Graduates don’t understand what Financial Planning is, a planner at an IFP Accredited Financial Planning Firm says.
Nicholas Nesbitt, a private client Financial Planner at Mazars, said students who may be interested in financial services lack awareness of Financial Planning and what the profession entails.
He believes the sector struggles to generate interest at the graduate level because it fails to compete with the large accountancy firms and financial and legal institutions.
National firm Mazars is taking five graduates this September and would like to double this in three years’ time but says attracting enough candidates each year had been difficult.
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Mr Nesbitt said: “I think the main problem that Financial Planning has is that people, and especially graduates, don’t really understand what it is and what a career in the profession entails.
“Most people are aware of what an IFA is but I believe the term still conjures up quite negative product-selling, commission/target-driven images for people, rather than being seen as a career that has a qualification structure similar to accountancy and offers a career that is as challenging, diverse and interesting, if not more so.”
He said not enough graduates are aware of what type of careers are available within the profession – not just as planners or advisers but also in Paraplanning, technical, compliance or administration roles.
He said: “Furthermore, I think that because of the nature Financial Planning business model, there are no sizeable Financial Planning firms offering large graduate training schemes. As a result, the profession as a whole struggles to raise awareness and interest at the graduate level because it simply can’t compete with the big four accountancy firms and the large financial and legal institutions.”
Mr Nesbitt was a product of the Mazars graduate scheme. He said despite the difficulties more broadly his firm had made a success of it and this could be seen through the fact that its first graduate trainee, David Baker, was made a company partner this summer.
IFP board member Richard Allum, who founded the Paraplanner Powwows, has told Financial Planner magazine recently that Paraplanning should target graduates in subjects like history and geography, which require research and analysis.
Mr Nesbitt said: “The two key attributes I look for are good problem-solving skills (and an enjoyment of this) and generally being a personable individual who presents themselves well. “Given these two key attributes, I don’t feel there is a particular degree subject that stands out as producing good planners.”
Mr Nesbitt believes there is a joint responsibility on the firms themselves and the IFP and PFS to do more with universities and students to raise awareness of what the profession is, what the graduate training schemes offer and ultimately what a career in may look like longer term.
