Good news for the financial advice profession! Recent research from Strategi Institute reveals a positive outlook for new advisers and businesses. A survey conducted between 1 January and 30 September 2024, with 930 enrolments, highlighted some encouraging trends:

• The average age of applicants is now 15 years younger than in 2020.
• For the first time, female applicants have outnumbered male applicants, with a split of 48% female to 52% male.
• The ethnic diversity of applicants has shifted from mostly European in 2020 to 40% Asian, 48% European, 7% Māori/Pasifika, and 5% not stated.
• Course completion rates have jumped from 70% to over 85%.
  
  

Why are some firms struggling to recruit new advisers?

Despite these positive trends, some firms still find it challenging to attract new advisers. David Greenslade, Executive Director of Strategi Group, points out two key reasons supported by the research:

1. Desire for stability: Many newcomers to the industry are looking for job security, career advancement, and a steady salary. Very few are willing to take the risk of working purely on commission. This creates difficulties for smaller financial advice practices that often can’t offer a base salary of $80,000 or more. As a result, many new advisers are drawn to larger firms.
   
   
2. Aiming for self-employment: A lot of students are finishing their courses with the goal of becoming self-employed advisers. Some come from large institutions where they were in support roles or nominated representatives, while others are brand new to the field. Many of these aspiring advisers realise that starting a financial advice business is more affordable compared to other types of businesses. They’re attracted to the industry because they see the potential to earn above-average incomes, help people achieve their financial goals, and take advantage of technology to quickly build a client base while providing quality advice at competitive prices.

Despite the challenges some firms face in attracting new advisers, the overall trend is promising. The shift in demographics and motivations among applicants points to a vibrant future for the financial advice industry. More young people are entering the profession, bringing diverse backgrounds and fresh perspectives. This influx of new talent suggests a growing interest in financial advice as a fulfilling career choice.

As Greenslade notes, “The increasing number of enrolments we’re seeing at Strategi Institute is a strong indicator of a promising future for financial advice.” This optimism signals that, with the right support and resources, the industry can thrive and adapt to meet the evolving needs of clients.

If you’re ready to advance your career in financial advice—whether it’s earning your Level 5 qualification, completing a micro-credential, or fulfilling your CPD requirements—now is the time to take the next step. Contact the team at Strategi Institute today and let us help you succeed in this exciting industry!