Financial planners are voting with their feet as recruitment firms report a ‘dramatic shift’ by advisers to the bigger end of town.
While recent and proposed acquisitions within the sector have and will, lead to a consolidation within the already large institution-owned dealer groups, recruiters are reporting that advisers are, in any case, heading towards these groups for their own reasons.
… before the Global Financial Crisis, many candidates liked the freedom and entrepreneurial focus of the boutiques
In a recent article by eFinancialCareers’ Simon Mortlock, Mr Mortlock reports a recruitment consultant as explaining that before the Global Financial Crisis, many candidates liked the freedom and entrepreneurial focus of the boutiques, but there has since been a dramatic shift, with most advisers in the market for a new dealer group licensee preferring firms with:
- A large market share
- A huge referrals network
- Good career development
- Stability
If this is the prevailing attitude from advisers, as evidenced by the activity within the recruitment market, it may simply reflect the current economic cycle. Over time, as economies stabilise further and the markets head for a new growth cycle, other consultants have predicted that opportunities for new boutique firms will emerge.
However, while the popularity of the large firms and boutiques for advisers may often reflect economic cycles, it will be of great interest to observe any changes to this cycle that may occur as a result of the impact of industry reform measures such as the eleven recommendations stemming from the Ripoll Inquiry into Financial Products and Services which may be implemented.
Click here to read the full article from Mr Mortlock.
