Handing over paraplanning first
Of everything a principal does, the research and report writing is the easiest to hand to somebody else, and handing it over frees the time the rest of the exit needs.
Of everything a principal does, the research and report writing is the easiest to hand to somebody else, and handing it over frees the time the rest of the exit needs.
In a small advice firm, the principal often writes a large share of the suitability reports, builds the review packs and does the research. That work takes the evenings and weekends. It is also the work most easily handed to somebody else without the client noticing any change.
An exit takes time you do not currently have. The file needs bringing up to date. Clients need to meet the next adviser. You need to plan your own finances. All of that has to fit around a full client diary.
Paraplanning is the largest block of time that can move without changing what the client sees. The meeting stays with you, the advice stays with you, and the report arrives in the same format. You get back the hours you spent writing reports.
The paraplanner takes the research, the cash-flow modelling, the drafting of the suitability report and the review pack. You keep the meeting, the recommendation and the judgement on what goes in the report. You read every report before it goes out, and you sign it.
The regulatory responsibility stays with you. The adviser who makes the recommendation is responsible for it. A paraplanner who writes the report from your notes is writing down your reasoning.
The paraplanner can only write what is recorded. Write down the client's objectives, the options you discussed and why you recommended the one you did.
Give the paraplanner your current report and review pack templates, with a few recent examples you are happy with.
Agree how long a report takes from meeting to draft, and from your sign-off to issue.
Mark up the first ten reports in detail. The style settles quickly once the paraplanner knows what you change.
Start with annual review packs. They follow a set pattern, the client already has a relationship with the firm, and a paraplanner can learn your approach from them quickly. Move new advice reports across once the review packs are running without many changes from you. Leave the most complex cases, such as defined benefit transfers or estate planning for business owners, until the paraplanner has written a good number of reports for you.
You remain responsible for every report the paraplanner writes. Read each report in full before signing. Check that the recommendation in the report is the one you made, that the reasons match your file note, and that the costs and risks are stated correctly. Where the paraplanner has raised a question or a concern, deal with it before the report goes out and record how you dealt with it.
Agree in advance how disagreements are handled. A paraplanner who thinks a recommendation does not fit the client's circumstances should say so in writing, and you should reply in writing. Both belong on the file.
A paraplanner working for several advisers needs to know how you work. Tell them which providers and platforms you use and why, your approach to risk profiling, the way you set out charges, and the points you always cover in a review. Write it down once, in a page or two, and update it when your approach changes. That note also helps the adviser who takes over from you.
A paraplanner who writes every report works from the file. That exposes gaps: a fact-find that has not been updated, a risk profile from years ago, a missing service agreement. Fixing those gaps as reports are written is the same work a buyer's due diligence would otherwise uncover.
It also means a second person at the firm knows each client's situation in detail. When the handover to the next adviser begins, that knowledge is already on the file and in somebody else's head.
Paraplanning is one of the four functions that move to Equity & General when you join, with compliance, administration and infrastructure. Research, suitability reports, cash-flow work and annual review packs are written by Equity & General's paraplanning team. You read them, add your judgement and sign them off. That frees time for the rest of the programme.
After completion, a buyer's integration team moves clients, data, fees and staff onto its own systems. Ask to see that plan before you sign.
Read it
When a younger adviser in your firm asks to buy it, the conversation is about funding, timing and the price, and it needs to be held carefully.
Read it
Old pension plans, closed funds and clients spread across a dozen providers take time to deal with, and a buyer will want to know which of them you have reviewed.
Read itSteven Bates, Director of Advisory at Equity & General, takes the first call with every adviser. Ring him on 020 8396 0486 or send a short note about your firm.