People may start their career in all sorts of roles in financial services before deciding to become a financial adviser.
They may assume that previous industry experience in a different role gives them an edge in landing their first job as an adviser. But does it?
Not guaranteed
Industry commentators agree that prior financial services experience can be an advantage for aspiring advisers, but stress this is not guaranteed.
“Banking or other financial services experience can give new advisers a head start as they will likely already understand the products, the regulatory landscape and how the industry works,” says Hoxton Wealth managing director (UK) Jonathon Jay.
We’ve welcomed former barbers, police officers and engineers, which is proof that attitude and aptitude matter more than previous job titles
He adds that people who have worked in other areas of financial services sometimes have contacts who can become clients or sources of referral.
“Those with experience of dealing directly with customers, whether in banking, insurance or investments, often find the transition easier,” says Jay.
“But prior experience in financial services doesn’t automatically prepare someone for the stricter regulatory and ethical responsibilities that come with giving personalised advice.”
Quilter Financial Advisers financial planning consultant Jyles Allen has recently become a financial adviser through Quilter’s graduate academy – a 12-month programme that led to Allen becoming a self-employed adviser with Quilter.
Before joining the academy, Allen had spent six years working as an insurance broker with an employee benefits firm. He had already gained his financial adviser qualifications and assumed it would be easier to get a job in advice than it subsequently proved.
It’s more important to have the correct qualifications and passion for helping people reach their long-term goals
“I was surprised that having the relevant qualifications did not provide you with the ability to gain employment as an adviser,” he says.
“Because I had previous financial services experience, I would get through to the interviews. But most employers wanted you to have your own book of clients and some experience of providing financial advice.”
This hurdle led Allen to try the academy route into the industry, which worked out well. However, he thinks things have started to change since his days of applying directly to advice firms.
“The bigger companies have cottoned on to the fact that, in 10 to 15 years’ time, current advisers will be retiring, and they’re planning for the future,” he says.
Prior experience in financial services doesn’t automatically prepare someone for the stricter regulatory and ethical responsibilities
“I can only assume that the smaller companies will follow suit. Some are starting to advertise for trainee advisers now.”
Doing your homework
Plenty of people make the transition to financial advice after pursuing a very different career.
Military veteran and former SAS selection candidate Joe O’Connor became a financial adviser in the late 1980s. He is currently chief executive at The Transformer, a business coaching firm for professionals, entrepreneurs and military veterans.
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O’Connor points out that an advice firm’s requirements in relation to prior experience and having an existing client bank will probably depend on where that business is in its development.
“It’s just as important to do your homework on the companies and look at whether they are taking on trainees, for example,” he says.
O’Connor’s son also came into financial advice as a second careerist. He had started in the construction industry.
“He said, ‘I don’t want to be a quantity surveyor. I’m just doing spreadsheets; it’s like being an accountant for builders,’” recalls O’Connor.
I was surprised that having the relevant qualifications did not provide you with the ability to gain employment as an adviser
“He said he wanted to be a financial adviser and got an apprenticeship with an investment company. He’s qualified now.”
For O’Connor, prior financial services experience may be helpful in getting a job but not having this should not hold back anyone from becoming an adviser.
“It’s about what you want to do,” he says.
He also believes that having a positive mentor or coach can make a big difference.
Attitude and aptitude
Other commentators say that previous financial services experience may be beneficial but is not essential.
“While prior experience can be useful, it’s more important to have the correct qualifications and passion for helping people reach their long-term goals, regardless of their stage in life,” says Unbiased chief executive and founder Karen Barrett.
It’s just as important to do your homework on the companies
Financial advice is about building long-term relationships and providing emotional support to clients and their families, so an aspiring adviser’s ‘people skills’ – for example, empathy and communication – may be more meaningful to employers than prior industry experience or the lack of it.
“Increasingly, we’re seeing individuals from diverse professional backgrounds join our academy, with around half of applicants coming from outside the financial services industry,” says M&G Wealth Advice Academy head Matthew Ings.
“In recent years, we’ve welcomed former barbers, police officers and engineers, which is proof that attitude and aptitude matter more than previous job titles.”
Amanda Newman Smith is features writer for Money Marketing
