Paraplanning
- Description
- Tasks
- Skills
- Useful Knowledge
- Entry Qualifications
- Professional Qualifications
- Trends
- Resources
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Paraplanning is a technical function that supports and informs the work of Financial Advisers and Financial Planners in all areas of finance, including pensions, mortgages, general insurance, tax and investment management. A Paraplanner’s key role is to process the personal information provided by clients during a meeting with their Financial Adviser/Planner, before researching the best solutions that meet each client’s financial needs. Paraplanners do not give financial advice, but they do produce letters, reports and supporting evidence for consideration by the client. They can also undertake highly technical analytical work including cash flow forecasting and investment analysis. They then process the paperwork with the product providers, and follow up with reviews. They have to keep the Financial Adviser/Planner and the client up-to-date with communications from financial product providers.
Salary
Entry level positions start at approximately £16,000 per annum. With the right experience, qualifications and skills you could progress to Financial Adviser or management roles and earn in excess of £40,000 per annum. This does not include potential bonuses and additional benefits. Salaries will vary considerably based on location and employer.
- Assisting the Financial Adviser/Planner in establishing new client relationships
- Assessing each client’s financial circumstances
- Preparing financial statements to support development of each client’s financial strategy. This may involve the use of Financial Planning software tools.
- Carrying out research and analysing products and services that are appropriate to each client’s financial circumstances
- Proposing and drafting financial solutions that meet each client’s goals, needs and objectives
- Assisting with the accurate completion of application and proposal forms
- Implementing actions, such as changing existing investment holdings and policy information, as directed by the Financial Adviser/Planner
- Supporting the ongoing client relationship, including maintaining a client file review system to regularly assess client holdings and changing financial priorities
- Developing productive working relationships with colleagues and clients throughout the financial services environment, both within and outside of the employing organisation
- Excellent interpersonal, listening and numerical skills
- Analytical and research skills
- Report writing and clear written communication skills
- Professional, ethical and discreet
- Client service skills
- Effective time and caseload management
- Confidence using IT and database packages
- Able and willing to work on own initiative, sometimes for long time periods
- A flexible approach to business hours
A new entrant will not always be required to have this knowledge. Employers usually provide training to acquire skills for:
- An understanding of the different financial solutions available in the market place, including the specialisms in the investment, protection, mortgage, pensions and tax
- Acting ethically, impartially and always in the best interests of clients
- Meeting the FSA’s Treating Customers Fairly requirements
Working in paraplanning requires people who are good team workers, hard working, enthusiastic with excellent communication skills. There are opportunities for people to join the profession through working in a support or administrative function within a paraplanning or financial advice organisation.
Any previous qualifications or experience in a financial services environment is useful.
In order to gain an entry level position, employers will look for people who have:
- A Levels, Scottish Highers or equivalent qualifications such as Business, Administration and Finance (BAF) Diploma, BTEC National Diploma, Welsh Baccalaureate (BAC), SVQ Level 3 or Higher National Certificate (SCQF Level 7)
Many employers will support paraplanners in gaining professional qualifications. The Institute of Financial Planning has developed a qualification specifically for paraplanners:
- L4 Certificate in Paraplanning.
The Institute of Financial Services have recently launched the L3 Certificate in Financial Administration and Planning and the CII have a Level 3 Certificate in Financial Planning.
It is possible to move into financial advice and planning from paraplanning. Giving investment financial advice is an FSA regulated function and therefore specific qualifications are required.
- Chartered Insurance Institute (CII) Level 4 Diploma in Regulated Financial Planning
- Chartered Banker Institute Diploma in Investment Planning
- Institute of Financial Services Level 4 Diploma for Financial Advisers and Professional Certificate in Banking (including practice of financial advice module)
- Chartered Institute for Securities & Investment (CISI) Level 4 Investment Advice Diploma (Private Client Route) and Masters in Wealth Management
- SQA Level 4 Diploma in Professional Financial Advice
- Fellow or Associate of the Faculty or Institute of Actuaries
- Manchester Metropolitan University BA (Hons) Financial Services, Planning and Management
- Level 4 Higher Apprenticeship in Providing Financial Advice, in England and Wales.
These qualifications meet the Financial Services Authority (FSA) full qualification requirements up to and after 1 January 2013. Please contact the FSA on 0845 606 9966.
A large number of people are currently employed in the Paraplanning profession and with major changes anticipated in the provision of pensions over the next 5 to 10 years, considerable opportunities may develop to advise the general public on their finances. Demand for Paraplanners is likely to mirror the increases in Financial Advisers and Planners. A large number of Paraplanners utilise their experience and take relevant professional qualifications to become Financial Advisers/Planners. Experienced Paraplanners might also move into compliance work or become insurance brokers and some prefer to remain career Paraplanners. Employers include insurance brokers, firms of Independent Financial Advisers (IFAs), Independent Financial Planners, life assurance and pensions companies, banks, building societies and accountants. An increasing number of Paraplanners work for IFA support organisations, providing administrative and marketing support service to smaller companies or self-employed IFAs. Other employers may include law firms and retailers offering financial services. Opportunities are nationwide, mainly in large towns and cities.
