What are the day-to-day responsibilities of a Paraplanner?
The role of a Paraplanner is to work alongside the Financial Adviser and support them in their Financial Planning to ensure clients receive the best possible advice. For Paraplanners aspiring to become Financial Advisers, the role offers a depth and breadth of knowledge that can be useful when they progress in their career. However, Paraplanning is a rewarding and interesting career itself and many become Paraplanners without the intent of moving to Advising.
The responsibilities of a Paraplanner can be incredibly varied and can differ from one day to the next. This blog will address a list of the suggested tasks and general responsibilities of a Paraplanner to give insight into their working day.
Detailed Analysis and Researching Products
Paraplanners must utilise their skills to conduct thorough research and analysis into a variety of areas. Although they rarely interact with clients directly, Paraplanners may still prepare the financial recommendations and must be well informed to do so.
By deploying their extensive analytical skills, Paraplanners examine data to determine a client’s financial position as well as to monitor market trends or potential investment opportunities. They may look at what past recommendations were made to the client and consider their exposure to potential financial risk in order to identify how best to update their financial strategy.
A main form of research Paraplanners undertake is product research which can include conducting due diligence, crunching numbers, or considering regulatory changes. Paraplanners may also conduct research into potential tax or legislation changes that could affect the clients.
One of the main responsibilities of a Paraplanner is collating research and analysis into reports for Financial Advisers to present to their clients. These reports must be well-informed and well-considered. They usually contain high levels of detail as well as financial recommendations made by the Paraplanner after extensive analysis.
Client reports can include technical details such as in-depth product research or cash flow analysis. Paraplanners often deploy their forecasting skills to create cash flow forecasts that demonstrate how a client’s income and outgoings may impact their financial plans. These reports can also contain details such as the client’s history or details regarding required compliance or organisational standards.
Once a Paraplanner has completed a report it is usually reviewed by a Financial Adviser before being sent to the client. Some Paraplanners liaise with Financial Advisers throughout the writing process therefore it is important that Paraplanners have excellent communication skills.
Conducting Administrative Tasks
In order to help maintain a well-organised system, Paraplanners may undertake administrative tasks such as finance related clerical duties. This can include tasks such as locating and analysing banks statements or filing documents and entering data into internal digital systems. They may also perform other administrative activities such as answering phones, replying to emails, or scheduling appointments.
As Financial Advisers often interact with several clients during a workweek, it is important that client files are well organised and easy to access. Paraplanners can be responsible for maintaining the proper organisation of client files and may also implement client information into spreadsheets.
Paraplanners also ensure that the financial plans and recommendations made, adhere to industry and company regulations as well as compliance standards. It is essential that everyone involved in the advice process maintains a high quality of compliant work. As a Paraplanner is a key individual within this process, they will often have a responsibility for checking the quality of the work.
Alongside these other duties, a Paraplanner may have other tasks such as undertaking regular training and development to ensure they remain well-informed and up to date. Though they do not usually interact with clients, they may also be required to attend client meetings on some occasions.
This is a range of suggested tasks a Paraplanner might complete throughout their working day. Paraplanning is an excellent career option for those who enjoy variety and who have skills in research, analysis, and communication.
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