Tuesday, May 7, 2013

A Need for Diversity in the Financial Industry

There's a great article in InvestmentNews this week about how consumer demand for women financial advisors has not been met by the industry's recruiting and retainment.

Key point:
Cerulli Associates Inc. estimates that only 7.9% of advisers who work directly with clients are women. Estimates from the Bureau of Labor Statistics showed 36% of advisers were female in 2010, but that included all professional women who worked for advisers, as well. That amount is actually an increase from 31% in 2009. The government measure has been around the 30% level for about a decade.
“There's a disconnect with market demand,” said Kim Dellarocca, head of practice management for Pershing LLC. Investor surveys show time and again that a large number of women prefer to work with other women.
In a study last year, Pershing found that 70% of women would like to work with a female adviser, though only about 20% of women do.
One component of the work by the Coalition for Financial Security is to help shine a light on the need for more diversity in the financial profession.  Whether it is shining a light on barriers to entry like unfair licensing practices or highlight articles like this that show the need for better recruitment, CFS is hoping to keep this subject on the front burner.  Every American and every community deserves access to the advice and tools necessary to live the American Dream.