Why the paraplanning profession should be taken seriously

Advisers use their knowledge and expertise to come up with personalised financial plans that aim to achieve the financial goals of their clients, they then check in with clients on a regular basis to ensure these plans are working how they should.

But many people are not aware of the role of a paraplanner and just how important they are in the advice process – something that needs to change.

Paraplanning is still seen as a relatively new role within the financial services industry.

It used to be seen as a stepping stone into a client-facing advice role, however this view has changed in recent years.

It is increasingly being viewed as a career in its own right, and becoming more popular – especially among women.

For example, in a survey carried out by Embark, out of 332 paraplanners, 85 per cent saw paraplanning as a career in its own right with three quarters saying their firms see them as an essential support for advisers.

Treating paraplanning like a long-term career could help more people see it as such.

However, many feel they are capable of adding more value to their firms than they are currently given the opportunity to.

So why is it that paraplanning is often not taken as seriously?

Firstly, it could be down to how paraplanning is introduced to clients; for example, they are often not aware of how much work the paraplanner has contributed to their advice, often working behind the scenes.

Secondly, firms may use paraplanning as a recruitment process for trainee advisers, which often undermines the importance of the role.

By treating paraplanning like a long-term career could help more people see it as such. Paraplanners could be given structured career paths with professional development opportunities, which could lead them to stay in the role for years.

This is also good for advice firms as they will not have to constantly recruit new paraplanners and train them up – saving them time and money.

Times are changing

But people are starting to change their views around paraplanning and seeing it as a vital part of the advice process.

Whereas paraplanners have historically been seen more as administrators, advisers are now starting to recognise the technical skills individuals hold and how advisers can make use of these.

By having more highly skilled paraplanners, advisers have more time to pursue new clients or touch base with existing clients more often.
 
We have seen the industry get behind paraplanners in recent years and introduce services to boost their skills and resources. For example, Embark has recently introduced a hub, known as The Paraplanner Room, which contains a number of resources to help paraplanners excel in their roles.

The hub includes help with understanding the upcoming consumer duty, has a ‘tool box’ of features such as a fees calculator, and provides a monthly digest on market news.

And Just Wealth launched a programme to help paraplanners move into client-facing roles, if this was how they want to progress with their career.

There is also recognition by the larger institutes, with the CISI naming a paraplanner of the year as part of its awards.

And up until recently the president of the Personal Finance Society was a paraplanner, showcasing just how important the wider advice profession views the role.

Caroline Stuart has worked with the PFS on a voluntary basis for close to eight years, both as a member and chair of the Paraplanner Panel.

This was before she was elected as president of the PFS in September 2022, being the first paraplanner to take up the role.

Sadly, Stuart has since resigned following the Chartered Insurance Institute’s takeover of the PFS board.

Even so, having had a paraplanner in such a high-profile role for several months would have done wonders to put paraplanning on the map and showcase to the wider profession that actually paraplanners are both important and valued.

Amy Austin is news editor at FTAdviser