SIAA calls for fresh talent amid advice demand

Stockbroking and investment advice firms need to broaden their approach to attracting and retaining talent as the profession prepares for a major shift in clients and wealth, according to a new report from the Stockbrokers and Investment Advisers Association (SIAA).

The SIAA's Invested in what comes next report argues that while the profession has undergone significant reform, public perceptions remain shaped by outdated stereotypes that fail to reflect the modern role of investment professionals.

SIAA chief executive Maria Lykouras said the perception gap risks turning away both prospective employees and clients

"Stockbroking and investment advice now rivals other established professions, but it is not seen as relevant or trusted as it should be," Lykouras said.

She said the profession offered a combination of market exposure, intellectual challenge and human judgment that would become increasingly valuable as artificial intelligence reshaped knowledge-based industries.

"The reality is stockbroking and investment advice is a dynamic, market-facing profession that offers intellectual challenge and opportunities to have a real-world impact," Lykouras said.

The report identifies several barriers to building a broader talent pipeline, including recruitment through traditional networks, career progression models that can be difficult to sustain and informal approaches to client allocation and advancement.

Women account for only one in four investment professionals, with representation falling further at senior levels.

Lykouras said firms needed to adapt their recruitment and retention strategies to attract a new generation of workers, while also responding to changing client demographics.

The report highlights the expected transfer of around $5 trillion in Australian wealth over the coming decade, with women expected to receive about 65% of that wealth.

"Investors need trusted human guidance more than ever, particularly as wealth changes hands and financial decisions become more complex," Lykouras said.

The report also points to an advice gap, with only 20% to 30% of Australians actively participating in markets doing so with professional guidance.

SIAA recommends firms expand graduate recruitment beyond traditional networks, establish mentoring and sponsorship programs, review client advancement pathways and better communicate the modern role of investment professionals.

"The window to shape the profession's reputation is open now. Stockbroking and investment advice firms have a generational opportunity to change perceptions and bring new talent and new clients into the sector."