For advisers looking to expand their business, choosing the right people to join the firm is one of the most important considerations they will ever have to make.
As well as assessing whether a potential employee has the right technical skills, knowledge and qualifications to succeed in the role, other qualities such as being trustworthy, respectful, reliable and hardworking will also need to be taken into account during the recruitment process.
Equally important is whether any new employee fits in with the rest of the team, as a seamless transition and a harmonious working environment is also essential to achieving business success.
Firm owners want to ensure they spend their time focusing on growing their business and maximising output, so choosing a person they feel would be a good fit for the role, who will work well with others and hit the ground running, means they are less likely to spend all their time on managing staff relationships.
However, for any firm looking to recruit a new member of staff for an adviser role or Senior Management function, it is also important to remember that all new personnel must also meet the Financial Conduct Authority’s (FCA) requirements for assessing any new potential employees.
This is particularly important for any firm looking to increase its headcount as we head into the latter half of 2024, as it is widely expected demand for mortgages will grow significantly as the market begins to stabilise, following the recent election.
Therefore, planning ahead and ensuring the business is adequately prepared for increased market activity can stand advisers and their firm in good stead, as long as they follow the correct procedures for recruiting new members of staff.
For example, under the requirements of the FCA, the fitness and propriety of every individual must be assessed and checked before they join a company. In practice, this means taking into account the knowledge and skills of the individual at the outset and how they relate to those required for the role.
In all cases, the recruiting firm must also ensure they have taken reasonable steps to get sufficient information on any applicant’s previous roles, experience, training as well as any relevant exams or qualifications they have achieved.
Any financial adviser recruiting staff members is also responsible for ensuring they keep records on the individuals before they are employed by the firm. This assessment must continue during the course of their employment as this will help to ensure the business continues to provide the highest level of financial services to consumers.
Specifically, this means keeping records on each individual’s honesty, integrity and reputation, competence and capability, and financial soundness, for future reference. Without these, advisers can run the risk of appointing an individual who does not meet the fitness and propriety requirements set out by the FCA.
Not only can this create problems with the regulator further down the line, it can also result in staffing and administration issues at a later date. It can also put the adviser and the business at risk of reputational damage if these requirements are not adhered to.
For any DA Firms needing help with their recruitment needs, service providers such as The Right DA Club has the expertise and experience needed to support advisers during the recruitment process. This includes helping with the due-diligence process as well asreferencing or appointing individuals, other members of the team and directors to the firm.
In each of these cases, the onboarding support can provide reassurance to firms that their chosen candidate meets the FCA’s requirements and has the ability to perform the role. This can help to instill confidence that the right person has been chosen for the job, leaving them free to focus on the growth and future success of their business.
Chelsea Kiefert is head of DA at the Right DA Club
