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Adviser pay hits all-time high of £93,000

Adviser pay has reached a new record, according to landmark research into the profession by recruitment consultants BWD.

Nearly 1000 people took part in the survey, run jointly with Money Marketing, around half of which were financial advisers.

Average total earnings for employed advisers reached £93,100 in 2017, up from £81,500 in 2016.

For self-employed advisers the figure was marginally lower at £89,100, but still grew nearly 4 per cent year on year. Employed adviser pay packets outstripped their self-employed counterparts for the first time since 2013.

For employed advisers, the increase was driven by a £7,000 average increase in bonuses, reaching £27,500, on top of a £5,000 average increase in base salaries.

Since the census began in 2011, employed advisers have seen average pay increase by 40 per cent overall.

Now, more than 23 per cent of advisers are earning over £100,000.

BWD puts this down to a “very long bull market” combined with a raft of opportunities for advisers including continued under provision in protection, opportunities for workplace based planning, and automation helping assist lower income clients without removing the core of human advice.

BWD writes: “The development of a professionalised adviser community has led to a reduced supply of advisers at a time when pensions freedom coupled with general reduction in government and employer support has placed the onus on the individual – who of course needs advice. So low supply and high demand has to create a buoyant price for advice – reflected in the rates and volume of remuneration.”

Money Marketing will publish a full analysis of the results on Thursday and in this week’s print edition

Register here to get your copy of the full BWD report 

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Comments

There are 9 comments at the moment, we would love to hear your opinion too.

  1. From an advisers perspective this is great news and a just reward for what they have gone through and continue to go have to deal with.

    From a client’s perspective (those that can afford it) they probably get better value than ever measured by cost against service/product.

    From a regulators perspective, you reap what you sow and this is hardly surprising so presumably they are happy too.

    What a jolly happy world we live in!

  2. Another fairy tale?

    Recruitment consultants are rather like estate agents – the advised price is usually way above the realistic price. Pour encourager les autres perhaps?

    • Have to agree – half it and average is probably still not close….and the self employed is probably turnover not what they net!

    • Depends where you’re looking from I guess and doesn’t seem unreasonable to me.

      In any event, setting aside the hard figures, the trend upwards is just as interesting.

  3. Julian Stevens 2nd May 2018 at 11:57 am

    I’d happily forego some of my earnings in exchange for less regulatory crap and the FCA doing its job properly.

  4. Robert Milligan 2nd May 2018 at 2:50 pm

    How do you pay a Bonus to an employed Financial Adviser, I would very much like to see on what its based, Good Advice!! Surely the RDR should have removed “employer incentives” or are we still encouraging a “SJP” environment, I gave my car parking space back last century.

  5. Julian Stevens 3rd May 2018 at 9:41 am

    I seem to recall the FCA not long ago suggesting that bonuses for employed advisers (for bringing in more money) poses a conflict of interest. But the idea of possibly trying to do anything about it was quietly dropped, presumably in the face of numerous comments that it would be completely unrealistic to inhibit the practice of rewarding those employees whose endeavours contribute more to the success of a business than do those of employees who either aren’t in a position to make any difference to the success of the business or who just do the bare minimum within a basic 35 hour working week.

    That aside, I’ve read nothing for a couple of years now about the FCA’s own staff bonus system, not least the basis on which such bonuses are calculated (or justified).

    Given that the FCA is a not-for-profit organisation, it might be argued that those whose work is deemed to have fallen short of acceptable standards (and the FCA’s endless litany of regulatory failures strongly suggests that there are probably quite a few) should be subject to a negative bonus. The problem with that would be (to quote Hector Sants, that if individuals were to be held personally accountable for their failings, nobody would be prepared to work for the regulator.

  6. £89,000 i feel rich at last having done the job for over 20 years. Opps wait a minute FCA Fees FOS Fees FSCS Fees PI Fees Compliance Fees More FSCS Fees as they cocked up on the first lot damm earnings back to £29,000 oh well for a minute i thought i could afford a holiday

  7. Tail still wagging the dog then !!!

    When one considers the average wage at the FCA is £101,000…without the ever increasing individual fees, levies, costs etc etc

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