Schroders and Lloyds first confirmed the joint venture in October 2018 and revealed in February this year that it would hire 700 advisers throughout the country. A source told Portfolio Adviser around 300 advisers will transfer from Lloyds Banking Group.
According to a page on the Lloyds website, which features a video of Schroders Personal Wealth chief executive James Rainbow (pictured), applicants are able to apply for opportunities at the joint venture by entering “Schroders into the search bar to view” on the bank’s careers page.
Upon doing the search, 22 jobs appear with most including Schroders Personal Wealth in the advert title.
The current roles being advertised include private client, private banking, advice and direct investment roles and range in salary from £32,445 to upwards of £100,000. They are located across the UK, from Inverness to Portsmouth, as well as in the big cities, including London, Manchester and Edinburgh.
The job adverts say the partnership with Schroders is a “key part of our strategy to accelerate growth in Wealth by using our multi-channel customer reach and Schroders’ investment expertise, with the aim of becoming a top UK financial planning business within five years”.
The average adviser salary
Simon Bussy, director at Altus, said in the UK, the average face-to-face adviser salary is around £90-£95k, although this varies widely based on experience, qualifications, region, firm, and status.
“Wealth managers in London, for example, earn considerably more,” he said. “Telephone-based advisers on a fixed income typically earn much less, up to £40,000; the Schroders Personal Wealth telephone-based job roles are around market average, the salary range varying by region.”
Other advisers argued the salaries suggest the roles are targeted at a younger audience.
Director at Thameside Financial Planning, Tom Kean, said: “The adverts look quite appealing, but I suspect for those who want a very structured employed role. There’s no mention of it being tied or independent, but we know it is.
“I suspect the salaries are aimed at younger people who like the idea of building experience within a templated way of doing business. “
Darren Cooke, chartered financial planner at Red Circle Financial Planning, said he has previously worked for a bank and therefore wouldn’t consider this role. “If you are a relative newcomer to the profession this could give you a good grounding though and some great experience for you then to go out on your own.”
Wealth manager versus financial adviser
Kean said the title of the roles advertised created some confusion.
He said: “The notion that this is aimed at ‘wealth managers’ is a bit woolly in my mind – how is that defined and what does it really mean – it’s just financial advice if we are honest. It’s typical fluffing-up of job titles for those who might feel the need for such embellishments.”
Cooke said the salary and benefits offered here “are likely to be very good and attractive”. “I knew some pretty average advisers in my time who got paid a decent salary whilst working in bank advice,” he said.
Discussing the roles available, Bussy told Portfolio Adviser, that there would “no doubt” be several IFAs who are critical of the new proposition.
“An alternative viewpoint might be that the new advice proposition will target consumers who have been disintermediated post RDR, and who will now be serviced by a team of professionals working in a highly structured and professional environment, and utilising best in class technology, something sadly lacking in many firms across the sector!”
A strong leadership team
Gavin Fielding, editorial director at Fundscape, said advice is an ageing profession and it could be difficult to fill 700 positions.
Fielding explained that one hiring route is that the firms go on “the acquisition trail” which could mean buying up smaller firms, or alternatively, some of the larger consolidators such as AFH, Sanlam, Kingswood, Progeny and Fairstone.
“I also think it would be excellent to have more female advisers, sweeping generalisation but quite different in approach and style to most male advisers.”
Others argued that the leadership team alone had a lot of pull.
Bussy said: “Advisers who like the opportunity of a market rate salary, underpinned by a strong brand, strong process and governance, and under the leadership of an impressive CEO – James Rainbow – may well be attracted to the new venture.”
Darius McDermott, managing director at Chelsea Financial Services, said: “The fact that so many senior people from Schroders have joined the JV shows the attention it is getting, including James Rainbow, James Cardew and Marcus Brookes.
“These are high quality individuals and I am confident they will make a success of the JV.”