What is Outsourced Paraplanning?
Outsourced Paraplanning is the ability to contract out your Paraplanning needs to a professional organisation that specialises in the preparation of Statements of Advice, Records of Advice, Fee Disclosure Statements, File Notes etc via outsourced / Virtual Paraplanners.
Typically, such an organisation will have access to a wide variety of Paraplanners with a varying degree of skill and knowledge.
Typically, such an organisation will have access to a wide variety of Paraplanners with a varying degree of skill and knowledge.
How do I know Outsourcing is the right fit for my business?
Outsourcing is used by many businesses, both large and small and often the individual business will have different objectives and outcomes they would like to achieve. Whether you are looking to pass the full responsibility of Statement of Advice preparation to an outsourced Paraplanning team or you are looking for an overflow for peak times, the benefit of outsourcing is that you have the option to use the service as much or as little as you like. - Related The benefits of Contract Paraplanning
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Where is my Outsourced Team Located?
Different outsourcing providers will have different approaches to building their team. If you have a preference for where your team will be located be sure to ask the service provider if they can accommodate your needs. When it comes to Paraplanning having local contractors has many benefits and is often a non-negotiable as you need to ensure you Paraplanners are fully aware of the taxation, social security and superannuation rules specific to your location.
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How do I pay for an Outsourcing solution?
When discussing your needs with your outsourcing provider be sure you gain an understanding of when payment is required for the service. Paraplanning requires a high level of customisation of the Statement of Advice document and will often go through a number of revisions before you are happy with the result. The adviser is usually issued with the Statement of Advice and then once they are happy with it an invoice is generated and you have 7 to 14 days to make payment.
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What Risks should I be aware of?
In the financial services and advice industry in Australia the Authorised Representative is solely responsible for the advice provided to their clients. - refer ASIC Website.
Advice is provided through the Statement of Advice document. While the Paraplanner needs to be PS146 compliant they are not liable for the advice document that is ultimately being presented and signed off by the adviser. The role of the Paraplanner is to perform financial modelling, projections and draft up the scope of adviser via instructions from the adviser, the adviser needs to ensure the advice document they are presenting to their client is compliant. |
Summary
Outsourcing can provide you with the flexibility you need to be able to produce high quality Statement of Advice documents without the need to spend thousands of dollars on an in-house Paraplanning solution. Spend a few dollars trialing the service and then you will have a comparative basis to decide which is the best solution for you, in-house or outsourcing.