Forum Discussion
Advice Request Best Practice
What is seen as the best practice for advisors sending through a request for advice to be prepared to the paraplanning team? I can think of some ways using cases to have a task where the advisor comp...
Tamara.Morey
Advisely Partner
Advisely PartnerGreat question. The pre-paraplanning work is one of the biggest bottle necks in advice practices today. I'd challenge you to consider the best use of the adviser's time in this part of the process. Our research tells us that the average adviser takes 2-5 hours to prepare a file for paraplanning. That is time that could be better spent seeing their clients.
Our philosophy is that this process needs to sit with the paraplanner - not the adviser - which is exactly how many of practices we work with are operating. This model involves the adviser completing only the fact find and file note and having a brief 10-15 minute conversation with the paraplanner to convey their strategy ideas and desired outcomes. All plan requests, working papers, product comparisons etc are then completed by the paraplanner. This approach substantially increases adviser capacity, which is key for sustainable practice growth and our profession's impact into the future.
Thanks for that. That's a great perspective, I would be curious if this results in an increase of rework on advice documents due to lack of documentation from the source of the advice? But as you say it is certainly time efficient from the adviser perspective and drives down some of that prep time. I think it is a good reminder that sometimes a short conversation can save everyone a lot of time when we get caught up in developing systems for efficiencies. It does certainly still need surrounding systems to be robust, especially with file noting and perhaps even providing an early executive summary from the paraplanner to the adviser for sign off prior to the full development of the advice, but I like this more, the more I think about it.
- Tamara.Morey
Yes - you're spot on. We'd recommend a strategy brief is always confirmed by the adviser before the plan is produced. And we find there is much LESS rework of advice docs. This is an outcome of the paraplanner being involved in the process earlier and therefore part of the strategy formulation as well as more conversation in the process than in a traditional model, so there's less need for interpretation.
Hi Tamara.Morey I agree that more pre-SOA work needs to sit with the paraplanner and I think with the QAR changes this will be a more core part of their role, but how do you balance this with the trade-off of ensuring due care is taken in formulating recommendations, particular replacement advice?
Do you find that this requires robust firm level product research to be completed? How does the adviser adequately link back directly to goals and objectives for a client if the research is done by another staff member after the adviser has formulated the advice?
I've toyed with the idea that for advice documents, administration staff could complete a product report (could just be an extract from WealthSolver) that the adviser can use in the discussion with the paraplanning team to formulate the advice. Can easily be done at the same as authorities are sent off maybe.
Appreciate your thoughts.
- Tamara.Morey
Hi AndrewM
It's really about making sure you're working with the right paraplanner that has a solid understanding of your licensee's compliance framework and policies. Too many advisers are still taking on this responsibility themselves. The role of the paraplanner and the adviser really need to be reframed with the paraplanner being the expert in compliance policies and advice production and the adviser working as the client advocate. This is the only way that advice can be produced efficiently. Now, the ultimate legal responsibility as to the appropriateness of advice will fall to the adviser and so this is why a trusted relationship with a skilled paraplanner is key.
I think the product advice is simply the outcome of a good strategy. If the strategy requires a product that meets the client's goals of X, Y and Z and a handful of platforms are suggested to the paraplanner for research (or an APSL provides limitations), then the paraplanner's research will result in the product recommendation. When this model is adopted, the research AND strategy sits with the paraplanner and so the recommendation is formulated concurrently.
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