Paraplanner Zone: Lee-Anne Peters

Founder of outsourcing firm How Why When, Lee-Anne Peters, talks about how the paraplanner role is evolving...

How did you become a paraplanner?

After being employed at a large IFA firm, I decided I wanted to get involved in the more technical side of things and didn’t want to go on to become an adviser. I feel more comfortable in the background, providing support as opposed to going out and meeting clients.

I became aware that in Australia and the US paraplanners plied their trade on a freelance basis. So, I went to Australia for three months to learn the trade and see how it was done. When I came back, I thought let us bite the bullet and so I set up How Why When Limited.

How are paraplanner perceived by IFAs?

Some IFAs view paraplanners as little more than people who make the tea and do the photocopying, whilst others view us as providing an all-important service.
It has taken a while for IFAs to appreciate the role we provide and make use of us. Historically, it has been difficult for advisers to let go of the whole process.

But more recently they realise that if they can offload the number-crunching and technical aspects to the paraplanner, this can free up their time to meet clients. The reason I set up the company was to identify what we can do for advisers and reduce their workload.

What services do you provide for IFAs?

We are very focused on providing a bespoke service, tailored to individual IFAs. We provide a consultancy and paraplanning service. Our consultancy service allows IFAs to use the technical resources themselves.

We provide research and client reports tailored to what advisers need – each IFA is treated as an individual with their own methods of working and we provide help and research as and when it is needed.

The level of support very much depends on the IFA as some want us in right from the start to provide research and write reports, while other advisers are up to speed on the research front and need us just to write reports.
On the research side, we provide product and fund research. I look at where assets are held and work on reassessing and re-balancing portfolios.

What skills should a good paraplanner possess?

First and foremost, it is not something to rush into and industry experience and expertise is all-important. You have to have a good understanding of how IFA firms work. A good paraplanner shouldn’t be afraid to admit they don’t know something too. So whilst a paraplanner should always be willing to learn, it is equally important to admit any shortcomings. And one shouldn’t underestimate how hard work it is!

What qualifications do paraplanners at your firm have?

In terms of qualifications, we vary at our firm. None of us have the paraplanning qualification yet but we are all aspiring to it. We all have different areas of expertise so fit into different groups – I specialise on tax, others are experts on pensions.

I think paraplanners should have qualifications, but someone does not simply become an accomplished paraplanner once because they have qualifications and experience is just as important.

How is the role of the paraplanner evolving?

The role of the paraplanner is evolving quickly. Ten years ago people didn’t really know what a paraplanner was. When I started, the paraplanning industry was pretty much in its infancy in the UK.

And still now, the paraplanner is perceived differently by different people. But as we become more accepted by advisers for the role we provide, we will become an integral part of advisers’ operations. And post-RDR, I think our role will become even more important.

Do you plan to become an adviser?

No I don’t. My comfort zone is on the technical side – I like to look at portfolios and come up with solutions. I am far better suited to the research side of things.
Some paraplanners aspire to be advisers and use a stint as a paraplanner as a stepping stone. This can be a good thing as the adviser is then equipped with good technical knowledge.

 
Lee-Anne Peters' top tips for paraplanners

• Have a good understanding of how IFA firms work - industry experience is just as important as qualifications.

• Do not be afraid to admit you don’t know something – as a paraplanner, you should always be willing to learn but, equally, you should be upfront about any shortcomings.

• Treat each IFA on an individual basis and tailor the research you offer according to his or her specific needs.