruitment gap at trainee and graduate level; the most popular choice was to introduce better training and mentoring schemes, followed by building stronger links to universities and colleges. In third place was to offer more placements and internships to those considering a career in financial planning followed by offering graduates a clearer and more structured career framework.

Mark Stevens, head of intermediary services at Investec Wealth & Investment, said: “This is a growing problem facing the sector and unless steps are taken to attract more young talent it risks a shortfall of qualified advisers in the coming years.  Many firms who want to recruit younger staff have historically relied on larger bank/assurance companies to deliver the foundation training required. Whilst many advisers are keen to take on graduates and bright school leavers they sadly get overlooked if they do not offer formal graduate schemes and have a much lower profile at universities and colleges compared to other professions.

“It’s clear that advisers recognise the need for a more structured approach and with many advisers approaching retirement, there is the risk that a lack of fresh blood coming through becomes a real threat. The investment and financial planning environment is unlikely to get any easier in the years to come so it is vital that the financial advisory sector works together to replenish the pool of talent and experience it will lose.”