Almost half (49 per cent) of paraplanners believe their roles are “poorly defined”, research from the Lang Cat has revealed.
The research, the Lang Cat’s State of the Advice Nation report, found providing administration is the main blocker for paraplanners in doing their job effectively, something that was referenced by 49 per cent of paraplanners.
This was ahead of paraplanners reporting a disconnect with advisers on what they should be doing (42 per cent).
The Lang Cat said clearer role definitions on the back of open conversations may help to address this challenge.
The Lang Cat insight director and co-author of the report, Steve Nelson, said: “The fact that so many paraplanners believe their roles are poorly defined is a real concern and one where the whole sector must work together to address.
“There is a clear need for open and honest conversions to ensure firms are making the most of valuable skills and expertise.
“This is a no-brainer, given that one of the main findings relating to advice firm owners is that workload is keeping them awake at night.”
Nelson added that a deep dive into the profession is “long overdue”.
Lack of understanding
Another theme that emerged in the report was how paraplanners feel providers view their roles, with some calling out a perceived lack of understanding of the different paraplanning models.
When asked in what regard paraplanners feel their role is held, they said they are viewed in the same esteem as those running the advice profession and among providers.
However, this is not the case for the regulator, where the sector believes it is held in negative regard, or the investment arm of the financial services industry, where it believes it is held in neutral regard.
Both business owners and paraplanners believe that, as a minimum, diploma level qualifications are “vital” for the profession.
There was agreement that for client facing roles a higher level of qualification was needed.
The findings also showed the paraplanning community feel confident in the face of technological change and, in particular, around the emergence of AI.
It showed that just under 40 per cent of respondents are “bullish” that it is not a concern, or if anything they welcome it and believe it will help their role.
This assistance is thought to be in the form of doing some of the “heavy lifting” around data aggregation and report writing.
tom.dunstan@ft.com
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