Danie van den Bergh | Career cross-currents navigated by today's financial adviser

For those of us who have flung ourselves into the rewarding but rapidly shifting ocean of financial advice, it's generally because we're drawn to helping people chart their course across vast and often unpredictable waters. We act as captain, offering the tools, support and advice to keep the ship steady, helping them navigate life's storms while journeying toward their destination.

However – just like a captain who has had to deal with feathery freeloaders (here's looking at you, Seagull), crabby crew members, and an errant pirate one too many times – the problems, often part and parcel of the job, are a royal pain in the aft.

Before deciding to join our stable, the financial advisers we chat with cite common challenges as the key drivers behind their desire to move. These generally are:

Navigating the career currents

Financial advisers often face challenges in aligning their career goals and personal needs, particularly when they feel a lack of value or support from their Financial Services Provider (FSP). Many advisers struggle with limited opportunities for professional development, mentorship or recognition, leaving them feeling undervalued despite their contributions. Additionally, advisers are often restricted to selling a narrow range of products or tied to commission structures that don't account for changing client needs or market conditions, which limits their ability to grow or diversify their income.

And as financial advisers are generally only qualified to sell certain categories of products, clients need to seek advice from other specialists should they require something that is not part of that adviser's wheelhouse – meaning they miss out on revenue. This can also have a negative impact on client retention for obvious reasons, exposing clients to competitor advisers.

Caught in the swell of in-practice problems

Financial advisers often grapple with complex systems and time-consuming processes tied to compliance, which significantly eat into their time with clients. Demystifying these intricate systems can be overwhelming, slowing productivity and limiting their capacity to grow their practices. A lack of adequate technology or resources to manage their practices further exacerbates these challenges. Without access to modern, integrated systems, advisers face difficulties in streamlining administrative tasks, client communication, and performance tracking, ultimately impacting their ability to deliver the best possible service to clients.

The changing tide of value perception

Advisers face significant challenges in meeting client needs due to limited product and solution offerings from their chosen FSP. This affects their ability to provide tailored, impartial financial advice, leading to gaps in solving client-specific problems. This limitation can undermine client trust and confidence in the adviser's recommendations. Furthermore, advisers struggle with the perceived value of their advice from clients, who may question whether the solutions provided justify the associated costs.

Anchored in culture

When the organisational culture aligns with clear values, supportive management and an inclusive work environment, advisers feel more engaged and motivated. However, gaps in these areas – like inconsistent brand identity, lack of recognition or sense of belonging, or inadequate support – can undermine advisers' sense of purpose, affecting their ability to deliver on their mandate. A cohesive culture not only drives adviser satisfaction but also builds client trust and loyalty.

Thus, it is critical that we, as FSPs, look at what our financial advisers both want and need, and then innovate like crazy.

At Momentum, for example, we have expanded our lucrative commission contract by adding an income contract. Our remuneration model diversifies an adviser's income by partnering them with another specialist in a different product category within our stable. This allows them to focus on their area of expertise while ensuring all of their client's needs are holistically filled. They earn a referral fee, allowing them to expand their revenue streams, while the client is retained with the business.

It is also critical that advisers work with providers who offer the necessary support so they can focus on doing what they do best– advise. Benefits like access to legal experts who will help you keep on top of a changing regulatory environment and resources such as Momentum's BusinessLab will help give you the support you need to progress in your career.

Success lies in steady navigation and the right support. The financial advice landscape can be overwhelming...but don't drown by trying to do it all yourself or working with a provider that doesn't offer the support you need.

Partners who help you tackle your daily challenges – such as the administrative load, compliance or meeting client demands – can make all the difference. Look for a provider who can give you tools to lighten your load, opportunities to diversify your income, and a culture where your contributions are valued.

By providing services and solutions that will help our advisers fulfil their professional and personal ambitions, we can journey alongside them as they build and protect their own financial dreams.

*Danie van den Bergh, Head of Acquisitions: Momentum Financial Planning.