Defining the role of tomorrow’s paraplanner Richard Allum CFP APP Paraplan Plus

Last 10 years Pre RDR momentum Formal professional standards Approach to advice process Flight to quality Rising popularity of paraplanners Significant factor in quality of service Paraplanning barely existed Australia Momentum towards pursuit of higher standards Tandem – rise of PP to support flight to quality Growing presence of analysis & evaluation of financial plans – PPs significant factor in business reputation with clients & ability to deliver service 2,100

What is a paraplanner? Cover the extremes How different to administrators

Not just report writers (typists) Can be part of role but far more

Joke = howls of laughter 

The role Establish client needs Collate & interpret client information Research & prepare recommendations Present solutions Review & relationship management

The role Prepare & maintain client file Prepare recommendations Implement recommendations Review

Key attributes Technical knowledge Research & analysis skills IT literate Lateral thinker & common sense Good communicator Attention to detail Demographics See in all good paraplanners

Time spent

Increased responsibility Guiding advisers Due diligence Provider meetings Justification & suitability Increased influence Client relationship Influence over selection of provider, products, platforms, investments

Why all financial planners need paraplanners They don’t Look at benefits and how they compliment each other

Benefits Co-ordinated team approach Deliver the process consistently Insight & ideas Sounding board Challenge Focus on delivering best advice to client More than 1 adviser? Scalability

Team structure Advisers Administrators Paraplanners

Team structure Advisers Paraplanners Administrators

Team structure Advisers Outsourcing

Team approach Adviser Paraplanner Administrator Relationship Reviews data Data processing Presents plan Analysis Support process Provides advice Prepares plan Implementation Line between adviser & paraplanner moving

Do you need one? Sound business case What will they add? Where do you find them? Employ or outsource? 73% hold or studying level 4 19% authorised 26% from outside the industry

Evolution of a profession They don’t Look at benefits and how they compliment each other

Journey so far Progression from support role Move from advising Trainee adviser Qualifications Graduate entry Career path 73% hold or studying level 4 19% authorised 26% from outside the industry

Career aspirations

Formal standards

Formal standards Aspire beyond these

2002 2012 2022 Come a long way in 10 years Where we stand today lots of developments happening

In 10 years … Essential component of advice process Key career option in the profession Regulated? Own professional body? Unified professional standard FSA/FCA – don't know what they’re going to do

Don’t want this

Unified approach Professional bodies working together Universally accepted standard Advisers can know & trust it Understanding of each role Keep raising standards Agreed definition Not about the certificates but the standards it represents Understanding each others roles in delivering financial advice All have a responsibility to keep raising standards