Advisers have welcomed the FSA’s suggestion that paraplanners should challenge advisers over suitability letters and fund switches to ensure client needs are met.
Speaking at the Institute of Financial Planning paraplanner conference last week, Chris Hewitt from the regulator’s investment intermediary department said paraplanners should be looking to examine what the objectives of clients are with regard to centralised investment propositions.
Hewitt added that paraplanners should also question the validity of fund switches.
He said: “Paraplanners should question whether there is a valid justification in light of the client’s specific needs and objectives and the potential additional costs involved.”
Yellowtail Financial Planning managing director Dennis Hall says: “I agree with the FSA, I think it is part of the paraplanner’s job to check the suitability and work with the adviser to ensure clients get the best possible outcomes.”
Cambourne Financial Planning director Mark Loydall says: “I think if it is part of a firm’s culture for paraplanners to question advisers on suitability, then that has got to be a good thing. Paraplanners are often younger and this is a good way for them to grow and express their opinion.”