…THE FINANCIAL SERVICES SECTOR IS THRIVING, WITH ANINCREASING DEMAND FOR ADVICE & FINANCIAL PLANNING…
For any interested reader, the BWD Census is a valuable resource that is worth studying in detail, especially for those in the financial services industry. It provides essential data on earnings, including salaries and benefits, and also sheds light on various issues, such as working styles, the emergence of the hybrid model, and diversity as it affects individuals. The Census allows individuals to compare their earnings to the benchmarks for their role.
To assess a sector, one could read the trade papers, which can give the impression of regulatory changes constantly posing challenges. While this is true, the financial services sector is thriving, with an increasing demand for advice and financial planning.
AVERAGE ADVISER EARNINGS HAVE INCREASED BY 14.9%…
Driven by the static number of advisers, the price and perceived value of advice, average adviser earnings have increased by 14.9% to £95,754. Self-employed advisers have even higher earnings at £138,341.
Although media coverage of the sector is often critical, with a focus on high charges and the new Consumer Duty, among other things, the sector has responded well to every regulatory challenge so far.
Several factors drive earnings, including the commitment to qualifications, with chartered advisers earning 33% more than Level 4 advisers. Gender is also a factor, with male advisers having an advantage of 28%.
81% of advisers and 88% of BDMs are male
Firms need to assess their own data and practices to address this disparity, particularly as 81% of advisers and 88% of BDMs are male. Restricted advisers perform better than their independent counterparts, mainly due to the benefits of scale. The move towards consolidation suggests that regulatory, operational, and cost pressures are creating a less fragmented advisory sector.
BDMs are doing well, with an increase in earnings of 10.34% over the previous year and total average earnings of £118,195. Fund management BDMs are the most well rewarded among the various BDM roles.
The high price of BDM services reflects the lower numbers in this role, with some larger providers operating with only a few BDMs, making the effectiveness of each one crucial for providers to engage with advisers. BDMs are increasingly working remotely, and the technology-supported adviser interface means that field-based BDMs are less "in the field" than they used to be.
52% of the workforce adopting this approach
Hybrid home and office-based working is now the norm, with 52% of the workforce adopting this approach. The pandemic triggered this change, and it appears to be the most effective way to work, with less travel, more time to focus on personal work, and technological advancements facilitating remote communications and teamwork.
over 60% expecting an increase in earnings in the coming year
The majority of respondents have a positive outlook on the future, with over 60% expecting an increase in earnings in the coming year. While the stock market is seen as the most positive factor, some express concern about the impact of the political environment, housing market, and the economy. However, the demand for advice is driven by many factors, and any form of adversity can act as a stimulus to seek advice.
The Diversity, Inclusion, and Equity section is of great interest to all. The majority of respondents report that their employer has a clear and well-executed policy, although a significant minority are sceptical, with some believing that an overly "woke" mindset may hinder commercial success. The Census reveals that 91% of respondents are white, compared to the UK population of 82%.
