How to become a paraplanner

What does a paraplanner do?

A paraplanner works alongside a financial planner like a paralegal would work with an attorney.

Given the sheer amount of research, regulations, and documentation associated with financial advisory services, paraplanners typically do more behind-the-scenes research and preparation for a financial planner.

They must also be adaptable and open to constant change.

Paraplanning is an excellent job for those fascinated with figures and finances who prefer less client interaction. It offers growth opportunities and is also a fulfilling profession in its own right. 

Here are some of the expectations of a paraplanner:

• Financial analysis: Conduct a thorough analysis of the client's financial situation.
• Research: Gather and evaluate information on financial products, investment options, and regulations.
• Plan preparation: Assist in creating comprehensive financial plans by organising data, generating reports, and highlighting recommendations based on client goals.
• Risk assessment: Assess clients' risk tolerance and investment objectives.
• Client communication: Paraplanners may be expected to communicate complex financial concepts and recommendations with clients clearly and concisely.
• Compliance support: Paraplanners must ensure adherence to regulatory standards and compliance requirements throughout the financial planning process.
• Client service: Provide ongoing support to clients by addressing inquiries, executing transactions, and monitoring progress toward financial goals.
• Collaboration: Paraplanners must collaborate with financial advisers, portfolio managers, and other professionals to coordinate efforts and deliver a holistic financial solution to clients.
• Continuing education: Paraplanners must keep abreast of industry developments, market trends, and regulatory changes through professional development.
• Quality assurance: Paraplanners must also conduct reviews and quality checks on financial plans and recommendations to maintain accuracy, consistency, and compliance with industry standards.

What are the benefits of being a paraplanner?

If you become a paraplanner you will enjoy many benefits, including opportunities for career growth.

As you gain experience and expertise, you can advance to positions like senior paraplanner or financial adviser. 

Further benefits include:

• The demand for skilled paraplanners remains high in the financial services industry, providing job security and stability.
• Paraplanners engage in complex financial planning and analysis, which offers intellectual stimulation and continuous learning opportunities.
• Another benefit is work-life balance, as many roles offer remote or hybrid work options and flexible working hours.
• Paraplanners can feel fulfilled and purposeful in their work because they know they're helping people achieve their financial goals.
• They often have access to ongoing training, certifications, and other professional development opportunities to enhance their skills and expertise.
• Paraplanners typically work closely with financial advisers and professionals, offering opportunities for teamwork and collaboration.

How much does a paraplanner earn in the UK?

In the UK, paraplanner jobs tend to pay salaries based on experience, qualifications, and location. On average, an entry-level paraplanner can expect to earn around £24,000 annually, while a senior paraplanner can anticipate around £45,000. 

According to Reed, the average salary for paraplanners in the UK is £39,900 annually. But, if you were to work in areas like Kidderminster, Escher, or West London, the average salaries are much higher.

Some firms offer paraplanners an additional cash compensation as a part of their package. In London, this works out to about £3,763 on average.

What are the expected qualifications required to become a paraplanner?

Depending on your desired career trajectory, you'll need specific paraplanner qualifications.

Entry-level paraplanning positions may require a good educational background in subjects like maths, economics, or business studies.

Mid-level paraplanning requires a Level 3 Certificate in Regulated Financial Services Operations, a T-Level in Finance, or a Level 4 Diploma in Regulated Financial Planning.

An advanced level requires an Advanced Diploma in Financial Planning or Chartered Financial Planning (CFP) designation.

You can become a paraplanner through your work, an apprenticeship, or study at a tertiary education institution.

What skills are required to become a paraplanner?

To be a successful paraplanner, you'll need diverse skills. Here's a checklist of the critical skills of a successful paraplanner:

• Analytical skills
• Attention to detail
• Communication skills
• Technical proficiency
• Time management
• Problem-solving skills
• Ethical integrity
• Teamwork mindset
• Adaptability
• Continuous learning mindset

How to become a paraplanner

There are different ways to become a paraplanner. For instance, you can do so through your workplace, start as an apprentice, or study through college.

Whichever way you go about it, here are a few guidelines:

Gain a thorough understanding of what it is to be a paraplanner

It's crucial to have a thorough understanding of the role of a paraplanner, as knowing the associated responsibilities and expectations lays a solid foundation for success in this field.

Additionally, knowing what paraplanning is about helps you see if your skills and interests align with the profession's demands.

Pursue the relevant education

Pursuing relevant education is vital to becoming an advanced or senior paraplanner.

For example, obtaining a Certificate in Paraplanning through the Chartered Insurance Institute (CII) or Chartered Institute for Securities and Investment (CISI) equips individuals with the knowledge and skills to excel in this role.

Additionally, investing in education shows your commitment to the industry while enhancing your credibility.

Get professional experiences

While education is essential, training in the form of professional experience is equally important.

Practical experience allows individuals to apply theoretical knowledge to real-world scenarios, honing their skills and decision-making abilities.

Hands-on experience is invaluable for developing proficiency and confidence as a paraplanner.

Understand your place in the business as a paraplanner

Understanding one's place in the business as a paraplanner is critical to working effectively within a team at a financial institution.

For instance, there are specific tasks paraplanners may not legally do or sign off. Hence, it helps to know one's boundaries in that sense.

Recognising paraplanners' role in a team contributes to the firm's overall goals and operations; they provide optimal support to financial advisors and clients.

This awareness and collaboration fosters efficiency and effectiveness in the role, which leads to career success and possible advancement.

How long will it take to become a paraplanner?

Becoming a paraplanner can take anywhere from one to five years, depending on the following:

• Your qualification route, e.g., study, apprenticeship, or on-the-job training.
• Individual circumstances.
• Educational background.
• Opportunities for professional development.

For instance, the CII course involves 270 hours of studying and practicals, which you complete at your own pace.

Of course, this time could be shorter if you have some experience or other financial or paraplanner qualifications.

However, remember that practical experience gained through internships and on-the-job training is crucial for skills development and career progression.

Can I become a self-employed paraplanner?

Freelance and self-employed paraplanners are becoming more commonplace, and there's a growing market in the UK.

Becoming a self-employed paraplanner requires obtaining the relevant qualifications and experience for starters. Other steps include the following:

• Building a strong network
• Developing specialised expertise
• Setting up your business
• Establishing a pricing structure
• Ensuring you remain compliant
• Providing excellent service
• Managing your budget and finances wisely.

What is career progression like for paraplanning?

Career progression in paraplanning offers diverse opportunities for professional advancement within the financial services industry.

This is because paraplanners typically have a diverse skill set. Here are a few examples of career paths they can pursue:

• Senior paraplanner
• Financial adviser
• Compliance officer
• Team leader
• Entrepreneur 

Want to work with Unbiased? 

Paraplanners typically work alongside financial planners in a supportive role, doing a lot of legwork and research behind the scenes.

They typically have a broad financial skill set and many options for progressing in their careers. However, freelance and self-employed paraplanners are more commonplace in the UK, offering their support services to independent financial planners and financial planning businesses.

If you're a paraplanner looking to grow your firm's network, Unbiased Pro can help you grow your business sustainably and connect with clients who need your exact skills.