88% of Advisers would not use an outsourced Paraplanner

Nearly nine out of ten advisers say they prefer to employ a full-time paraplanner as part of their in-house team instead of turning to an outsourced paraplanner, exclusive research from Panacea Adviser has revealed.

The survey of just under 90 advisers asked if advisers consider outsourced paraplanning an attractive option for their firm, to which 88% responded to the contrary that they currently favour having a paraplanner on board as a permanent member of their in-house team.

Less than 1% of advisers surveyed said they would consider outsourcing paraplanning in the future.

We believe that the Retail Distribution Review (RDR) expedited the already expanding nature of the Paraplanner’s role and made them a ‘must have’ resource for many smaller advice firms looking to maximise their earning potential.

Against this backdrop, we might have expected to see a sharp uptake in demand for both in-house and external resources, something which makes the lack of popularity surrounding outsourced paraplanners in our latest survey a somewhat surprising result. However, in our opinion, this does not suggest that outsourced paraplanners somehow have less to offer than their in-house counterparts, they just need to do more to shout about the time saving and other benefits that outsourcing can bring to adviser firms.”

INDUSTRY VIEWS ON PARAPLANNING

The research also gathered opinions of both paraplanners and advisers, highlighting some of the key challenges – and benefits – that using this type of external resource can bring for advice firms.

Nathan Fryer, Director of outsourced paraplanning firm, Plan Works, said:

“I can fully understand why advisers would be apprehensive about outsourcing work of this nature to a third party. In many ways if I were advising myself, and could afford it, I would most likely look to employ a full-time paraplanner too. After all, inviting a stranger into what is quite often an adviser’s “life work” can be bewildering. 

“It’s this that makes communication so key when it comes to outsourcing, explaining why many outsourced paraplanners actually offer a bedding in period for the two parties to get to know one another and identify how they can work together.

While it is also true that having someone in-house can assist with other tasks such as admin and marketing, paraplanners are actually becoming increasingly few and far between, which means that salaries are also being pushed higher and higher.” 

Morwenna Clarke, CFP from Portland Wealth Management, also commented:

“We actually have a successful outsourcing relationship with a paraplanner at present but, in the past, we have come across issues around data protection when outsourcing.

“It seems that some outsourced paraplanners contracts don’t cover the legal issues around protecting and storing customer data, which could potentially see the adviser breach certain European laws. Another issue that may deter some advisers from turning to an external paraplanner is the changing definition of what constitutes a ‘worker’ under UK law, which may make it difficult to work with an outsourced paraplanner.”

As with every element of your business, it is important to ensure when working with a third party that the proper data protection licences are in place and that advisers work closely with their outsourced paraplanners to identify secure ways of communicating and storing data. This should help overcome some concerns that advisers have around using outsourced paraplanners.

Panacea Adviser provides opportunities for advisers and outsourced paraplanners to connect via its Paraplanner Directory and at no cost.  Here, outsourced paraplanners are able to include business details and links to their own website – allowing them direct access to Panacea’s 19,000 strong community.

For more information on the Paraplanner directory please click here. 

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Save our NHS, but how?

Panacea comment for Financial Advisers and Paraplanners

5 Dec 2016

Save our NHS, but how?

I had a very interesting discussion over the weekend with a Labour party activist, campaigning under a specially erected party tent in the centre of my hometown, Wokingham.

I was asked if I would sign a petition to support more funding for the NHS and a very interesting discussion ensued.

The female activist was a bit younger than me and was a teacher. She was passionate about the NHS and was of the view that the NHS needed so much more money.

I agree, but having seen in my 65 years how the NHS has evolved, something, in fact most things with the NHS and its management and funding is seriously broken.

The NHS was launched on July 5th 1948 by the then Labour health minister Aneurin Bevan It was based on three core principles:

  • that it meet the needs of everyone
  • that it be free at the point of delivery
  • that it be based on clinical need, not ability to pay

Please note these, and especially those words in the last one around clinical need and the ability to pay.

To most a visit to your GP, a ride in an ambulance to A&E and the ensuing care after an accident or sudden serious illness are rightly considered to be FOC, funded by our taxes.

But we live in a very different world to that of 1948. Health service provisions are more sophisticated, peoples health needs have become very jentitlement based indeed and as a result are far more expensive.

For example, in 1948, the following were not available treatments on the NHS:

  • Heart and lung transplants
  • Liver and kidney transplants
  • Gender re-assignment
  • IVF
  • Womb transplants
  • Breast enhancement and reduction
  • Tattoo removal
  • Critical illness busting treatments such as cancer
  • HIV prevention
  • Intelligent prosthetics

Whilst many in the UK would cling to the 1948 core principles, the fiscal fuel for delivery of healthcare requires a charging rethink, especially as so much of the NHS service delivery in 2016 is driven more by a clinical want than a clinical need.

Not everything is free anymore in the NHS. With some exceptions we pay for dental care starting at £19.70 prescriptions starting at £8.40 and eye care, excluding contact lenses.

Surely the time has come to apply notional charges for GP visits and non-emergency NHS services that are not currently subject to charges in line with the dental model.

But will politicians be brave enough to change the funding model from all taxation to an element of pay on delivery?

Just a thought