The financial advice industry is facing a huge crisis. The average age of advisers is in the late 50s and they are close to retirement.
But unfortunately, the sector has not prepared itself for the inevitable moment when the number exiting the industry is more than the ones entering it.
Some companies and trade bodies have shouted from the rooftops to promote the financial adviser profession to people from all backgrounds to attract more to the sector.
One firm doing its part to bolster the number of advisers in the industry is Lumin Wealth.
Lumin Wealth’s adviser academy had its first intake in September 2021 and is aimed at graduates looking to pursue a career as a financial adviser.
The trainees are supervised by Lumin financial planning manager Joe Fisher.
Pipeline
As much as Lumin is looking to bolster numbers in the sector, it also believes having an academy can be useful for business growth.
Martin Cotter, managing director of Lumin Wealth, told International Adviser: “We see this as an integral part of our long-term service for clients. The academy provides a pipeline of future adviser talent who can effectively service clients and ensure a smooth transition when older advisers retire.
“The annual intake is not set in stone, as numbers depend on both the volume and quality of applications. We have planned for an intake of five-to-10 trainee advisers per year over the next five years, but this will naturally scale up as Lumin continues its growth journey.
“Academies such as the one that Lumin operates can play a crucial role when it comes to filling the dwindling pool of advisers, as older advisers increasingly look to sell up or retire. It’s vital, though, that trainees are provided with the right technical and pastoral support to enable them to maximise their potential.
“Lumin provides a bespoke approach, due to the size of the intake. Our small numbers allow us to ensure our trainee advisers have the support they need, and the ability to learn on the job by attending client meetings with their designated adviser. As the academy grows in size, we will continue to maintain this bespoke culture and support network at all times.”
Importance of second careerists
The academy is aimed predominantly at graduates – but Lumin is also open to second careerists and female returners.
Cotter added: “The Lumin Academy is more focused on catering to graduates who have recently left university, although we would certainly be willing to consider second careerists and female returners who have the drive and ambition to kickstart a career as a financial adviser, as well as paraplanners, support staff and qualified advisers who wish to be part of our career programme.
“One of our financial consultants, Will Harries, is a good example of how Lumin can provide a home for talented second careerists. Will had a successful career as a rugby player, and was capped by Wales, making his international debut against New Zealand in 2010.
“While playing club rugby, he gained experience working at a financial advice firm, before joining Lumin and becoming a valued member of the adviser team. He holds a Level 4 Diploma in Regulated Financial Planning and is working towards achieving chartered status.”
Ambitions
The course is a two-year programme with the aim for trainees to reach the Level 4 Diploma in Regulated Financial Planning – and then eventually become advisers at the firm with the end goal of reaching chartered status.
But what are Lumin’s ambitions for its academy?
Cotter said: “Our academy intake will naturally scale up over time, in line with the firm’s wider growth ambitions.
“However, we will maintain the core and bespoke values that are at the heart of the current model, including the on-the-job learning and senior adviser mentoring that forms such an important part of the training process.”
