The economic down–turn has underscored the importance of financial planning. And with demand for financial advice expected to rise, careers in the financial services industry are generating a wave of interest.

Many wealth-management firms are reporting a higher level of interest in financial planning and careers as advisors among both recent graduates and individuals switching careers.

“We’ve seen a surge in interest,” says Yong Kim, recruiting leader with Edward Jones in Mississauga, Ont. In the three years since he has held his position, Kim says, the number of interested job seekers has risen steadily: “The pattern has been a pretty consistent growth in inquiries as well as applications.”

Recruiting executives with To-ronto-based Royal Bank of Canada and Winnipeg-based Investors Group Inc. report a similar uptick in the number of keen candidates.

The Financial Planners Stand-ards Council has also observed a similar trend. In the past 12 months, says John Wickett, senior vice president of standards and certification with the FPSC, a greater number of candidates have written exams in pursuit of the certified financial planner designations.

The rise in interest has been particularly noticeable among “career changers,” as the recession has prompted many people to leave their industry and pursue a second, third or fourth career in a different sector. A recent survey conducted by online job search engine www.monster.ca found that 89% of job seekers in Canada, the U.S. and Europe were willing to switch industries in their quest for employment in the current economic climate.

“There are a lot of people out there right now who are looking for another career,” says Bill Charles, senior vice president of financial services with Investors Group. “More people are looking to financial services as a second career.”

YOUNG INDIVIDUALS

Individuals at the beginning of their careers are also expressing more interest in financial planning positions. Although the bulk of CFP candidates are those who have been working for several years, Wickett says, a growing proportion of candidates are young individuals who are just starting their careers. The number of new graduates pursuing the CFP designation, he says, has roughly doubled in the past few years.

“The trend is an increase in proportion of these brand new, first-job, first-career people,” says Wickett.

He adds that universities and colleges are also reporting higher enrolment levels for financial planning courses, and those institutions are actively adding new programs and streams to meet rising demand.

The recession has probably contributed to the recent attention to careers in the financial services industry, because the crisis has highlighted the importance of financial planning, Wickett says: “In the past year, we’ve seen such an increase in the focus on financial planning.”

In addition, the financial crisis has altered the landscape of financial services jobs. There are currently fewer career opportunities in areas such as investment banking and capital markets, which have traditionally been more popular career options among students studying finance. In contrast, the job market for wealth-management careers appears to be much more robust.

“The industry,” says Mark Gal-braith, vice president of recruit-ment and learning with RBC in Toronto, “is one that’s filled with opportunity right now.”

The financial crisis has prompted some investors to seek professional advice for the first time, while others are shopping around for a second opinion. This has created an opportunity for new advisors to move into the industry and establish relationships with clients in motion.

“There’s a greater demand for good advice, because in bad markets, people are looking for a place to turn, they’re looking for a second opinion,” says Charles. “People see an opportunity to provide advice in an environment in which people are seeking more advice.”

Job hunters are also attracted to the financial services industry because of the long-term growth prospects it offers. Many firms and industry-watchers expect demand for financial advice to rise steadily as the population ages.

KEEN CANDIDATES

“Because of demographics,” says Charles, “there will be great demand over the next 10 to 15 to 20 years for retirement-planning advice, tax-planning advice and, especially, estate-planning advice.”

The growing number of keen job candidates presents an opportunity for wealth-management firms to become better prepared for the looming wave of retirement among aging advisors.

The average advisor in Canada is 51 or 52 years of age, says Dan Hallett, president of Windsor, Ont.-based industry-watcher Dan Hallett & Associates Inc. As a result, the number of working advisors could begin to dwindle in the next decade unless a sufficient number of new advisors enter the field.

@page_break@“The industry certainly needs to address the issue of succession planning,” Hallett says. “You could see the need to foster that young talent today, so that in 10 years’ time, when those 50-somethings are going to be retiring, there is sufficient young talent coming into a position to take over.”

The larger pool of job applicants is also encouraging for firms looking to expand their networks of advisors. Edward Jones, for instance, is aggressively recruiting new advisors. Earlier this year, the firm announced plans to hire 250 advisors within Ontario’s Golden Horseshoe region within the next five years.

Investors Group is also pursuing growth in its advisor network. Charles says the firm has hired more advisors this year as it has received a greater quantity — and quality — of applications, particularly among career changers.

Even though many job applicants come from entirely different industries, they often bring valuable entrepreneurial or management experience that can translate into success in financial services, Charles says: “Right now, the talent pool that’s out there is better than it’s been in a long time.”

Recruiters are also noticing a higher level of experience among candidates who are just beginning their careers. Kim finds that college and university students are graduating with stronger knowledge of the financial services industry and are generally better prepared for careers as financial advisors. IE