An ex-adviser turned paraplanner said improved earning potential and career opportunities has resulted in many IFAs making the switch.
Matthew Harrison began his career as a mortgage adviser and IFA before moving into paraplanning in 2005.
This is the complete opposite to the traditional career route, which often sees workers going from an admin role to then becoming a paraplanner before finally qualifying as an adviser.
But he believes this is changing with the rise of the ‘career paraplanner’.
Harrison, who is the paraplanning team leader at Leeds-based Progeny, said: “Paraplanners may have often been attracted into an advisory role because of the earnings potential, so it’s positive that the paraplanning track is increasingly being recognised in its own right, with more opportunities for career advancement.
“My own route was different as I was initially a mortgage adviser and then an IFA. Back in the early 90s and pre RDR however there was a lot of pressure to sell products and find new clients and I recognised that this was not my strength, which I saw much more in the servicing role.
"When I moved into paraplanning it was a relatively new concept within the industry and I quickly discovered that I could utilise all my experience to add real value supporting the planner and more importantly, the client.
“Whilst it’s more common to move from paraplanning into a financial planner role than the other way round, I’ve seen the reverse happen more in recent years, along with people moving into managing a team, compliance or more technical research or analyst role, if they feel a planner role isn’t for them.”
Devil in the detail
He added that paraplanning often appeals to people who prefer the technical side of the job.
He said: “The technical nuances of different products and solutions has always intrigued me and I enjoy looking at the details and forming a long-term solution. Then working with that financial plan on the client journey is where I gain most satisfaction.
“That’s not to say I don’t enjoy the client interaction and my experience within an advisory role gives me a greater understanding of the softer skills required, as well as helping me to constructively challenge the planner if required. I feel a more technical role is where my strengths lie and is why I made the permanent switch.”
Despite this, he added there is still an ongoing misunderstanding around the role of a paraplanner and how they add value.
Harrison said: “The definition of the paraplanner role continues to be a topic of debate within the industry and I believe the main reason for this is that there are still so many firms out there all doing things differently.
