Though common in outlining financial recommendations, there are limits on who can provide a statement of advice (SoA).
About statements of advice and who can provide them
To provide a brief outline explaining what is a statement of advice, a statement of advice (SoA) is a written document that outlines the financial recommendations provided by a financial advisor to their client. It provides a comprehensive overview of the client’s financial plan, including their financial goals, investment strategies, and the recommended products and services to help achieve those goals.
Explaining when a statement of advice is required, a SoA is a legally binding document that demonstrates the advisor’s compliance with regulatory requirements and protects both the client and the advisor.
By providing clients with a SoA, parties like financial advisors can help their clients to better understand their financial situation and make informed decisions about their investments and other financial decisions.
About statements of advice and who can provide them
To provide a brief outline explaining what is a statement of advice, a statement of advice (SoA) is a written document that outlines the financial recommendations provided by a financial advisor to their client. It provides a comprehensive overview of the client’s financial plan, including their financial goals, investment strategies, and the recommended products and services to help achieve those goals.
Explaining when a statement of advice is required, a SoA is a legally binding document that demonstrates the advisor’s compliance with regulatory requirements and protects both the client and the advisor.
By providing clients with a SoA, parties like financial advisors can help their clients to better understand their financial situation and make informed decisions about their investments and other financial decisions.
Reasons there are limitations on who can provide a statement of advice
There may be limitations on who can provide a Statement of Advice (SoA) due to the potential risks involved in providing financial advice to clients. Providing financial advice requires a high degree of knowledge, skill, and expertise, and can have significant consequences for clients if the advice is not appropriate or accurate.
The limitations on who can provide a statement of advice in Australia are designed to ensure that clients receive high-quality financial advice from qualified and ethical professionals and to protect consumers from potential harm.
Legal requirements affecting who can provide a statement of advice
In Australia, there are regulations and requirements for financial advisors and professionals who provide Statement of Advice (SoA) services. The Australian Securities and Investments Commission (ASIC) sets out regulatory requirements for financial advisors and professionals, including educational qualifications, ongoing professional development, and compliance with industry regulations and standards of conduct.
To provide financial advice in Australia, financial advisors and professionals must hold an Australian Financial Services (AFS) license. The AFS license is issued by ASIC and requires applicants to demonstrate that they meet the necessary educational and professional standards to provide financial advice.
Additionally, financial advisors and professionals in Australia must adhere to the Corporations Act 2001, which sets out obligations related to consumer protection, disclosure of fees and commissions, and ethical conduct. The act also includes provisions related to conflicts of interest and disclosure of any potential conflicts to clients.
There are also limitations on who can provide SoA services in Australia, with only licensed financial advisors and professionals being authorised to provide financial advice. This helps to ensure that clients receive advice from qualified and experienced professionals who are knowledgeable about financial planning and can provide accurate and appropriate advice.
Examples of who can provide a statement of advice
Financial advisors
Financial advisors are professionals who provide clients with advice on financial planning, investment strategies, and risk management. Financial advisors are one of the most common parties who can provide a statement of advice.
They often work with clients on a one-on-one basis to help them achieve their financial goals. In providing a SoA, financial advisors will typically gather information about a client’s financial situation, assess their needs and goals, and provide recommendations on investment options and strategies.
Wealth management firms
Wealth management firms provide a range of financial planning services, including investment management, estate planning, and retirement planning. They may also provide clients with a SoA as part of their services.
Wealth management firms typically have a team of professionals who work together to provide clients with a comprehensive financial plan that meets their individual needs and goals.
Investment management companies
Investment management companies are responsible for managing client’s investments on their behalf. They may also provide clients with a SoA that outlines their investment strategy and objectives. Investment management companies typically have a team of professionals who work together to manage clients’ investments and provide them with regular updates and reports.
Paraplanners
Paraplanners are professionals who work alongside people or businesses like those listed to assist with statement of advice preparation or outsourcing statements of advice. They are responsible for conducting research, gathering data, and analysing information to assist in the creation of a comprehensive SoA. Paraplanners may also assist with administrative tasks and other aspects of financial planning, like:
Advice on choosing from who can provide a statement of advice
Having a high-quality and professional Statement of Advice (SoA) is essential for effective financial planning. That’s because a SoA can help clients to better understand their financial situation and make informed decisions about their investments and other financial decisions.
At One Degree Paraplanning, we are committed to providing high-quality and professional SoA services to financial advisors and professionals.
Our experienced team of paraplanners can assist with all aspects of SoA preparation, from data gathering and analysis to report writing and compliance. Contact us today to learn more about our statement of advice services and how we can support you or your financial planning practice.
As a client, you may have heard about the importance of a Statement of Advice (SoA) in the financial planning process. But, do you know when an SoA is required?
Legal requirements that help determine when an SoA is needed
When it comes to creating an SoA, there are specific legal requirements that financial advisers and their support staff must adhere to.
Explanation of the “best interests duty”:
As of 2021, financial advisers are obligated to act in the best interests of their clients. This means that advisers must prioritise their clients’ interests over their own, and ensure that their advice is tailored to their client’s specific needs and circumstances.
Financial Services Licensee’s obligations:
Financial services licensees (FSLs) are responsible for ensuring that their advisers comply with legal requirements when providing advice to clients. This includes ensuring that advisers have the necessary qualifications, skills, and knowledge to provide advice and that they adhere to the licensee’s policies and procedures.
Compliance with Australian Securities and Investments Commission (ASIC) regulations:
The Australian Securities and Investments Commission (ASIC) is responsible for regulating the financial services industry in Australia. ASIC sets out rules and guidelines that financial advisers must follow when providing advice to clients. This includes requirements around record-keeping, disclosure, and conflict-of-interest management.
Situations and examples of when a statement of advice is required
It’s important to note that these are not the only situations that may require an SoA. Other circumstances may arise that require an SoA to be prepared. As such, it’s always best to consult with a professional paraplanner or financial adviser to ensure that you’re meeting all legal requirements and providing the best advice possible to your clients.
When providing personal advice
If a financial adviser provides personal advice to a client, they must prepare an SoA that outlines the advice given and the basis for that advice. Personal advice is advice that is tailored to a client’s specific financial circumstances, objectives, and needs.
When making a recommendation to acquire or dispose of a financial product
If a financial adviser recommends that a client acquire or dispose of a financial product, they must prepare an SoA that outlines the recommended product and the basis for that recommendation. This is to ensure that the client is fully informed of the risks and benefits of the recommended product.
When there is a change in a client’s circumstances:
If a client’s circumstances change, such as a change in their income or employment status, their financial adviser may need to update their advice. In this case, the financial adviser must prepare an SoA that outlines the updated advice and the basis for that advice.
When the financial adviser recommends a new product or strategy:
If a financial adviser recommends a new financial product or strategy to a client, they must prepare an SoA that outlines the recommended product or strategy and the basis for that recommendation. This is to ensure that the client is fully informed of the risks and benefits of the new product or strategy.
Situations where a statement of advice is not required
While an SoA is typically required in most situations where financial advice is given, there are some circumstances where an SoA is not required.
It’s important to note that while an SoA may not be required in these situations, financial advisers are still obligated to act in the best interests of their clients and to comply with all other legal requirements, such as disclosure requirements.
General advice:
If a financial adviser provides general advice to a client, an SoA is not required. General advice is advice that is not tailored to a client’s specific financial circumstances, objectives, or needs. An example of general advice might be an article or blog post that provides general information about a particular financial product or strategy.
Execution-only service
If a client already knows what financial product they want to acquire or dispose of, and the financial adviser is only facilitating the transaction (i.e. providing an execution-only service), an SoA is not required.
Class of product service
If a financial adviser provides advice on a class of financial products rather than a specific product, an SoA may not be required. An example of this might be advice on a particular type of investment, such as shares or property.
What should be included in a statement of advice when they’re required?
Learning more about “What is a Statement of Advice?”, to create an effective SoA at a time when they’re required, the following key components should be included:
- Key components of an SoA, including contact details, date of advice, and statement about the advice’s basis.
- Client’s financial objectives and current situation to tailor the advice to their needs.
- Summary of recommended strategies and products, with an explanation of how they meet the client’s objectives.
- Clear and concise explanation of the risks and benefits of the recommended strategies and products.
- Other important information, such as fees, conflicts of interest, and alternative strategies/products for the client to consider.
By including these key components, financial advisers can ensure that their clients are fully informed and confident in their financial decisions.
For help with statement of advice requirements
How SoAs help clients and why they’re required
Creating a Statement of Advice (SoA) is a crucial step in the financial planning process as they provide a clear and concise summary of the financial advice given, and helps to ensure that clients are fully informed and confident in their financial decisions. It’s because of this that they will be required during situations where providing personal advice or important financial decisions.
When a statement of advice is required
An SoA is required when providing personal advice, making a recommendation to acquire or dispose of a financial product, when there is a change in a client’s circumstances, or when recommending a new product or strategy.
An SoA is not required when providing general advice, an execution-only service, or a class of product advice. An SoA should include the financial adviser’s contact details, the date of the advice, the client’s financial objectives and situation, recommended strategies and products, an explanation of risks and benefits, and any other important information.
When to seek help for a statement of advice
If you’re unsure about the requirements for creating an SoA, it’s always best to seek professional paraplanning services offering statement of advice services to ensure that you’re meeting all legal requirements and providing the best advice possible to your clients.
Financial modelling is an analytical tool that has become increasingly important in modern-day finance. In simple terms, financial modelling refers to the process of creating a summary of a client’s expenses and earnings that can be used to calculate the impact of a future event or decision.
This summary is then used to provide financial advice that helps clients make informed decisions about their investments and financial planning.
As a service, the importance of financial modelling lies in its ability to provide insights and support decision-making in various industries, such as investment banking, corporate finance, and portfolio management. Financial models help businesses evaluate the potential impact of different scenarios and make informed decisions that can affect the company’s financial health.
Financial modelling is also used in risk management, budgeting, and forecasting, making it a critical skill for finance professionals.
Types of financial modelling
There are various types of financial models, each with a specific purpose and approach. By understanding the different types of financial models, you can select the most appropriate type of model for your specific needs and effectively use financial models to support your decision-making processes.
Budget models:
A budget model is a financial model used to create a budget for a business or individual. It involves forecasting the income and expenses of the business or individual over a specific period, such as a year or a quarter. Budget models are used to set financial goals, identify potential issues, and make adjustments to the budget as needed.
Valuation models:
A valuation model is a financial model used to determine the value of an asset, such as a company, stock, or real estate property. Valuation models use a variety of financial metrics, such as earnings, cash flow, and growth rates, to estimate the value of the asset. Valuation models are used in mergers and acquisitions, investment analysis, and financial reporting.
Forecasting models:
A forecasting model is a financial model used to make predictions about future outcomes based on historical data and assumptions. Forecasting models can be used to predict sales, revenue, expenses, and other financial metrics. Forecasting models are used in budgeting, financial planning, and risk management.
Scenario analysis models:
A scenario analysis model is a financial model used to evaluate the impact of different scenarios on a business or investment. Scenario analysis models use assumptions and variables to create simulations of potential scenarios, such as changes in market conditions, interest rates, or regulatory environments. Scenario analysis models are used in risk management, investment analysis, and strategic planning.
How to create a financial model
Creating a financial model can be a complex process that involves several steps. Here are the key steps to creating a financial model:
1. Defining the problem:
The first step in creating a financial model is to define the problem or question that you want to answer. This involves identifying the specific financial metric or scenario that you want to model, such as revenue projections or the impact of new investment.
2. Collecting data:
The next step is to collect the data that you will need to create the model. This can include financial statements, market research data, and other relevant information.
3. Selecting a model type:
Once you have the necessary data, you need to select the appropriate type of financial model for your problem. This involves considering the specific financial metric or scenario you are modelling, as well as the level of complexity and detail required.
4. Developing assumptions:
The next step is to develop the assumptions that you will use to create the model. This involves making informed estimates about future trends and outcomes based on the available data.
5. Building the model:
After defining the problem, collecting the data, selecting the model type, and developing the assumptions, you can begin building the model. This involves using specialized software or programming tools to create a mathematical representation of the financial scenario you are modelling.
6. Testing the model:
Once the model is built, you need to test it to ensure that it is accurate and reliable. This involves running simulations and sensitivity analyses to identify potential flaws and errors in the model.
7. Presenting the results:
Finally, you need to present the results of the financial model to stakeholders, such as investors, managers, or clients. This involves communicating the insights and conclusions derived from the model in a clear and understandable way.
Key Skills for Financial Modelling
Quantitative skills:
Financial modelling involves working with complex numerical data and mathematical concepts. Therefore, strong quantitative skills are essential to creating accurate and reliable financial models. This includes proficiency in statistics, algebra, and calculus.
Critical thinking:
Financial modelling involves making assumptions and interpreting data to make predictions about future outcomes. Therefore, critical thinking skills are essential to evaluate the accuracy and relevance of the data used in the model, as well as to identify potential risks and uncertainties.
Attention to detail:
Financial modelling requires a high level of accuracy and attention to detail. A small mistake or oversight in the model can have significant consequences for the outcomes and conclusions derived from the model.
Communication skills:
Financial modelling involves presenting complex data and insights to stakeholders who may not have a background in finance or mathematics. Therefore, strong communication skills are essential to explain the model and its results in a clear and understandable way.
Help with financial modelling
Financial modelling is a crucial tool for decision-making in various financial contexts. It involves creating a summary of a client’s expenses and earnings that can be used to calculate the impact of a future event or decision. Financial modelling requires a combination of technical and soft skills, including quantitative skills, critical thinking, attention to detail, and communication skills.
At One Degree Paraplanning, we understand the importance of accurate and reliable financial modelling to support informed decision-making processes. Our vast paraplanning experience and expertise in using software like XTools+ allow us to deliver customised financial modelling solutions that meet your compliance needs, business rules, and style preferences.
By choosing One Degree Paraplanning for your outsourced financial modelling services, you can access our years of professional experience, expertise, and best modelling software available, at a fraction of the cost of obtaining a software licence yourself. Contact us today to learn more about our financial modelling services and how we can support your business needs.
What is a statement of advice?
A Statement of Advice (SoA) is a written document that outlines the financial recommendations provided by a financial advisor to their client. It provides a comprehensive overview of the client’s financial plan, including their financial goals, investment strategies, and the recommended products and services to help achieve those goals. A SoA is a legally binding document that demonstrates the advisor’s compliance with regulatory requirements and protects both the client and the advisor.
What is a statement of advice used for?
The SoA serves several important purposes, including:
- It is a record of the financial advice provided to the client, detailing the recommendations made and the reasons behind them.
- It helps ensure that the client’s interests are protected and that the advice provided is in their best interest.
- It provides transparency and accountability in the financial services industry, helping to build trust between clients and advisors.
Who might use a statement of advice?
A statement of advice is typically used by someone either helping or advising clients in financial services. Some examples of someone who might provide a statement of advice include:
- Financial advisors
- Paraplanners
- Wealth management firms
- Investment management companies
What are the benefits of using a statement of advice?
A Statement of Advice (SoA) is a critical document for financial advisors as it outlines the financial advice provided to a client. It helps ensure compliance with regulatory requirements, protects both the client and the advisor, and provides a comprehensive overview of the client’s financial plan. The benefits of using a SoA include:
- Ensuring compliance with regulatory requirements and protecting both the client and the advisor.
- Providing a comprehensive overview of the client’s financial plan, making it easier to track progress towards financial goals.
- Serving as a reference point for future discussions between the client and advisor, ensuring consistent advice over time.
- Building trust between the client and advisor through transparent and responsible advice.
A statement of advice is an essential document in the financial planning process. It provides a comprehensive overview of the client’s financial plan, helps ensure compliance with regulatory requirements, and serves as a record of the financial advice provided. By using a SoA, financial advisors, paraplanners, and wealth management firms can demonstrate their commitment to providing transparent, responsible, and reliable financial advice to their clients.
When is a Statement of Advice required?
When a Statement of Advice (SoA) is required is when a financial advisor provides personal advice to a client. Personal advice refers to advice tailored to the client’s specific needs and circumstances, taking into account their financial situation, goals, and preferences. This includes advice on:
- investments
- insurance
- superannuation
- other financial products and services.
It’s important to note that generic or factual information, such as market updates or product descriptions, is not considered personal advice and therefore doesn’t require an SoA. In such cases, the advisor may provide information to help the client make informed decisions, but the final decision is left up to the client.
The requirement for a Statement of Advice highlights the importance of providing personalised, responsible, and transparent financial advice to clients.
It also helps ensure the client’s interests are protected and that the advice provided is in their best interest. By preparing a comprehensive SoA, financial advisors and paraplanners can demonstrate their commitment to providing reliable financial services to clients.
Do you need a paraplanner to write SoAs?
Paraplanning services play an important role in supporting financial advisors and ensuring the quality of their services. By preparing the Statement of Advice (SoA) on behalf of the advisor, paraplanners help to save time and reduce the workload for the advisor, allowing them to focus on other aspects of their business.
Paraplanners have the expertise and knowledge required to ensure that the SoA is accurate, compliant, and meets the regulatory requirements. They are familiar with the latest financial regulations and best practices and can provide support and advice to advisors to help them provide the best possible service to their clients.
Reliable sources of information are critical to the accuracy and credibility of the SoA. Paraplanners have access to a wide range of resources, including market data, economic reports, and regulatory information, to support their work. This allows them to provide the most up-to-date and relevant information to the advisor, which in turn helps the advisor provide the best possible advice to their clients.
For more answers on statements of advice
To summarise, a Statement of Advice (SoA) is a critical document for financial advisors, as it outlines the advice provided to clients and demonstrates compliance with regulatory requirements.
Paraplanning services, like One Degree Paraplanning, can help financial advisors prepare accurate, compliant, and up-to-date SoAs.
One Degree Paraplanning was founded in 2015 by Charles Cooch with the goal of providing financial advisors with a locally-based, high-quality paraplanning solution. Over the years, the company has continued to grow and now boasts an in-house team of experienced paraplanners and a small team of contractors to provide the best-outsourced paraplanning services available.
With a focus on delivering excellence with every piece of work, One Degree Paraplanning has built strong relationships with dealer groups, financial planning businesses, and advisors across Australia, with a majority of clients in Victoria, Queensland, and New South Wales.
We invite you to learn more about Statements of Advice and the benefits of paraplanning services by contacting us online. At One Degree Paraplanning, we are committed to helping financial advisors provide the best possible service to their clients.
What is a paraplanner?
A paraplanner is a financial planning support professional who assists financial advisers in the development and management of financial plans for clients.
Paraplanners typically have a strong background in finance and are responsible for conducting research, analysing financial products and strategies, preparing reports and recommendations, and supporting financial advisers in their practice.
Paraplanners play a crucial role in helping financial advisers across Australia provide high-quality financial planning services to their clients.
Responsibilities of a paraplanner
Researching and analysing financial products and strategies:
A paraplanner will often be responsible for gathering information about different financial products and strategies, such as investments, insurance policies, and retirement plans. They will then analyse this information to determine which options may be suitable for a particular client based on their financial goals and circumstances.
Preparation of financial plans and recommendations:
Using the information gathered through research and analysis, a paraplanner will help the financial adviser create financial plans and recommendations for clients. These plans may include detailed recommendations for investments, insurance coverage, and other financial strategies.
Writing reports and summaries:
A paraplanner may also be responsible for writing reports and summaries for financial advisers and clients. These documents may include summaries of a client’s financial situation, recommendations for financial strategies, and explanations of the reasoning behind these recommendations.
Skills and qualifications required of a paraplanner
Educational qualifications
Many paraplanners in Australia have a bachelor’s degree in a field related to finance or economics, such as accounting, business, or commerce. A higher level degree, such as a master’s degree or a PhD, may also be beneficial for paraplanners who are seeking to advance in their careers or take on more complex responsibilities.
Professional certifications
There are several professional certifications that can be useful for paraplanners in Australia. For example, the Financial Planning Association of Australia (FPA) offers the Certified Financial Planner (CFP) certification, which is a widely recognised credential in the financial planning industry. The Association of Professional Researchers and Analysts (APRA) also offers the Accredited Financial Planner (AFP) certification, which is designed specifically for paraplanners and other financial planning support professionals.
Technical skills
Paraplanners should have strong technical skills, including proficiency with financial planning software and tools, as well as knowledge of relevant regulations and compliance issues. They should also be comfortable working with numbers and analysing financial data.
Strong communication and writing skills
Paraplanners need to be able to effectively communicate their recommendations and findings to financial advisers and clients, both in writing and in person. As such, strong writing and communication skills are important for paraplanners to have.
Attention to detail
Paraplanners need to be very detail-oriented, as they are responsible for gathering and analysing complex financial information and making recommendations based on this data. They should be able to pay close attention to detail and ensure that their work is accurate and thorough.
How paraplanners help financial advisors
The preparation of financial plans and recommendations, as well as the writing of reports and summaries, may be considered the creation of “statements of advice” or “records of advice” in the financial planning industry.
In Australia, a “statement of advice” (SOA) is a document that outlines the financial planning recommendations made by a financial advisor to a client. An SOA must include certain information, such as the client’s objectives and financial situation, the financial products and strategies being recommended, and the reasoning behind the recommendations. An SOA is typically provided to a client when the financial advisor is recommending a course of action that will result in a change to the client’s financial affairs, such as the recommendation to buy a particular investment product.
A “record of advice” (ROA) is similar to an SOA, but it is typically used when the financial advisor is not recommending a specific course of action that will result in a change to the client’s financial affairs. Instead, an ROA is used to document the financial advice that has been provided to the client, even if no specific recommendations are being made.
Paraplanners may be involved in the preparation of both SOAs and ROAs, depending on the specific responsibilities assigned to them within their practice. They may conduct research and analysis to gather the necessary information for the document, and may also assist in the writing and formatting of the final document.
Benefits of working with paraplanners
Improved client service and satisfaction:
By working with a paraplanner, financial advisors can provide a higher level of service to their clients. Paraplanners can handle many of the detailed tasks involved in financial planning, such as research and analysis, allowing the financial advisor to focus on more high-level tasks and spend more time with clients. This can help improve client satisfaction and strengthen the advisor-client relationship.
Greater accuracy and thoroughness:
Paraplanners are trained to handle complex financial tasks and pay close attention to detail. As a result, they can help ensure that financial plans are accurate and comprehensive and that all relevant information has been taken into consideration. This can lead to better outcomes for clients and increased confidence in the financial planning process.
Opportunities for financial advisors to focus on the bigger picture, and more high-value tasks:
By outsourcing some of the more time-consuming tasks involved in financial planning to a paraplanner, financial advisors can free up more time to focus on higher-value tasks such as building relationships with clients, developing new businesses, and providing more personalised financial advice. This can help financial advisors to be more productive and effective in their roles.
Can paraplanners help you or your business?
A paraplanner is a financial planning support professional who assists financial advisors in the development and management of financial plans for clients. Some of the specific responsibilities of a paraplanner may include conducting research and analysis on financial products and strategies, preparing financial plans and recommendations, and writing reports and summaries for financial advisors and clients.
Working with a paraplanner can help financial advisors provide a higher level of service to their clients, ensure that financial plans are accurate and comprehensive, and free up more time to focus on high-value tasks. Overall, a paraplanner plays a crucial role in helping financial advisors provide high-quality financial planning services to their clients.
If you’re interested in learning more about paraplanners and how they can help your Australian financial advisory, please contact us to get started.
When it comes to choosing a contract paraplanner, it is not simply a case of one size fits all.
In order to get the most out of any outsourced paraplanning relationship, it is essential that an adviser first understands the needs of the business, the likely volume of work and types of SOAs that will need to be written.
The different types of paraplanners
There are essentially three types of outsourced paraplanning services that an adviser can choose from:
- Sole Trader
- Offshore paraplanning team
- Onshore paraplanning team
There are advantages and disadvantages of each outsourced arrangement mentioned above and the types of businesses that each service will suit best. This is how to choose the right paraplanner for your needs!
Sole Trader Paraplanner
The sole trader paraplanner is logically the first step in any contract paraplanner’s career.
This arrangement enables the paraplanner to dip their toe into the murky waters of contract paraplanning, with the flexibility to take on as little or as much work as they wish.
The advantages of finding a sole trader paraplanner is that this can often be the relationship with the highest level of touch as sole traders will generally engage only a handful of advisers and can therefore dedicate more time to each relationship.
The disadvantage of a sole trader is that unless they are able to secure just the right amount of work to satisfy their income needs, they are forced to seek more work and engage more advisers which often detracts from their greatest strength being their ability to dedicate more time to fewer advisers.
For an adviser, a sole trader contract paraplanner would best suit businesses that require a higher level of attention such as strategy or administrative support and one that has a very steady flow of work that can guarantee their paraplanner a certain number of SOAs per week/month.
If your business workflow is generally lumpy, a sole trader will probably not suit either party as, when times are quiet your paraplanner will seek opportunities elsewhere and when business is booming, your paraplanner is unlikely to be able to meet your workload.
Offshore Paraplanning Team
Engaging an offshore paraplanning team provides you with access to a greater workforce at a lower cost than could be found in Australia.
Generally speaking, offshore paraplanning teams provide the greatest benefit where your paraplanning needs, such as your SOAs, are consistent in nature by covering similar areas of advice, products etc.
There isn’t a real need to have a steady workflow, other than to meet the needs of the third party that is likely to arrange and manage your offshore team.
If your advice tends to range from the very simple to the very complex and everything in between, an offshore paraplanning arrangement is unlikely to be your best bet.
However, if your business operates in a specific market (e.g. insurance only) and you have software and processes that enable your SOAs to be produced efficiently, an offshore paraplanning team is likely to give you the best bang for your buck.
Onshore Paraplanning Team
An onshore paraplanning team arguably provides you with a greater level of flexibility and consistency than anything else.
With no requirement for a minimum volume of work or any constraints on the types of advice document you wish to write, this arrangement best serves businesses with a broader client base.
Whilst an onshore paraplanning team most likely won’t be able to give you the level of attention a sole trader will or be as cost effective as an offshore team, it will provide the greatest peace of mind knowing that the skilled, experienced workforce is there to tackle any task and that they will be able to deliver a consistent service in both quieter and busier times.
Contact One Degree Paraplanning to explore the best options for you
Overall, the type of paraplanning service that will be best suited to your financial planning business will be driven by the type of financial planning business you are.
Of course, there is no reason why you couldn’t engage a combination of all three services outlined above, however this can create its own set of challenges and more issues than it solves.
Whichever way you decide to go, it’s best to give it a crack for at least a month as it takes time for you to understand how your paraplanner works and for your paraplanner to understand how you work.
Whether you need assistance with ongoing paraplanning support or are in need of a one off large number of SOAs, One Degree has the resources required to meet your needs, regardless of the size of the outsourced task. Contact us today to find out how we can best help you!
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