Most independent financial advisory firms have an assistant or a paraplanner to support them in their day to day role of providing the gold standard of financial advice to consumers and businesses. Paraplanners perform a technical support role and they are normally highly qualified in financial services matters.

The role requires many skill sets such as being able to:

• compile client financial planning reports
• research financial products and services
• be responsible for technology and processes plus data input
• report to the Financial Services Authority (FSA)
• use planning tools such as asset allocators and cash flow modelling for clients
• deal with client correspondence

Many paraplanners prefer to not be client facing. This creates time for paraplanners to research financial planning choices including all the available products and services for clients. It is estimated that there are more than 30,000* financial products available to UK IFAs to recommend to clients. This valuable support role leaves the IFA to spend as much time as possible with clients.

Paraplanners need to research the market and need to understand products, as a result they tend to take time to study and take exams. With the impending arrival of the Retail Distribution Review many paraplanners are gaining qualifications to increase their knowledge and increase their worth. According to the Institute of Financial Planning many paraplaners are already qualified over the current IFA benchmark of QCF level 3.

Based upon the online responses of 65 paraplanners by the Institute of Financial Planning in May 2011.

There are many differing titles that can be used within an advisory firm for those that undertake paraplanner duties such as technical manager, client services manager and assistant.

The majority of paraplanners will work for 1 or 2 financial advisers. Not all financial advisers have a dedicated paraplanner. In some IFA firms that are very technology efficient, a paraplanner may support as many as 10 IFAs.

Due to the complexity of financial planning there are specialist freelance paraplanners that offer specialist services such as support and report writing for pension transfers or other complex planning areas. Financial planning firms can use these services as and when required. There are now events and qualifications aimed specifically at paraplanners which highlight the increased attractiveness of this role as a career choice.

There are dedicated sections in trade associations that deal with paraplanners and groups within social media, particularly in LinkedIn. Simply search in LinkedIn for groups for the word paraplanner. Additional information can be found at:

www.theparaplanner.com
www.paraplannerdirectory.com
www.absoluteparaplanning.co.uk

*ABI, AMI, AKG