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Paraplanning - Acorns to Oaks

Wed, 18 Dec 2024 11:42:59 GMT

Is it time to reframe how we talk about Paraplanning?

'Paraplanning is now a career in its own right’.

I’ve lost count of how many times I’ve seen this in articles and blogs, and I’m sure I will have said it myself in the past.

But, I see this now, and for some reason I can’t quite yet put my finger on, it irks me.

I’ve been working in financial services for coming for 25 years now, with well over 20 of those in financial planning and advice. Most of those have been spent in paraplanning, before I even knew what paraplanning was, I think.

Where are they now?

We all know, paraplanning can lead on to many other career choices. In my time in financial services, it’s been a real privilege to take on roles that have enabled me to meet many people in our profession, hundreds and hundreds over the years, I shouldn’t doubt. Many of them, like myself, have started in paraplanning.

As they’ve gained qualifications, experience, skills and knowledge, many have moved into different roles. Paraplanners I met, know and/or have worked with over my own career are now in Managing Director, Senior Partner, Head of Financial Planning, and Operations Director positions, and absolutely thriving in them. Many have also gone on to be really successful Financial Planners and advisers.

However, many others, like me, have chosen to stay in paraplanning. Some are in very senior paraplanner roles, sitting on investment committees, formulating advice policy and/or managing paraplanning teams. Others have gone down the outsource paraplanning route, either through setting up their own outsource businesses, or joining an outsource firm.

How have things changed?

Over the years, I’ve seen a real evolution of paraplanning. It’s gone from often being regarded as just a hurdle to get the business signed up (in firms I’ve worked with, the paraplanning team were sometimes ‘jokingly’ referred to as the Business Prevention Department’) to a key role in the client’s financial planning journey.

It was something that needed to be done to tick a compliance or admin box , and paraplanners were often seen as the ‘poor relation’ in the business. When I first began in financial advice, it was more or less instilled in me that advisers brought home the bacon, and paraplanners were mouths to feed! It was also viewed that paraplanning was just something you did on your way to becoming a financial adviser.

Of course, times have changed massively. Paraplanning has changed because financial planning and advice has radically changed. Over the last 20 to 15 years, due to legislation changes and a raising of professional standards and expectations, we have gone (certainly in my experience) from a sales based industry where clients’ financial problems were solved by selling them a product, to a service led planning profession, where long lasting plans, solutions and relationships are created.

We still sell of course, but we’ve gone from simply selling products to customers, to plug a gap, to selling long term solutions and peace of mind to our clients.

And with this move to a relationship based service for clients, has come the development and advancement of the paraplanning role. Many Paraplanners now are often already Chartered and Fellow members of our professional bodies, or are certainly aspiring to become so.

They are frequently a lynchpin in financial planning businesses, working collaboratively with the planner. Rather than simply being a cog in the machine, they will have shared ownership and responsibility in the client’s overall experience.

So with all this additional respect for paraplanning, arising from increased qualifications, skills and experience, why do we still keep staying that ‘it is now a career in its own right’?

I’ve met, trained, mentored and supported a whole range of paraplanners over the years. I’ve talked to them about their career aspirations, what they want to achieve, when and how we can help them do that. What I’ve noticed over the last few years, more and more view paraplanning as where they want to be, and where they want to stay.

To them, paraplanning is a career. It’s their career, and one they are really proud of. Having seen this evolution over more than two decades, it’s clear to me, that from tiny little acorns all those years ago, paraplanning is growing into a great oak.

We talk about trying to attract more people into the profession, that no-one outside of financial services knows what paraplanning is, but if I was someone being told a profession is now a career in its own right, I‘d be thinking – ‘Right oh, but why is it? What on earth was it before?’

Anyone who knows me, knows I am a paraplanner to my core and I love my job. I’ve been doing it for over 20 years, and will probably be doing it for many more; I am one of those ‘career paraplanners’. Perhaps that’s why it’s started to irk me!

So is it maybe time to reframe how we talk about paraplanning? Let’s ditch the baggage and change it from ‘Paraplanning is now a career in its own right’ to simply ‘Paraplanning is a great career’.

Studying for exams - Here's some handy hints and tips

Mon, 05 Jun 2023 08:43:47 GMT

Setting the Standard...

We all know we work in a highly regulated profession, requiring a set level of knowledge and understanding to be able to provide advice and recommendations to clients. Whilst there is no minimum qualification requirement to be a paraplanner, in my experience, paraplanners have set their own high standards for our profession. Most of the many paraplanners I speak to are already at or aiming for Level 4, with many looking to become level 6 or level 7 qualified and beyond.

Anyone who has studied for a financial planning qualification will know that they are not easy – and neither should they be!

We are privileged to be trusted by clients to help them look after their wealth so they can achieve their goals and plans in life, and be financially secure. To be able to provide them with the best service we can and warrant the trust they place in us, will require initial and then ongoing, lifelong learning.

Getting started...

Whilst there are now a number of ways to take qualifications, all will need extensive preparation, and so here are some of my hints and tips for getting study ready and giving yourself the best foundation you can:

My first tip and biggest tip (and might seem like the most obvious!) would always be to make sure you read the syllabus – exams and qualifications test on the syllabus not on the text book!
Look at the additional reading list on the syllabus and try to read more widely than just the text book. The more you read, the more you’ll know!
For exams, try and practice them as much as you can – past papers are great for this and try and recreate an ‘exam environment’ as much as possible. Only give yourself the exam time allotted to get used to the time you’ll have on the day.
Past papers include examiner’s notes – these give feedback from the examiners of how questions were answered, and common errors or misunderstandings from candidates including any themes to these. These are particularly useful for written exams and will make sure you’re able to learn from previous candidates’ errors so you don’t make them yourself.

The guide number of study hours for an exam is usually a good indicator of how long you should study for, but the key thing is to have a study plan:

o Work backwards from your exam or submission date : how many hours a week do you need to study to be ready?

o Build yourself a timetable : Look at the syllabus and the learning objectives for each section – focus study on the learning objectives and sections that will award the greatest marks, and allocate your time accordingly.

o Study in bitesize bits : Your brain will lose focus after a while, schedule in little breaks every hour or so – get some fresh air or have a cup of tea and then come back with your brain refreshed for the next bite!

o Make plenty of notes : Make notes and use highlighters – but only for the pertinent bits or you’ll end up with the whole study book highlighted! Also, post-its dotted here and there with little reminders are a great help.

o Get a study buddy or join a study group : This is a great way to share ideas and get help from others in the same boat – again particularly good for written exams.

What order should you do qualifications in...

Well, that’s up to you of course, and it depends on what you are studying for, (e.g. a level 4, 6 or 7), which qualification provider you are using and the pathway that they offer. For Level 4, my advice would be to do a tax exam as early as you can as understanding tax is fundamental for many and most parts of financial planning.

If you are also looking to do an advanced level exam, it’s often easier to do this at the same time as the level 4 exams. For example, a level 6 pensions exam will need the info you’re learning for a level 4 exam. Whilst they will be testing from a different perspective – (level 4 is knowledge and level 6 tends to be application of that knowledge) and will require different techniques, the foundation learning will be the same. You could kill two birds with one stone by doing them together!

We all learn in different ways though, and for some of us, exams can be challenging and perhaps not the best way to test knowledge and understanding. So find out the best method of learning and testing for you, and go with that to give yourself the best chance of success.

Whether you are working towards exams or completing coursework, all will require studying and hard work. So my final tip, be honest with yourself, put the work in that you need to, if you do, I’m a great believer that you’ll get the result you deserve!

What's the mentor you, hey?

Sat, 18 Feb 2023 19:13:05 GMT

I love my job!

I know I’m very fortunate to be able to say that but I don’t believe it is all down to luck. Much of it is down to the support I’ve had over my career from colleagues and peers, in the form of mentoring.

What is a mentor?

But what is a Mentor? A quick search gave me a good description:

A mentor is a person who can support, advise and guide you. They typically take the time to get to know you and the challenges you're facing, and then use their understanding and personal experience to help you improve.

Over my career I have been fortunate to have some amazing mentors. They have supported, advised and guided me, just like the description says, enabling me to grow and develop throughout my career.

Where did it all begin?

I first started being mentored when I was taken on as a Technical Assistant (in today’s terms, a trainee paraplanner!) I’d been working in financial services administration for a couple of years for a life company and then an IFA firm and had completed a few exams but had no real practical experience of the technical side of financial advice and planning.

Feeling a bit adrift, I was teamed up with Jenny (not her real name!), a very knowledgeable and experienced techie, and luckily for me, she was only too pleased to share her time and expertise to help me develop.

Even though I didn’t know my Section 9(2B) Rights from my GMPs, she was fantastic; she explained things patiently, was supportive and really helped me to develop into my new role.

Over the years, I’ve been fortunate to have a few different ‘Jennies’. They’ve been called ‘Buddies’, ‘Trainers’ or ‘Mentors’ but they all have the same thing in common – they gave me the support I needed to develop and move forward with my career.

Training v Mentoring

Mentoring began for me when I started to help new paraplanners who joined my team to settle into the business. They all had differing levels of experience and knowledge but the common denominator was that they were all new to the business and so needed training on the processes and procedures.

However, it is important to remember, and one of the first things I think I learned when becoming a mentor, is that Training and Mentoring are very, very different. Training is about learning ‘the way we do things’; Mentoring is about helping someone to develop their skills and expertise to be able to progress in the direction they want.

Unlike Training which much of the time will involve simply giving instruction and showing someone how to do something, Mentoring is a symbiotic relationship between the Mentee and the Mentor.

Using the Mentor’s experience and knowledge, they discuss, analyse, plan and agree how to help the mentee develop and move forward in a way that’s right for the mentee. It’s not about telling and instructing, it’s about sharing and collaborating to get the best outcome and getting the mentee moving in the direction they want.

Benefits of mentoring and being mentored

There are of course many benefits for the Mentee in the relationship but also for the mentor.

As a result of the help, support and encouragement of my mentors, I have certainly increased my knowledge, skills and confidence. I have no doubt that without mentoring, I wouldn’t be an active part in the financial planning and paraplanning community, or do the volunteering work I have with the PFS, and most importantly for me, I wouldn’t be running my own business and have a career I truly love.

From the Mentor side, it has also helped to build my confidence, self awareness and empathy, with you having to put yourself in someone else’s shoes to really understand what they are looking to achieve. Not unlike the skills we use with clients everyday!

Becoming a mentor

Having had the benefit of being mentored in the past, it has given me an appreciation of the importance and benefits of passing on and sharing what you know to others.

Many businesses now have formal structures in place where you can be matched with a mentor or buddy to help you with those daunting few months starting in a new role and then throughout your career there. If you work somewhere that has this structure, it’s a great way of starting on your own path to becoming a mentor.

We’re really fortunate too, there are now so many opportunities and schemes which you can join and become a mentor and/or a mentee. Mentoring is something I really enjoy doing and have been doing it for a few years now. I’ve had a number of mentoring relationships with people new to the profession and helped them on their way covering areas such as exams, practical help and advice on skills and knowledge needed to do the job, and longer term career options.

If you’ve never tried it but are looking for a way to start, there are a number of ways, it can be through your work or perhaps your professional body. You get to help someone develop and move forward with their own career path and goals, which is, from my experience, one of the most rewarding things I have done professionally. I would definitely recommend it to anyone looking to get involved with helping the next generation of our profession.

A few tips for client friendly reports...

Mon, 21 Feb 2022 10:51:00 GMT

Reports are boring!

Suitability reports are boring and the client probably never reads them anyway'. I’m sure we’ve all heard that before!

As a paraplanner, a huge amount of my time is spent writing reports, so there is nothing more deflating than being told your work is boring! – Particularly, if like me, you’re doing something you enjoy.

I love taking all the information about the client and putting this together to tell their story. Obviously, we don’t know what the ending is going to be, but we do have the beginning and the story so far. Our job as financial planners is to help them ultimately get their happy ending, having done all the things they wanted to in the meantime.

Over the years, there has been much deliberation, consideration and discussion about what must be included in a suitability report and views on this often vary greatly. This means there is lots of thought about what the content of the report should be, but do we give equal time and consideration to how it actually looks to a client? We sometimes focus so hard on what we are telling the client, we often forget how we are telling them. The look of the report, the language we use and the readability is often abandoned in favour of ensuring it is compliant, and we sometimes forget they are not mutually exclusive!

Reports of course need to cover off our regulatory responsibilities, but their primary purpose is to put the client in an informed position to be able to make a decision about the advice and recommendations being made. I’m of the view that if you do the latter well, the former will generally take care of itself.

I’ve been paraplanning for a long time and much of this has been spent trying to make reports more engaging and inviting, so they are something that the client does actually want to read. I’ve read up on writing techniques, attended seminars on design and taken part in numerous brainstorming sessions on how to write well. All of which I hope have helped me ‘build a better mousetrap’, so to speak.

This blog therefore isn’t about me telling you what content to put in as you need to decide that as a business. Hopefully though, it gives a couple of handy hints and tips on layout and style to help create something the client really does want to read. They may sound obvious and not particularly ground-breaking, but then I’m all about keeping things simple!

How long is too long?

I think we can become overly obsessed with how long a report should be, which sometimes translates into cramming as much information into as small a space as possible to keep the page numbers down.

I’m a great believer that a report will be as long as it has to be to give the client all the information they need to make that informed decision, and I try not to get too distracted by page numbers. I would rather see a pleasantly designed and easy to read 10 page report than one that is five pages but everything is squashed, busy and overcrowded.

Using whitespace

Whitespace appears to be one of those ‘marmite’ type things. Some people like whitespace in a report and some people don’t – but remember, it’s not really about what we as the writer like, it’s about making it more engaging and easier for the client to read.

You wouldn’t speak to someone continually for several minutes without stopping to breathe or giving them time to digest what you’ve said, but we do this with our reports all the time.

When the layout of a report is just one section after another with no gaps or pauses, this can feel like the writing equivalent of talking at someone non stop – never a good way to get a message across!

I think of whitespace as a ‘pause for breath’ in a report, it gives the client a moment to really take in what you’re telling them before moving on to the next point. There have been several studies on this that show including whitespace in a written document can help speed up reading times and understanding.

A picture paints a thousand words

We often have to convey co mplex ideas and information to clients, many of whom will be unfamiliar with the terms we use on a day to day basis. Using images, illustrations and graphics can be a really good way of explaining things more easily and demystifying complicated concepts.

I've often found a strategically placed chart, graph or venn diagram can frequently save the need for a page full of text!

Layout and spacing – to justify or not to justify?

We all have preferences on the layout we use and how we structure our reports. Line spacing and justification of text is a good example of this.

Studies have also been done that show when text is ‘justified’ it is harder to read than when it is aligned left. This is because the irregular spacing between letters and words makes it much more difficult for the eye to read.

It is also important to get the line spacing right. Making sure your text is well spaced prevents it looking squashed and, when coupled with the whitespaces in the report, makes it more inviting and easier to read.

Would you want to read it?

As I said, nothing ground-breaking here, just some simple techniques and tips to try to jazz up those ‘boring’ reports! Things to consider are also the use of colour, graphics, language and tone, which are all key elements of a client friendly report - but perhaps that’s a blog for another day!

However you design your reports though, remember, it’s not your story you’re writing, and if even the main character isn’t interested in reading it, it really will end up languishing in the client’s drawer!

Fancy joining the financial planning profession? – Here’s a (hopefully!) useful blog

Mon, 22 Feb 2021 19:41:00 GMT

Thinking of financial planning as a career....

As a profession, we are crying out for new people to come and join us, but are we an easy career to get into or do we have barriers that those on the inside just don’t see?

On a recent Linkedin post, someone asked a number of questions about the financial planning profession that a new person may want to know:

1. Can you be a paraplanner without being qualified?

2. Why are there junior/senior administrator and paraplanner roles?

3. At what point does the administrator become a paraplanner?

4. How confusing is this for a new entrant?

These are all very good questions so I thought I’d try answer some of them with what’s my view but hopefully helpful!

1. Can you be a paraplanner without being qualified?

‘Technically’ no, you don’t ‘have’ to have any qualifications to be a paraplanner, but this is also true of the administrator role. However, do you ‘need’ qualifications? I would say, to be able to do the paraplanner role fully, to understand the technicalities of how to put together and then continue to monitor and review a client’s plan, th en yes, you would need the technical knowledge that comes from studying.

Again, to what level and in what type of exams very much depends on the type of paraplanning work you are doing, and the level you and your employer want and feel you need to get to, to be able to look after the number and type of clients your business has.

Do exams give you the competence to be able to do a paraplanning role? Again, yes and no. The best paraplanners I know and work or have worked with have a balance of qualifications and experience. I have worked with some who had not yet got to level 4, and were excellent paraplanners, some who were not. I’ve worked with some who are level 4, or chartered and/or Fellow, and are excellent, and again some are not .

I’ve worked with paraplanners who are highly technical and very capable at the analysis and research aspect, who produce ‘compliant’ reports, but really struggle or are not actually able to convert the outcomes of this research and analysis into a readable and client friendly format, a key skill needed from a paraplanner.

2. Why are there junior/senior administrator and paraplanner roles?

There are a range of administrator and paraplanner roles. Trainee/ junior roles, paraplanner, and senior paraplanner. People tend to work up these levels as they gain qualifications and experience, (and if they want to, of course!)

I know many excellent and skilled paraplanners who are ‘paraplanners’ rather than ‘Senior Paraplanners’. For example, I’m a Chartered Financial Planner, and Fellow of the PFS with 20 years experience, but I call myself a ‘Paraplanner’ rather than ‘Senior’ or ‘Head’ Paraplanner, as I’m the only one in my business, so I can’t be senior or Head to anyone else!

3. At what point does the administrator become a paraplanner?

So when does an administrator become a paraplanner? Well, from a what they ‘do’ point of view, it will be largely down to the tasks they do and the business they are in.

Administrators tend to do more of the crucial supportive work, in my experience. Looking after the client through creating and building their file with all the information the planner has gathered; getting and processing information on current plans, investments and pensions. Communicating with the client to keep them updated on progress and request any other information that’s needed.

An administrator will usually gather, collate and prepare all the vital information for the paraplanner, in conjunction with the planner, to review, analyse and assess as part of building the client’s Plan and the recommended actions to help get and then keep the client on track. The paraplanner will do this using (sometimes, but not always) cashflow planning, reviewing the client’s pensions and investments, and then assessing the suitability of these to meet the client’s needs and goals.

So, in answer to that part, once an administrator starts moving from doing the key tasks to set up, build and maintain the client’s file to ensure a well running client relationship, and start moving to more of the planning, reviewing and analysis aspect of the client relationship, that’s when they are becoming a paraplanner.

From a different point of view, when an administrator wants to become a paraplanner will very much depend on whether they want to! I know we talk of ‘career’ paraplanners, but there are many, many people now who are also ‘career’ administrators and client support staff.

A fundamental role

The administrator and support staff role is fundamental to the client journey and the service they receive. Paraplanners, Planners and Advisers could not do what they do without administrators doing what they do, and sometimes this doesn’t always get the recognition it deserves.

Whilst there is lots of crossover in the skills and traits needed for a good administrator and a good paraplanner, such as excellent organisation, time management and communication skills; great administrators also have tenacity, patience, initiative and great client focus.

They are frequently the glue that holds the financial planning team together, often wrangling the planner and the paraplanner, organising information, timescales, meetings and a range of other things to ensure the client has a great experience.

For someone wanting to become a paraplanner, planner or adviser, the administrator/client support role is a great place to begin. It often needs less qualifications and experience, and so can be a good way to break into financial planning.

It also provides a really good foundation for any career in the profession as it gives a great way to learn about the different types of pensions, investments, protection plans and the range of the providers, that are needed in other roles such as paraplanning, planning and advising as well as other technical or compliance based roles.

4. How confusing is this for a new entrant?

I’m sure it is confusing for people who are considering or new to the financial planning and advice profession but there is help and information out there.

There is the CII Step Forward website, which gives school leavers, returners and career changers lots of information on our profession. https://www.ciistepforward.co.uk/

On that website, there is also information on the different roles: https://www.ciistepforward.co.uk/fortunes/career-inspiration

There is also free CII membership (terms and conditions apply, naturally!) for some: https://www.ciistepforward.co.uk/member/register

And there is the Personal Finance Society ‘Getting you Started in Paraplanning’ booklet, which also gives lots of information on Getting Started in Paraplanning (unsurprisingly!)

https://www.thepfs.org/news-insight/publications/articles/getting-you-started-in-paraplanning/82771

https://www.thepfs.org/media/10122021/getting-you-started-in-paraplanning.pdf

Help is always given to those who ask for it….

Profession or Industry?

Sat, 13 Jun 2020 09:36:00 GMT

Lockdown is really giving people the opportunity to take stock, review the way they do things and look for improvements. I don’t know if the two are related but recently I’ve also noticed an increasing number of people from all areas of the financial services sector, voice their views on where we are as a profession.

I use that word quite deliberately. We may have started as an ‘industry’, but I firmly believe that over the years, we have developed into a profession:

Any type of work that needs special training or a particular skill, often one that is respected because it involves a high level of education.

I know there are many who won’t feel the same way as me on this. I’ve spoken to people who want us to be viewed as a profession but feel we have a long way to go before we get there. Some believe we remain an industry because the deeds and attitudes of others fall so far below the behaviours and ethics expected from a member of a respected profession that we could never be viewed as anything else. There are others who have been doing this for such a long time, that being part of an industry is simply in their DNA; they don’t see it as an issue and are perfectly content with that.

So why is the question of industry or profession even an issue? It boils down to perception. I recently wrote a piece asking how are we seen by our clients, the general public, our peers and people considering financial services, planning and advice as a career? I won’t repeat the whole article here, but many people, myself included, feel that we need to take stock and really look at where we are as a sector to decide where we want to go next. If you fancy a read of it though, here’s the link:

https://www.professionaladviser.com/opinion/4015407/caroline-stuart-financial-advice-reboot

It feels that we have a lot of work to do before we become a “trusted profession”.

Our clients and the general public

I have no doubt that on a one to one basis, clients trust their planners and advisers; if they didn't, they would vote with their feet. However, I would suggest the view of the public at large is quite different to this.

There have been scandals, which although perpetuated by a rogue minority, tarnish the whole profession; and a rise in consumers being caught by scams and frauds is making people very mistrustful of any financial services and advisers.

A united profession?

But we can all work together to help tackle these scandals and scams, can’t we? You really would like to think so wouldn’t you?

Sadly, it’s not as simple as that. We are not a united profession, industry or whatever you choose to call us. We can barely go a week without some kind of spat starting on social media; whether it’s charges, fees, fund types or servicing proposition, it’s always the perennial ‘no my way is better than your way, so you’re wrong’ type of disputes we’re so used to seeing.

Then there’s the comments sections of our trade and professional publications. Some of the things I’ve seen in the comments over the last few years are, and there’s really no other word for it, shocking.

A few weeks ago, there was a story on which people started to express their views. What started out as reasoned and sensible conversations soon deteriorated into derogatory, patronising, personally insulting statements, bordering on aggressive superiority by some of the commenters. What was the common factor behind them all? They were being made anonymously.

My question to these people – if you were using your own name, would you have commented in this way? If you were speaking to this person face to face, would you still have used the language and tone you did to express your view?

I don’t suppose we will ever know for the same reason they are able to feel so free to make those sort of statements in the first place, they hide behind the protection of anonymity.

We of course need debate; constructively challenging the status quo is how we will develop, it’s how we learn from one another and improve ourselves and outcomes for our clients. However, when it descends into aggressive personal attacks, including casual everyday sexism and derogatory remarks as these ones did, let’s call it what it is. Bullying.

When challenged on their behaviour, the go to responses are ‘snowflake’, or ‘freedom of speech’ or ‘PC brigade’. However, wanting someone to communicate with you with respect does not mean you are infringing on their freedom of speech nor does it make you a snowflake; it is a basic expectation from a professional peer.

When you become part of a professional body, you sign up to a Code of Conduct - the standard of behaviour expected of everyone wanting to be a member. The Personal Finance Society has a Code of Ethics, one of which is:

Act with the highest ethical standards and integrity.

This includes, but is not limited to: being honest and trustworthy, and being reliable, dependable and respectful.

Taking positive action

One of our professional publications has now taken the decision to only allow people using their real names to comment for the first time and to have a lower tolerance threshold for excessively negative comments made anonymously.

I for one applaud this decision and it has been supported by many. However, as with all things, not everyone agrees and the question if this will reduce people’s willingness to contribute has been raised. However, if someone has a valid, reasonable or constructive comment to make, why do they need to hide behind a pseudonym?

In my experience, the thing that is stifling debate the most isn’t not being able to comment anonymously, it’s not feeling you can comment at all.

I know of many voices who are too reluctant to speak out because of the potential repercussions they will get from it.

I recently read a blog by a female adviser asking how we attract a more diverse range of people to financial services. It was well articulated, made some excellent points and had well reasoned and evidenced examples.

What was the problem with it? Absolutely nothing, other than because she was worried of the backlash from some of the points raised, the author felt only able to publish her article in a ‘safe environment’.

I think it’s fantastic that she took the time and effort to put the blog together, you could feel how powerfully she felt about what she was saying. So why is it she felt she could only express these views in the environment she did?

I'm afraid, this is where we are at. People who have important and salient ideas to put across that could help our profession develop and improve are too afraid to express them for fear of derision, personal attack or aggressive, confrontational responses.

People end up expressing their views in safe environments, which is a fantastic start, but if their views remain in these echo chambers, then nothing will ever change.

Our people

Going back to her article, she was asking how can we attract a more diverse range of people to our profession? Something many have been asking for a long time. One of her key questions was “how do you feel about the typical adviser stereotype?”.

She commented how she is frequently asked “how do you feel about being a woman in the industry”, but very interestingly she wondered what would be the answer if we turn that question around and asked an adviser in that stereotypical bracket “how do you feel when you are painted as the typical adviser stereotype we need to change?”

I will readily admit, this is something I have never considered but it’s a really valid point. I know many excellent advisers and planners who fall into that ‘typical’ demographic and it’s worth remembering we would not be where we are as either an industry or profession today without these people. I have learnt many things from some of these ‘typicals’ for which I am very grateful because it means I am doing I job I love because of their help and advice in the past.

However, we do need to expand our horizons, and many advisers and planners in that demographic, not only know this, they agree and want things to change too. We need to become more forward looking to attract all demographics to the profession for it to develop and grow.

To do that, we need to be more open, transparent and welcoming; we all need to be able to express views, positively challenge each other and be able to have debate without it ending up in some sort of battle.

Just because someone’s business model differs from your own, does not mean you are right and they are wrong, it’s just different. If you and they are looking after clients well, clients are happy and being treated fairly, why is there an issue? If you feel that there is a genuine problem where clients are being disadvantaged or suffering detriment from the way something is being done, then positively challenge it, back it up with evidence rather than opinion. Alternatively, if someone is doing something differently but are still meeting all those points, then there is probably much that we can learn from each other.

The squabbling and sniping on social media and open forums has to stop; we need to accept that there will always be differences in the way we all work and the services we provide to clients. If we find we disagree, we have to be able to discuss, challenge and debate these appropriately as professionals.

Arguments and excessively negative comments in open forums are not doing us any favours. They are there for all clients, peers and the public to see, so it is hardly surprising if we are not viewed as a trusted profession and our own people are not comfortable expressing an opinion. If you were a client or a potential recruit, and you saw this would you feel impressed by our behaviour or shocked? Would you be happy to approach us for advice or join us as a career, or would you walk away? If you were a member of our profession, would this make you comfortable and confident to express a new or different point of view?

Time for a change

If we want to help consumers to get better outcomes and protect them from scams and to attract more people to join our profession, we need to get our house in order.

As I have said, I’ve noticed more and more people saying that enough is enough. We have a real opportunity now to galvanise all these voices, gain momentum and start to make a real change, because if not now, then when?

We need to find a way to harness this, help others to know they can speak out. If we all work together with our professional bodies and all the other fantastic initiatives, groups and organisations that we have working to drive up standards and professionalism, I really believe we can make a difference for our clients, the public and our profession. Let’s use our voices - if we see poor behaviours, disrespectful communications or bullying, let’s call it out for what it is.

This is our profession, one I am hugely proud to be part of and I am prepared to stand up and say so. If you want change too, I ask you all, are you happy to stand with me?

Doesn't time (Mc)Fly

Sat, 16 May 2020 11:45:00 GMT

We'd all like a bit more time...

We live in the modern age, we have apps, gadgets and gizmos galore to make our lives easier and more convenient but unfortunately no-one has invented anything giving the one thing that most people would really like a bit more of – time.

At the start of lockdown, I saw lots of posts on social media giving really good ideas for all the different things you can do to while away all the spare lockdown hours. Several weeks in, and I’m still waiting for all this extra time to materialise! I’m sure I can’t be the only one; how often have you felt you could just do with a couple more hours in the day?

I’m not going to be wandering into HG Wells or Marty McFly territory here obviously (although a time travelling DeLorean would be terrifically useful) but how often have you felt you could just do with a couple more hours in the day?

Being busy is a good thing and many people thrive when under a certain amount of pressure. However, if ‘busyness’ turns to ‘overwhelmed’, it can lead to stress or anxiety if we no longer feel we're in control; this is exacerbated if we are not always the best at delegating or asking for help.

I, like many pe ople I’m sure, have been in situations in the past where you have so much to do that you don’t even know where to begin, and don’t feel you have the time to do it. There are tips and techniques to deal with this of course, but the best thing is having top quality people around who can pitch in and pick up the slack when you need a bit of help, giving you just that extra bit of time you’re needing.

Of course, in reality that’s much easier said than done, particularly in our profession as we seem to have a real shortage in the supply of high quality people. I was doing a little research for a project just before before lockdow n, and a quick search showed there were over 1,000 paraplanner, over 500 financial planner and 700 financial adviser vacancies on Reed alone.

So what can you do to get the people you need around you to help your business thrive when there is an inexhaustible demand for what seems like a shrinking supply of high quality applicants?

Whilst obviously not a cure for all ills, one option is outsourcing. It sounds obvious I know but outsourcing can be a real help to all sorts of businesses. There are those who maybe don’t need to take on a full time permanent employee to cover a temporary spike in work and just need a short term quick fix; others who would like the structure of a permanent person but are just struggling to find the right fit for them, and those who like having a paraplanner at arm’s length to ensure they get an impartial second opinion and view.

Whatever the reason, there is a wide range of terrifically good outsourcers to suit all requirements, preferences and timescales, and if you do find yourself needing a bit of a hand, I would encourage you to consider looking into it as an option. It’s a shame they aren’t time travelling DeLoreans of course, but outsourcers can, in their own way, perhaps help you get to that elusive 88 mph and give you that bit of extra time you’re after.

To be or not to be called a paraplanner...

Thu, 20 Feb 2020 10:59:00 GMT

Level 4 and beyond?

Should you have a minimum level of qualification before you can use the title ‘Paraplanner’? Many think so, in particular, it should be at least Level 4, aspiring to Level 6 or 7.

I used to think this myself, passionately in fact; once I’d achieved Level 4.

Then I met and worked closely with a number of paraplanners (and they absolutely were paraplanners), who hadn’t quite got to Level 4. They had started their qualification journey and had several exams under their belt but for various reasons, had not quite made it to the full Diploma.

Whilst they weren’t Level 4, they all had really good technical knowledge from regularly completing CPD, they were experienced in research and cashflow planning, were articulate with excellent grammar and communication skills in their report writing, and had a fantastic ‘client first’ attitude. In short, everything I would be looking for in a paraplanner.

Working with them showed me, first hand, (and I am more than happy to admit it) how wrong I had been. These were skilled, knowledgeable and experienced people doing a fantastic paraplanning job. Our employer was happy with what they were doing, as were their planners, and most importantly the clients they worked with were receiving excellent service, with good quality advice presented in an easy to follow, client friendly report.

I don’t disagree that everyone should want to increase their knowledge and skills, and strive to be the best they can. I’m also all for everyone fulfilling their potential but this isn’t going mean the same thing for all people.

One comment on a recent article I read about this was ‘if you have bags of experience, you should be able to pass five not overly difficult Level 4 exams’. I’ve spent years training and developing paraplanners so I know that what may be relatively simple to one person could be terrifically difficult for another.

We all learn in different ways, some people thrive under exam conditions, some do not. Some are great at coursework, some are not. Some people can pick something up after being shown it once, some people need to see it several times before they understand and are able to do it themselves. Some people learn best from reading and some from just doing. It doesn’t mean one person is better or superior than another, it just means we are different.

Another comment raised was that the Accountancy and Legal professions have minimum standards. I’m not disputing this, to be an Accountant, you need the AAT qualification, to be a Chartered Accountant, you need a degree in accountancy. To be a solicitor, you need a law degree.

However, these professions have had years to set standards and qualification levels, many, many years in fact. The Institute of Accountants was formed in 1853 and the Law Society in 1825 but these weren’t created overnight; how many years before that had they spent, creating, defining and honing their profession? How long has a degree in Accountancy or Law been available? To be comparable with these professions, wouldn’t we need a degree in Paraplanning?

We have had paraplanners in this country for 20 years, maybe 25. Our largest professional body, the Personal Finance Society is only just 15 this year, and so we are a profession that is still very much in it’s infancy. It’s fantastic that we are aspiring to get as qualified as we can, but qualifications aren’t everything.

There is also the quandary that the definition, responsibilities and tasks of a paraplanner vary from firm to firm. At the moment, the market dictates what is required of a paraplanner. What one business wants from theirs is likely to be very different from another. There are many similarities between the roles for each business but there is yet to be a common definition that most people agree actually is the role.

‘Paraplanners are not just report writers’ is something else that often comes up. No, they are not but what’s wrong with report writing anyway? Many paraplanners started there, myself included, and it’s a great introduction into the profession. Report writing is itself a skill. Being able to take information about a client in a fact find or file note, along with research, advice and recommendations that someone else has prepared, and present these in an articulate, clear and simple way that a client will understand is itself an acquired skill. I’ve worked with many highly qualified paraplanners who were chartered and fellow, whose technical knowledge was second to none but could not articulate the recommendations in a way that a client would be able to understand and follow. In fact, on occasions, I found myself, a qualified and experienced paraplanner, s truggling to follow exactly what a report was recommending and why, for all the technical info and jargon that was being used.

I’m not disputing that it is necessary to have a really thorough technical understanding to be a great paraplanner. I agree that working to be Chartered and Fellow has improved me as a paraplanner, but these are not the only thi ngs required. I have spent years learning how to improve my communication and writing skills, learning practical skills such as cashflow and using research tools, and gaining experience to try and be the best I can.

So back to the point in question, you need to be Level 4 to be able to call yourself a paraplanner? Level 4 can be completed in a year. Does this mean that someone who has no previous financial planning or paraplanning experience can complete this in twelve months and then call themselves a paraplanner but someone who is Level three, with many years experience, excellent paraplanning skills and technical knowledge from CPD cannot? That makes no sense to me at all. In my view, if you are doing paraplanning, you are a paraplanner.

I would also ask if you were one of these paraplanners and someone told you that you can’t be called that now, what sort of message does that send?

The fact is, at some point, we need to collectively, as a profession have a real discussion about what a paraplanner is and isn’t. Perhaps we do need a minimum qualification level, perhaps not; perhaps a minimum experience level, again, perhaps not.

Solicitors and accountants have nearly two hundred years on us so it’s not in the least surprising that they have this nailed down by now. That doesn’t mean we won’t in the future, but putting in minimum qualification requirements without thinking of the impact that this will have on paraplanners who have been doing a great job for many years without this qualification is unlikely to have a positive effect on the profession. Conversely, saying that someone with no experience but with a Level 4 qualification is able to use the title, is also likely to create divisions.

I’m not saying we don’t need standards but what we need to do is decide on what the role is, the competencies required, the skills / experience and qualifications and then build a workable framework so we can define and develop a profession much like law or accountancy. Who knows, at some point we may have the Paraplanner Society or the Institute of Paraplanners, we may develop a degree in Paraplanning and be the recognised and respected profession I know we all aspire to be.

However, right now, we have a shortage of good quality people and need to attract much needed new talent to take it forward, develop and grow it. To do this, we need to work together and not alienate people already in the profession, whatever their level or put people off by setting qualification standards for a profession we can’t even define yet.

In the meantime, let’s build bridges not barriers into paraplanning; we are a fantastic profession with a great future ahead of us.