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RDR hands boost to paraplanners
by William Robins on Jan 11, 2013 at 13:11
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.’
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iShares: Time to shatter the ETF myths
As result of industry changes - the retail distribution review - and a growing focus on cost-efficient solutions, we anticipate the number of investors using ETFs will rise significantly over the coming years.
But as with any newer product, especially in the financial world, various misconceptions about ETFs have perpetuated over the years and iShares is committed to addressing and ultimately dispelling these.