Monarch Institute chief executive Nick Chapman said the group had launched a new advanced diploma course in paraplanning off the back of demand from advice practices for entry-level staff who were trained in the practical aspects of advice and could hit the ground running.
“Advisers are no longer able to ‘do everything themselves’ because the advice delivery process has evolved beyond its simple beginnings to a highly sophisticated, complex and at times confusing infrastructure,” Mr Chapman said.
“As a result, advisers need assistance, support and guidance from skilled professionals, with the right knowledge and expertise.”
Mr Chapman said practices were in need of paraplanners who could weave together the “tapestry of chaos” that constituted the modern advice process and understand how to engage with the various stakeholders involved in implementing advice strategy for clients.
“Beyond the minimum education requirements which are the foundation of financial advice, is a need to understand how ‘everything’ works,” he said.
“Financial advice deals with a tapestry of chaos that weaves together legislation, education, taxation, clients needs and priorities, both now and in the future.”
Mr Chapman said the group’s diploma course, which was being assessed for credit into FASEA-approved bachelor programs, had been designed to “develop, refine and grow students’ understanding of what needs to be done, best practices for how to actually do it and who they will be dealing with; such as fund managers, administration assistants and superannuation fund providers that actually interact with the client when developing and activating a strategy”.
He added that while full bachelor-level education was important for improving the professionalism of the industry, it was equally critical for those starting out in the industry to have a practical rather than theoretical understanding of how advice worked.
“When designing the Advanced Diploma we did not shy away from complexity, as complexity is at the heart of financial advice,” Mr Chapman said.
“Rather our focus was to provide students with the tools, resources and strategies to allow them to distil and process the complexity within a practical setting.”
Hey Monarch. Your comments on here pretending to be advisers extolling the virtues of paraplanning are woefully transparent and cheesy. Give up.
I definately have the need and I understand why its on the rise. the debacle we have ourselves in no one can afford to pay for staff anymore. chasing our tail just to pay the bills….. watch this space as Financial planners are going broke because of legislation….. oh and clients are too as they can afford to see us anymore… only the rich
Financial advisers keep receiving challenge after challenge. It’s tough out there! Hence why it’s important to have good paraplanners supporting them.
The increased compliance requirements makes advice more challenging to deliver. However, putting in place systems/ process and using paraplanners helps me cope. In my practice I focus on winning new business and developing relationships with my clients. I rely on my team (me and a paraplanner) to do the compliance stuff. That way we don’t lose sight of what it is all about; namely the client!
I have all those skills and then some, but can’t etch out a pay rise from my employer for a long time, not prepared to pay for it or acknowledge it.
“Etch out”? There is no such expression. Perhaps you were thinking of “eke out” which is an actual expression, but is not appropriate in the context of your sentence.
Maybe your employer is unwilling to give you a pay rise until your English language skills improve?
I think Nick Chapman has misread the market. More paraplanners now unemployed, SOA numbers dropping in the event of greater compliance, less new business being written, less advisers in the market place and falling and risk insurance changes to IP also having its impacts. Always a need for SOAs but it is not the growth area Nick is hoping for.
Financial advice is about servicing our clients & their needs, while meeting the regulatory requirements associated with servicing our & their needs. Whenever we (as fin advisers) say anything to a client, the compliance wave begins – several document need to be prepared. Skilled paraplanners are perfectly placed to assist & sort this for us. Utilising the services of a paraplanner allows the adviser more time to service clients and generate new business. It’s about having skilled professionals to support those providing advice.