You probably feel pulled in many different directions while working as a financial adviser. If you spend your time with your clients and keep winning new customers, you won’t be able to do it all. It’s no surprise that a financial advisor’s role has evolved from transactional-based to consultancy-based. This is why there has been a surge in demand for paraplanners. Advisers can rely on paraplanners today to help them with everything from research to financial plan writing and reporting. This frees the adviser to spend more time on client retention and new client acquisition. Is in-house paraplanning or outsourcing paraplanning more beneficial?
Outsourcing Versus In-House
It is tempting to outsource paraplanning. There are many benefits to external paraplanning. They include time savings, minimising costs, and flexibility. Outsourcing allows you to pay only for the services you require when needed instead of paying a paraplanner.
The Problems With Outsourcing
Many advisers have concerns regarding external paraplanning. For one, outsourced paraplanning will not be as personal as working with an in-house paraplanner. This is because it’s difficult to trust someone you don’t know. There might be legal or contractual issues that may arise when you share customer data. Furthermore, outsourcing paraplanning means that you technically rely upon a third party for your work. Therefore, paraplanners can fall behind quicker than employees in-house. This results in less control.
The Advantages and Benefits of In-House
Perhaps instead of looking at outsourced paraplanning’s negative side, we can look at the positives of hiring an in-house paraplanner. Paraplanners can be a great way to reduce risk, increase communication, and strengthen relationships. An in-house paraplanner can fully control the advice process. They are also available to help clients if the adviser isn’t available.
While technical proficiency in writing a report is an important skill, it’s not what clients choose as their advisor. Financial advice should be about relationships. Clients want to feel completely understood and that they can get bespoke advice from their advisers that can help them reach those goals. This holistic approach to advice requires a team effort. Paraplanners are an essential part of this team. In-house paraplanners can attend meetings and build relationships between the adviser and client. This will allow the adviser to give exceptional advice while maintaining a personal touch. The paraplanners will be able to understand the client’s needs and provide real value, not just a report. Paraplanners at the company can monitor and control everything that is said.
PJM Paraplanning Service
PJM Paraplanning lets you have the best of both of them. You can choose which level of paraplanning assistance you need. As a result, you will have all the benefits of outsourced Paraplanning Services but also work with a dedicated in-house team. PJM paraplanning is a trusted company culture that allows you to benefit from the expertise of all paraplanners.
PJM paraplanning’s centralised paraplanning team can assist you in conducting research, writing suitability, and other technical consulting. Because they have a necessary file and are available to consult on any risk you might face, they can assist with front-line compliance. You will also get access to:
- Templates for suitability reports;
- A common pitfalls document is created to minimise the chance of making errors.
- Checklists that will help you improve your suitability report.
It is a straightforward assessment form that allows clients to understand their attitude to risk, ability to understand the advice, and potential loss.
- The evidencing checklist;
- pre-approval checklist.
It is a central support program that allows partners more time to spend with their clients. You can choose what level of support is required, including:
- Client research and administration;
- Writing reports and providing service;
- Preparation and submission of documents in preparation for client meetings;
- Management of cases to paraplanning. Liaising and coordinating with providers to get policy information;
- Annual review preparation that includes cash flow forecasting as well as a professional-client appraisal pack;
- An efficient, personal process with a dedicated point of contact for partners;
- Regular communication between the client and partner. Updates on their cases.