Continuing professional development is an accepted part of working life for financial advisers, who clearly must meet ongoing professional standards in order to obtain and retain their statement of professional standing for regulatory purposes.
Meanwhile, although the FCA does not currently have plans to regulate paraplanning as an activity, it is refreshing to see many paraplanners genuinely committed to using a similar CPD framework, even though it is technically not a compulsory regulatory requirement for the role.
Nevertheless, there is an exceptionally strong case to have a professional development programme of quality CPD content specifically tailored to paraplanners’ needs (with or without a paraplanning standard in place).
But paraplanners are not always encouraged to get out of the office on a regular basis and the perceived wisdom is that any who choose to embark upon a CPD path can do most of their studying manually or online.
They can, of course do so, but that means missing out on the significant benefits of face-to-face time with their peers, the chance to share ideas and concepts, learn different ways of doing things and the opportunity to reap the associated benefits of networking with like-minded people. All of these constitute best practice, with benefits that would far outweigh the loss of a day in the office.
Even though client investment-related advice is ultimately signed off by a qualified (CF30) adviser, a paraplanner provides an influential service in selecting the right solution for the best client outcomes. I suggest that this may well contribute to the fact that just 1 per cent of all Fos complaints relate to advisers, and of those, less than half are upheld.
Yet when one considers the integral role paraplanning now plays in producing the right outcomes for the end consumer, further recognition by having a standard in place, or dare I say becoming regulated, are subjects that continue to be much debated.
To this end, it is encouraging to see numerous paraplanners adopting a kind of ‘self-regulating’ stance and taking ownership of their future development. For instance, qualified paraplanners who are members of the Personal Finance Society, or any other professional body, commit to minimum CPD standards under its code of ethics.
Unlike the profile of a typical financial adviser, paraplanners tend to be younger and possibly more receptive to new learning. There are also a high percentage of women among their numbers, which is very welcome. Accordingly, CPD should reflect the fact that this relatively youthful, evolving sector may benefit from a different, more vibrant approach.
Event content should be very specific, technical in nature and predominantly investment/retirement/taxation related. Soft skills training is a important consideration – as although their work is generally regarded as a ‘behind the scenes’ role, paraplanners would still benefit from a greater understanding of how best to interact at all levels.
Innovative events such as Purely Paraplanning conferences and Powwows enable paraplanners to interact and learn about themselves, and also help them work more effectively by mirroring the traits and professional personalities of their peers.
There is an appreciation that paraplanners are knowledge-hungry by nature, and many will instinctively pursue higher technical qualifications and chartered status as part of their career development. At the Personal Finance Society, we recognise paraplanning as a profession is its own right, which is why we have a specific development programme for this significant segment of our membership.
The discipline plays a vital role in the investment world and a dedicated continuous professional development programme for paraplanners should be viewed with the same importance that it is for the financial advisers they serve.
Lee Travis is head of professional development of the Personal Finance Society
