Hannah Wynick, from Core Financial Paraplanning Limited (CFPL), believes paraplanners add value to an IFA’s service and especially to those who work alone.
Speaking to FT Adviser on how paraplanners enhance an adviser’s proposition, the managing director at CFPL, said: “In my opinion, it is having a second set of eyes. We find that sometimes, especially if you work alone, you need to step away from your advice and then come back to it the next day to re-evaluate it.
"If you are working with a paraplanner, you have someone else looking at the advice with a fresh pair of eyes. They may spot things that have been overlooked or ask for clarification on decisions which enhances the recommendations.
"They also give you someone else to bounce ideas off which, when you work alone or in a small team, is essential in making sure the advice is correct.”
The firm, which started as a family-run business with her mum Jayne, has provided outsourced paraplanning services since 2011.
It is run on a pay-as-you-go basis, which is cost effective for smaller adviser firms that need to be mindful of their outgoings.
She said: “For us, outsourcing is a no brainer. The way that CFPL run is that we are a purely pay-as-you-go service so if you have quieter months, for example over the summer or around Christmas, you don’t need to worry about paying for a service that you aren’t using.
"In the same vein, you also aren’t paying for all the other benefits that an employee would require – national insurance and tax, pension contributions or sick pay.
"In terms of what we provide, I have always found working for several firms really beneficial, especially when you come across more complicated advice.
"By having worked with several firms, the chances are we have seen something like this before and are able to offer guidance in this area if it is not one that the financial planner is au fait with.
"Similarly, we may have processes or options that the financial planner may not have considered before, that could enhance their advice or way of working.”
Challenges of outsourcing
There are pros and cons to everything and one of the challenges of having outsourced paraplanning services is building a rapport between the financial adviser and paraplanner. But Wynick said her firm overcomes this by being transparent.
She said: “Obviously, both in-house and outsourcing have their downsides and sometimes outsourcing work can leave financial planners feeling a little out of control. At CFPL, we mitigate this by being exceedingly transparent.
"Before we start any work, the financial planner knows what work will be done, what the cost is and more importantly, when the work will be back with them. If, along the way, anything happens to prolong the timescales, we keep them updated.
