View more on these topics

Paraplanner’s View: Should paraplanners ever be authorised?

With the introduction of the RDR and the increase in the minimum qualification level for pension and investment advisers increased to QCF Level 4, the paraplanner role has become, even more than it was already, the natural training ground for those wishing to become financial planners and advisers.

Not all those who enter the paraplanning profession will want to become regulated and those that provide an outsourced paraplanning service would never be regulated so there will always be the opportunity for those who wish to, to be career paraplanners and provide the research, report writing and support functions they do already.

However, for those who wish to pursue a career as a financial planner then spending time as a paraplanner, understanding the business, studying and passing exams and learning about client relationships will definitely provide this path.

A fully authorised in-house paraplanner will undoubtedly provide the firm with a number of advantages. There will be another regulated individual able to provide advice to clients when the financial planner is away on holiday, out of the office or seeing another client.

There is someone to provide locum cover if the current financial planner is ill or away and there is someone who could provide advice to clients as part of their annual review if it was not envisaged that the advice required was too complicated.

It also allows the paraplanner to provide advice to clients when they telephone the office and ask very specific questions about their investments rather than having to caveat the conversation by saying the paraplanner can only give generic advice and any specific advice would have to be provided by the planner.

Finally having a regulated paraplanner will allow them to slowly take over the responsibility for some clients’ whilst still undertaking paraplanning duties within the firm and the transition programme can be designed specifically around the needs of the business and the paraplanner.

Of course, in order to achieve this there would be an additional cost to the business as fees would have to be paid for another regulated individual but working together in this way does provide a benefit to those businesses where it is appropriate whilst at the same time providing a clear career path for the individual.

Martin Vaughan is director of GHC Capital Markets


Tony Wickenden: How Govt changes affect income tax relief caps

Last week I looked at the General Anti-Abuse Rule. This week I would like to look at the cap on income tax reliefs. The Government announced at Budget 2012 the introduction of a limit on currently uncapped income tax reliefs from April 2013. The limit will cap the relievable amount for a tax year at […]


MM leader: The battle to stop the pension ‘liberators’

A quick internet search reveals the large number of firms looking to lure investors with the prospect of accessing their pension early. The adverts are less forthcoming about the huge fees levied and the likelihood of an unauthorised payment charge of 55 per cent of the investor’s pot for breaching HM Revenue & Customs rules. […]

Thinktank warns small firms could shun Nest

Small firms could shun Nest because of the scheme’s annual cap on contributions, according to influential independent thinktank the Pensions Policy Institute. The PPI published a briefing note this week detailing how the scheme’s £4,400 annual contribution limit and ban on transfers in and out could affect auto-enrolment. It says: “Where employers have a workforce […]


Lib Dems float mansion ‘super tax’ plans

The Liberal Democrats are looking at proposing a mansion “super tax” which would see their mansion tax plans extended to hit multiple properties including second homes and buy-to-let properties worth a total of over £2m. The Sunday Times and the Mail on Sunday report the Lib Dems have drawn up a taxation policy consultation which […]

Lifetime ISAs – International Evidence

By Fiona Tait, Pensions Specialist Since the announcement in March, the Lifetime ISA (LISA) has attracted controversy. Heralded as a saviour for the self-employed and the young wanting to get on the housing ladder, the new LISA risks adding confusion for savers trying to fully understand the benefits of new workplace pension savings through auto-enrolment. To […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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