Research into the paraplanner role has revealed a significant growth in influence of paraplanners in financial planning firms over the past 5 years.
The Rise of the Paraplanner Report 2019, published by Research in Finance, in association with FundsNetwork, is the latest in a series of in-depth studies conducted over the past 5 years, which has tracked key metrics including paraplanners’ influence and responsibility within adviser firms and in the research and selection of funds, products, platforms and services.
FundsNetwork is supporting the report and from today is making the full version available in pdf format to paraplanners via the FundsNetwork platform and to paraplanners attending the Professional Paraplanner Technical Insight Seminars.
The Report identifies the demographics of the paraplanner, how the role is developing, where paraplanners sit within adviser firms, salary trends, how they approach research, due diligence and selection criteria, and assesses and predicts current and future trends in paraplanning.
The research shows that not only is paraplanning now a core function within financial planning but paraplanners are being given greater responsibility and rising up the ranks within firms, with increasing numbers taking positions on investmentcommittees, becoming key members of the management team and development committees, and in some cases joining the board.
The study reveals that over the past two years, 16% of paraplanners have been promoted to more senior roles, 52% have been given more responsibility in their current role, 29% have become more involved in the general business of their firm. 13% have joined the investment Rolecommittee and 12% have become part of the management team.
Furthermore, paraplanners’ influence in the selection of pensions, investments, platforms and other services has grown significantly in the past five years, with 87% of paraplanners now having influence in the selection process – compared to 64%-75% in earlier studies.
Richard Ley, director and co-founder of Research in Finance, and publisher of Professional Paraplanner, says: “The Rise of the Paraplanner 2019 Report builds on the in-depth work we have conducted over the past 5 years and is an essential tool in understanding how the financial planning market is evolvingand who will be the influencers and decision-makers within advisory firms in the next 3-5 years.
“FundsNetwork quickly recognised the growing importance of paraplanners in the financial planning market and has been a core supporter of the Professional Paraplanner Technical Insight Seminars since they began in 2015. Their commitment to the paraplanner community is further evidenced by their support for the 2019 Report.”
Paul Squirrell, national Pensions sales manager, FundsNetwork, says: “The role of the paraplanner continues to evolve, with the report from Research in Finance reinforcing the shift we have seen in recent years from administrative to increasingly strategic responsibilities. This opportunity for paraplanners to influence decision-making and the direction of the businesses they work for is one of the main attractions for the next generation of financial planning practitioners, set to take the profession forward.
“Paraplanners are increasingly seen as the ‘engine room’ at the heart of the business, working together with advisers to enable them to seek new business and strengthen client relationships. With this trend set to continue, it is important we have an understanding of how the role of the paraplanner is changing in order that we are able to support their needs both now and in the future.”
Excerpts from the report were previously published in Professional Paraplanner
