The size of the licensee should have little impact of the education of a provisional adviser and smaller practices should not be afraid to take them on, according to a panel.
In a panel session at the Financial Planning Association conference in Sydney, Perpetual associate partner Daniel Elias said although he’s only worked in large organisations, he could see that large or small organisations have their own pros and cons.
“The number one most important thing for a young graduate coming into industry is actually working under a good adviser,” Elias said.
Large or small it doesn’t make a difference, it’s about the quality of people you work under.”
Austbrokers Life managing director Ben Donald said he started his career at a small three-person business, but like Elias, he believed that small and large businesses both have their strengths and weaknesses.
“The thing I benefited from was being next to that financial adviser day in/day out and learning everything from how to make a cup of tea for clients and the adviser all the way through to actually figuring out the structure and engagement with the client.”
BFG Financial Services financial adviser Michael Baldry completed his PY in November 2021 and said his journey has been similar to Donald coming through a smaller practice.
“I started in a family practice with about 12 employees and I’m still with that practice today,” Baldry said.
“There are benefits to going with a big licensee – a big business versus a smaller business – certainly in my experience with a small business, there was a personal approach to my training.”
One of the advantages Baldry found with working at a smaller business was he had more facetime and mentoring with senior operators because of the flat structure the organisation had.
“There are benefits with going with large organisations but small businesses are positioned to bring a new candidate in and give them a fantastic professional year with great learning opportunities.”
‘Stick with it’
Donald said the best advisers come from a support background and that he became a better adviser by following a similar route.
“When I first came into the industry it was as a client service manager, I think,” he said. “That’s the sort of role we’re advertising right now for people who are looking to become an adviser into the future. If you’re second or third year into university, that’s the sort of role I’d be looking for because that will lend itself to becoming an adviser afterwards.”
Elias suggested not rushing to finish education and jump into a professional year straight away to become an adviser quickly.
It’s a hard job, there’s a lot to learn,” Elias said. “Use your first couple of years to understand how the back end [of the business] works, then slowly get involved in client meetings and possibly starting your professional year.”
But most importantly, Baldry said was to “stick with it”
“There’s no better profession you could be entering into in my personal opinion.”
Moving on
One of the biggest causes of trepidation for advice practices when taking on a provisional adviser is they may leave after years of investment.
However, Elias said this should not be a concern because the practice can continue to provide value for the post-PY candidate by setting the right culture.
“What I try to do as a leader that leads a team is create a good working microculture,” Elias said.
“As much as my team are phenomenal and there’s a lot they can give me, there’s a lot I can give back.”
Elias sits down with each individual in his team to have honest conversations about what they are looking for to help progress their career.
“Unless an absurd amount of money was thrown at them, I can’t see them wanting to leave that environment,” Elias said.
