New Planner Recruiting adds stand-alone screening service

Search firm aims to help advisers cover the basics so they won't have to.
JUL 10, 2013
As the financial advisory industry struggles to get young blood into its ranks, New Planner Recruiting LLC has responded by launching a stand-alone service for screening new candidates. The firm, which traditionally focused on handling the entire placement process for students graduating from CFP Board of Standards Inc.-registered programs, is adding a backend service. It has experienced increasing demand from firms that had already done the lion's share of their candidate search in-house. “Recently, we had been receiving a number of requests to run background on candidates who firms already considered to be a potential match,” said Caleb Brown, a founding partner of New Planner Recruiting. The service will provide routine screening of candidates, including credit history, criminal background checks, licensing verification and references, but will also include a job personality profile and proprietary financial planning and knowledge assessment tools. “The challenge we've seen with the hiring of new financial advisers is that firms don't know what skill set they're getting,” said Michael Kitces, also a founding partner of New Planner Recruiting, and a partner and director of research at Pinnacle Advisory Group. “When it comes to financial planning software, proprietary knowledge, the ability to read and manipulate spreadsheets, and even the relevancy of college coursework, firms want to know what their candidate has to offer.” The new service should be particularly attractive because of “the wide variance in CFP programs, and thus the wide variance in the quality of entry-level candidates,” Mr. Brown said. With high demand and a low supply of entry-level advisers, some firms jump at the chance to hire a seemingly viable candidate without putting them through a rigorous screening process. “Lots of firms are behind the curve when it comes to hiring young, new financial planners,” Mr. Kitces said. “So there's this propensity to pull the trigger quickly without going through a proper vetting process when an attractive candidate appears.” Mr. Kitces warns against short-selling an evaluation process though, to avoid “a lot of expensive turnover” due to the hefty costs of hiring younger advisers in high demand. Access to the full-range of candidate evaluation tools, the platinum service, will cost $599 per candidate, while the most basic assessment comes in at $199 per candidate. New Planning Recruiting expects most firms to put through two or three “finalist” candidates at once in order to get a side-by-side comparison of their results.

Latest News

NASAA moves to let state RIAs use client testimonials, aligning with SEC rule
NASAA moves to let state RIAs use client testimonials, aligning with SEC rule

A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.

Could 401(k) plan participants gain from guided personalization?
Could 401(k) plan participants gain from guided personalization?

Morningstar research data show improved retirement trajectories for self-directors and allocators placed in managed accounts.

UBS sees a net loss of 111 financial advisors in the Americas during the second quarter
UBS sees a net loss of 111 financial advisors in the Americas during the second quarter

Some in the industry say that more UBS financial advisors this year will be heading for the exits.

JPMorgan reopens fight with fintechs, crypto over fees for customer data
JPMorgan reopens fight with fintechs, crypto over fees for customer data

The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.

The average retiree is facing $173K in health care costs, Fidelity says
The average retiree is facing $173K in health care costs, Fidelity says

Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.