View more on these topics

‘Paraplanners can boost profitability’

Adviser firms have been told to increase their use of paraplanners and support staff to become more profitable.

Institute of Financial Planning chief executive Nick Cann told PIMS delegates that there is a growing trend for firms to increase their number of paraplanners rather than recruit more advisers.

Cann said: “Over the past few years, small businesses have initially tried to grow by taking on large numbers of registered individuals but now this is being scaled back over time as it has not been working.

“The number of paraplanners has been increasing as they are delivering more value and margins to the business.”

Thinc-owned Cavendish Financial Management principal Julie Lord, who sold her firm Cavendish Financial Management to Thinc last November, said that transforming the business by using paraplanners and support staff had made it more profitable and helped to attract a buyer.

She said: “At Cavendish, we changed our structure so that I was the only adviser and I did nothing other than talk to clients. Surprisingly, all of a sudden, because we were all concentrating on what we were good at, turnover shot up and profit shot up.”

Recommended

Combination unlocks IHT

Advisers can use a combination of a guarantor mortgage and an offshore trust to sidestep inheritance tax, according to Fortress Management Services.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com