IFP's Nick Cann talks up paraplanner role

The role of the paraplanner is becoming more and more important for advisory businesses, Nick Cann says.

The chief executive of the Institute of Financial Planning (IFP) says fresh requirements on firms as a result of the retail distribution review (RDR) mean paraplanners could prove vital to a firm's, and its clients', health.

Paraplanners are responsible for researching financial products and giving administrative support. They were prevalent in businesses two years ago but, since the onset of the recession, their numbers have dropped as IFAs have looked to save costs.

Speaking at the 'Focus Solutions: How will you respond to the RDR' seminar in London on Wednesday, Cann says paraplanners can free up an adviser's time to work on other things.

"The paraplanner role will be an opportunity for financial planners and wealth managers to be successful following the implementation of the RDR," he says.

"They can make a huge impact on a business and really help an adviser focus on the client."

Elsewhere, Cann says he sees the future of the financial planning sector consisting of boutique firms, life offices and banks, a segmented division of national firms, private client teams and accountancy businesses.

"I think businesses will move to being either small niche companies or large scale companies," he says.

Cann also other keys to success for adviser firms in the coming years will be "constant customer focus, ensuring the basics are done well, making it easy to do business and providing excellent services".

He adds it is important firms are well capitalised and boast "strong leadership and management, clear proposition and differentiators, structure, process and systems, appropriately qualified teams and a good remuneration structure".

charlotte.banks@incisivemedia.com