A paraplanner works alongside a financial planner like a paralegal would work with an attorney. Given the sheer amount of research, regulations, and documentation associated with financial advisory services, paraplanners typically do more behind-the-scenes research and preparation for a financial planner. They must also be adaptable and open to constant change.
Paraplanning is an excellent job for those fascinated with figures and finances who prefer less client interaction. It offers growth opportunities and is also a fulfilling profession in its own right.
Here are some of the expectations of a paraplanner:
If you become a paraplanner you will enjoy many benefits, including opportunities for career growth. As you gain experience and expertise, you can advance to positions like senior paraplanner or financial adviser.
Further benefits include:
In the UK, paraplanner jobs tend to pay salaries based on experience, qualifications, and location. On average, an entry-level paraplanner can expect to earn around £24,000 annually, while a senior paraplanner can anticipate around £45,000.
According to Reed, the average salary for paraplanners in the UK is £39,900 annually. But, if you were to work in areas like Kidderminster, Escher, or West London, the average salaries are much higher.
Some firms offer paraplanners an additional cash compensation as a part of their package. In London, this works out to about £3,763 on average.
Depending on your desired career trajectory, you'll need specific paraplanner qualifications. Entry-level paraplanning positions may require a good educational background in subjects like maths, economics, or business studies.
Mid-level paraplanning requires a Level 3 Certificate in Regulated Financial Services Operations, a T-Level in Finance, or a Level 4 Diploma in Regulated Financial Planning. An advanced level requires an Advanced Diploma in Financial Planning or Chartered Financial Planning (CFP) designation.
You can become a paraplanner through your work, an apprenticeship, or study at a tertiary education institution.
To be a successful paraplanner, you'll need diverse skills. Here's a checklist of the critical skills of a successful paraplanner:
There are different ways to become a paraplanner. For instance, you can do so through your workplace, start as an apprentice, or study through college. Whichever way you go about it, here are a few guidelines:
Gain a thorough understanding of what it is to be a paraplanner
It's crucial to have a thorough understanding of the role of a paraplanner, as knowing the associated responsibilities and expectations lays a solid foundation for success in this field. Additionally, knowing what paraplanning is about helps you see if your skills and interests align with the profession's demands.
Pursue the relevant education
Pursuing relevant education is vital to becoming an advanced or senior paraplanner. For example, obtaining a Certificate in Paraplanning through the Chartered Insurance Institute (CII) or Chartered Institute for Securities and Investment (CISI) equips individuals with the knowledge and skills to excel in this role. Additionally, investing in education shows your commitment to the industry while enhancing your credibility.
Get professional experiences
While education is essential, training in the form of professional experience is equally important. Practical experience allows individuals to apply theoretical knowledge to real-world scenarios, honing their skills and decision-making abilities. Hands-on experience is invaluable for developing proficiency and confidence as a paraplanner.
Understand your place in the business as a paraplanner
Understanding one's place in the business as a paraplanner is critical to working effectively within a team at a financial institution. For instance, there are specific tasks paraplanners may not legally do or sign off. Hence, it helps to know one's boundaries in that sense.
Recognising paraplanners' role in a team contributes to the firm's overall goals and operations; they provide optimal support to financial advisors and clients. This awareness and collaboration fosters efficiency and effectiveness in the role, which leads to career success and possible advancement.
Becoming a paraplanner can take anywhere from one to five years, depending on the following:
For instance, the CII course involves 270 hours of studying and practicals, which you complete at your own pace. Of course, this time could be shorter if you have some experience or other financial or paraplanner qualifications. However, remember that practical experience gained through internships and on-the-job training is crucial for skills development and career progression.
Freelance and self-employed paraplanners are becoming more commonplace, and there's a growing market in the UK. Becoming a self-employed paraplanner requires obtaining the relevant qualifications and experience for starters. Other steps include the following:
Career progression in paraplanning offers diverse opportunities for professional advancement within the financial services industry. This is because paraplanners typically have a diverse skill set. Here are a few examples of career paths they can pursue:
Paraplanners typically work alongside financial planners in a supportive role, doing a lot of legwork and research behind the scenes. They typically have a broad financial skill set and many options for progressing in their careers. However, freelance and self-employed paraplanners are more commonplace in the UK, offering their support services to independent financial planners and financial planning businesses.
If you're a paraplanner looking to grow your firm's network, Unbiased Pro can help you grow your business sustainably and connect with clients who need your exact skills.
