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Even if colleges ramp up degree programs in financial planning and related fields, advisory firms are going to have to rethink their hiring philosophies to meet the growing demand for investment advice, according to industry representatives and academics.
Putting it rather bluntly, Deena Katz, an associate professor of financial planning at Texas Tech University, argued that advisors can no longer expect to hire only seasoned, mid-career professionals with an established book of business.
"The model's broken," Katz said during a panel discussion at the Financial Services Institute's OneVoice conference. "Hiring people to start producing when you bring them on from day one isn't going to happen anymore."
Much of the next-gen challenge involves demographics. Citing various industry reports, Pershing Director Kim Dellarocca offered the alarming projection that 25% of advisors are planning to retire in the next decade, meaning that the industry will need some...