The post-RDR move from product sales towards financial planning has changed the whole training landscape for advisers in less than a decade.
As the profession has evolved, with a greater emphasis on technical competency evidenced by professional qualifications and building long-term relationships with clients, training has had to adapt. So how do firms ensure their advisers and paraplanners have the right skills going forward?
Different strokes
Training within an advice firm needs to be structured in a way that balances the needs of different people who learn in different ways. A mix of technical and soft skills training gained through professional exams, online learning and on-the-job training seems to be the recipe that works for most firms.
The Openwork Academy, which has trained over 150 advisers across Openwork’s network of advice firms since inception in 2014, caters for graduates starting out in the advice sector, second careerists and mortgage advisers wanting to move into wealth management. Its year-long training programmes enable candidates to gain mortgage and protection adviser licences in the fourth month and core Conduct of Business adviser licences in the seventh month.
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“They can go on to take diploma and CII qualifications in fully supported, face-to-face programmes, facilitated centrally and run locally within our franchise network across the entire country,” says Openwork director of learning and acquisition Claire Limon.
“Ongoing learning is delivered nationally, with structured face-to-face training on various aspects, such as proposition training and sales, service skills, organisational skills and regulatory developments.”
Some advice firms take on apprentices and apply to specialist training providers such as NMBA, part of the SimplyBiz Group, which run apprenticeship programmes that are up to 100 per cent funded by the government. For the wider market, the SimplyBiz Group runs workshops on various topics, such as soft skills, and can also provide bespoke training for firms.
“Our firms often engage with us to create a training plan for the next 12 months,” says SimplyBiz group training and knowledge manager Michael Pashley.
“In order to do this, we evaluate where every member of the firm currently is, and whether they are advisers or paraplanners. We develop a framework for them and I teach them a syllabus that is agreed with the principal of the firm.”
Employees can interact directly with Pashley, asking him questions without feeling silly or self-conscious, and learning targets are reviewed monthly.
Equilibrium, which has offices in Cheshire and Chester, runs a diploma academy that brings new recruits into financial services as client managers – its version of a paraplanner. The firm’s head of training and development, Lucy Woolrich, says that, for many people, showing them how to do something isn’t enough because they need to physically go through the process before they feel confident.
“It’s vital in paraplanning that we show people what to do using video and demonstrations, but it’s only when you begin to do something yourself that you acquire the knowledge and ability to tell when something doesn’t look quite right,” she says.
On-the-job training
Although professional qualifications are a key aspect in training new recruits, on-the-job training is regarded by advice firms as vital.
“In our opinion this is the most important part of an adviser’s training. Given that no two clients are the same in their situation, financial planning solutions can’t be one-size-fits-all,” says Hoxton Capital Management managing partner Chris Ball. “Amassing experience is crucial to developing the skills needed to deliver truly holistic advice.”
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To this end, Ball’s firm runs weekly training sessions and trainee advisers are required to sit in on a minimum number of meetings between new clients and a senior adviser before they can become an adviser themselves.
St James’s Place divisional director for professional development Edward Grant says the value of on-the-job training is that individuals can use the technical knowledge gained through qualifications and apply it to real life. SJP has both an adviser academy and an internal technical academy, of which on-the-job learning forms a key part.
“Through the likes of our academy models, individuals have mentors and development managers who offer on-the-job training alongside professional qualifications and internal accreditations, so they can develop their soft skills and technical skills within a business,” says Grant.
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Rich resources
For firms to provide decent training, they need to commit adequate resources. But what is required?
From Openwork’s perspective, Limon says qualified trainers – which are developed in-house – offer organisational/administrative support to manage the logistics of training and development, and training facilities are also key. However, she adds the backing of the firm’s main leadership/executive team and a close relationship with the examining body are important, as is the support of more experienced advisers and leaders to mentor and nurture new people.
“One of the most important things to remember when structuring training is that you don’t have to be an expert in everything. There are plenty of resources out there and even within your own business,” says Woolrich. “As head of training and development, I would never give a presentation on investments, but I could ask our investment manager to do so.”
Pashley says there are many ways to access training services, both online and face to face. All work well in his view, but he finds people prefer the interactive approach rather than reading long technical journals.
“Some people learn well from books, but having a trainer in the room is very valuable. It carries a price tag, but the value completely outweighs the costs,” he says.
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