Paraplanning: The next generation
-
Upload
the-paraplanners -
Category
Economy & Finance
-
view
375 -
download
0
description
Transcript of Paraplanning: The next generation
![Page 1: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/1.jpg)
Paraplannning: The next generation
Kim Bendall CFPcm APP FPFSTweet @kimbendall
![Page 2: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/2.jpg)
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?
![Page 3: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/3.jpg)
The Evolution of Paraplanning
![Page 4: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/4.jpg)
Parawhat..?
![Page 5: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/5.jpg)
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
![Page 6: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/6.jpg)
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
![Page 7: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/7.jpg)
80%25-44 years old
56%25-34 years old
66%+are women
How many paraplanners are there?
![Page 8: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/8.jpg)
£46% earn
£30,000 or more per year
![Page 9: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/9.jpg)
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%
![Page 10: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/10.jpg)
1-56-1011-2526+
38%
21%
26%
15%
![Page 11: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/11.jpg)
6½per cent are
self-employedper cent workfor outsourced paraplanning businesses
6½per cent of
paraplanners are outsourced
13
![Page 12: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/12.jpg)
Career aspirations
Other
Leave industry
Freelance
Become IFA
Remain in role
0% 10% 20% 30% 40% 50% 60% 70%
4%
4%
5%
24%
64%
![Page 13: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/13.jpg)
So what’s the difference between paraplanning and financial planning?
![Page 14: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/14.jpg)
![Page 15: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/15.jpg)
Paraplanning Advising
ConceptsRelationship
Build businessObjection handling
Regulatory responsibility
Design the planCalculations
Client meetingsCompliance
CPDNetworking
Middle Ground
Report writingDue diligence
ResearchImplementationProduct reviews
Gather client data
![Page 16: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/16.jpg)
Regulatory status
Responsibility to Client
Client contact
Earnings Potential
Demographic
![Page 17: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/17.jpg)
Prefer plan creation more than client contact
Greater financial stability
Interpersonal skill development
More methodical than conceptual
![Page 18: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/18.jpg)
Integrating Paraplanners into your business
![Page 19: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/19.jpg)
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
![Page 20: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/20.jpg)
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
![Page 21: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/21.jpg)
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
![Page 22: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/22.jpg)
Due diligence for paraplanning?
- Credentials
- Experience
- Tools & training
- Future prospects
- Company set-up
- Costs
![Page 23: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/23.jpg)
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
![Page 24: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/24.jpg)
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
![Page 25: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/25.jpg)
Summary
- Could you benefit from a Paraplanner?
- In-house or outsourced?
- Knowledge and experience?
- Costs and training?
- Future prospects for the role?
![Page 26: Paraplanning: The next generation](https://reader035.fdocuments.us/reader035/viewer/2022081515/55652738d8b42a47678b500b/html5/thumbnails/26.jpg)
Thank you
Kim Bendall CFPcm APP FPFSTweet @kimbendall