Paraplanner Zone

Paraplanning should no longer be seen as a 'stop-gap' on the way to becoming an adviser, so says Chartwell Financial head of paraplanning Sarah Hammond.

Hammond is head of paraplanning and operations manager at Altrincham-based Chartwell Financial, which has been providing financial planning solutions to personal and corporate clients since 1992. Sarah joined Chartwell-Financial in August 2008 after being head of paraplanning at another firm. She is in charge of two paraplanners and four administrators. 

Q. How did you get into paraplanning?

A. It wasn’t a conscious decision in the sense that it wasn’t what I set out to do. I took a year out from university and started working as a secretary for a financial advisory firm. I then did my FPC1 while working for a Manchester-based firm and decided to take another year out.

I soon gained my FPC2 and was studying towards my FPC3 and so was learning more about the industry and becoming increasingly interested in it. I thought there could be a valid career path in financial planning and, as such, decided not to go to university and start a career instead. So I managed to work my way up from the very bottom.

Q. What is your average day like?

A. My work day starts at 7am and finishes at about 6pm. As head of paraplanning, I manage the workflow for private clients, allocate tasks to be done within given timescales and provide management information to the board, such as the number of cases and how many have been completed.

I also do my paraplanning work, which involves researching funds and products, making recommendations, writing reports for clients and checking other paraplanners’ reports.

Q. What qualifications do you have?

A. All of us paraplanners are at diploma status and are working towards chartered status. We should all have chartered status within the next 18 months.

Q. How is the role of paraplanner evolving?

A. When I started out, paraplanning was a stop-gap on the way to being an adviser. Back then, advisers wrote lots of reports and carried out more research. But now paraplanners have become a profession in their own right. The job is no longer deemed a stop-gap and is a technically recognised professional role. There are para-legals in the legal profession and it shouldn’t be different for financial services.

The technical expertise paraplanners possess are invaluable to advisers: researching notes, developing a panel of providers, deciding resource processes and  implementing systems. A paraplanner, therefore, has a large impact on the adviser process.

Consultants have such a busy schedule they need the best equipment to carry out their jobs. Without a technically solid back office, they will be wasting time doing things when they should be meeting clients. So, without strong paraplanning resources, consultants would be left floundering. Having said that, the role of paraplanner will never replace that of adviser.

Q. What qualities should a good paraplanner possess?

A. Paraplanners should be capable enough to understand the technicalities of cases. They need to have strong customer service skills and to empathise with clients. Paraplanners also need to be articulate, perceptive, proactive and tenacious. You might be dealing with high-net-worth clients who can be demanding. You have to be able to handle different kinds of people and able to communicate at all levels. Finally, paraplanners should have the will and drive to succeed.