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How will the QAR affect existing paraplanning arrangements?

Felcorp Team


March 12, 2023


What you should be aware of:  
  • The industry will change and probably for the better. Some short term pain for some long term gain. However, the tools you have previously used to build your business may not be available in the future.
  • You may need to reassess your needs and start looking at offshore outsourcing in more detail.
  • Offshore outsourcing is likely going to fill the needs where traditional paraplanners can’t or won’t.
  • Start doing you research, find a proper provider that knows your needs and take your first step towards getting reliable and cost effective paraplanning and admin support. 

What we expect to see from the QAR once implemented:

 We have spoken to many key figures, CEOs of dealer groups, corporate institutions in financial planning as well as many advisers and AFSL about how they think the Quality of Advice Review will affect the industry.
All of the people except for a few believe that reduced compliance around SoA production in the very likely outcome of the QAR.
Estimates range somewhere between 20-40% in cost and time savings once implemented.

What We Are Seeing:
We are seeing more and more practices, especially in the self-licensed and small AFSL space focus on creating value through the advice journey rather than on an SoA document. These self-licensed practices that focus on the client journey are growing much faster than traditional practices and their client relationships seem far stronger as they are selling a step by step advice journey rather than focusing on an 90 page SoA for revenue.

In terms of paraplanning needs, we are seeing that these client journey practices require a more comprehensive admin and paraplanning service so they can go seamlessly from data collection to SoA presentation and then advice implementation without double handling data.
The paraplanning and admin process is not focused on the SoA but is in fact, focused on completing the step-by-step client journey. 

 What could happen to traditional paraplanning providers:
We believe that traditional SoA-focused paraplanners are going to struggle somewhat without a fundamental shift in their service. To date, paraplanners have designed their service and pricing around the SoA document generation process. All their activities have been refined and specialised around this specific part of the advice process.

 The likely outcomes are that there will be a rise of offshore paraplanning providers incorporating both admin and paraplanning into one service to assist in the entire client advice journey.
This something that Felcorp is undergoing naturally. 

More and more clients want to combine paraplanning and admin into one service rather than to separate it out for 2 main reasons:

 1.    Cost savings – employ 1 staff member to handle it all rather than a paraplanner and separate admin assistant.

 2.    Streamlined Support - too much time is spent from someone handling over data to someone else, then handling it back to the same person, only to bungle up figures somewhere along the way.


To find out more about how we can integrate both paraplanning and admin service into one combined offering, please speak to us.

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