Paraplanning demand on the rise

Monarch Institute chief executive Nick Chapman said the group had launched a new advanced diploma course in paraplanning off the back of demand from advice practices for entry-level staff who were trained in the practical aspects of advice and could hit the ground running.

“Advisers are no longer able to ‘do everything themselves’ because the advice delivery process has evolved beyond its simple beginnings to a highly sophisticated, complex and at times confusing infrastructure,” Mr Chapman said.

“As a result, advisers need assistance, support and guidance from skilled professionals, with the right knowledge and expertise.”

Mr Chapman said practices were in need of paraplanners who could weave together the “tapestry of chaos” that constituted the modern advice process and understand how to engage with the various stakeholders involved in implementing advice strategy for clients.

“Beyond the minimum education requirements which are the foundation of financial advice, is a need to understand how ‘everything’ works,” he said.

“Financial advice deals with a tapestry of chaos that weaves together legislation, education, taxation, clients needs and priorities, both now and in the future.”

Mr Chapman said the group’s diploma course, which was being assessed for credit into FASEA-approved bachelor programs, had been designed to “develop, refine and grow students’ understanding of what needs to be done, best practices for how to actually do it and who they will be dealing with; such as fund managers, administration assistants and superannuation fund providers that actually interact with the client when developing and activating a strategy”.

He added that while full bachelor-level education was important for improving the professionalism of the industry, it was equally critical for those starting out in the industry to have a practical rather than theoretical understanding of how advice worked.

“When designing the Advanced Diploma we did not shy away from complexity, as complexity is at the heart of financial advice,” Mr Chapman said.

“Rather our focus was to provide students with the tools, resources and strategies to allow them to distil and process the complexity within a practical setting.”