Stronger links between academia and the financial planning profession will pay off in in the form of better-equipped new entrants, a body of independent and evidence-based research, and greater public trust and confidence in the profession and its practitioners, according to a leading financial planning academic.
On Monday Professional Planner reported the results of research carried out by Griffith University and Zanetti Recruitment & Consulting, which found that almost two-thirds of small and medium-sized financial planning practices intend to recruit graduates to fill growth positions in the next five years.
Developing a professional pathway for graduates of financial planning courses is a high priority for these firms. Stronger links between the profession and academia are seen as integral to producing both better-equipped graduates, and helping the profession tap into a ready source of “profession-ready” financial planners.
Griffith University Associate Professor of Finance, Mark Brimble (pictured), says engagement between universities and businesses in the financial planning space” feeds back into the classroom”.
“I have regular meetings with my staff, and I let them know what’s going on,” Brimble says.
“I have a very engaged and aware group of staff, and my staff will use that in the classroom, so students are aware of developments.”
Brimble says it ensures that when students complete their studies they enter the profession well placed to develop into effective financial planners.
“In line with the work we’re doing with Ric [Zanetti], it produces high-calibre human capital,” Brimble says.
“If [academic] institutions are involved and engaged with the industry, and our staff are involved and engaged in the industry and in research, then that should be reflected, I believe, in the quality of the graduates that we produce.
“On average we get very good feedback from our industry partners who recruit our students.”
Professional awareness, professional identity
Brimble says that in addition to the “strong skill set and deep technical knowledge” graduates would be expected to have, they also possess a high level of professional awareness and professional identity. Over time, this will help the profession with the “slightly less tangible benefit” of achieving the community sanction that all professions require.
Links are already forming between the two sectors, though more can be done. Brimble says there is an increasing willingness among organisations that benefit from the work done by universities to give something back to academia.
Platinum Asset Management and Platinum founder Kerr Neilson’s private foundation jointly commit about $300,000 a year to funding scholarships for financial planning university students.
Between them, Platinum and the Neilson Foundation fund four scholarships of $15,000 each, at five universities: Griffith, Canberra, Curtin, La Trobe and Deakin.
Liz Norman, director of communications and investor services at Platinum, says the scholarships are awarded to second- and third-year students majoring in financial planning. Platinum also offers two candidates from that group of 20 students the opportunity to do a one-month paid internship, designed to give them an insight into how the funds management side of the industry works, and how it interacts with the financial planning community.
Norman says the scholarships were awarded for the first time last year, and the first interns spent a month with Platinum in January this year.
Long-term careers
“The reason is to incentivise students who are passionate about financial planning, and who have aspirations for a long-term career in the industry,” Norman says.
“Our business relies heavily on financial planners, and it’s something we want to do to support the Financial Planning Association in raising educational standards.”
The managing director of financial planning licensee Infocus Wealth Management, Rod Bristow, says the profession would benefit greatly from wider and deeper engagement with universities and other tertiary eduction institutions.
Bristow says that while Infocus doe not currently formally tap into a flow of financial planning graduates, “we would like to”.
It’s a great opportunity,” he says.
“We would be very much in favour of formalising how the industry, and Infocus, engages [with educational institutions].
“It’s about professionalising the sector. The most obvious trend is that new entrants to the sector are going to have to be tertiary-educated anyway.”
Bristow says a reliable supply of degree-qualified, highly professional and technically adept entrants to the profession has significant implications for financial planning practices’ succession panning.
