Our report on research which has found increased revenues, stable operational costs, and improved insurance terms are culminating in higher salaries for advisers, drew strong reader interest this week…
Increased revenues, stable operational costs, and improved insurance terms are culminating in higher salaries for advisers, according to Adviser Ratings.
The research firm says that early data from its ongoing Adviser Ratings Landscape Study indicates a period of significant growth and opportunity for financial advisers.
The firm notes “….this year is not just another tick on the calendar but a watershed moment for the industry, marked by rising revenues, stable costs, and improved insurance terms.”
The company says its study has provided early indications that the sector is thriving.
…a notable 35% of practices [are] experiencing a remarkable 15% surge in revenue…
“We’re seeing an average increase in advice practice revenue exceeding 5%, with a notable 35% of practices experiencing a remarkable 15% surge in revenue.”
The firm says this uptick in revenue isn’t occurring in a vacuum but rather is “… a reflection of the increased value and demand for professional financial advice.”
Adviser Ratings states the stability in operational costs is equally noteworthy with more than 60% of practices enjoying profit margins above 20%, a figure that incorporates owner’s salaries.
…As practices become more prosperous and strategy-driven, the demand for skilled advisers is soaring…
“This financial health is creating a ripple effect, particularly in the realm of adviser salaries. As practices become more prosperous and strategy-driven, the demand for skilled advisers is soaring…”
Highlighting significant premium improvements in Professional Indemnity insurance, the research firm says “…the synergy of these factors—increased revenues, stable operational costs, and improved insurance terms—culminates in a very tangible benefit: higher salaries for advisers. In this environment, advisers are more than just financial experts; they are in high demand as strategic assets to practices focusing on growth and client engagement.”
It adds that looking at the landscape of 2024 “…it’s evident that the financial advising sector is on the cusp of a new era,” pointing to a picture of “…an industry ripe with opportunity and growth.”
I came to this article in ‘RISK’ Info with the expectation of seeing some good news about risk commissions. The lead on the email said “Adviser Remuneration”. Instead, I read through it with its constant reference to “advisers”. “advisers”?? – which advisers? I’m left to imagine riskinfo is referencing ‘investment’ advisers. Certainly not RISK advisers, surely, as there’s zero mention of any changes to commissions. Indeed, commissions are not referenced at all in the article. So, yet another article which lumps all advisers under the label “advisers” – no differentiation for specialist RISK advisers. See what’s happening, subversively but surely?! Even riskinfo, the premier media source for risk specialists, is looking and sounding like the politicians and mainstream media these days, making riskies an afterthought. Bad enough the life companies abandoned any care for their commissioned risk specialists, now they aren’t even mentioned, let alone differentiated, in riskinfo articles on remuneration.
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