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Paraplanners double profitability

Paraplanners double business profitability for IFAs, according to research from Owen James.

The annual IFA performance benchmark survey, which polled 100 advisers, shows IFAs who use paraplanning services typically double the profitability of their business. It says IFAs who specialise in investments generate higher gross margins.

The research shows a marked shift to fee-based advice and trail remuneration.

Higher case sizes, lower-cost client acquisitions and the use of technology and business transacted online are identified as key value drivers.

Owen James organiser James Goad says: “The IFAs who completed the questionnaire have an opportunity to benchmark themselves against similar business models to enable peer group comparisons. We are putting together a series of focus groups to ensure we continue to maximise the value for the industry.”

KPMG strategy practice director Jeremy Oakley says: “These findings show the strong connection between a firm’s recurrent earnings – fees and trail – and profitability. The $1m question of how an IFA funds the transition from initial to recurrent earnings remains a challenge for many.”


Court clarity

Nic Cicutti’s article in the July 10 issue of Money Marketing made a number of comments about the recent litigation in which we have been involved that are simply not true.

Stroud & Swindon’s Will has prime motivation

New Stroud & Swindon sales and marketing director Linda Will plans to widen the scope of the society’s postponed intermediary subsidiary by offering prime mortgages as well as specialist products.


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