Nearly half of adviser firm Edward Jones’ recruits are now experienced advisers, with the firm attributing this sharp increase to the well publicised failings of big adviser firms and increased compliance burden.
Principal (products and marketing) Robb Boyd says in the last six months there has been a marked increase in applicants who are already advisers and the firm has modified its recruitment strategy to specifically attract these people.
Boyd says the company had struggled to attract experienced advisers, with its intake traditionally coming from all walks of life, with successful candidates going through an induction and training regime to become advisers and stockbrokers.
But with several big IFA groups in financial trouble as well as the increased compliance burden being felt by individual advisers, more experienced advisers are approaching Edward Jones.
The firm estimates that it will have 225 IRs in the UK by the end of 2006 after starting last year with around 100. It operates a fasttrack induction programme for experienced financial advisers. Boyd says another incentive for experienced advisers is the fact that they can negotiate their own salary on a one-to-one basis.
He says: “We modified our recruitment process specifically to attract people who already have experience in the financial services industry.
“We are finding that the Edward Jones model of doing business has an appeal across the industry, with people who have run their own IFA businesses, worked in banks or building societies as well as from a direct-sales background. Many have gone on to become successful IRs.”
Andrea Karpinski joined Edward Jones after 20 years working for Abbey National, Eagle Star, Zurich, Woolwich and Bradford & Bingley.
Karpinski says: “I believe that there are huge benefits to clients being both a financial adviser and a stockbroker. You tend to get more respect from clients, too, as well as more job satisfaction.”