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.

In November 2023, Minister for Financial Services Stephen Jones said: "I think if we get it right, and we are determined to, then we can create a new pathway for someone who has part of the qualification to then move through to become a fully-fledged financial planner. We’ll do it in a really positive way so there is a logical pathway for someone to start at a super fund and then go to work at a licensee which gives them the incentive to complete the full qualification."

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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.”

Speaking on a separate panel at the Striver event, commentators also discussed how new entrants can work their way up the ranks to eventually owning their own advice practice one day.

Rachel Bell, training and relationship manager at Sustainable Life Solutions, said: “There are more people now that need advice than ever and there’s less advisers than ever. The opportunity from a business perspective to own an advice practice, if that’s the path you want to take, is a really good path to go down.

“Whether you start off now in a call centre or as a customer service, if your ultimate goal is to give financial advice, you can then also move through into being a business owner. If you want to be a business owner, it is a really interesting path.”

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.”

Money Management previously spoke with three advisers who shared their guidance when stepping up from an associate role to a provisional financial adviser.

While some new entrants seek to complete their PY as fast as possible, Alexis Kavaliotis, provisional financial adviser at Unite Wealth, said she was looking to learn as much as she could from her mentor without rushing through the process.

“Some people come in and they want to become an adviser straightaway. They don’t want to wait, they don’t want to do the admin work,” she explained.

“[I was previously told] the ones that wait and learn more along the way do better in the long term because they’re not rushing to get to that adviser point. I also need to be comfortable and confident in talking to people that are a lot older than me and explaining to them that while I may be younger, I’ve got the experience.”