IFP set for paraplanner exam launch

The Institute of Financial Planning (IFP) will hold pilot paraplanning examinations in the next month as the professional body prepares to roll out the country’s first level four qualification for paraplanners.

Two pilot schemes will take place for the certificate in paraplanning in March before the first public examinations go live in July.

The assessment consists of a combination of exercises and multiple choice questions. It is designed to be taken by candidates online and has a duration of two hours.

According to the IFP, the exam standards have been assessed and an online e-learning package is being finalised. “We have been getting lots of enquiries,” a spokesperson says.

“Many paraplanners are already booking onto our paraplanner skills workshop in anticipation of doing the exam once it is available from July. It’s full steam ahead.”

Some argue the role of paraplanner has been “undervalued” because of a lack of a stand-alone official qualification.

But speaking at the IFP conference in October, director of education Lucy Courtenay said the qualification would offer the estimated 9,000 UK paraplanners a means to gain professional recognition.

Research conducted by NMG last year found more than two thirds of paraplanners want a professional qualification backed by the National Occupational Standards Board.

Of 236 paraplanners surveyed, 62% agreed a paraplanner qualification was likely to support the future professionalism of the role and fit with RDR developments.

But Veena Patel, paraplanner to Rebecca Taylor at Dunham Financial Services, says paraplanners are better qualified today than they were a decade ago.

“Looking at the industry 10 years ago most paraplanners were hardly qualified,” Patel says. “The opposite is now the case: those coming into the industry tend to be very well qualified – many could advise but simply don’t want to.

“There is generally a higher expectation for paraplanners. For instance, there are two colleagues in the firm who fulfil a paraplanner type role, but they don’t yet have that title.

Rebecca expects a certain level of expertise before an employee is called a paraplanner, yet they are probably better qualified than many paraplanners out there.”

Scottish Widows will support the development of the IFP’s paraplanner qualification and offer it to intermediaries through the Scottish Widows Academy.

George Andrew, head of market relations at Scottish Widows, says: ‘Our research shows many intermediaries are changing their business models and this includes some advisers recruiting and working with paraplanners.”