Chris Jones: Addressing the adviser shortage

The financial advice profession is facing a critical challenge: an adviser shortage at a time of increasing demand for financial advice.

While an ageing workforce and growing client needs provide important context, one issue is that many individuals with qualifications, such as the Level 4 Diploma, are not transitioning into client-facing roles. Instead, they often take on other roles within the industry, such as paraplanners, compliance officers or technical specialists.

While these roles are essential, they don’t address the adviser shortage and highlight the need for better pathways to help qualified individuals progress into advisory positions. This gap represents both a challenge and an opportunity to better support these individuals and address the adviser shortage.

This issue isn’t unique to financial advice. In other professions, such as teaching, law and healthcare, many qualified individuals move into non-traditional roles or leave their sectors entirely due to work-life balance concerns, stress or lack of confidence.

Many individuals with qualifications, such as the Level 4 Diploma, are not transitioning into client-facing roles

However, financial advice is particularly affected because of the unique challenges of transitioning from technical knowledge to building trusted client relationships, as well as the regulatory requirements that can seem daunting without structured support.

This highlights a broader trend: possessing qualifications doesn’t always lead to practising in the field. In financial advice, this trend has real implications for meeting growing client demand.

Understanding why individuals choose not to move into active advice roles is key to solving this challenge. Some may lack the confidence to take on the responsibility of regulated advice, while others may feel they need additional practical training before they are ready to work with clients.

Additionally, there are structural barriers, such as insufficient mentoring opportunities or unclear career pathways, which may discourage qualified professionals from becoming advisers.

One practical solution is the introduction of bridging programmes, which we have introduced. These initiatives focus on developing real-world skills, such as client engagement and applying knowledge in practical settings. They are most effective when integrated into a well-defined pathway for aspiring advisers, helping them understand their career trajectory from qualification to becoming a successful practitioner.

Firms must recognise that achieving a diploma alone is not enough for new advisers to succeed

A structured approach outlines the stages of professional growth, including initial mentoring, hands-on client experience and ongoing development opportunities, ensuring advisers build both the technical and interpersonal skills needed for long-term success. While the practical know-how delivered via the diploma provides a necessary foundation, bridging programmes also help develop the soft skills crucial for building trust and fostering strong client relationships.

However, bridging programmes are just one part of the ecosystem needed to help advisers thrive. Firms must also recognise that achieving a diploma alone is not enough for new advisers to succeed. A comprehensive approach that includes mentorship, ongoing training and structured career progression is critical.

This strategy not only supports advisers as they build confidence and gain practical experience but also provides clarity on their long-term career prospects. Qualified individuals require support in building confidence, gaining practical experience and navigating the complexities of a client-facing role. By addressing these needs holistically, bridging programmes can become a foundation within a broader framework for developing successful advisers.

This approach is also forward-looking. As AI continues to streamline administrative and transactional aspects of financial planning, advisers have the opportunity to focus more on building relationships and providing personalised advice. These efficiencies enhance advisers’ roles, allowing them to prioritise the human connection that builds trust and long-term relationships.

But while AI can improve efficiency in the future and provide data-driven insights, it cannot replace the empathy, reassurance and tailored guidance that human advisers offer. In uncertain times or during significant life events, the value of face-to-face advice remains unparalleled.

AI cannot replace the empathy, reassurance and tailored guidance that human advisers offer

Programmes that build confidence, clarify regulatory boundaries and equip advisers with practical skills are essential for attracting and retaining talent. They also highlight the unique fulfilment and flexibility the profession offers, making it an attractive choice for those considering their next career move.

Importantly, they help advisers see the potential of their role not just as a job but as a way to make a meaningful difference in their clients’ lives.

The broader industry must also step up to support these efforts. Firms can invest in mentorship schemes, provide access to practical tools and create clear glidepaths for career progression. By focusing on bridging the gap between qualification and active client-facing roles, the industry can address today’s adviser shortfall while building a dynamic and resilient future.

The enduring value of personal advice, combined with advancements in technology and a strong pipeline of advisers, will ensure the profession thrives for years to come.

Chris Jones is academy director at Quilter

For more practical information on how to get started in financial advice, please visit our Future Financial Adviser community. We tell you how to take the first steps, how to get ahead and what attributes you need to flourish. Even better, we can put you in touch with helpful contacts.