Recruitment firm RIVA has released a salary guide for financial advisers in Australia.
They note that the industry is facing significant headwinds from the regulatory changes coming out of the Banking Royal Commission as well as compounding crises (bushfires into coronavirus). "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."
Like most other recruitment firms, RIVA has seen a significant slowdown in their business as clients – and the world – hold their collective breath to see what is going to happen to the broader economy before making personnel commitments.
The businesses that are faring best are the ones that are charging a flat fee-for-service, according to RIVA's findings. "Businesses who charge a percentage-based fee have been most effected during COVID-19." These businesses have either put recruitment on hold or reduced staff. Flat fee businesses have largely retained their employees with some expanding.
Industry impacts of bank adviser exits
The big four banks have all made steps to exit the financial planning business. Because those advisers often made more than their non-bank aligned counterparts, that may have an impact on the going rate for advisers in the future.
The amount of qualified advisers now on the market may also have a downward influence on wages as supply exceeds demand. "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", the report reads.