Paraplanners are set to cement their importance in the retail distribution review (RDR) world, according to a new survey that reveals the crucial role they play in IFAs’ investment propositions.
In a survey of 141 advisers by Essex-based outsourced paraplanning firm FinalytiQ, more than 74% said paraplanners would become more valuable in the RDR world. Although about 11% of advisers said they did not use a paraplanner, only 6.7% said they would continue to eschew their services over the coming year. Outsourcing is attracting more interest, with 9% of advisers saying they expected to use an outsourced paraplanner in the next 12 months, compared with 6% who outsource today.
Nearly a third of advisers said a key role of paraplanners was to sit on the firm’s investment committee, while one in four said it was to develop and document its investment process. About two-thirds of paraplanners perform platform and provider due diligence, while their most common role is research, analysis and report writing.
FinalytiQ principal Abraham Okusanya said: ‘Post-RDR paraplanners will be measured in terms of how much pressure they are able to take off an adviser. They will be crucial to offering a solid investment process that’s defensible and meets the test of independence.’