threesixty Research shows IFAs put Wide Ranging Values on Paraplanners
Perceptions among IFA businesses about the role and value of paraplanners are widely diversified, according to research by threesixty, the IFA services provider.
The research showed that the most common hourly fees charged for paraplanners were £75 and £100 (exclusive of VAT where applicable), with 14% of firms charging the former and 14% the latter. But there was a very broad spread of fees charged, ranging from no charge (4% of firms) to £185 (1% of firms), with 11% of firms charging between £40 and £65, 24% charging between £80 and £95 and 27% charging between £110 and £175. Around 5% of IFAs responded “not applicable”.
The survey found that there was much less diversity in fees charged for other roles, with 63% of those advisers who offer a fee option charging between £150 and £200. Half (50%) of respondents set administrator fees at between £50 and £75.
Phil Young, Commercial Director at threesixty, commented: “The wide disparity in hourly rates charged for paraplanners reflects the broad range of their roles and regional variations in salaries, skills and functions. Sometimes paraplanners are highly qualified but lower profile back office staff within firms, and sometimes they are treated as the equal of advisers and meet with clients directly. But paraplanners are playing an increasingly important role in IFA firms, making the key decisions on which funds, products and tax solutions are used. Post-RDR there will be an oversupply of clients needing advice with fewer firms around. Advisers will want to spend more quality time in front of clients and less time dealing with paperwork. Paraplanners will be more important than ever in achieving that. Despite this, historically, they have had little specific support offered to them, and can be ignored by many of those who traditionally offer help such as product providers. We want to change that and establish paraplanning as a profession in its own right.”
threesixty is placing increasing focus on supporting the role of paraplanners in IFA firms and over the last three months it conducted a series of workshops around the UK to provide them with support and a forum for discussions. It will also be the lead sponsor at the IFP’s Paraplanner Conference on 25th May 2011, where it will present on how the role of the Paraplanner can be used to drive efficiencies in the modern financial planning business.
Nick Cann, Chief Executive of the IFP confirmed these findings and said, “The role of the Paraplanner is perhaps now rightly being seen as the most important recent development within the Financial Planning profession. The role is now seen as essential to a forward thinking Financial Planning business. The IFP has not only defined the role but established training and examinations to support it which are key elements to any professional career structure. The work done with threesixty in this area is very valuable and their commitment to support the first ever Paraplanner conference in May demonstrates their commitment and understanding of the sector.”