Future advisers calling: The importance of entry-level experience
Industry commentators have emphasised the benefits of gaining valuable support or administrative experience before becoming a financial adviser.
University graduates who have completed their tertiary studies are often eager to commence their professional year (PY) and work towards becoming an adviser as soon as possible.
However, a panel of speakers at the Striver Brimstone event in Sydney earlier this week unpacked why it is critical to gain several years of entry-level experience before this, rather than rushing to become an adviser. This could include in an administrative, call centre or support role, such as a paraplanner or client services officer (CSO).
The second tranche of Delivering Better Financial Outcomes legislation is set to introduce a new class of limited advisers, currently known as “qualified advisers”. It is hoped this cohort, typically found in call centres at superannuation funds, will eventually progress to delivering the full scope of advice.
Speaking to an audience of university students, graduates and career changers, UniSuper senior private client adviser Melinda Brown explained: “It’s about getting that foot in the door. If there is an organisation that you like the sound of and really resonates with you, getting that foot in the door is such an important thing. Certainly in UniSuper, we have so many people who get promoted from call centres and client service coordinator roles.”
Aspiring advisers can then work their way up and make themselves known within their team. She said: “You just never know what kind of opportunities might pop up and where it could lead to, so I think that’s just about getting that start and seeing where it might go.”
Also speaking on the Striver panel, Tonya Ripley, senior national account manager at BT, recognised the benefits of not becoming an adviser straight away, such as not having to deal with regulatory complexities early on.
“There are so many intricacies with this industry that it’s really great to not be thrown in the deep end and to have permission to learn and fail. Build your network of mentors – they will show you things that you don’t know yet about the industry as well. So I think those entry-level roles are a great baseline, because I almost feel like I learnt more in those roles than ever,” Ripley said.
Moreover, Ben Smith, head of advice propositions at Zurich Assure, recognised the valuable experience and client knowledge that graduates can obtain from these types of roles before later progressing towards the adviser milestone.
He remarked: “The administration teams are like the engine of any business. They have direct customer experience exposure, they work directly with advisers and with other parts of the advice business. It’s a great place to start to learn the business, learn to speak to customers, learn process, learn advice, learn product.”
Working in an administrative position provides a strong foundation for future promotions, Smith added, due to the valuable skills gained along the way.
“It really is a great starting basis and it’s where typically most of the talent for future roles comes from, because they understand the process, they understand the business, and they’ve been able to demonstrate their capability. If they want to move on, they don’t typically last long in those roles. They move on pretty quick.”
Earlier this year, a former gym owner who transitioned into the advice world emphasised the value of gaining experience in a CRM or CSO role before stepping up to the adviser milestone.
Joel Perryman, senior client relationship manager at Integritas Wealth Advisers, said: “I’ve read probably upwards of 200–300 advice documents [in my time]. That’s going to make me a better adviser because I’ll actually understand the process of implementation and it will make life easier overall. If you’re moving into the profession, I recommend starting off in that CRM or CSO role and doing that for the first 12–18 months.
“The more experience you gain, the better adviser you’ll become overall.”
AUTHOR
Jasmine Siljic
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