The next pod cast
The financial adviser profession is ageing, however. ‘Say a client comes to the firm who is in their early 50s. They are looking to sell their business and they have kids who are in their early 20s,’ says Price. ‘With the best will in the world, Adam’s probably not the most appropriate person to deal with them. They are going to be retired. It’s more likely to be somebody who’s within 10 years either side of their age bracket.’
Jarrovian has already taken on two graduates, paraplanner Francesca Smith, who studied maths and economics at Exeter University, and Hassan Choudry, a graduate in accounting and finance from the University of Hertfordshire.
Planner and investment analyst Farida Hassanali joined the profession in 2007 straight from Loughborough University, became an adviser in 2018 with Jarrovian and also last year appeared on New Model Adviser®’s list of the Top 35 Next Generation Advisers.
The firm also has a current student from Sheffield Hallam University working as part of a placement, and Jarrovian is interviewing for next year’s placement already.
But the firm is not planning to rely on a graduate intake for growth. It has a structure called ‘Pod’ that will allow advisers to join as employees but also bring their business in under Jarrovian’s processes.
Young and Salacinski are the prototype: Pod 1. They joined from Kubera in 2017 and brought their clients over. Pod 2 will run with its own profit and loss, and has begun already. Salacinski says Jarrovian is in discussions with ‘six to eight financial planners or firms’. Unlike a network-type model those businesses will not join as appointed representatives.
‘We want like-minded financial planners to benefit from the work we have done from a back-office perspective so they can do what they do best; provide the best financial planning for their clients,’ says Salacinski.
He says he is offering ‘institutional back-office processes to the high end, but usually small financial planners’. This is quite a claim for a firm that is just two years old. Firms that have been grappling with their processes for years may wonder how Jarrovian has achieved that in such a short amount of time. ‘Dedication to the cause is how,’ he says.
Price says: ‘It is not just mapping processes. It is embedding it into your workflow so you can see precisely where things are and what’s going on.’ He adds: ‘Jarrovian’s run effectively, by a series of committees, where people are allocated tasks. Another failing of a small business is that everybody gets involved in everything. That’s not what we do here.’
There is staff engagement too, says Salacinski. ‘I think we’re almost in the third or fourth permutation of processes in the back office. The first one didn’t work, [so we asked] is there a better way?’
With Pod 2, will Jarrovian be buying businesses? ‘Not in the conventional sense,’ says Salacinski. ‘No money is changing hands.
‘We have created shares for Pod 2 dependant on the value of business they are bringing in, thus diluting original shareholders’ shareholding. The same will likely occur for the other Pods joining forces with us. So even though shareholdings are diluted, by the very nature of the business growing, shareholder value improves.’