Position profile: para planner
Derek Tsang, Senior Para planner, Colonial First State
How did you get to where you are today?
I completed a Bachelor of Business degree at the University of Technology, Sydney, majoring in Marketing and Finance. After graduation, I spent approximately eight months overseas on a traineeship in Turkey through a student organisation called AIESEC, working as a Foreign Trade and Marketing Assistant.
After a brief stint in marketing, I decided to apply for work within the finance industry upon return. I was accepted into the Commonwealth Bank financial planning graduate program, where I spent the next 10 months learning about the business. This involved ‘shadowing’ people in a variety of roles such as financial advisers, risk specialists, personal lenders, and para planners. During this time, I completed a Diploma of Financial Services, partly for compliance reasons, but also to build my knowledge.
I prefer strategy to sales, so I chose to follow the path of a para planner and joined Colonial First State, preparing ‘statement of advices’ (financial plans) for the Commonwealth Bank NSW Metro Financial Planning Region.
About a year later, I was promoted to Senior Para planner, and now look after a team of five para planners.
I really believe that the international exposure after university helped in my application for the Commonwealth Bank graduate program, as it provided a point of reference for interviews and previous experience in an otherwise unfamiliar environment.
What does a typical day involve for you?
A regular day for me consists of preparing the legal ‘statement of advice’ documents for financial advisers to present to their clients, which outlines the recommended strategy and investments to meet clients’ objectives.
Additional tasks include assisting and coaching para planners and financial advisers in investment strategies, the modelling of strategies within financial planning software to optimise clients’ outcomes, and checking statements of advice of para planners to ensure quality and consistency.
Occasionally we have the opportunity to attend technical training sessions to ensure we are up-to-date on any legislation changes, federal government budget updates, product developments and new strategies.
What interpersonal skills are essential for your role?
I believe you must have a willingness to learn – things are constantly changing in the financial planning industry, whether they are changes to legislation, new strategies or products, or updated figures and thresholds. Without this, you could easily fall behind in preparing statements of advice and strategy, which could disadvantage clients or lead to compliance and legal issues.
Being able to work in a team environment is also very important. Good para planners will bounce ideas and strategies between other para planners and financial advisers.
What sort of person is good in this role and type of organisation?
One of the benefits of working for such a large organisation such as Colonial First State and Commonwealth Bank is that you interact with a diverse range of people. Currently in our team we have people who were previously financial advisers, premium business specialists, other graduates, and customer service specialists in branches.
My colleagues here are very focused and strive for excellence in every statement of advice to ensure that our customers – the financial advisers – are satisfied with the document.
People who enjoy reading about technical strategies would also enjoy being a para planner. One of the benefits of my role is adapting the information and experience I have gained to my own financial position.
What do you find the most rewarding about your current role?
The most rewarding thing about being a senior para planner is the ability to assist colleagues with a query, strategy or modelling issue, and seeing the ‘light bulb’ moment when the answers click and the strategy works out.
It’s also great to attend training sessions and meet the financial advisers you prepare advice for and listen to their feedback.
A personal benefit of the role is that you understand the financial concepts and strategies that you can use in your personal life to create your own wealth and plan for the future. You can also use the knowledge and experience to help family members and friends with any queries they may have about their own financial position.
I also find the employee benefits great – we’re able to take advantage of some really good discounts on financial products and services offered by the bank.
What do most people find challenging/difficult about a role like this?
Having a limited understanding of the financial services industry when I joined the bank was a challenge at first. However, reading and hands-on experience helps to quickly build knowledge.
Another challenge is managing workloads, as our inflow of work depends on the external financial environment and clients’ willingness to visit a Commonwealth Bank financial planner. When the changes to superannuation legislation came through about a year ago, there was a huge backlog of work.
The strategy or recommendations of Advisers may be challenging to model, prepare and document. As the advice may relate to personal issues, self managed super funds and companies, interpreting and documenting the Adviser’s recommendations may require multiple modelling and scenarios in the financial planning software.
What do you look for in an employer?
As I was still uncertain about my career path after returning from the traineeship, I was looking for a company that could provide a variety of opportunities in marketing or finance. I primarily applied for positions with large organisations which offered flexibility and the potential to move within the company in the future.
What types of benefits are essential to attract the best people?
The financial services industry is very competitive, and all banks and financial institutions are at risk of having people move to other companies. Remuneration seems to be a key factor these days, especially with younger generations of graduates coming through.
However, pay isn’t everything – flexible employment arrangements are also attractive. Just knowing you can take annual leave and be supported by your colleagues while you’re away is important.
The team and working environment is really important. Small things like team-building days and lunches help to attract and retain team members.
What other jobs and career paths would you consider in the future?
Working within a funds management company during the past two years has exposed me to investment research and analysis which I would like to pursue in the future. Although there is the option of becoming a financial adviser, I personally prefer to work in a strategic or analytical role dealing with managed funds or direct equities.
How do you keep up to date?
Part of my role is keeping up to date with current legislation and industry changes. Luckily we have the help of Finsia and the Centre for Adviser Development to assist us in completing the necessary points required each year to maintain our Tier 1 Annual Training Plan.
We also have technical sessions and product development days, where guest speakers from fund managers and research houses provide us with relevant new information
What professional development are you undertaking?
I am currently waiting for my assignment results for the last module of the Advanced Diploma of Financial Services through Kaplan. Once that is completed, I am looking forward to becoming a Certified Financial Analyst.
What makes a successful para planner?
My first manager in the bank referred to graduates as being ‘sponges’ and to soak up as much information and knowledge as possible. What you can learn from a textbook is limited, but learning first-hand from someone else has no boundaries.
Also, taking ownership and responsibility of your own development is a key for success, especially in a large organisation. You must be willing to keep learning in order to assist your team and to give yourself a competitive edge.