Do you need a qualification to be a Paraplanner?

Well, the short answer is ‘yes’.

Although there isn’t technically a minimum qualification that is needed to become a paraplanner, a quick search online shows that most paraplanner jobs and job adverts say that having a Diploma in Regulated Financial Planning or equivalent would be desirable.*

*That said, don’t worry if you aren’t qualified and want to dip a toe into the paraplanning world! Most firms will support you with your professional qualifications even whilst you are working, which is great if you need some extra support!

The day-to-day work of a paraplanner varies on what financial planning businesses you are working for but, in general, it will typically involve:

-??????Completing cash flow analysis

-??????Carrying out research (i.e., provider, investment strategies)

-??????Preparing suitability letters

-??????Carrying out tax calculations (i.e., inheritance tax, chargeable gains, capital gains tax)

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But what does the financial planner do?

Whilst the paraplanner is working on the above tasks, the financial adviser is more client facing meaning they can be out spending more time with their clients, creating relationships of trust, and really getting into the nitty gritty with them. They will gather both the hard facts (i.e., age) and soft facts (i.e., goals and aspirations) and then begins the financial planning process. The client's financial plan will aim to ensure that the clients remain on track to meet their objectives or if this is not possible, they will ask the clients to prioritise their goals and work towards what’s achievable. This is why the paraplanner works alongside the financial advisers to ensure the small details are included in the client files which can often be highly technical.

Not only does taking on the above responsibilities free up the financial planners' time, but the administrative tasks themselves will obviously have a direct impact on the recommendations. Does the cash flow analysis suggest that the client can afford the lifestyle they want? Will there be any tax consequences for restructuring their investments?

It is therefore very important that we are up to scratch with our technical knowledge! The qualifications will help develop -

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