From GCSEs to A-Levels and then a degree is a well-trodden path to a career in financial advice – but the traditional academic route is not for everyone.
Fortunately, momentum is building within the profession to make it easier for young talent to enter through alternative routes, including apprenticeships and professional qualifications such as the Certificate in Mortgage Advice and Practice (CeMap).
A first career
Financial advice is an attractive first career of choice for school leavers but people often ‘fall into it’ later, after doing something else.
John Somerville, director of financial services at the London Institute of Banking & Finance (LIBF), part of Walbrook Institute London, stresses that, while the profession wants newcomers of all ages, it particularly needs to attract younger age groups.
I think you can develop a huge amount of loyalty in a young person if you bring them in from scratch
“I started my financial services career at 23 and I didn’t find it easy,” says Somerville.
He had been told he would be supplied with clients but this was not quite the case.
“When I finished my training course I went to the office, sat at my desk and opened the filing cabinet. There were three client files in there and that was it, that was all I had.”
Support
Over 30 years later, the profession has moved from product sales to financial planning – but, says Somerville, new entrants are still expected to be self-employed and to ‘help themselves’.
“You’ve got to be a self-starter, you’ve got to find your own clients and you’ve got to go out there because it doesn’t get handed to you on a plate,” he says.
That makes it difficult for new starters, who need help to find clients and develop that client bank. So, what is the solution?
You’ve got to think about the greater good here. We’ve got to help each other
“Either you need really good firms to support them through that process or you give them an employed position,” says Somerville.
“I know that there’s a risk element to that because people within financial services do move on, but I think you can develop a huge amount of loyalty in a young person if you bring them in from scratch.”
Starting Out: Is previous financial services experience an advantage for aspiring advisers?
Mortgage advice is a good starting point for new entrants because they can develop the firm’s client bank and then move into financial advice, says Somerville. Although nobody aged under 18 is allowed to give mortgage advice, they can still study for CeMap.
“We had one student recently who was so excited because he qualified for CeMap at the age of 17 and he asked us whether he was the youngest to ever have taken it – but we’ve had younger.” says Somerville.
The greater good
Collaborating with the likes of the New Talent Alliance, the Consumer Duty Alliance and Money Marketing’s very own Future Financial Adviser, the LIBF is working to improve employer understanding of apprenticeships.
I started my financial services career at 23 and I didn’t find it easy
“But what we’ve got to stop happening is where a small business takes on a new person and trains them up. Then a large business will come in and offer them a £50,000 salary and company car – that’s not helping the situation,” says Somerville.
“I appreciate that it saves them a lot of money, but you’ve got to think about the greater good here. We’ve got to help each other.”
Case study: Amelia Herbert, trainee financial planner, Clarke Nicklin Financial Planning: ‘Becoming a financial adviser is about more than being academic’
“I felt like university wasn’t for me as, although I did enjoy school and college, I felt that structured learning didn’t suit my own personal learning style.
I wanted a trainee job where I’d have more freedom and flexibility to study towards my qualifications.
When I started my traineeship nearly three years ago, my initial job was to complete client reviews and administration tasks. Within my first year, I was completing simple recommendation reports.
Knowing you want to start a career as a financial planner straight from college is very powerful to an employer
The difficulty of the recommendation reports has now increased to a comprehensive level as I completed more qualifications. Now I also have responsibility for completing annual suitability reviews and investment committee research for clients.
I’m currently taking LIBF’s Advanced Diploma in Financial Advice. As well as becoming chartered, my career plan is to start training to become a mortgage adviser next year.
If you haven’t gone to university and would like to find a role in financial advice straight from college, you can demonstrate your ability to study and excel in the form of your mock and A-Level results and teacher references.
I wanted a trainee job where I’d have more freedom and flexibility to study towards my qualifications
Knowing you want to start a career as a financial planner straight from college is very powerful to an employer as it shows your eagerness and aspirations for the job role.
While someone who has been to university has a degree to prove they are academically inclined, becoming a financial adviser is about more than being academic.”
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For more practical information on how to get started in financial advice, please visit our Future Financial Adviser community. We tell you how to take the first steps, how to get ahead and what attributes you need to flourish. Even better, we can put you in touch with helpful contacts.
Amanda Newman Smith is features writer for Money Marketing
