The asset management industry is facing shortage of new advisers who can replace those heading towards retirement.
In spite of several initiatives to recruit financial planners, the gap is still persisting, US Association of Financial Advisers (AFA) CEO Brad Fox told Financial Standard.
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The recent changes in regulations are compounding the shortage thus throwing new challenge to the industry on finding advisers, said AFA head of campus Nick Hakes.
Fox said that there are not enough new planners coming through even if new adviser numbers have increased dramatically since the association launched the GenXt initiative.
GenXt is a program launched for advisers who are AFA Members and have less than three years of experience in advising.
The initiative, which includes mentoring and networking, facilitates transfer of knowledge, skills and networks between the new and the existing advisers.
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By GlobalDataFox said, "The majority of advisers retiring are practice owners, so who is buying their practices? Young advisers are not, so licensees step in and buy them.
"We need to provide more than one point of entry to the advice industry because the usual university points of entry are too low."
The association has partnered with Kaplan to provide post graduate course with practical skills, to bring-in a balance between private sector-focused initiative and vocational education.
Hakes said, "There is an appetite from financial advisers and from everyone else in the industry to invest in education, which brings us back to the focus on increasing professionalism and consumer credibility."
