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.”