We have broken this down into 3 main areas: earning a 3rd of gross income, earning half of the gross income and being self-employed.

This article will give a high-level answer to what we see daily recruiting in this specialist field. The answers are relatively broad as it is not one shoe fits all. For a Level 4 diploma qualified advisor, we typically see salaries in the region of £40,000 – £60,000 per annum. For chartered advisors, it’s usually £70,000 minimum. With Financial Planners and their earnings, so much depends on the bonus/commission package. That all boils down to what support you’re getting from your employer.

Earn a 1/3 of your Gross income:

Let’s start with positions where there is a lot of support for an advisor. This can be from an advisor leaving or retiring where you have an active client bank to work on plus any new introductions, supported with paraplanning and administration, this is where you may find higher basics. Still, you’ll most certainly find lower commission/bonuses and higher validation models. As a general rule for this type of position, we always say that the advisor should and will need to be earning 1/3 of their gross income. This will take into account the cost to run that team and enough margin for the practice to make a profit.

Let’s look at an Advisor that starts a new job and is servicing a book of business that produces £200,000 pa. In this example, where the advisor is supported by an administrator and a Paraplanner, we would usually see a salary validation model 3 times with commission/bonus sitting around 30%.

So if the advisor is on a basic salary of £50,000 and generates £200,000 on this remuneration model, their total earnings will be £65,000. If they grew that book of business to £300,000, total revenue would be £95,000.

Earn 1/2 of your Gross income:

The second option is earning half of your gross income. These positions are where you are required to self-generate the majority of your business. You may have a small book to initially work off, but the advisor needs to go out there and generate the business.

We wouldn’t expect to see a validation model anywhere near 3 times for these types of roles, and we would expect to see it more along the lines of 1 – 2 times. The commission again will vary depending on the validation model. Still, if we were looking at a 2 times validation model, it should be around 50%. On a 1 times validation model, it would usually be lower at approx. 25% – 30%. You may even see some different fee splits if the firm does introduce business to the advisor.

The same example: if the advisor is on a basic salary of £50,000 with a 2 x validation model and generates £200,000, on this remuneration model, their total earnings will be £100,000. If we look at the 1 times validation model and 30% commission, their total revenue would be £95,000.

Retention rates anywhere from 70 – 93% of your Gross turnover:

The final is the self-employed and retention rates. Usually, candidates coming from an employed role and those that have built an established client bank will naturally have a client following. Or really good professional introducers that provide a steady stream of introductions will find themselves looking at various self-employed opportunities.

It’s a competitive market out there for self-employed advisors with plenty of options to consider. It will all come down to proposition, support needed, if any, and personal preference. There are plenty of DA’s, Nationals and Networks that will provide you with enough support to de-risk your business, reduce your costs and provide you with enough support to start building your own business.

Over the last 6 years, we have helped countless advisors increase their turnover and profitability of their advice businesses. We find that most advisers need to be questioned to really make them think about their businesses and what we do.

If you have any questions, around this, you can always reach out directly to myself at lee@antonygeorge.com or feel free to hear over to our website: www.antonygeorge.com

We are always here to have a confidential conversation.

Why Paraplanners choose Antony George RecruitmentAny questions, please don’t hesitate to contact me on LinkedIn.
Email: lee@antonygeorge.com
Phone number:01268 200 722
Mobile number: 07932 374 109
Antony George LinkedIn


Lee Old, Co-Founder at Antony George Recruitment