The Opportunities
Many international IFA companies are keen to expand in the short and medium term – and most see the fast-approaching impact of RDR as an opening to access some high quality UK advisers with qualifications and experience. Our research would confirm these beliefs to a great degree; it would appear there may be some significant opportunities to recruit financial advisers for the international marketplace from within the UK, over the course of the next couple of years.
The regulatory changes which will be implemented in the UK due to RDR will encourage some advisers to consider alternative opportunities, one of which will be embarking upon a new career abroad. Many advisers have already left the UK industry and it is estimated by some that a further 6,000 will exit prior to 2013. We believe this figure is probably over-inflated but the actual number will be still be considerable. Whilst some will be retiring, many will be looking for other options and there is thus the opportunity to recruit advisers who wish to relocate.
There may also be, for the first time, the potential for a model that allows good quality UK advisers with loyal clients to consider an alternative to the rigours of RDR whilst continuing to trade in a regulated environment.
The Problems
How can non-UK IFA companies take advantage of this opportunity? Many have used recruitment agencies at various times in the past, but experiences have often been negative. There is often a belief that, generally speaking, recruiters:
- Don’t understand IFA’s businesses and/or the industry, particularly the international arena
- Will not work on a basis that provides remuneration for the recruiter over time and thus guarantee greater quality and cost-effectiveness for the IFA recruiter
- Waste time proposing individuals who simply do not fit the bill
Perception of the international IFA marketplace is also a possible problem. We feel there is undoubtedly a cross section of advisers in the current marketplace with the key attributes to become successful in an overseas environment – but many of those most appropriately equipped would not consider an offshore career due to the recruitment processes and reputation of some of the firms that have been the main recruiters in the past.
Some offshore companies seem to constantly recruit, presumably in part due to the level of attrition rates of their adviser population. Unfortunately, if a UK adviser decided to consider an offshore career in the past, their first experience may well have been with one of these firms and they have therefore often dismissed international financial services as a realistic career option.
The Solution
In our opinion this presents an excellent opportunity for FEIFA to become the organisation UK advisers associate with a potential career in financial services abroad, removing many of these negative perceptions and providing such individuals with an objective and realistic view of the possibilities.
We have thus created an exclusive Recruitment Service for our members. This has been launched via partnerships with two recruitment companies that have excellent UK connections – and expertise in the offshore and international IFA marketplace. The service will aim to provide clear and straightforward information geared to advisers looking for a "lifestyle" choice rather than the unrealistic earnings levels sometimes used as recruitment incentives. We believe this will provide significant benefits to both international IFA companies and many UK advisers. Ultimately, and perhaps most importantly, this should be highly advantageous to clients as well.
