While paraplanning is now a standalone career path, Lewis Byford, director, Antony George, says one of the most significant growth areas in the financial advisory sector is the transition from paraplanner to trainee adviser.
The landscape of financial advisory roles is evolving, with smaller advice firms increasingly opening their doors to trainee financial advisers. Traditionally, such roles have been rare, but there’s a noticeable shift as these firms seek to secure their future through effective succession planning without resorting to selling to consolidators. This trend is particularly evident in the growing movement of paraplanners transitioning into trainee adviser positions.
The growing demand for trainee advisers
Smaller advisory firms are recognising the need for succession planning as key advisers approach retirement. Unlike larger firms that might sell to consolidators, these smaller firms prefer to maintain their independence and client relationships. This creates an opportunity for experienced paraplanners to step into trainee adviser roles, ensuring a smooth transition and continuity for clients.
The paraplanner to trainee adviser transition
Paraplanners, with their comprehensive understanding of the advisory process and direct experience in supporting advisers, are ideally positioned to take on more client-facing responsibilities. This pathway provides a seamless transition for both the firm and its clients, ensuring continuity and trust.
Case Study: Barwells Wealth Succession strategy
Consider the example of Barwells Wealth, a financial advisory firm led by Lee Waters. They face the common challenge of a retiring adviser and the need to transfer clients smoothly. Their strategy involves bringing in an experienced paraplanner who can transition into a trainee adviser role. This approach allows the new adviser to shadow the retiring adviser, learn the nuances of the client base, and eventually take over the client portfolio. This method ensures minimal disruption and maintains client trust.
The benefits of transitioning from paraplanner to adviser
• Smooth Client Transition: Paraplanners are already familiar with the firm’s clients and processes, making the transition smoother.
• Knowledge and Experience: They bring a wealth of technical knowledge and experience, having worked closely with advisers on financial plans and client management.
• Immediate Value: Paraplanners can provide immediate value by supporting the owner-manager and gradually taking on more responsibilities.
• Trust and Continuity: Clients benefit from a sense of continuity, as they are already familiar with the paraplanner, now their adviser.
Key considerations for a successful transition
While the transition from paraplanner to trainee adviser has many advantages, it requires careful planning and support. Here are some crucial elements to ensure success:
Clear training pathways
Training is vital in transitioning paraplanners to trainee advisers. Firms must set clear expectations for achieving Competent Adviser Status (CAS), outline realistic timelines, and provide comprehensive training programmes. This training should cover both technical advisory skills and client relationship management.
Support systems
Support is another critical factor. New trainee advisers need access to resources and mentorship from experienced advisers or firm owners. This support helps them build confidence and competence in their new roles.
Client engagement and acquisition
New advisers must also be equipped with strategies to generate new enquiries and grow their client base. This involves training in business development and marketing, as well as leveraging existing client relationships to expand their network.
Conclusion
The trend of smaller advice firms embracing trainee financial advisers is a positive development for the industry. It not only ensures effective succession planning but also provides career advancement opportunities for paraplanners. By carefully managing the transition with clear training pathways and robust support systems, firms can maintain continuity and trust with their clients.
For firms like Barwells, this approach offers a pragmatic solution to the challenges of adviser retirement and client continuity. As more firms adopt this model, we can expect to see a more dynamic and resilient financial advisory sector.
If you’re considering a move from paraplanner to trainee adviser we’re here to help. Feel free to reach out for a chat, on my email: [email protected] or check out the job spec.
By embracing this trend, firms can secure their future, provide valuable career progression for paraplanners, and continue delivering exceptional service to their clients.
