Paraplanner Zone

This week we speak to the founder of South-Shields based paraplanning company The Paraplanning House.

Q. How did you get into paraplanning?

A. When I worked for a small company as an IFA I had to do a range of things, including paraplanning. I really enjoyed it but found it difficult to balance the work of paraplanner and adviser. The roles require different mindsets, and it is hard to master them both. So, I saw the need for an outsourcing paraplanning service and set up my own firm. The idea had actually been swimming round in my head for a while: a lot of my clients over the past five or six years have been owners of small to medium businesses and their influence rubbed off on me. Then earlier this year, I thought if I don’t do this now I never will.

Q. How has the role of paraplanner evolved?

A. When I started out, the term paraplanner had not even been established, but over the past few years it has really developed and its role in the industry has now been cemented. Up until recently, it was common for advisers to do both paraplanning and adviser work, but the way the industry has developed it is very hard to see how advisers can now do both.

Advisers obviously excel at face-to-face meetings, and the rise to prominence of the paraplanner enables them to concentrate on this. The focus on face-to-face meetings is becoming ever-more important in light of both the RDR and TCF, both of which require advisers to have a more in-depth knowledge of their customers. As the industry becomes more of a profession, the distinctions between the role of paraplanner and adviser will become more apparent.

Q. Do you prefer research over face-to-face meetings?

A. I like going out and meeting people. But what I really enjoy doing is collating data into readable reports. Being able to do this is very important. Before working in financial services, I was at law school and more people failed the letter writing exam than anything else. So, to turn something complicated into something a customer understands without resorting to industry jargon is a real skill.

Q. What is the worst part of being a paraplanner?

A. For paraplanners to do their job well they must explain not only the technical side of products but also have a good knowledge of the clients and what they want. This is probably the hardest aspect of the job – if you do not have details on clients you do not know why they need advice. But I think any problems in this area will diminish as advisers gather more of these personal details on clients and pass them over to paraplanners. Having these soft facts to hand is very important. And, more generally, advisers and paraplanners should always discuss things and bounce ideas off each other.

Q. What qualifications do you have?

A. I have an Advanced Financial Planning Certificate and have also passed advanced exams in business, financial planning, pensions and taxation. I also have a law degree and a post-gradate diploma in legal practice. After taking so many exams, I thought I needed to develop my business skills. However, I am looking to get my Level 4 chartered status.

Nowadays, paraplanners need the same level of qualifications as the advisers they deal with.

Q. What has been your most interesting case?

A. I was working for eight partners in a law firm in the North East and the case involved setting up a group SIPP to be used to fund the purchase of new premises. It was an interesting case because there were eight strong characters and we had to marry together what they all wanted! It took about 18 months to complete and it was great to actually walk into the new building and think we were part of it all