The financial planning industry is facing increased headwinds resulting from COVID-19 as financial advisers are working remotely and are forced to communicate with their clients electronically. Increased market volatility has also amplified the level of client engagement required as clients are seeking certainty and comfort in this challenging and unknown environment. Business owners have advised majority of new business has been put on hold as COVID-19 has reduced consumer confidence.
Recruitment has slowed down due to business uncertainty and the difficulty in onboarding new employees as most employees are working remotely. Businesses who charge a percentage-based fee have been most effected during COVID-19. These businesses are either putting recruitment on hold, forcing employees to take a pay cut or in a few cases, have made redundancies to support/operations staff. In contrast, businesses who operate under a flat-dollar fee-for-service model have (mostly) retained all employees and with some of these businesses are still recruiting new staff.
Big Four Banks
Following ANZ Bank’s recent announcement to cut a significant amount of their financial planning employees, all the big four banks have now communicated their intention to exit financial planning. Majority of bank financial advisers have been earning over $130k package plus bonus with some adviser earning north of $145k package plus bonus. With the banks exiting financial planning, this had led to an influx of financial planning bank employees seeking new employment opportunities. Given the current environment, bank financial advisers need to reset their salary expectations to be aligned with the current market as tabled below.
Benchmark salary for wealth management professionals in Melbourne and Sydney
RIVA Recruitment specialises in financial services recruitment across financial planning, funds management and superannuation. We are based in Melbourne at 3/162 Collins Street.