Making the most of paraplanners

As a paraplanner it is very difficult to have any direct influence on a client. In many respects paraplanners can be seen as one of numerous resources available to advisers in order for them to provide the best possible solution they can for their clients – it is, however, vitally important that advisers have the right ‘resources’ for the job and I hope to discuss this more in a future article. I would argue, though, that as a senior paraplanner who believes he can make a difference, that there are things a paraplanner can do in order to add benefit to a client.

Build the right adviser/paraplanner relationship

Relationships should be based on mutual respect, understanding and benefiting from each other. An open and honest relationship with genuine input from both sides is the starting point for a paraplanner to have any use at all.

Discuss each case fully

Paraplanners can have a great degree of influence at this stage on the client’s behalf. In my experience those advisers who are comfortable with their knowledge and are happy justifying the solution they are providing for their clients, will welcome being challenged at this point. The best way a paraplanner can make a difference for a client is by challenging the adviser and by playing devil’s advocate. There are a number of advantages for all parties in doing this:

• The adviser firms-up their knowledge and justification for their solution.
• The paraplanner increases their knowledge by learning from their adviser.
• The paraplanner has a much better idea of the client’s needs and objectives (this can help later when writing a report).
• Other solutions are considered and can be discounted – again important when constructing the report/suitability letter.
• The client knows that their needs have been fully considered.
• The client knows that the eventual solution is the best available.

Of course, for the adviser who just provides every client with the same solution which always includes the same products with the same providers, this process is not required. But then these advisers do not require paraplanners, they just require administrators who can change a few details on a suitability letter!

Attend client meetings

Where possible it is always useful for a paraplanner to attend client meetings. This has the advantage of allowing the client to see that there is a team working on their behalf; it allows the client to meet office-based staff and gives them a point of contact who can answer some of the basic questions they may have.

Self improvement

All the paraplanners that I have met have always wanted to act in the best interest of the client. Sometimes this means disagreeing with their adviser, but in a healthy relationship this is beneficial to all sides. In order to be effective the paraplanner has to have the technical knowledge to have a meaningful discussion and it is important that they continually improve their knowledge in three key areas:

• Technical knowledge: studying and passing exams.
• Industry and market knowledge: being aware of what is happening in the industry; changes to legislation; to the wider economy and how this may affect your clients.
• Resource knowledge: it is important to know what resources are available, what they do, where to find them and how to use them.

Paraplanners are an important part of the advice process and can add real value if they are used properly and to their full potential.