Financial advisers are showing increasing support for the inclusion of paraplanners in the Financial Conduct Authority (FCA) directory, with over half expressing their favorability towards this move. Research conducted by Panacea Adviser revealed differing perspectives among paraplanners themselves, with only 30% of in-house paraplanners opposing the idea of greater recognition by the FCA, while all outsourced paraplanners were against it. The latter group believed that heightened regulatory oversight would mainly result in added costs and complexities without enhancing client outcomes.
Similarly, business owners shared the sentiment of outsourced paraplanners, with a majority indicating that regulatory oversight would introduce unnecessary expenses and intricacies. On the contrary, advisers displayed a more positive outlook, with a substantial percentage believing that oversight would significantly enhance in-house outcomes. However, concerns were raised by 56% of advisers regarding potential additional costs and administrative burdens.
Regarding qualification standards, opinions varied among in-house paraplanners, with 50% stating that full alignment was unnecessary, while 40% supported it. In contrast, business owners (57%) and compliance professionals (50%) were more inclined to advocate for matching qualification standards. Additionally, the majority of advisers felt that qualification parity should only be mandated for those producing reports utilized in regulated advice.
In a statement from September 2024, Timeline CEO Abraham Okusanya emphasized the importance of paraplanners being as qualified as advisers. Okusanya, a former paraplanner himself, highlighted the multifaceted nature of the role, noting that it involves more than just report writing and due diligence on platforms. He underscored the advantage of paraplanning, stating that it allows individuals to delve into various aspects that pique their interest.
The survey conducted by Panacea Adviser between June and August garnered responses from a diverse group of stakeholders in the UK advice sector, including in-house and outsourced paraplanners, advisers, compliance professionals, and business owners. Panacea Adviser, a free online community and resource hub, offers support to UK advisers, paraplanners, and wealth management professionals.
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