Recruit UK 2021 Financial Planning Guide Introduction 2020 was a unique year. A record number of companies were forced to freeze sala- ries as the world contended with lockdowns, travel disruptions, health and safety issues and new working environments. As revenues fell, management focus shifted swiftly to more efficient ways of running their , resulting in reducing costs and ultimately falling employee numbers across the UK. Employers have also been forced to better understand their workforce, with heightened concentration on their key employees but this has also raised their value; talent remains in high demand and we suspect that employee retention, notably within the financial sector, will be an important theme for 2021.

This indicates the likelihood of higher pay rises this year, given also that the finan- cial sector has fared better than others; its ability to adapt digitally more rapidly as well as fall back on reserves when required has been crucial.

As recruiters, the way we search and map top talent has needed to evolve too in or- der to attract candidates with maximum potential. But as companies increasingly realise that flexible working is now not just feasible, but in many cases preferable in the workday mix, the candidate net can now be cast wider for any particular role.

With so many moving parts, the ability to determine salary benchmarks is getting more difficult, which is why we have prepared this financial services salary guide. Using the guide The Recruit UK Finance Salary Guide has been put together to give you a better unde- rstanding of where you fit in the financial planning . We provide our views on current recruitment trends and market developments, derived from our deep exper- ience of working with and talking to financial planners, paraplanners and financial planning firms on a daily basis. We also draw exclusive insight from the many indi- viduals who we have interviewed in our https://financialplannerlife.com/Financial Planner Life podcast.

Our in-depth market research has enabled us to develop salary ranges for the key areas in financial planning, not just for the UK as a whole, but also on a regional basis. More than ever, this should help you get a stronger grasp of your position- ing in the UK pay structure and potentially where you need to be if you are looking for a salary boost.

Are you confident enough that you’re being remunerated fairly, based on your location? Are you a firm looking to develop your talent strategy over 2021? This finance salary guide will give you the benchmark you need.

1 Market Overview

While in the UK the number of pay rolled employees fell byhttps://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/earningsandemploymentfrompayasyouearnrealtimeinformationuk/latest 2.9% in 2020 (latest figs to Nov 2020), this compares to a 1.1% fall in the Finance & sector. However, the growth in pay across the UK has bounced back materially, having fallen sharply between March and May 2020; at 4.6% your growth in November 2020, the rate of growth in median pay is now higher than the average rate of growth before March 2020. Moreover, the Finance & Insurance sector is leading the way, with the strongest rate of growth at 6.5%.

It appears that many financial companies are looking to the rest of 2021 with cauti- ous optimism, and this is likely to be more adequately reflected in rising pay budgets following a slew of pay freezes last year. Although such trends are likely across Europe, the UK still leads the pack, notably post Brexit, as the number one market for attractinghttps://www.ey.com/en_uk/news/2020/06/uk-retains-top-spot-for-financial-services--in-europe-and-is-expected-to-outperform-the-continent-post-covid-19 international financial services investment.

It certainly won’t be all smooth sailing. Many financial services firms who have reported a sharp drop in liquidity are likely to come under further pressure due to Covid and as such, sadly run the risk of failing. But now that much of the uncertainty has been removed, firms better understand what needs to be done to enable a recovery and to take account of government and central aid. This should be positive for risk-on assets in both bond and equity markets.

Industry Trends REGIONAL CHANGES: One of the key developments that have come to light over the past 12 months is that UK wide salary ranges are getting increasingly blurred at their extremes. Regional nuances are coming more into play, with more dependent on regional biases, but importantly also the quality and personal situation of each individual within their specific area.

The global pandemic has meant that companies are shifting their perceptions of what is required to fulfil the role of a paraplanner or financial planner. Qualifications, expertise, skill and know-how are clearly still pre-requisites. But is it still necessary to be local to the office? Perhaps not.

If you’re an experienced paraplanner or financial adviser with a book of clients in your pocket and are looking to move to a more boutique firm, whether on a self-employed or employed basis, you’re in demand and have the potential to push the boundary of salary expectations.

2 Established relationships are still very much desired, particularly as many small regional firms around the country continue their pursuit of growth. And if that means working remotely, as many have successfully done over the past year, so be it.

Indeed, this is a trend that we’re seeing develop across all parts of the UK. Covid has changed the hiring landscape, with companies having to adjust their growth strategies. As financial planning firms increasingly look beyond their doorstep, tale- nted paraplanners and financial advisers based on the other side of the county, or indeed country, are now automatically considered for roles that most firms would have previously ignored. Rising concerns over the ‘adviser gap’ https://www.ftadviser.com/your-in(62%- of financial advi- sers are planning to retire by 2030) will only result in this trend dustry/2020/08/18/adbecoming- more acute.

As a result, we would expect regional admin, paraplanner and financial advisory jobs to increase and with it a further narrowing of the salary gap between regional positions and those in London. https://www.ey.com/en_uk/news/2020/06/uk-retains-top-spot-for-financial-services-investment-in-europe-and-is-expected-to-outperform-the-continent-post-covid-19

SKILL SHORTAGE: A skill shortage within financial planning is still very much an issue, with the impact of the ‘adviser gap’, causing firms to seriously evaluate their position and better understand how they can gain a competitive advantage relative to their peers. A recenthttps://www.hays.co.uk/salary-guide/ survey- of c.1,300 financial firms suggested that 86% have experienced some form of skills shortage within the past year, with 63% planning on recruiting staff over the next 12 months.

3 Indeed, financial planning firms have realised that they now need to start hiring at the entry level, and fast. The difficulty is that there simply aren’t enough candidates for paraplanner and general entry level roles. As a result, some of the larger investment organisations, particularly those with a network of regional businesses across the UK, are starting to look outside of the industry in the search for new recruits. The aim is to then train them up in their internally established academies to qualified paraplanner and trainee/ financial adviser status, while also teaching the required practical skills.

But with more paraplanners and financial planners comes the realisation that these need to be backed up by financial admin and support staff too. In this regard, we are now seeing more companies starting to ramp up hiring across all functions at the entry level with also a growing need to fill support and back office positions.

IT’S NOT JUST ABOUT ENTRY ROLES: High quality, experienced financial planners and paraplanners are still in demand acro- ss all firms, but particularly amongst the large number of small and medium sized financial planning companies dispersed across the UK.

Movement within and across firms is still very apparent here. But they still face the same concerns over a major transition of wealth over the coming years, and with smaller teams and subsequent time constraints, undertaking an extensive training program for new recruits is often not feasible. To combat the ‘advisor gap’ problem, their focus remains on hiring personnel who are already professionally qualified, or experienced people in senior admin roles looking to advance their career and make the transition to trainee paraplanner status.

SALARY IMPACT:

Salaries are subsequently being pushed up in financial admin and paraplanning; our regional analysis suggests this to be the case across the UK, especially in firms where there’s a clear growth progression. Even for more experienced hires, the existence of a talent shortage puts a floor on salaries and provides an opportunity for candidates to command a higher ;https://ww 75%- of employers are expecting to raise salaries in 2021. Finding quality hires in certain UK locations is often tough and so simple economics are increasingly coming into play - where demand is high and supply low, employers are finding that they need to pay more to secure the hire.

4 As competition for the right people heats up, so does the focus on keeping key emplo- yees in place. Although money is a motivator for many, companies with clear training opportunities and/or a framework for career progression are getting much attention, whether that be within the admin, paraplanning or financial advisor networks.

Beyond this, we’ve seen more firms provide additional incentives for current employe- es as well as those going through the hiring process. Such incentives now include flexible working, wellness programmes and mental health resources – the offer of a better work-life balance is progressively becoming the norm. With all the upheaval hat 2020 has brought, retaining employees right from the start is likely to be a running theme throughout 2021, in our view.

Administration

The opening of new positions within financial administration has been developing rapidly over 2020, given the ongoing introduction of new small and medium sized firms across the UK. The adviser gap has additionally prompted large firms to hire greater numbers of individuals looking to forge their career as paraplanners and financial advisers, which results in a greater workload and a subsequent requirem- ent for further administration and support staff.

In addition to this, we’re witnessing more individuals considering starting their car- eers in financial administration, with the prospect of progressing to qualified para planner and financial adviser status. This is increasingly becoming a more viable option, especially within smaller firms, should going straight into a paraplanner or financial adviser role not be feasible.

5 With 65% of all our financial placements in 2020 falling within admin, paraplanning and support functions, we expect the trend of more administration and back office staff to continue over the coming years, resulting in higher salaries, particularly for experienced personnel.

Paraplanning

The role of the paraplanner continues to evolve in line with a more complex and dem- anding planning process that’s required today. The necessity to use advanced techn- ology is progressively becoming part of the fabric of the role, resulting in a growing workload and enhanced skill set to simply service a client portfolio.

The increased technicalities of becoming a paraplanner, along with the rising import- ance of paraplanning in uncertain market conditions and the evident lack of top-qual- ity candidates, especially in some regional areas, has seen average salaries move higher for paraplanners, including trainees, as well as senior paraplanners.

As the demand for high quality paraplanners rises, notably those with a Level 4 Diploma or higher qualification, we also expect to see the maximum end of the para- planner salary scale to be stretched.

6 Financial Advice

Covid is certainly playing an important role in how the future of the financial advisory landscape will be shaped over the coming years. The acceleration of virtual meetings with clients has enabled advisers to work closely with both colleagues and clients remotely or even allow clients to search for advisers who are the strongest fit for their needs, regardless of location.

In a https://www.ftadvissurvey- conducted by Quilter last year, 86% of people between 18-30 stated that they have been searching for help and information about the financial impact of the pandemic. We expect that the demand for financial services will grow materially this year and by incorporating digitalisation into every day working life, the ability to service more clients becomes much for feasible.

With the realisation that new doesn’t need to be on your doorstep, growing firms are looking to introduce more experienced financial advisers and planners to their team, especially if they can bring a number of clients with them. For such top-quality and highly qualified candidates, such as Chartered Financial Planners, the requirement to be local to the office is being waived and the expectation of paying a higher wage is also understood.

Concerns over the ‘adviser gap’ will continue and as the next generation of financial advisers develops over the coming years, we only see financial planner and adviser salaries continuing to rise, in line with demand.

7

The technical and strategic aspects needed to fulfil the role of a pensions administrator or consultant, along with the requirement for a high level of analytical ability, mean that talent is often hard to find. In addition, the impact of Covid has resulted in a significant re-evaluation of portfolios, as well as greater interest by indivi- duals looking to save for their future.

This combination will likely result in little change to the trend of rising demand for specialist pensions administrators and consultants over the coming year. As such, average salaries are also likely to increase, with the boundary for regional maximums to be pushed higher.

8 Mortgages

The mortgage market, like much of the property industry, underwent a difficult period during a very cautious first half of 2020. However, as the full economic consequences of Covid have become better understood, along with a Brexit deal now in place, the sector has sprung back into life with pent-up demand released and a growing interest in mortgage products.

An improving mortgage market environment coupled with the inherent complexities that exist within the industry and ongoing regulatory change, should result in increased demand for mortgage administrators and advisers who are able to provide expert advice. However, we believe that there is a shortage of candidates to meet his demand. Our research indicates a sharp increase in average salaries for both administrators and advisers when compared with our findings from last year.

9 Compliance

Scrutiny of financial organisations is continually on the rise and regulators are clamping down more than ever on firms that take a step out of line. The expansion of compliance functions over recent years has been the result of this and although they now appear to be better aligned with business strategy and regulatory requirements, we see no let-up in this trend.

Building a strong compliance and risk structure within a financial organisation is now imperative and implementing competent and high-quality compliance personnel to execute the strategy, maintain due diligence and mitigate risks in advance, is essential.

It should not be a surprise, therefore, that the compliance sector still offers some of the highest paying finance jobs available. Indeed, the demand for talented compliance professionals remains high throughout the UK and the double-digit year on year percentage increase in average salaries across all compliance roles in our research, is testament to that.

10 Give your career a boost with Recruit UK From our analysis, as detailed above, it’s clear that we see rising demand across most positions within all the financial sectors we cover. As a candidate, this could be a great time to make a move, with an uptick in average salaries across the UK very much prevalent, whether you’re just starting out or have been in the industry for some time.

We work with many of the UK’s leading wealth management firms, be they large or small, throughout the whole of the UK. Candidates approach us for our experience, expertise and deep knowledge across the entire suite of financial advisory recruitment. Whether you need advice on financial advisor qualifications, paraplanner courses or just ensuring that your career path is on track, we can help you. Our strong track record of consistently matching top talent with the right positions is second to none.

We understand that the value of a candidate doesn’t boil down to the words on a CV. We’ll take the time to build a relationship with you, which starts by listening to your needs, motivations and expectations, for now but also over the coming years. We’ll give you the best advice and develop a strategy for success. We’ll be upfront and honest with you and always deliver on our promises.

For firms looking for a competitive advantage

If you’re a firm searching for that elusive hire that perfectly slots into your available role whilst instantly clicking with your company’s ethos, we’ll find that individual for you. All the candidates within our large network have been previously vetted for their quality, requirements and background. We spend time understanding their aspirations and motivations, so before we even provide you with someone, we already know why they will be right for, specifically, your business.

Think of us as an extension to your team. With demand rising for the right candidate across all positions in financial planning and advice, sourcing the best individual that perfectly fits into your role is getting tougher. Competition for top talent is rising but we can be your competitive advantage.

11 About Recruit UK

• We are a bespoke financial services recruitment agency offering a holistic approach to recruitment.

• We specialise in financial advice, paraplanning, compliance, employee benefits, administration and PA, , mortgages and protection and pensions.

• Our expertise spans across all UK regions.

• Using a combination of digital and traditional recruitment, we can source candidates effectively and fast

Check out our Life podcast at https:// nancialplannerlife.com/www.financialplannerlife.com, where we host guests working in or supporting the financial planning industry in various capacities. They all have their own story to share, often covering intimate and honest accounts of what it’s really like to work in and for the financial planning industry.

Contact Us

Whatever your needs, our expert team will be more than happy to help. Contact us today on 0117 945 0450 to find out more about our services.

12