Nina Hope, former director of contract paraplanning provider Paraplanning Professionals, which was sold to Tribeca Corporation in 2001 and subsequently absorbed into Integratec, identifies the most common scenarios for employing third-party paraplanners.
“With small practices, they either couldn’t justify employing someone at that stage, or they wanted to test the waters first to see how it would work. With larger dealer groups, where we would be doing all their paraplanning – between 80 and 150 plans a month – it would be to save them the hassle of managing a paraplanning division,” Hope says.
Succession planning for a paraplanner within a small practice is often difficult, and so another reason for outsourcing, although many dealer groups encourage larger practices to have their own internal paraplanners for this reason. [More details]