Paraplanner has become a buzz word within the financial services marketplace. It is used to describe a hotly valued professional who is able to impact on the profitability of any IFA business. In any service industry, the ability to focus on customers and to give 100 per cent satisfaction in a time-effective manner is the key to customer retention and hence profitability. Paraplanners heighten service standards – and this impacts directly on the bottom line.Industry regulation has created a big amount of paperwork and time spent on admin. This can distract IFAs away from their more profitable core advisory skills. How long does it take to write a bespoke report or to research all the options for a large portfolio? How long does it take to check everything is compliant so you will not get the FSA knocking at your door? Without question, the ability to rely on someone else to complete these functions is an asset to any IFA practice, saving the adviser valuable time and resources. The term paraplanner is now used to describe a spectrum of professionals with varying levels of experience – from senior sales support administrators to top-end AFPC-qualified technicians. The position of paraplanner also provides a link for staff to overcome the void between sales support and the position of IFA. It should be noted paraplanning is now a profession in its own right – not just a passageway of becoming an IFA. Senior technicians now realise that they are a very valuable cog in the business wheel and that it is worth dedicating time to study and to perfect the skills and knowledge required for the role. Experienced paraplanners have become highly sought. Due to limited supply and high demand for good talent, salaries have increased significantly in recent years. A good senior support/junior paraplanner with FPC3 and three or four years of experience would command salaries in London in the region of 24,000 to 28,000. A senior paraplanner with extensive experience, AFPC qualified and able to advise and carry out most of the duties of the IFA will command a figure of almost double that – with bonuses and benefits on top. Envision operates a specialist division, focused on the recruitment of paraplanners. It has become apparent to us that some companies are offering these extra incentives described above in an attempt to reduce the basic salary. Companies that try to do this will find their job offers rejected. Incentives need to be offered in addition to a decent rate of pay in order to attract the best candidates. Clients offering a good basic salary, team and individual bonuses, employee benefits and support for progression consistently secure the best talent. A good paraplanner will often support two or three IFAs. In our experience, the calculation shows that the ratio of paraplanners to IFAs out there in the recruitment marketplace is one for every two to three IFAs and we all know how easy it is to recruit a good IFA. But do not despair! These people are out there. But to entice them away from the devil they know, you may need to be quite creative in putting together your employment package. You also need to appreciate what they want – which is support for day-to-day work, financial and professional progression and recognition from the people they work with. These people are more than administrators. Darren Mackie is senior consultant at Envision
Leading investment advisers would not be in favour of a merger between Gartmore and Jupiter after reports that Gartmore’s private equity backers are lining up a bid for the fund firm. There are concerns that any move by Gartmore for Jupiter would result in an exodus of fund managers from the Commerzbank-owned fund house and […]
Nationwide Building Society’s planned merger with Portman has been met with optimism by a broker market desperate for a lender to emerge from the pack to challenge HBOS’s dominance.
Former HBOS Financial Services managing director John Spellman has been appointed chief executive at Assureweb. Chief executive Nigel Hopwood is leaving after just 18 months at the technology firm. Hopwood, who joined Assureweb as managing director last March, says he is taking a break but expects to return to financial services in the near future. […]
Britons are prepared to be celibate if it means they can live to 100 according to a survey by Bupa.The Ipsos MORI research asked 1,003 people whether they would sacrifice sex in order to prolong their lives and 40 per cent of respondents said they would. Forty-eight per cent of women answered yes to the […]
Johnson Fleming employees have raised more than £400 for their chosen charity of the year, CLIC Sargent, with a series of fundraising events.
- Top trends
- Top trends
- Revealed: Fidelity International director investigated over harassment claims
- Lifetime allowance 2018/19 increase confirmed but pensions absent
- How much are advisers charging for pension transfers?
- Steve Bee: Why still no justice for Waspi women?
- Robert Reid: Don’t let social media comments diminish our profession
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
Transact saw funds under direction marginally increase to £29.8bn in the second quarter of 2018, according to a stock exchange announcement from parent IntegraFin Holdings. IntegraFin listed on the London Stock Exchange in March with a £650m valuation. In a Q2 update today, the company says funds under direction at the close of the three-month […]
The impact of weaker markets saw funds under management at St James’s Place drop in the first quarter of the year, when compared to its Q4 2017 result. In an update this morning, SJP says funds under management at 31 March 2018 were £89.9bn, down from £90.8bn in the previous quarter. On a year-on-year basis, funds under […]
The Department for Work and Pensions expects to spend £96.6bn on the state pension in 2018/19, a 3 per cent increase on the year before. The DWP has detailed its cost estimates in a memorandum sent to the work and pensions select committee, published on its website yesterday. The latest forecast for state pension costs […]