The big banks do battle in financial planning

It’s been a turbulent end to the tax year for the usually solid world of financial planning. And the Australian banks, some of whom restructured their wealth management divisions in 2011, seem intent on continuing to muscle in on each other in the new fiscal year.

“The wealth management arms of the big four banks are looking to drive growth and will attempt to attract the top-performing advisors from the smaller players and boutiques,” says Andrew Hanson, director of financial services, Robert Walters.

The timing for this push appears sound because it’s expected that the financial planning sector will continue to grow as the Future of Financial Advice (FoFA) regulations are bedded down, compulsory superannuation is steadily beefed up, and financial markets continue their never-ending rollercoaster ride.

At the same, there is a shortage of experienced financial planners, and the networks are doing whatever it takes to recruit or retain the best talent. “Senior planners are being offered more lucrative salaries in order for them to consider a change in organisation, while others are engaging their prospective employees in the structuring of their own remuneration plans, whether it’s a low base with a higher bonus structure or vice versa,” says Hanson.

The growth of the do-it-yourself superannuation sector, which currently accounts for 30 per cent of Australia’s $1,376.1bn retirement savings pool, could create advice jobs in the next year, says Margaret Liu, recruitment consultant, Kaizen Recruitment.

“There’s a potential shortage of financial advisers with knowledge of self managed superannuation funds [SMSFs] as it’s more complicated, with so many customised solutions,” says Liu.

For advisers looking to launch into SMSF, she says firms will likely provide in-house training for the right candidates to help bring them up to speed.