Getting a job in financial planning (FP) is much tougher than it was in the candidate-rich market of early 2008. These days most senior planners have to bring solid client books to their new employer, and juniors need high calibre degrees just to get an interview.

Demand for financial planners is about a third down on last year, according to Kasturi Pathak, a recruitment consultant at Reed Banking & Finance. Banks and boutiques are still recruiting, but they are getting much pickier about who their hire.

Paula Horta, a consultant at the Brooklyn Group, says large firms, particularly dealership groups, are always interested in taking on planners with existing clients.

“Firms can’t afford to take on too many inexperienced planners - who have to build a client base from scratch - because in the current market it might take a year for them to become profitable. By contrast, last year young financial planners could start growing their portfolios straight away,” says Horta.

Pathak says some entry-level positions at FP firms are still available, but competition is strong because recent redundancies have put a lot of junior planners on the job market. “Firms are demanding good university degrees and they are getting at least 20 to 30 applications for each junior role.”

The market downturn has made some planners reassess their careers, says Pathak. “Some self-employed financial planners are thinking about moving to a salaried role at a large institution, or changing dealer-groups. There’s movement the other way too – a feeling that the grass might be greener,” she adds.

Industry consolidation can also generate staff movement, if financial planners in the newly acquired business think their independence is challenged by the new owner. Axa’s acquisition of Genesys in June 2008, for example, has created some internal discontent because Genesys is now offering more Axa products, according to the Australian Financial Review. Genesy’s four-person managed funds research team recently defected to competitor ING as a result.

In overall terms, FP has suffered fewer redundancies than most other parts of the finance sector. Revenue-generating front-office staff are still unlikely to lose their jobs, but redundancies have affected paraplanners, practice development managers and office support staff, says Horta.