According to salary survey research from Financial Recruitment Group (FRG) appearing in this month’s edition of InvestorDaily sister publication ifa, there is a continuing institutionalisation of some retail distribution teams.
“I spoke with numerous groups who have, or will have, a ‘one distribution’ policy in the future where both retail and institutional teams will work together,” FRG director Conor Donoghue said.
UBS Global Asset Management’s head of wholesale sales, Bryce Doherty, said there has been a noticeable convergence between the two roles as the financial planning industry experiences consolidation and many retail investment decisions are effectively made at an institutional platform level.
“Today’s BDM has to be able to sell to a multi-fund as much as to a planner running a $60 million business. So you need skills across the spectrum and there are plenty of people that can do that,” Mr Doherty said.
“You’ve got to look at them as one big account. The guys who are in charge of Commonwealth Financial Planning are also in charge of Count and looking after the First Choice platform and First Wrap.”
Dealer groups are becoming more powerful in setting model portfolios, which means a sale at the dealer group level cascades down to the advisers. “It’s becoming more institutional in that regard,” he added.
Consolidation and market pressures have also led to BDMs being asked to do more, as well as becoming accountable for more things that they are not necessarily measured on, Mr Donoghue said.
“While there was a very mixed message towards views on the next 12 months, a few groups spoke positively about the fact they were ending 2012/2013 with a more positive view, as opposed to enforced restrictions, but they also tempered this by saying the year has been so mixed and staggered that it’s hard to have any real sense of authority on what the future will bring.”
Mr Doherty said that even though there are more BDMs on the market looking for work, “the good people are being snapped up fairly quickly”. And although managers have rationalised their BDMs, “the work hasn’t gone away”, meaning BDMs have had to upskill, he added.
