Frequently asked questions about Paraplanning

A paraplanner is a person who works with a financial adviser and specialises in the preparation of advice documents such as statements of advice and research for the adviser’s clients.

Other than preparing advice documents, other tasks a paraplanner may perform include:

  • Financial modelling using various financial planning software
  • Statement of Advice documents
  • Record of Advice documents
  • Investment, Superannuation and insurance product research
  • Prepare insurance quotes and comparing existing products

Paraplanning services provide external paraplanning support to financial advisers. Paraplanning services can perform similar tasks as inhouse paraplanners but offer more flexibility for financial advisers from a resource perspective. Paraplanning services are scalable and therefore can accommodate an Adviser’s practice as it grows; also, paraplanning services can assist as an overflow support to an inhouse paraplanning team when times are busy.

Frequently asked questions about SOA?

A Statement of Advice or SoA is written financial advice, legally required to be provided to a client, when advice is being provided. It is a personally tailored document that outlines the recommendations that have been made by the financial adviser to the client. It also details how the recommendations are intended to benefit the client.

SOA means Statement of Advice.

A Statement of Advice (SoA) generally contains 3 key sections. The first section outlines a client’s current situation, financial goals and objectives. The second section addresses the scope of advice to the client, recommended strategies and products and how these recommendations will achieve the client’s goals and objectives based on their current situation. The third part outlines the cost of the recommended advice to the client, product fees and steps to take in order to implement the advice. Product research, comparisons and financial modelling can also be included in the SOA. A well written statement of advice requires a good template as a base, but above all, a highly skilled paraplanner means the difference between a good SoA and a great SoA.