In the next article of a regular series for paraplanners considering taking the leap to become advisers, Hayley Rabbets, Head of Evergreen at Calton tackles the practical considerations.
Back when I did my exams, 100 years ago (I know, I don’t look a day over 80) I wanted to do them to become the best paraplanner I could be. I even rolled straight into my level 6 exams after completing my diploma, to make sure I had the technical knowledge needed not only to support the advisers I worked with, but to help support my team too.
I didn’t need to be qualified to do my job, but I wanted to do them to do my job really well. I think there was also something there around wanting to ensure I was taken seriously, but that’s a story for another day!
Back then, the thought of becoming an adviser never really entered my mind. I worked for firms where the advisers were predominantly men, and I very much saw it as a sales role. And a sales role just wasn’t for me.
Fast forward to today and my views on the adviser role have largely changed. I’ve seen the transition from financial advice to financial planning, and how planners no longer merely ‘flog products’ but really build trusted relationships with their clients, supporting them to structure their finances to achieve their hopes and dreams.
Some planners coach their clients to help them with their mindset and teach them skills to improve their financial wellbeing.
Now that is a role that 19-year-old me would have loved. Who knows, one day I may finally decide that’s the route for me, but for now I’m enjoying my work helping to support other people to become planners, build their businesses and plan their succession.
And it’s with that knowledge and experience that I write today about what becoming a planner looks like, the different routes you could take and some things to consider along the way.
The traditional route into an adviser role has for a long time either been through distribution in a large provider, or the scenic route starting in admin, moving into paraplanning and then into advice.
Three very large stepping stones with very different skill sets, if you ask me! And this is where the first consideration comes in – do you want to be more client-facing? These days a lot of paraplanning roles are client-facing and they give great opportunities for you to almost test the waters of becoming a planner.
But if you’ve never sat in front of a client before, it’s worth considering what that might be like. Do you think you have the relational skills needed to delve into the sometimes-sensitive subject of people’s finances? Of their hopes and dreams.
Dealing with disagreements between partners and helping them build good financial habits? If not, is your firm willing to invest in this kind of training? Can you do things to support this learning yourself? Do you have a strong network or community to call on?
Okay, so you’ve sailed through the client-facing question and you’re pretty sure you want to become a planner, how do you now practically take that step? Here are the things you need and the steps you have to take to become a regulated financial planner:
- Get qualified. Whether that’s through CII, LIBF or CISI, you’ll need your level 4 diploma behind you.
- Find a role. Whether that’s an opportunity within your current firm, a new one, or going out on your own* you’ll need a clear path to the role.
- Become competent. You’ll need to go through Competent Adviser Status (CAS) training which starts with supervised meetings. Once the regulated firm is satisfied that you no longer need to be supervised, you’ll be granted CAS. This process is far from perfect and it might be worth reading my previous article on the subject so you can prepare yourself for any difficulties.
- Register with the FCA. After your initial CAS training on how to advise, you’ll be added to the FCA register before you start your supervised meetings with clients. You’ll be shown on here as being supervised and then once you’re signed off, it’ll show as being fully registered.
*Here comes our next consideration – finding the role (I bet you thought I’d forgotten the asterisk didn’t you). This is arguably the most difficult part of the whole transition. Particularly if you are already employed as a paraplanner, and even more so if you’re a great one!
Paraplanners are like gold dust, and often once a firm finds one they’ll do all they can to keep them! Can’t blame them really, paraplanners are awesome! But it’s frustrating for those who want to move into a different role.
If you’re a paraplanner in an existing firm, I’d suggest speaking to your line manager or even an adviser you work closely with. Is there room for you to progress into an advisory role? What would that path look like?
Is there perhaps an opportunity for you to transition into the advisory role over time, slowly shedding some of the paraplanning work along the way, to minimise the pain of you stepping away from it?
If not, it might be time to look for a role elsewhere. Trainee adviser roles, particularly employed ones, are relatively difficult to come by but you have a couple of different options:
- Keep an eye out for a trainee adviser role within a firm. Engage with a specialist financial services recruiter, search job sites, keep your eyes peeled on LinkedIn, leverage your community, sign up to job sites. An opportunity should come your way eventually, but you might need some patience, particularly those of you who don’t live near the major cities that house multiple planning firms.
- Consider joining an academy. They aren’t for everyone, but they do have very good, structured training and we’re seeing more and more of them popping up. If you’re already qualified and in a paraplanning role, they should be able to fast track you. The advantage here is that they are recruiting you specifically for the advisory role, so little chance of you being kept in your proverbial paraplanning box!
Then there’s the self-employed options:
- Academies again. A lot of the academies will offer self-employed positions, in fact the majority of them do. The main thing to watch out for here is the contract terms (always read a contract carefully and seek legal advice if there’s anything you’re unsure of. And no, ChatGPT doesn’t count as legal advice!) You should also ask about who retains servicing rights to clients should you wish to move on. Even self-employed roles come with restrictions on this, so be very clear when walking in.
- Going it alone. The majority of networks won’t take you on without CAS, and you can’t get CAS without a regulated entity signing you off. So, this is the least viable option. The reason I’ve included it is that there are a couple of networks and similar arrangements that will accommodate pre-CAS advisers. If you do go down this route, I strongly suggest you put together a business plan, particularly around how you intend to find clients.
Once you’ve landed the role, depending on the arrangement, this will be your time to shine. Time to start finding clients to work with, or contacting those the firm has introduced you to.
The first couple of years are vital to finding your advising style, the way you present your advice, and developing those strong relational skills I mentioned earlier. It won’t always be smooth, but if you’ve thought it through properly and gone in with your eyes open, it’s a route well worth taking.
I think next month’s topic has just been decided! See you then!
Hayley Rabbets is Head of Evergreen, a new proposition and pathway for self-employed financial planners within Calton. Discover more at Evergreen by Calton’s LinkedIn page.
Main image: chatting, office, lyubomyr-reverchuk-CvyRP10doo0-unsplash
