Sense Check. How much does the paraplanner influence the final recommendation?

Financial Advisory

25 May 2023

AdviceConsumer DutyFCAFinancial AdvisoryInvestmentsManagementMeeting of Minds

Facilitator: James Goad


  1. In the shadow of the FCA Consumer Duty, paraplanners are being given greater responsibility and rising up the ranks within firms, with increasing numbers taking positions on investment committees, becoming key members of the management team and development committees, and in some cases joining the board
  2. Increasingly, financial advice firms are seeing paraplanners as the engine room of their business, tasked with research and due diligence, report writing and making decisions on the recommendations made to clients
  3. This is freeing up advisers to do what they do best, build client relationships and bring in more business
  4. This is in marked difference to the general perception held a few years ago of paraplanning as an administrative role and reflects a momentum that looks set to see paraplanners take on even greater responsibility in firms across the market

Key takeaways:

  • Paraplanning has moved from being seen as an administration role to a fundamental role within the business
  • 46% paraplanners say their influence has increased in the past two years
  • 73% of paraplanners predict there will be more paraplanners in management roles in the next five years
  • 62% see technical & compliance support as the area of support they are looking for in a strategic partner
  • 38% see asset allocation expertise and training as the area of support they are looking for in a strategic partner