Paraplanner and financial planner - Financial Planner

Paraplanners and financial planners are found in a range of financial organisations, from large wealth management firms to smaller planning practices. Some firms may offer a wide range of services from a variety of product providers and disclose themselves as independent financial advice (IFA) firms, whereas others may offer a more restricted or specialist range of services across a narrower range of product providers.

Both large and small firms are often supported by umbrella organisations known as networks and service providers who will provide a range of support services, including regulatory infrastructure, technology and technical assistance and consultancy support.

These roles are usually office-based, but may require visits to client premises or virtual working with colleagues and clients online.

The broad purpose of the occupations is to deliver a holistic financial planning service to corporate or individual clients and create personalised solutions designed to deliver their financial needs and objectives. This involves financial planners and paraplanners collaborating to gain a clear understanding of each client’s circumstances and needs, in order to create a financial plan to help them achieve their goals.

Paraplanner and financial planner roles within a firm are collaborative but distinct, and both have an equally vital role in the advice process.

Paraplanner

A paraplanner supports the financial planner in the provision of regulated advice. They use their technical knowledge, expertise and capability to interpret client needs and objectives and undertake extensive research to examine potential financial options whilst utilising a variety of software applications and tools. They rationalise a range of solutions and select those most appropriate in order to create regulatory-compliant, written financial reports that are tailored to the client and clearly explain their financial options. These reports are then used by the financial planner when presenting financial options to the client.

Financial Planner

A financial planner is responsible for the client relationship and uses their knowledge, skills and expertise to understand their client’s circumstances, needs and objectives, in order to provide regulated financial advice. They design, deliver and maintain appropriate financial solutions for the client whilst building trusting and enduring relationships with them. This involves the detailed gathering of hard and soft facts from clients and utilising software applications and tools to research potential solutions and deliver personalised recommendations. This is often done through face-to-face meetings or through online, virtual meetings. As this is a regulated occupation, any solutions, options and recommendations must be delivered to the client in verbal and written format. Financial planners may have additional responsibilities such as adhering to key performance indicators on quality and service standards, or for meeting commercial objectives for the firm by seeking new business opportunities from clients.

In their daily work, an employee in either occupation will interact with a wide range of internal and external stakeholders. Financial planners and paraplanners would typically be integral roles within a finance firm, working alongside compliance and support services and other finance specialists.

Depending on the firm, both can deal with clients, although this would usually only apply to the financial planner who would be responsible for building relationships and rapport with clients.

On a day-to-day basis, paraplanners would typically deal with product providers and fund management groups, while the financial planner is more likely to deal with professional connections such as accountants and solicitors.

An employee in these occupations would be responsible for providing accurate financial planning services in accordance with financial regulations and would demonstrate a high degree of honesty and integrity.