View more on these topics

Unnecessary employment of paraplanners is inefficient says 2Plan

2plan Wealth Management has warned that greater employment of paraplanners will only increase the burden of costs for many adviser firms.

Chief executive officer Chris Smallwood says that although paraplanning does play an important role in financial planning, there are other alternatives to employing more paraplanners.

For many smaller and directly regulated advisers, the cost of employing a fully qualified paraplanner is now over £30,000 per annum.

Smallwood says: “Clients understandably perceive much greater value around spending time face to face with their adviser, helping them achieve ongoing goals and having options properly explained, so building a trusted relationship.

“But employing additional staff for the paraplanning function needed to allow advisers to do this is simply an archaic route to take.

“What is the point in having all the high-tech, on-tap, scaleable solutions at our fingertips if we still revert to costly and outdated methods of achieving this?”

“Choosing a centralised technology-led route, with chartered experts on tap, not only makes fiscal sense, but on a broader commercial level it also means that some of the very highly competent and qualified paraplanners can then be up-skilled to become fully qualified advisers in their own right – thereby contributing to their own and their firm’s revenue, rather than unnecessarily sapping it.”

IFP chief executive Nick Cann says: “Each adviser firm has to make a judgement on its own merit as to whether the cost of employing dedicated paraplanners internally makes sense.

“If the additional input required allows an adviser to be released to spend more time with clients and earning fees which more than cover the additional expenditure, then there is still a very strong case for this.

“However, for many firms, particularly those now dealing with more internet-based or less face to face advice business, the paraplanning role becomes much less complex and it makes absolute sense to look at other alternatives.


Strong start for L&G three

Legal & General has underlined its commitment to the investment philosophy that helped its three multi-manager funds outperform in a challenging first year.


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