This document discusses the evolution and current state of paraplanning. It begins by defining paraplanning and explaining why the need for paraplanners has increased, such as rising regulatory requirements and the expansion of complex financial products. It then outlines the different levels of qualifications and experience among paraplanners as well as common career paths. The document distinguishes the roles of paraplanners and financial advisors and explores the pros and cons of using in-house versus outsourced paraplanners. It concludes by providing tips for financial advisors to effectively integrate paraplanners into their business to benefit both advisors and clients.

1. Paraplannning: The next generation
Kim Bendall CFPcm APP FPFS
Tweet @kimbendall

2. Key Questions
- What stage are we at?
- Do we all do the same thing?
- The differences between paraplanning and
financial planning
- Why paraplanning, rather than advising?
- Would it suit your business?

3. The Evolution of Paraplanning

4. Parawhat..?

5. Why do people need Paraplanners?
- Not everyone does
- Huge increase in regulatory requirements
- Advance and expansion of product and
investment solutions and their complexity
- Rise of financial planning
- Recognition of each other’s skills

6. Diploma level
CFPCM/APP
Chartered
CII Certificate
Report writer ‘fills in the blanks’
Very reliant on adviser
Understands products
and process
Less input from
adviser
Highly technical
Work as
partnership
‘Career’
paraplanners
Spectrum of UK paraplanning
Report writer
3-5 years 5+ years1-3 years
In-house Outsourced

7. 80%
25-44 years
old
56%
25-34 years old
66%+
are women
How many paraplanners are there?

8. £
46% earn
£30,000
or more per year

9. Level 3
Working towards Level 3
Working towards Level 4
IMC
Chartered Financiial Planner
Degree
Other
Level 4
Certificate in Paraplanning
CFP Certification
25% 50% 75% 100%
62%
15%
21%

10. 1-5
6-10
11-25
26+
38%
21%
26%
15%

11. 6½
per cent are
self-employed
per cent work
for outsourced
paraplanning
businesses
6½
per cent of
paraplanners are
outsourced
13

12. Career aspirations
4%
4%
5%
24%
64%
0% 10% 20% 30% 40% 50% 60% 70%
Other
Leave industry
Freelance
Become IFA
Remain in role

13. So what’s the difference between
paraplanning and financial planning?

15. Paraplanning Advising
Concepts
Relationship
Build business
Objection handling
Regulatory
responsibility
Design the plan
Calculations
Client meetings
Compliance
CPD
Networking
Middle Ground
Report writing
Due diligence
Research
Implementation
Product reviews
Gather client data

16. Regulatory status
Responsibility to Client
Client contact
Earnings Potential
Demographic

17. Prefer plan creation more than
client contact
Greater financial stability
Interpersonal skill development
More methodical than conceptual

18. Integrating Paraplanners
into your business

19. In-house
Employees
Contact with clients
In-house tools and
processes
Employer-funded training
Self-employed or by
paraplanning firm
No contact with clients
Supply own tools
Fund own training
Outsourced

20. Skills and technical
competence
Client involvement
A variety of business
Professional development
Bespoke paraplanning
Happier hands-on
Money doesn’t stretch to
the right skills
Training takes time and
money
Repetitive business
pattern
People in the business
don’t communicate too
well
‘Let’s work as a team so I’ll
do it my way’
In-house pros In-house cons

21. Access to the right kind of
skills and competence
You don’t need or want
client contact support
Support only when you
need it
Comfortable with
delegation
Breadth of experience and
advice connections
The more bespoke, the
more expensive
Your client records need to
be up to scratch
Phone, e-mail and via
software not face-to-face
Urgent or time consuming
cases
You tend to deal in low
value transactional cases
Outsourced pros Outsourced cons

22. Due diligence for paraplanning?
- Credentials
- Experience
- Tools & training
- Future prospects
- Company set-up
- Costs

23. Things to bear in mind
- You can delegate the task, but not responsibility
- Paraplanners not psychics..!
- Keep paraplanners in touch and engaged
- An adviser’s best friend is a paraplanner
- Encouraging IFP participation will reap dividends
- Combining in-house and outsourced teams works

24. Little things make all the difference
- Give very clear instructions for the report
- Up to date information – or access to it
- Prepare well in advance
- Aim to minimise repetition of work

25. Summary
- Could you benefit from a Paraplanner?
- In-house or outsourced?
- Knowledge and experience?
- Costs and training?
- Future prospects for the role?

26. Thank you
Kim Bendall CFPcm APP FPFS
Tweet @kimbendall