As the fallout from the Royal Commission continues, financial adviser's salaries are being scrutinised.
According to the latest Financial Adviser Salary Guide from Kaizen Recruitment, a senior financial adviser with more than 10 years' experience and five years in their current role could expect annual remuneration in the realm of $120-160,000.
This is partly influenced by the shift away from revenue-only linked bonuses, Kaizen said, with benchmark salaries now more likely to be based on a balanced scorecard method.
"The change in bonus structure is attributed to the RC as firms are ensuring the clients are serviced in a compliant manner mitigating risk to the firm to ensure they don't come under ASIC's radar," Kaizen said.
The scorecard would involve the measuring of both financial and non-financial performance metrics. These metrics are likely to include compliance ratings, teamwork, new revenue, client satisfaction and client retention.
If followed, the benchmark salary for a financial adviser with five to 10 years' experience and spending between one and five years in the role sits at $90-$120,000.
An associate adviser with less than five years' experience who has been their current role between one and three years could expect a salary in the realm of $75-$95,000.
For paraplanners, a senior paraplanner with up to five years' experience and more than three years in their current role can earn $90-$110,000. Meanwhile, a paraplanner with less than five years' experience and less than two years in their current role is between $65,000 and $90,000.
Finally, a client services officer with less than three years' total experience can earn between $50,000 and $75,000 per annum.
The figures represent the benchmark salary for wealth management professional in Melbourne and Sydney, inclusive of superannuation. They do not take into account potential bonuses.
In regards to determining salaries for young advisers, Kaizen said millennials are looking for work-life balance and personal development. This is in comparison to baby boomers who search for stability and security in a workplace.
Given changes to professional standards and the Financial Adviser Standards and Ethics Authority's legislated requirements, these career aspirants will be expected to have tertiary qualifications in financial planning or a related degree.
Paraplanners and client service officers with Xplan experience will be highly regarded. Meanwhile, financial advisers with strong rapport building and effective communication skills will do well, as will those with a demonstrated ability to grow and manage a fee for service client book while retaining healthy compliance ratings, Kaizen said.
According to PayScale, the median salary for a Certified Financial Planner in Sydney is $98,000. Job search site Indeed estimates the average salary for a financial adviser Australia-wide is $85,453.