Alyson Brown

17 February 2011 | By Rachael Adams

When The Paraplanning House founder Alyson Brown told her family and friends she was setting up business as a freelance financial paraplanner, they did not have a clue what she was talking about. But the former IFA says regulatory developments mean the paraplanning profession is set for huge growth.

“I started out in the late nineties,” says Brown. “I had graduated through to adviser level and was doing my own paraplanning but I did not know the term then.”
Awareness of the role has grown considerably since then and although many IFAs still do their own research and report-writing, many have turned to paraplanners so they can focus more on their clients.

The fact that paraplanners deal with the technical, back-office aspects of financial planning has given rise to a view of paraplanners by some advisers as glorified administrators. “I have seen views like this expressed on certain forums,” says Brown. “I don’t agree, obviously. If you have the time and energy to do your own advising and paraplanning then go for it but I do not think there are enough hours in the day to manage both.”

That is where Brown comes in. “I work for a large number of IFAs across the country,” she says. “Some use me on a weekly basis and others use me on an ad hoc basis. I provide what I call a full paraplanner service. I collate all the information for the advisers and prepare their recommendations based on that.”

Although she works in-house two days a week, Brown spends the other three days working from home, talking to her clients and communicating reports via email.

“I think most paraplanners are quite similar in their working models.”

But Brown has an edge on some paraplanners as she used to be an IFA at Pace Financial Solutions and feels she can offer the type of service IFAs really want. “It makes it easier for me to do my job. I have a real insight into what advisers want.”

Which begs the question, why did Brown become a paraplanner?

“I had been thinking about it for a while. The portfolio I worked on was largely corporate clients and involved a lot of Ssas and Sipp work. While I was an IFA I was in a very technical role so I felt that side of things was my strength.”

Her client base also informed her decision. “I worked for a lot of self-employed people and thought, if they can do it, I can too and then about a year ago I just decided to make the jump. When the salary from my old job stopped, things got a bit scary but I have never doubted it was the right choice.

“Trust is really important. I try to do all I can to show advisers I am serious about what I do. I have my own terms of business and am registered with data protection as well, so there is always the audit trail behind the scenes that my clients can hold on file.”

However, she does not believe that paperwork is the key to a good business relationship. “The trust comes from talking, not from a bit of paper. It is the same as the relationship between an adviser and a client.”

Indeed, as a paraplanner, Brown believes she has a much greater insight into the adviser/client relationship. “One thing I have noticed is that despite what people read in the national press, all the advisers I work for genuinely care about their clients and are trying to do a good job managing their finances for them.”

Her close relationship with IFAs means Brown is only too aware of how regulation such as the retail distribution review will affect them over the next few years. “Anything that can improve standards is always a good thing as no profession can stand still but the practical implications of the RDR seem very, very confusing.

“There needs to be a balance between qualifications and experience. If I want to, I am entitled to put so many letters after my name it is ridiculous but just because you have the knowledge does not mean you can do the job.”

That is not to say the RDR may not lead to some positive benefits for Brown. “The burden placed on IFAs will increase, so I am hoping that is good news for me.
I am hoping advisers say, I don’t have time to fulfil all these requirements alongside doing my own paraplanning and will look to us more in the future.”

The RDR will also mean more work for paraplanners in terms of qualifications, she predicts. “Part of what we do involves knowing current regulation. It is important for paraplanners to have a similar standard of knowledge to advisers, so I am going to be taking some exams this year.”

Brown’s vision of the future for paraplanners is not all about studying though. She says initiatives such as the National Paraplanner and Administrator Collective being run by theparaplanner.com will help raise awareness of the profession as well as help shape its development.

Similarly, Aifa’s call for greater separation between back-office specialists and client-relationship managers could lead to a boom in the paraplanning industry “There will be more of a trend towards distinct roles. For people new to the industry, they see a career path as using paraplanning as a stepping stone to advising. But there is an increasing number of people like myself who want to see paraplanning as a role in its own right.”

Brown thinks that developments such as the IFP’s paraplanning qualification will also boost the profession’s reputation.

“My prediction for the next few years is that paraplanning will become less of a niche and more of the norm. It will happen just out of awareness and necessity.”

Brown’s personal aim is more down to earth. “I just want to continue to provide a good service for my clients. I will look to see how far I can take The Paraplanning House and with these big changes taking place for IFAs, I see no reason why it can’t go further.”

 

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