Download - Paraplanning: The next generation
Paraplannning: The next generation
Kim Bendall CFPcm APP FPFSTweet @kimbendall
Key Questions
- What stage are we at?
- Do we all do the same thing?
- The differences between paraplanning and financial planning
- Why paraplanning, rather than advising?
- Would it suit your business?
The Evolution of Paraplanning
Parawhat..?
Why do people need Paraplanners?
- Not everyone does
- Huge increase in regulatory requirements
- Advance and expansion of product and investment solutions and their complexity
- Rise of financial planning
- Recognition of each other’s skills
Diploma levelCFPCM/APP Chartered
CII Certificate
Report writer ‘fills in the blanks’
Very reliant on adviser
Understands products and process
Less input from adviser
Highly technical
Work as partnership
‘Career’ paraplanners
Spectrum of UK paraplanning
Report writer
3-5 years 5+ years1-3 years
In-house Outsourced
80%25-44 years old
56%25-34 years old
66%+are women
How many paraplanners are there?
£46% earn
£30,000 or more per year
Level 3
Working towards Level 3
Working towards Level 4
IMC
Chartered Financiial Planner
Degree
Other
Level 4
Certificate in Paraplanning
CFP Certification
25% 50% 75% 100%
62%
15%
21%
1-56-1011-2526+
38%
21%
26%
15%
6½per cent are
self-employedper cent workfor outsourced paraplanning businesses
6½per cent of
paraplanners are outsourced
13
Career aspirations
Other
Leave industry
Freelance
Become IFA
Remain in role
0% 10% 20% 30% 40% 50% 60% 70%
4%
4%
5%
24%
64%
So what’s the difference between paraplanning and financial planning?
Paraplanning Advising
ConceptsRelationship
Build businessObjection handling
Regulatory responsibility
Design the planCalculations
Client meetingsCompliance
CPDNetworking
Middle Ground
Report writingDue diligence
ResearchImplementationProduct reviews
Gather client data
Regulatory status
Responsibility to Client
Client contact
Earnings Potential
Demographic
Prefer plan creation more than client contact
Greater financial stability
Interpersonal skill development
More methodical than conceptual
Integrating Paraplanners into your business
In-house
Employees
Contact with clients
In-house tools and processes
Employer-funded training
Self-employed or by paraplanning firm
No contact with clients
Supply own tools
Fund own training
Outsourced
Skills and technical competence
Client involvement
A variety of business
Professional development
Bespoke paraplanning
Happier hands-on
Money doesn’t stretch to the right skills
Training takes time and money
Repetitive business pattern
People in the business don’t communicate too well
‘Let’s work as a team so I’ll do it my way’
In-house pros In-house cons
Access to the right kind of skills and competence
You don’t need or want client contact support
Support only when you need it
Comfortable with delegation
Breadth of experience and advice connections
The more bespoke, the more expensive
Your client records need to be up to scratch
Phone, e-mail and via software not face-to-face
Urgent or time consuming cases
You tend to deal in low value transactional cases
Outsourced pros Outsourced cons
Due diligence for paraplanning?
- Credentials
- Experience
- Tools & training
- Future prospects
- Company set-up
- Costs
Things to bear in mind
- You can delegate the task, but not responsibility
- Paraplanners not psychics..!
- Keep paraplanners in touch and engaged
- An adviser’s best friend is a paraplanner
- Encouraging IFP participation will reap dividends
- Combining in-house and outsourced teams works
Little things make all the difference
- Give very clear instructions for the report
- Up to date information – or access to it
- Prepare well in advance
- Aim to minimise repetition of work
Summary
- Could you benefit from a Paraplanner?
- In-house or outsourced?
- Knowledge and experience?
- Costs and training?
- Future prospects for the role?
Thank you
Kim Bendall CFPcm APP FPFSTweet @kimbendall