Provider administration and a disconnect with advisers are the biggest challenges faced by paraplanners, according to The Lang Cat’s annual ‘State of the Advice Nation’ report.
When asked what prevents them from doing their job effectively, nearly half (49%) of paraplanners said provider administration was the main blocker. The research showed that paraplanners believe delivering information needed about legacy contracts and letter of authority requests to support customers with swifter service would be helpful.
Meanwhile, 42% of paraplanners cited a disconnect with advisers on what they should be doing as the main hurdle to doing their job effectively.
Graph – biggest inhibitor of you doing your job to the best of your ability on a daily basis?
In addition, 48% of paraplanners believe their roles are poorly defined.
The Lang Cat said another dominant theme that emerged was how paraplanners feel providers view their roles, with some calling out a perceived lack of understanding of the different paraplanning models. However, overall paraplanners said that amongst providers, they feel their role is viewed in the same esteem as those running the advice profession but they believe their role is held in negative regard by the regulator.
Graph – in what regard do you feel the paraplanning role is held?
The research also examined what qualifications the industry believes is necessary. Paraplanners believe that as a minimum, diploma level qualifications are vital, as well as for those in client-facing roles. There is an agreement among respondents that for client facing roles, a higher level of qualification is needed.
Graph – view on qualifications
The findings also showed that the paraplanner community is feeling confident in the face of technological change and in particular, around the emergence of artificial intelligence.
Just under two fifths (40%) do not believe it is a concern and believe it will help their role in the future.
Steven Nelson, insight director and co-author of the study, said: “The fact that so many paraplanners believe their roles are poorly defined is a real concern and one where the whole sector must work together to address.
“There is a clear need for open and honest conversations to ensure firms are making the most of valuable skills and expertise. This is a no brainer, given that one of the main findings relating to advise firm owners is that workload is keeping them awake at night.
“On the flip side, it’s reassuring to see so many embrace the potential of tech and AI – particularly if they see it as freeing them up to focus on other priorities.”
Main image: c-g-JgDUVGAXsso-unsplash
